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HST and Insurance Premiums

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Please note that, as an insurance company, LAWPRO does not provide tax advice. The answers provided below represent our understanding of the application of the various tax laws. However, we encourage you to consult your tax adviser about the application of these tax laws.

Are goods and services subject to the same rate of taxation under the HST regime?

As a general rule, both goods and services are subject to the 13 per cent HST. However, the legislation contains many exceptions to the general rule. The Ministry of Finance has published a guide to help businesses and individuals appreciate the differences.

Has the PST disappeared?

No. Although the provincial sales tax for many goods and services has, in effect, been rolled into the HST, the Ministry of Finance has retained the PST on some items, such as an eight per cent provincial sales tax on insurance premiums.

Is HST payable on my premiums?

No. Premiums for your professional liability insurance only attract the eight per cent PST.

Is HST payable on premiums for my firm’s optional Excess insurance policy with LAWPRO?

No. Premiums for your Excess insurance only attracts the eight per cent PST.

How does the HST impact the amount I remit to LAWPRO for the transaction levy surcharge?

The transaction levy surcharge remitted to LAWPRO is considered to be an insurance premium, and as such, does not attract the HST. If you disperse the charge to your clients then HST would apply. In this case, you send us the $100 and the balance of $13 for HST is remitted to the CRA directly.

Where can I get additional information on the HST?

In addition to your tax adviser, both the Ministry of Finance and the Canada Revenue Agency (CRA) have published materials on their respective websites (see below).
https://www.ontario.ca/page/ministry-finance
http://www.cra-arc.gc.ca/
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/changes-harmonized-sales-tax-hst.html

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