Schedule IX

Part II

Section 1

Administrative Policy

13 June 2011 Headquarters Letter Case No. 133042

place of legal delivery, e.g., under Incoterms, is referenced

In finding that a supply of goods shipped by a non-resident supplier to a GST/HST registrant at an address in a participating province was a supply made in Canada and in that province , CRA stated:

...the phrase "delivered or made available" has the same meaning as that assigned to the concept of "delivery" under the general law of the sale of goods. It is not based on the place where title to the goods transfers....If an Incoterm is used...the place where legal delivery of the goods occurs can be determined by reference to the place where delivery is considered to occur under that Incoterm.

Section 2

Administrative Policy

21 June 2012 Ruling 130623

ordinary location of property determined by agreement

Company A purchase products from manufacturers and supplies an ownership interest in the products by way of sale or lease to recipients. CRA stated:

Section 2 of Part II of Schedule IX deems a supply of TPP that is supplied otherwise than by way of sale (other than TPP that is supplied for no more than three months or TPP that is a specified motor vehicle) to be made in a province if the ordinary location of the property as determined when the supply is made is in the province. In essence, if the parties to an agreement have determined that the ordinary location of a property that is supplied otherwise than by way of sale is in a particular province at the time of the supply, the place of supply of the property is in that province.

In this particular case, if [Company A] and each lessee mutually agree that for purposes of the lease of the [product] by [Company A] the ordinarily location of the [product] is [Province X], then the supply of the [product] is deemed to be made in [Province X] and tax is applicable to the supply based on the tax rate for that province.

Words and Phrases
ordinary location

Section 3

See Also

Techtronic Industries Canada Inc. v. Agence du revenu du Québec, 2014 QCCQ 7394

place of supply at customer destination rather than place of legal delivery into FedEx hands

The plaintiff ("Techtronic"), which was registered for QST purposes, sold power handtools to Quebec customers pursuant to sales agreements ("Sales Policies") that specified that the sales were made "F.O.B. Distribution Centre" (referring to its Toronto distribution centre). Hamel J found that, as a general rule, the shipments occurred through carriers such as FedEx pursuant to contracts for carriage agreed to by Techtronic (para. 112), and found (at para. 120) that Fed Ex was a "common carrier" ("transporteur public"). After noting (at paras. 97, 99, 132) that the delivery occurred in Ontario, he found that s. 22.7 of the Quebec Sales Tax Act (similar to s. 142(1)(a) of the federal Act) and s. 22.9 of the QSTA (substantively the same as s. 3 of Part II of Schedule IX of Part IX of the federal Act) deemed these supplies to be made in Quebec, so that Techtronic was properly assessed for failure to charge QST, stating (at para. 184, TaxInterpretations translation):

Even though the "Sales Policy" provides that sales of [corporeal movable property] to Quebec customers were made "F.O.B. Distribution Centre," this does not nullify the legal effect of sections 22.7 and 22.9 of the QSTA where the conditions provided under section 22.9 of the QSTA are established on the evidence, as occurred here.

Administrative Policy

CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 27

carriage arranged by customer
available with membership password at

CRA noted that s. 1 rather than s. 3 applied where the Ontario customer rather than the Quebec vendor arranged for the common carrier to ship the goods in question. As the legal delivery occurred in Quebec, that was where the supply occurred.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Residential Complex retirement home "common area" 80