Charities and Health Care Industry — Prepare for.. | KPMG | CA

Charities and Health Care Industry — Prepare for 2016 GST/HST Budget Measures

Charities and Health Care Industry — Prepare for..

March 28, 2016, No. 2016-15.Charities and entities in the health care sector may want to start preparing for the effect of certain GST/HST tax changes proposed in the 2016 federal budget. Specifically, the budget proposes measures for:


Related content

  • Donations to charities 
  • Taxable cosmetic services
  • New zero-rated medical devices.

Donations to charities

The budget addresses situations where a charity or a public institution makes a taxable supply of property or services (an inducement) in exchange for a donation and an income tax receipt may be issued for a portion of the donation. In this instance, the budget proposes that only the fair market value of the property or services will be subject to GST/HST.  Currently, if the supply of property or services was not an exempt supply, GST/HST could apply to the entire amount of the donation.

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Information is current to March 23, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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