Plain meaning
Taxable supplies that are subject to GST/HST at a rate of 0%.
Also called
zero rated supplies
zero rated supply
zero-rated supply
Key points
- Zero-Rated Supplies is part of the GST/HST system and depends on whether a supply, person, or expense meets the statutory requirements.
- The distinction between taxable, zero-rated, and exempt activity can change whether tax is collected and whether input tax credits are available.
- Businesses should keep invoices, contracts, and working papers because GST/HST treatment is often reviewed through documentation.
- Registration, filing frequency, remittance timing, and rebate claims can affect cash flow even when the final tax cost is passed on to customers.
Why it comes up
Businesses generally do not collect GST/HST on zero-rated supplies but may still be able to claim input tax credits.