Financial Services

Harmonized Sales Tax

A Harmonized Sales Tax (HST) of 13% came into effect in the Province of Ontario on July 1, 2010.  The HST is a combination of the Goods and Services Tax (GST) of 5% and the provincial component of 8%.

The Goods and Services Tax (GST) is a tax that applies to the supply of most property and services in Canada. The province of Ontario has elected to harmonize the provincial and Goods and Services taxes. Generally, HST applies to the same base of property and services as the GST.

Contact us:

Western University - Financial Services
Accounts Receivable Office
Support Services Building, Suite 6100
London, ON N6G 1G9
Email: hst@uwo.ca

The HST number for The University of Western Ontario is: 108162587RT0001
The name used to register the university for HST is: The University of Western Ontario or Western University

When Purchasing

HST on Purchases: Operating Fund, Research Fund, Capital Fund & Special Fund

The suppliers of Goods and Services to the University will charge HST on their invoices to the University.  Western is entitled to rebates on both the GST and provincial components of the tax.

Financial Services posts all taxable expenses to the appropriate account net of tax rebates; for this reason, the total amount invoiced will not necessarily match the amount in your account.

Example:

Purchase Price

HST 13%

Total Invoice

Total Charged to the Account

Net Tax to University 3.41%*

Rebate on GST (67% of 5%)

Rebate on Provincial Tax (78% of 8%)

Total Rebate (73.77% of 13%)

$1,000.00 $130.00 $1,130.00 $1,034.10 $34.10 $33.50 $62.40 $95.90


* GST of 5% x (1-0.67)= 1.65%

  Prov of 8% x (1-0.78)= 1.76%

  Total Tax Percent =     3.41%

HST on Purchases for Commercial Operations

The suppliers of Goods and Services to the University will charge HST on their invoices to the University.  The University will receive Input Tax Credits (ITC) of 100% of the tax for Commercial Operations only.  Commercial Operations are operations like the BookStore and Hospitality Services were the primary purpose of the operation is for the Sale of Goods and Services.

HST on Imported Goods and Services

Imported Goods and Services are subject to HST. The university must ensure HST is paid and will self-assess the taxes, where appropriate.

For additional information, open up the Importing Permits and Licenses section and read about HST on Imported goods.

When Selling to External Parties

HST on the Sale of Goods and Services

HST of 13% is charged on Goods and Services to External parties. Commercial Operations are required to charge and collect tax from their customers.

Other Units when selling goods and services may be required to charge and collect tax from their customers. Since we are a University most of our services are exempt from HST.  See the HST Tax Table for Sales to External Parties it includes a listing of specific goods and services, the tax applicability along with the tax rate to charge.

If you are invoicing other provinces for goods and services you may need to charge HST or GST applicable to that province. See the Tax Rates by Province for Sales to External Parties for the HST or GST rate to charge.  The harmonized Provinces are charged their applicable HST rate and all other provinces/territories should be charged GST (5%) only.

Tax collected is credited to the corporate account UW82 105400. Instructions for charging HST through Western Financials Billing are included in the Billing Training documentation.

When Travelling

HST on Travel & Expense Claims in Canada

The total costs of travel and expenses claimed may be reflected on your accounts at a lower amount due to the rebatable component of HST.  Western will calculate HST on the expenses claimed and then determine the appropriate eligible rebates.  Western uses a simplified formula.

Travel & Other Expenses

HST 13%

Total  Inclusive of Tax

Western Simplified Formula

Total Charge to the Account

$1,000.00 $130.00 $1,130.00 92.1% $1,040.73

HST on Travel & Expense Claims Outside of Canada

Travel and expense claims for goods and services consumed outside of Canada are not subject to HST.

Helpful Resources