Supply Classifications: Taxable vs Exempt vs Zero-Rated

ambient house cajun, korean pacific reggae · 4:16

Listen on 93

Lyrics

[Verse 1]
When supply chains cross provincial lines
Three categories define the signs
Taxable goods collect the full rate
Standard HST at the gate
Books and groceries, medicine too
Each follows rules that much is true
Classification determines fate
Calculate before it's too late

[Chorus]
Taxable, exempt, or zero-rated
Three buckets where supplies get weighted
TEZ - remember these three keys
Taxable earns, Exempt's tax-free
Zero-rated claims input back
TEZ will keep you on the track

[Verse 2]
Exempt supplies pay no tax at all
Financial services heed this call
Medical care and daycare slots
Insurance policies, vacant lots
No GST collected here
But input credits disappear
Businesses absorb the cost
Recovery rights are fully lost

[Chorus]
Taxable, exempt, or zero-rated
Three buckets where supplies get weighted
TEZ - remember these three keys
Taxable earns, Exempt's tax-free
Zero-rated claims input back
TEZ will keep you on the track

[Bridge]
Zero-rated seems like none
But input credits can be won
Basic groceries, exports flow
Prescription drugs in zero's glow
Collect no tax but claim it all
This benefit won't make you fall

[Verse 3]
Mixed supplies need allocation
Careful calculation across the nation
Predominant use decides the fate
Don't let misclassification wait
Small suppliers watch the threshold
Thirty thousand makes you bold
Registration changes everything
Classification rules take wing

[Chorus]
Taxable, exempt, or zero-rated
Three buckets where supplies get weighted
TEZ - remember these three keys
Taxable earns, Exempt's tax-free
Zero-rated claims input back
TEZ will keep you on the track

[Outro]
When supplies cross your accounting desk
TEZ will solve your classification test

← GST/HST Basics: Registration and General Obligations | Input Tax Credits: Claims and Restrictions →