A taxable supply is a good or service subject to GST/HST (at the standard rate or zero-rated), on which the supplier can claim input tax credits.
Most goods and services sold in the course of business are taxable supplies, meaning GST/HST applies. They come in two forms: standard-rated (5% to 15% depending on province) and zero-rated (taxed at 0%). Both are "taxable" in the technical sense, which is why both allow the supplier to claim input tax credits.
The distinction that matters is taxable (standard or zero-rated) versus exempt: only taxable supplies support input tax credits. Whether your sales are taxable also determines if you must register once revenue exceeds $30,000, and it is measured on your taxable supplies.
A consultant's services are standard-rated taxable supplies, so she charges HST and claims input tax credits on her costs. An exporter's zero-rated sales are also taxable supplies, charged at 0% but still credit-eligible.
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