GST/HST Place of Supply Rules

by in Calgary Tax Saving for Business
This is a new article on Place of Supply Rules for goods, services, and intangible personal property (IPP) from www.taxtips.ca.  Some of the rules have changed effective May 1, 2010. Also included in this article is some information on HST self-assessment and rebates of the provincial component of the HST.

All vendors who are registered to collect GST are automatically registered to collect HST.

A participating province is a province that charges HST, which includes a federal component (5%) and a provincial component.  A non-participating province charges 5% GST only, and no provincial component.(such as Alberta)  For rates by province/territory, see Sales Tax Rates in Canadian Provinces and Territories.

Generally, a GST registrant in a non-participating province who sells goods (tangible personal property) which are delivered to a participating province must collect the HST, at the rate in effect in the province to which the goods are delivered.  A registrant in a participating province who sells goods which are delivered to a non-participating province would collect GST, not HST.

New rules are now in effect regarding HST place of supply rules for intangible personal property and services.  The revised rules apply to any supply made on or after May 1, 2010, and to any supply made after February 25, 2010 and before May 1, 2010 if the amount for the supply has not become payable, and has not been paid, before May 1, 2010.

Previous place of supply rules for intangible personal property and services mainly relied on the location of the supplier in determining whether the provincial component would be charged.  The new rules put greater reliance on the location of the consumer of the intangible personal property or service.

Self Assessment of the Provincial Component of the HST.  Self-assessment affects non-GST/HST registrants bringin goods, services or intangible personal property from one province to another.

Rebates of the Provincial Component of the HST.  Rebates can be applied for by non-GST/HST registrants bringing goods, services or intangible perosnal property from one province to another.

To learn more please visit, www.taxtips.ca.
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