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