Does a charity or non-profit in Ontario need to register for HST?

Charities and certain non-profit organizations are treated as "public service bodies" under the federal Excise Tax Act and face different HST rules than ordinary businesses. Charities are generally small suppliers unless their revenues from taxable supplies exceed $50,000 — a higher threshold than the $30,000 that applies to most businesses.

Even when a charity is registered, many of its activities may be exempt supplies, such as certain fundraising events, memberships, and services provided for free or nominal consideration. Some supplies by charities are treated as exempt by default under special charity rules, even though the same supply by a for-profit business would be taxable.

Non-profit organizations (NPOs) that are not registered charities use the standard $30,000 threshold but also benefit from some specific exemptions. The rules for charities and NPOs are genuinely complex — what you charge for, how much, and to whom all affect your obligations. Many smaller charities choose not to register because their taxable revenues are limited, but registration can make sense if the charity makes significant taxable supplies or has large HST expenses it wants to recover.