Service provider is not carrying on business in Canada for GST/HST purposes notwithstanding place where contracts may be made

In determining whether a company is carrying on business in Canada, the place where it concludes contracts for the sale of its products or services likely is not a touchstone if its business is not one of trading property.  CRA appears to agree.  It has indicated that a web based provider of services was not carrying on business in Canada notwithstanding that the place of making of the contracts may have been Canada, it solicited Canadian orders and its employees came to Canada on an irregular basis.

Neal Armstrong.  Summary of 20 August 2012 Interpretation Case No. 140855 under ETA - s. 240(1).