Non-Profit Organization Consulting (NPOC) Articles: Tax Tips for Ontario NPOs

  • In general, GST/HST applies to most properties and services that non-profit organizations (NPOs) supply. As a result, most NPOs must charge GST/HST on the goods and services that they supply, and remit collected amounts to the Canada Revenue Agency (CRA).

  • In Ontario, all real property is subject to municipal property tax. Ontario’s Assessment Act provides exemptions for certain organizations. Eligible organizations are not subject to Ontario property tax on land used and occupied by the organization.

  • Organizations that operate on a non-profit basis can be classified as a charity or non-profit organization (NPO). Organizations operating as a charity cannot be considered an NPO even if the charity is not registered or cannot be registered. Please note there are separate rules for Canadian amateur athletic associations and these rules are not discussed in this article.

  • Non-profit organizations (NPOs) in Canada are generally required to file a tax return even though they are exempt from tax on all or parts of its taxable income under the Income Tax Act.