CRA has expanded its GST/HST Memorandum on zero-rated goods

CRA has revised its GST/HST Memorandum on zero-rating for goods and cognate matters. Added points include:

• The barter rule (deeming nil consideration) in ETA s. 153(6) for provision of "make-up" gas in exchange for natural gas liquids which are consumed at a natural gas straddle plant can apply more than once in the same transaction, for example, where the natural gas owner provides rights to the natural gas to a third party who is obligated to return make-up gas, and the third party is supplied the make-up gas by the straddle plant operator for on-supply to the owner.
• The (not so new) rule in Sched. VI, Pt. V, s. 15.1 permits zero-rating where an unregistered non-resident purchaser in Canada of a "continuous transmission commodity" (e.g., crude oil transported by pipeline) does not actually export the oil but instead delivers it in Canada to a registered Canadian in exchange for the delivery to it of equivalent crude outside Canada.
• Where a Canadian registrant does not charge GST or HST on the supply of a continuous transmission commodity to a registrant who certifies that the commodity will be promptly exported, and that purchaser does not do so (or do a swap as described immediately above), the vendor generally will have no liability – and the purchaser instead will be subject to an imputed interest charge under s. 236.1 "which reflects the cash flow benefit obtained by [it]" (plus the avoided GST or HST itself if it did not acquire the commodity exclusively in the course of commercial activities).

Neal Armstrong. Summaries of GST/HST Memorandum 4.5.2 "Exports – Tangible Personal Property" under ETA s. 153(6), s. 236.1, and Sched. VI, Pt. V, s. 15.1, s. 15.2, s. 1, s. 2, and s. 6.1.