[Verse 1]
When you make a sale or provide a service today
GST and HST have something to say
Three categories you need to know by heart
Taxable, exempt, and zero-rated - let's start
Taxable supplies charge the full tax rate
Input credits flow, don't hesitate
But exempt means no tax collected at all
And zero-rated? Tax free but credits don't fall
[Chorus]
T-E-Z, remember these three
Taxable, Exempt, Zero-rated supplies
T-E-Z, for your GST
Know the difference and you'll get by
Input credits depend on the type you choose
T-E-Z, don't let your business lose
[Verse 2]
Financial services sit exempt from tax
No GST charged but there's a catch in the facts
Banks and lenders can't claim credits back
On their purchases - that's the exempt supply track
Health care and education join the list
Doctors, dentists, schools - they can't be missed
Exempt supplies mean no tax to pay
But input credits slip away
[Chorus]
T-E-Z, remember these three
Taxable, Exempt, Zero-rated supplies
T-E-Z, for your GST
Know the difference and you'll get by
Input credits depend on the type you choose
T-E-Z, don't let your business lose
[Bridge]
Exports are zero-rated, competitive and clean
No tax burden on goods crossing the scene
Real property sales, usually exempt they stand
Unless it's commercial or new construction land
[Verse 3]
Zero-rated means you charge no tax
But input credits come flowing back
Basic groceries and prescription drugs
Zero-rated status gives your costs a shrug
Exempt supplies trap your input costs
Zero-rated means those credits aren't lost
Taxable supplies are the standard way
Full tax charged and full credits to pay
[Chorus]
T-E-Z, remember these three
Taxable, Exempt, Zero-rated supplies
T-E-Z, for your GST
Know the difference and you'll get by
Input credits depend on the type you choose
T-E-Z, don't let your business lose
[Outro]
Classification matters for every transaction
Know your supplies for the right action
T-E-Z will guide you through
Canadian tax law tried and true