RST Information Notice, March 2009
- This Notice explains the Ministry of Revenue's revised policy for the application of Retail Sales Tax (RST) to charges for Drive Clean emissions tests.
Background
The Drive Clean emissions test fee is set by law at a maximum of $35.00 per test and $17.50 for a retest. Since the inception of the Drive Clean program in 1999, it has been ministry policy that Drive Clean charges are not taxable when no other work is done at the same time on the vehicle. This is consistent with the tax treatment of other vehicle testing (diagnostic tests and safety inspections) when no further work is done at the same time.
However, when repairs were done at the same time as the emissions test, both the charge for the emissions test and the charge for repairs were considered taxable even if the charges were separated on the invoice or billed on separate invoices.
What Changed?
Effective immediately, RST no longer applies to charges for Drive Clean emissions tests regardless whether the Drive Clean charges are shown separately on the invoice or billed with repair charges.
Diagnosis and Inspection Tests
It remains ministry policy that where repairs are performed on a motor vehicle pursuant to a diagnosis or safety inspection, the entire charge is taxable. Where the inspection or diagnostic testing results in repair work that is done as part of one transaction, these charges form part of the fair value of the taxable service. Therefore, RST applies to the total bill regardless whether the charges for inspections or diagnostic tests are separated on the invoice.
More Information
Telephone
- 1 866 ONT-TAXS (1 866 668-8297)
- 1 800 263-7776 for teletypewriter (TTY)
Written Interpretation
To obtain a written interpretation on a specific situation not addressed in this publication, please send your request in writing to:
Ministry of Revenue
Tax Advisory Services Branch
Retail Sales Tax Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5
© Queen's Printer for Ontario, 2009
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