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GST/HST Rulings and Interpretations
Directorate
Place de Ville, Tower A, 15th Floor
320 Queen Street
Ottawa, ON K1A 0L5XXXXX
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Case: HQR0001886File: 11846-3(nm)Leg. Ref: ss. 141.01(1.2)November 8, 1999
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Subject:
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GST/HST INTERPRETATION
XXXXX
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Dear XXXXX
Thank you for your letter of July 19, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your charges to municipalities for maintenance services provided by XXXXX[.] Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency.
Interpretation Requested
You have asked whether the GST applies to charges made by XXXXX to municipalities for maintenance services provided by XXXXX on all the XXXXX[.]
Statement of Facts
[1.] XXXXX[.]
2. Part of XXXXX responsibility is to provide maintenance services for all the XXXXX XXXXX XXXXX[.] The XXXXX are installed for public safety purposes.
3. Municipalities along the line are required to make payments to XXXXX for this service.
Interpretation Given
Based on the information provided, payments made by a municipality to XXXXX in respect of charges made by XXXXX for maintenance of XXXXX are considered grants made in the public interest and therefore are not subject to GST.
On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%, to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.
The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Customs and Revenue Agency with respect to a particular situation.
Should you have any questions or require clarification on the above matter, please do not hesitate to contact me at 954-4395. If you have any other questions regarding the GST/HST please direct them to the attention of XXXXX[.]
Yours truly,
Neil Minken
Municipalities and Health Care Services Unit
GST/HST Rulings and Interpretations Directorate
XXXXX
| Legislative References: |
s. 141.01(1.2) |
| NCS Subject Code(s): |
I-11846-3 |
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