This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.
In Canada v. LBL Holdings Limited, 2025 FCA 186, the FCA found no GST/HST was applicable because the status Indians were liable, not the ultimate customers.
In Northbridge Commercial Insurance Corp v. The King, 2025 FCA 83, the FCA allowed input tax credits for general head office and overhead costs of all policies, not just those covering outside Canada.
In MedSleep Inc v. The King, 2025 TCC 70, the TCC ruled that medical sleep testing services are a single compound exempt supply; no separate taxable administrative services arise.
In British Columbia Hydro v. The King, 2025 TCC 61, the TCC held that the payment for an optional term extension is a new taxable supply, so GST/HST applies.
In 1351231 Ontario Inc v. Canada, 2025 FCA 53, the FCA held that the sale is not exempt because the property is similar to a hotel/motel and leases were less than 60 days.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
The Globe and Mail · 6 days ago
Canada Revenue Agency has reversed its 35‑year position, treating mutual fund trailer commissions as subject to GST/HST. The change will take effect on July 1, 2026, requiring dealers to collect and remit the tax, while managers can recover it as input tax credits. Industry groups argue the implementation deadline is unrealistic and the change adds costs without revenue benefits.
The Star · 6 days ago
The article discusses Canada’s new Canada Groceries and Essentials Benefit, a top‑up to the GST credit announced by Prime Minister Mark Carney on January 26, 2026. The benefit totals $11.7 billion over six years, covering 12 million people, and recipients can spend the money on any goods or services. The benefit does not affect grocery GST, which remains exempt except for snacks.
VatCalc · 6 days ago
Canada has increased the maximum GST credit from $700 to $900 to help low‑income families cope with high food inflation. A family of four could receive up to $1,890 this year and about $1,400 annually for the next four years. Eligibility is based on filing a tax return, and the change comes amid a 6.2% food inflation rate in December 2025.
Advisor · 12 days ago
The Canada Revenue Agency has reversed its long‑standing position, declaring that trailing commissions paid by fund managers to dealers are taxable under GST/HST, effective July 1. Dealers and advisors may need to register for GST/HST if their taxable revenues exceed $30,000 over four consecutive quarters, and will have to adjust accounting systems to collect and remit the tax. The CRA will publish a formal technical interpretation in the coming weeks, clarifying the taxable status of trailing commissions and confirming that upfront commissions remain exempt.
KPMG Canada · 24 days ago
KPMG Canada outlines new GST/HST and QST obligations for employers and pension plans. Employers offering registered pension plans must remit by January 31, 2026, while pension entities and master pension entities must file annual returns by June 30, 2026. The guidance also advises reviewing SLFI status and claiming eligible rebates.
iGamingBusiness · about 15 hours ago
Colombia’s Constitutional Court suspended the emergency decree that imposed a 19% VAT on online gambling, leaving operators subject only to the standard 15% GGR tax. The suspension, effective from 29 January 2026, will remain until the court’s plenary chamber issues a final decision. The 19% VAT, originally introduced in February 2025 on deposits, expired on 31 December 2025 before being shifted to GGR.
