Financial Services 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 federal component (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.  To calculate the expected amount for a purchase you can take the purchase amount before taxes and calculate the taxes and the rebates as in the following example or you can take the purchase amount before taxes and multipy by 3.41% to get the amount charged to your account.

    Example:

    Purchase Amount Before Taxes (A) $100.00
    HST (13% - Ontario)
    Federal Component (5%) $ 5.00
    Provincial Component (8%) $ 8.00
    Total HST Amount (B) $  13.00
    Total Invoice Amount (A) + (B) = (C) $113.00
    University Rebate
    Federal Rebate (67%) $(3.35)
    Provincial Rebate (78%) $(6.24)
    Total Rebate (D) $(  9.59)
    Cost to Department (C) - (D) $103.41


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

      Prov of 8% x (1-0.78)= 1.76%

      Net Tax for Western   = 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 HST 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.

Some Projects in Special Funds will also have Input Tax Credits (ITC) of 100% of the HST. An example of the projects this may apply to are Conferences.

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: Operating Fund, Research Fund, Capital Fund, Special Funds

HST of 13% is charged on Goods and Services to External parties.

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 and sent to Canadian Revenue Agency by Financial Services monthly.

Instructions for charging HST through Western Financials Billing are included in the Billing Training documentation.

GST 5% collected credit UW82 105300

HST 13% collected credit UW82 105400

HST on Sale of Goods and Services for Commercial Operations

HST of 13% is charged on Goods and Services to External parties.

Commercial Operations are 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 and sent to Canadian Revenue Agency by Financial Services monthly.

Instructions for charging HST through Western Financials Billing are included in the Billing Training documentation.

GST 5% collected credit UW82 105300

HST 13% collected credit UW82 105400

When Selling to Internal Parties

HST on Sales between Units: Operating Fund, Research Fund, Capital Fund, Special Funds

We do not charge ourselves HST.

Units when selling goods and services to other units on campus do not have to charge and collect HST. Western University is one entity for HST.

HST on Sale by Commercial Operations to othe Units on Campus

Commercial Operations are required to charge and collect tax from other Internal Units on Campus at 3.41% for HST and 1.65% for GST

Tax collected is credited to the corporate account and sent to Canadian Revenue Agency by Financial Services monthly.

GST 1.65% collected credit UW82 105300

HST 3.41% collected credit UW82 105400

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.

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