GST/HST Questions with complete
solution 2025/2026
What is the excise tax act (ETA)? - correct answer ✔-part ix goods and services tax
-if prescribed in the ETA it will generally be in a regulation
-Note: check if a word means something for specific ETA purposes (i.e. builder)
What is supply defined as? - correct answer ✔-the basis for the goods and service tax (as income is the
basis for income tax)
-taxable supply is what is taxed
What is property defined as? - correct answer ✔-the provision of property or service in any matter,
including barter, etc.
-property means any property (real or personal), tangible or intangible, movable or immovable, excludes
money
What is service defined as? - correct answer ✔-service is anything other than property excludes
employee
What is commercial activity? - correct answer ✔-commercial activity in a business or venture
concerned in the nature of trade, excludes exempt supplies
-reasonable expectation of profit for personal property not real
What is a person defined as? - correct answer ✔-an individual, corporation, partnership, organization,
etc. but does not include a joint venture (the member of the JV must register)
What is a registrant defined as? - correct answer ✔-a person who is registered or is required to be
registered or is able to voluntarily registered
, A goods and services tax? - correct answer ✔-a 5% tax that applies on most taxable supplies of goods
and services made in CDA
What is harmonized sales tax? - correct answer ✔-a tax that combines GST (5% federal rate) with the
appropriate provincial tax rate (prov part) to apply a harmonized rate
What are some participating provinces and HST rates? - correct answer ✔Ontario 13%
New Brunswick 15%
NFL&LBD 15%
Nova Scotia 15%
PEI 15%
-all other provinces and territories are non-participating for political reasons mainly
How does GST/HST work? - correct answer ✔-from producer to manufacturer to wholesale to retailer
there is GST/HST charged which turns into ITCs that are claimed and the end consumer gets no ITCs
What are taxable supplies? - correct answer ✔-generally all supplies made in CDA are taxable unless
exempt under sched v
-single vs multiple supplies (i.e. class and textbook as one or separate)
-nature of supply
-supply that is made in or outside of CDA (not taxed)
What are some tax exempt supplies? - correct answer ✔-used residential housing
-LT rentals of residential housing
-most educational services
-most health, medical, and dental services
solution 2025/2026
What is the excise tax act (ETA)? - correct answer ✔-part ix goods and services tax
-if prescribed in the ETA it will generally be in a regulation
-Note: check if a word means something for specific ETA purposes (i.e. builder)
What is supply defined as? - correct answer ✔-the basis for the goods and service tax (as income is the
basis for income tax)
-taxable supply is what is taxed
What is property defined as? - correct answer ✔-the provision of property or service in any matter,
including barter, etc.
-property means any property (real or personal), tangible or intangible, movable or immovable, excludes
money
What is service defined as? - correct answer ✔-service is anything other than property excludes
employee
What is commercial activity? - correct answer ✔-commercial activity in a business or venture
concerned in the nature of trade, excludes exempt supplies
-reasonable expectation of profit for personal property not real
What is a person defined as? - correct answer ✔-an individual, corporation, partnership, organization,
etc. but does not include a joint venture (the member of the JV must register)
What is a registrant defined as? - correct answer ✔-a person who is registered or is required to be
registered or is able to voluntarily registered
, A goods and services tax? - correct answer ✔-a 5% tax that applies on most taxable supplies of goods
and services made in CDA
What is harmonized sales tax? - correct answer ✔-a tax that combines GST (5% federal rate) with the
appropriate provincial tax rate (prov part) to apply a harmonized rate
What are some participating provinces and HST rates? - correct answer ✔Ontario 13%
New Brunswick 15%
NFL&LBD 15%
Nova Scotia 15%
PEI 15%
-all other provinces and territories are non-participating for political reasons mainly
How does GST/HST work? - correct answer ✔-from producer to manufacturer to wholesale to retailer
there is GST/HST charged which turns into ITCs that are claimed and the end consumer gets no ITCs
What are taxable supplies? - correct answer ✔-generally all supplies made in CDA are taxable unless
exempt under sched v
-single vs multiple supplies (i.e. class and textbook as one or separate)
-nature of supply
-supply that is made in or outside of CDA (not taxed)
What are some tax exempt supplies? - correct answer ✔-used residential housing
-LT rentals of residential housing
-most educational services
-most health, medical, and dental services
