Retail Sales Tax Exemption for Bicycles and Related Safety Equipment

Information Notice 61
Published: August 2008
Content last reviewed: August 2010
ISBN: 978-1-4249-7816-8 (Print), 978-1-4249-7818-2 (PDF), 978-1-4249-7817-5 (HTML)

Notice to the reader: For Retail Sales Tax (RST) – On July 1, 2010 the 13 per cent Harmonized Sales Tax (HST) took effect in Ontario replacing the existing provincial Retail Sales Tax (RST) and combining it with the federal Goods and Services Tax (GST). As a result, RST provisions described on this page and in other publications ended on June 30, 2010.

Effective July 1, 2010 this publication was archived for RST purposes only. Use caution when you refer to it, since it reflects the law in force for RST at the time it was released and may no longer apply.

This notice explains the point-of-sale Retail Sales Tax (RST) exemption for bicycles and related safety equipment purchased between December 1, 2007 and December 31, 2010.

Bicycles

A point-of-sale exemption is provided for bicycles purchased between December 1, 2007 and December 31, 2010. Bicycles include tricycles and unicycles. The exemption is available on the purchase of new or used bicycles that have a purchase price of $1,000 or less.

Safety Equipment

Safety equipment related to bicycles is also be exempt from RST when purchased between December 1, 2007 to December 31, 2010. Exempt items include the following:

bicycle helmets
reflectors for bicycles
bicycle lights (including generators, battery operated lights)
bells and horns for bicycles
mirrors for bicycles.

Excluded Items

The lease or rental of bicycles remains taxable. Labour for bicycle repairs and bicycle assembly fees will continue to be subject to RST.

The following items also remain taxable:

bicycle parts
bicycle accessories such as carriers (baskets, tools), pumps, hoses, drinking bottles, and kickstands
oil and grease
tube repair kits.

For More Information

The information contained in this publication is only a guideline and does not replace the legislation. For more information, please contact the Ontario Ministry of Finance at 1 866 ONT-TAXS (1 866 668-8297), Teletypewriter (TTY) 1 800 263-7776, or visit our website at ontario.ca/finance.