Towel & Mat Rentals = GST & PST taxable
Classes = GST taxable only
What does this mean for your business?
If you want to place 7% back in to your students pockets in form of savings and keep your pricing affordable, you can package your classes and rentals into one package, rather than selling these two components seperately.
Scenerio 1) Seperate Components
Monthly Unlimited Classes = $100 per month + $5 GST = $105
Monthly Mat & Towel Rentals = $40 per month + $2 GST + $2.8 PST = $44.80
Total Student Pays = $149.80
Scenerio 2) Combined Package
Monthly Unlimited Classes with Towel & Mat Rentals = $140 per month + $7 GST = $147
Total Student Pays = $147
Its a small savings, however might make that little bit of a difference to your students and your business.
Josephreen Luk, CPA, CGA