Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 197026
Dear [Client]:
Subject: GST/HST RULING
Temporary importation of certain vehicles and related equipment
Thank you for your fax of January 31, 2019, concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to the temporary importation of […][X Vehicles] and related equipment.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1. […], […][the Company] is a non-resident located […][outside of Canada] […].
2. [The Company] is planning to temporarily import [X Vehicles] and related equipment to compete at various events across Canada from [mm/yyyy] to [mm/yyyy].
3. The [X Vehicles] and related equipment are being imported to take part in […][Events].
4. The [X Vehicles] and related equipment are not for sale, lease or further manufacturing or processing.
5. The Canada Border Services Agency (CBSA) has determined that the temporary importation of the [X Vehicles], related equipment […] qualify for temporary importation under tariff item no. 9993.00.00 (Footnote 1) of the schedule to the Customs Tariff and that these goods are described in item 32 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations made under the Customs Tariff.
RULING REQUESTED
You would like to know whether the temporary importation of the [X Vehicles] and related equipment by [the Company] is a non-taxable importation for GST/HST purposes.
RULING GIVEN
Based on the facts set out above, we rule that the importations of the [X Vehicles] and related equipment by [the Company] are non-taxable importations for GST/HST purposes pursuant to section 213 of the ETA, section 8 of Schedule VII to the ETA, and subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations.
EXPLANATION
Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA. Under section 8 of Schedule VII to the ETA, no GST/HST is payable in respect of prescribed goods imported in prescribed circumstances and under prescribed terms and conditions. The Non-Taxable Imported Goods (GST/HST) Regulations prescribes the circumstances under which certain goods may be imported without the imposition of the GST/HST.
Goods described in item 32 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations that are imported in circumstances where the terms and conditions of those regulations have been met are non-taxable importations pursuant to subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling given in this letter provided that: none of the issues discussed in the ruling are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-9169. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Joseph Zeidan
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
FOOTNOTES
1 Further information concerning Tariff Item No. 9993.00.00 can be found in the CBSA publication Memorandum D8-1-1: Administration Of Temporary Importation (Tariff Item No. 9993.00.00) Regulations, a copy can be found at: http://cbsa-asfc.gc.ca/publications/dm-md/d8/d8-1-1-eng.html
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