Zero Rated Tax

In Canada a Zero Rated businesses cannot charge or collect GST/HST, which would have been remitted to CRA. In other words The Goods and Services are taxable at 0%. This is similar to tax exempt businesses. With Zero Rated Businesses the GST/HST registrant can claim ITCs (input tax credits) on their expenses, thus making zero-rated preferred over tax-exempt.

A few examples of zero-rated business are: Medical Devices, Prescription drugs,  Agricultural and Fish Products and Purchases, certain financial services, legal aid services and more.

For a complete list click here.

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