GST/HST - Place of Supply Rules

GST/HST – Place of Supply Rules determine the tax rates applicable on sales across Canadian provinces:

            -          5% GST British Columbia, Alberta, Saskatchewan, Manitoba, Yukon and Northwest
                       Territories and Nunavut, Quebec
            -          13% HST Ontario, New Brunswick, Newfoundland & Labrador
            -          14% HST Prince Edward Island
            -          15% HST Nova Scotia

Supply of Goods – tax rate depends on place of delivery:

            - if customer picks up – the place where possession is transferred
            - if vendor sends goods to customer – the delivery destination (included goods sent by mail, courier,
              common carrier arranged by vendor even if customer pays for shipping      

Short Term Rental (< 3 months)- where supply was made available first, rate applies throughout rental period

Long Term Leases/Rentals are deemed supplies in the province where the goods are ordinarily located in a lease period. Place of supply determined each month

            - Motor vehicle – supplied where registered
            - Other Tangible Personal Property (TPP) – supplied where ordinarily located

Supply of Real Property – based where property is located.

Intangible Personal Property (IPP) - tax rate depends on where the rights are exercised.

            - if use is restricted to a particular location the supply is deemed to be made in that location
            - if use not restricted to a particular location the supply generally based on address of purchaser

Services– tax rate based on recipient of supply address:

If no address obtained, then Canadian portion of where work is primarily performed

Exceptions for Services where work is done in respect to:

    -          Real Property – based on primary location
    -          Tangible Personal Property – based on place TPP located
    -          Personal services – based on place of performance and if >90% performed in physical
               presence of individual to whom the service  is rendered
    -          Location-specific event – based on location of event
    -          Transportation services: passenger based on where the journey starts, freight based on destination
    -          Custom brokerage – based on place goods released for commercial imports or based on residency of importer for
                non-commercial imports
    -          Postage & mail delivery – based on place purchased unless price >$5 and item is sent to non-HST province
    -          Litigation, Trustee fees – based on province proceeding held
    -          Computer related services & internet access – based on location of end user
    -          Other – Telecommunication, air navigation, rolling stock