HST - Tax Impact
Ontario PST and Federal GST were harmonized to form Ontario HST on July 1, 2010. McMaster University is not exempt from HST (or other sales taxes) and may be required to pay HST on its acquisitions. McMaster University is eligible to claim a rebate in connection with any Ontario HST or Federal GST paid in another province.
The chart below summarizes the amount of the rebate and the net tax cost to your department.
Please note that certain of the University’s activities / sales to external parties are taxable. In these cases, McMaster University is required to collect and remit Ontario HST in connection with these activities.
Related & Affiliated Entities – When is HST Applied?
There is no requirement to charge HST for sales between departments at the University.
There is a requirement to charge tax on certain transactions if the sales are being made to an organization that is a separate legal entity.
By the nature of McMaster’s activity, it is often difficult to tell if an entity / centre / organization is ‘inside’ McMaster’s legal entity or is external to the University. The page below identifies most of the McMaster related entities and identifies whether or not they should be charged tax when billings are prepared.
Expandable List
Any University department or faculty
Research Institutes of ‘Centres’ other than those noted in the tab below
Including but not limited to:
- Foundation for Medical Practice Education
- Friends of McMaster Inc.
- Hamilton Academic Health Sciences Organization
- Hamilton Academic Paediatrics Association
- Hong Kong Foundation
- McMaster Children’s Centre
- McMaster Divinity College (MDC)
- McMaster Innovation Park
- McMaster University Student Centre
- McMaster University Trust
- Pension Plan – Hourly
- Pension Plan – Original
- Pension Plan – Plan 2000
- Regional Medical Associates
- University Club of McMaster
- Bachelor of Health Sciences Society
- Biomedical Commercialization and Discovery Society
- DeGroote Commerce Society
- Engineers without Borders
- Graduate Students Association
- DeGroote MBA Association
- McMaster Association Part-Time Students
- McMaster Engineering Society
- McMaster Humanities Society
- McMaster Medical Students Council
- McMaster Science Society
- McMaster Social Science Society
- McMaster Student Midwifery Collective
- McMaster Student Union
- McMaster Undergraduate Nursing Society (MUNSS)
- OPIRG
- Society of Arts & Science
- 2569587 Ontario Inc
- Adapsyn BioScience
- ADIGA Life Sciences Corp
- Advanced Psychometrics for Transitions Incorporated (ProFitHR)
- AllerGen
- Altus Assessments
- ATTWILL
- C2C Link
- Centre for Probe Development
- Centre For Surgical Invention & Innovation
- Enedym
- Evidence Prime
- Exerkine
- ForSee Instruments
- Fox Tek (Now part of Augusta Industries Inc)
- Fusion
- MesoMat
- Nugeneris Specialty Pharmaceutics
- OSCAR – Open Source Clinical Application Resource EMR (Electronical Medical Record) Inc.
- Patriot One Technologies
- ProSensus Inc.
- Qreserve
- Symbal Therapeutics
- Triumvira
- Turnstone Biologics
- VitaSound Audio Inc.
- Building Union of Canada – BUC
- CUPE
- International Union of Operating Engineers – IUOE
- McMaster University Academic Libarians Association – MUALA
- MUFA – McMaster University Faculty Association
- MURA – McMaster University Retirees Assocation
- Service Employees International Union – SEIU
- UNIFOR
Revised October, 2018
HST Accounts & Uses
The chart below lays out the various HST accounts in Mosaic and their uses. Please note that the use of these accounts is directly connected to amounts and categories used to prepare HST returns and other information requested by the Federal and Ontario governments.
Fund | Account | PeopleSoft Description | Long Description |
20 | 240000 | HST Payable to CRA | To record HST charged / collected by the University. |
20 | 240005 | GHST Payable to CRA | To record GST charged / collected by the University. |
20 | 240010 | OHST Payable to CRA | To record Ontario portion of HST charged / collected by the University. This account generally should not be used unless cleared with Financial Affairs. |
20 | 240100 | HST Input Tax Credit (ITC) | To recover 100% of the HST paid by the University for a good or service. This account generally should not be used unless cleared with Financial Affairs. |
20 | 240200 | HST Rebate (73.77%) | To recover the rebate of the HST paid by the University for a good or service. |
20 | 240205 | OHST Rebate (78%) | To recover the rebate of the Ontario portion of HST paid by the University for a good or service. Generally used in connection with a self-assessed tax. See account #240305. |
20 | 240210 | GST/HST Rebate (67%) | To recover the rebate of the Federal portion of HST paid by the University for a good or service. Generally used in connection with a self-assessed tax. See account #240300. |
20 | 240215 | HST Rebate – Books (100%) | To recover 100% of the HST paid by the University for a qualifying book. |
20 | 240220 | HST Rebate – Taxable Real Prop | To recover HST paid on the acquisition of real property. Financial Affairs use only. |
20 | 240300 | Self Assessed GST/HST Payable | To self-assess GST or HST payable on a good or service imported into Ontario. A corresponding rebate can then be claimed. See accounts #240200 or #240205. |
20 | 240305 | Self Assessed OHST Payable to | To self-assess the Ontario portion of HST payable on a good or service imported into Ontario. A corresponding rebate can then be claimed. See account #240205. |
20 | 240380 | Investment Self Assess Clearing | Clearing account. Financial Affairs use only. |
20 | 240400 | HST Refund | Clearing account. Financial Affairs use only. |
Revised October, 2018