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Tax Compliance

As a not-for-profit, charitable entity, Ryerson is exempt from paying income tax on its operations. However, there are other taxations that the university is subject to.

Income tax

As an employer, Ryerson is required to deduct and remit income tax at source on payments made to Ryerson employees. These deductions apply to payroll and any other taxable amounts paid to employees.

Harmonized sales tax

The 13 per cent harmonized sales tax (HST) is a combination of:

  • the 5 per cent Goods and Services Tax (GST)
  • the 8 per cent Ontario Provincial Sales Tax (PST)

HST applies in two instances at Ryerson - during purchase and payment to vendors and during external sales.

Tax on purchases and payments to vendors

Purchases and payments to vendors include those made to individuals such as non-employee independent contractors or sole proprietors, and businesses for goods and services procured by Ryerson to manage its operations.

HST applies to the majority of goods and services purchased by Ryerson. For more guidance on what purchases are taxable and at what rate, visit the Canada Revenue Agency’s page on GST/HST, external link.

HST rebates

As a public sector body, Ryerson receives rebates on the federal and provincial components of the HST charged on its purchases. When you make purchases on behalf of Ryerson, the non-recoverable portion will be charged to your department's cost centre.

In most cases, for every $1 paid in tax, a credit of $0.67 for the federal portion of the HST and $0.75 for the provincial portion. The following shows the rebate rates for the varying purposes of Ryerson’s purchases:

  • Federal rebate of 1.65% calculated as 5% x (1-0.67); plus
  • Provincial rebate of 1.76% calculated as 8% x (1-0.78).
  • HST for ancillary (commercial) operations: In case of HST charged to Ryerson on goods and services procured for Ryerson’s commercial operation, the university is entitled to receive Input Tax Credits (ITC) of 100%.
  • HST on Imported Supplies: When goods imported by Ryerson are not exempt or taxable at zero, we are required to self-assess the tax and remit the HST.

Tax on external sales

Services provided by Ryerson to external parties are generally considered exempt and not subject to HST. However, there are instances where the sale is subject to tax, especially in commercial operations.

To determine if a sale to an external customer should contain HST, GST or PST, contact your financial advisor.

Questions?

If you have any questions, please contact your financial advisor.