Financial Services and Financial Institutions (GST/HST) Regulations

The Financial Services and Financial Institutions (GST/HST) Regulations are a set of rules established under the Excise Tax Act to regulate financial services and institutions in Canada. The regulations aim to clarify what constitutes a "financial service" for the purposes of taxation.

The regulations prescribe certain services as falling within the definition of a "financial service", including:

• Services related to the clearing and settlement of cheques and other payment items under the national payments system


• Services provided by banks, financial institutions, and other organizations in relation to the issuance, maintenance, and transfer of ownership of financial instruments


• Services related to the provision of credit cards and other payment methods


• Administrative services, including the processing of information and the payment or receipt of dividends, interest, principal, claims, benefits, or other amounts

The regulations also provide for certain exceptions and exclusions, such as services provided by a person at risk or a member of a closely related group.

Additionally, the regulations prescribe specific types of entities as "financial institutions", including investment limited partnerships and selected listed financial institutions. These entities are subject to certain rules and requirements under the Excise Tax Act.

The regulations were made pursuant to subsection 277(1) of the Excise Tax Act, on the recommendation of the Minister of Finance. The regulations came into effect on December 18, 1990.