I refer to the application ruling written dated October 27, 1993 XXXXX, written by XXXXX Interpretation and Service, to XXXXX[.] The ruling concerns the application of the Goods and Services Tax to supplies made by XXXXX to an unregistered non-resident, XXXXX, located in XXXXX[.]
I understand that:
• XXXXX has contracted with XXXXX to produce six episodes of a television series which will be offered to U.S. television networks. The episodes may be offered to television markets in other countries, however, the primary market will be in the United States. There is an option to produce further episodes.
• XXXXX will render or provide all materials, services and facilities necessary to produce the episodes. The services will include the services of camera crews, actors and actresses, set design and location and equipment rental.
• The completed episodes, in a film or video format, will be forwarded to XXXXX in the United States.
• XXXXX will be the first and sole owner of the copyright worldwide in perpetuity to the episodes and the series.
XXXXX has determined that the supply of the production services by XXXXX to XXXXX is zero-rated under the provisions of Schedule VI, Part V, section 7 to the Excise Tax Act (Act). XXXXX has also determined that the films, video tapes and any other tangible personal property are incidental to the supply of the production services and, in accordance with section 138 of the Act, are deemed to form part of the supply of the zero-rated production services.
I agree with XXXXX that the supply of the production services by XXXXX to XXXXX is zero-rated under the provisions of Schedule VI, Part V, section 7. The services are not for consumption, use or enjoyment in Canada by XXXXX However, the films, video tapes and any other tangible personal property are not considered to be an incidental supply to the supply of the production services. The films, video tapes and any other tangible personal property are part of XXXXX inputs in making a supply of zero-rated production services to XXXXX The co-operation of XXXXX in forwarding a copy of the incoming submission (dated October 18, 1993) from XXXXX is appreciated.
If you have any questions, please contact Mr. Garry Ryhorchuk of my staff at (613) 952-6743.
H.L. Jones
Director
General Tax Policy
Policy and Legislation
Excise/GST
| c.c.: |
XXXXX
R. Allwright GTP : XXXXX
G. Ryhorchuk
M. Bloom XXXXX |
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