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, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 180458
Dear [Client]:
Subject: GST/HST RULING
Temporary Importation of Racing […] Equipment
Thank you for your letter of [mm/dd/yyyy], concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation of racing […] equipment.
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador; 14% in Prince Edward Island; and 15% in Nova Scotia. The Governments of New Brunswick and Newfoundland and Labrador have proposed to increase the rate of the HST in those provinces from 13% to 15% effective July 1, 2016. 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] doing business as […][XYZ] is a non-resident located in […][Country X], that organizes […][events].
2. [XYZ] has […][Event A] scheduled in Canada for the [yyyy] season located in […][City 1, Province 1] from [mm/dd] to [mm/dd], [yyyy].
3. In order to hold this event, [XYZ] intends to temporarily import into Canada the following goods: […][racing equipment]
4. The […] will be for use only in racing […]. Following the race, any […] remaining […] will be exported.
5. The racing […], […][equipment] [is] not for sale, for lease or for further manufacturing or processing while in Canada and will be exported from Canada upon the completion of the event.
6. The CBSA has determined that the temporary importation of the racing […] equipment […] [qualifies] for temporary importation […] and these goods are described in items 38 and 41 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations made under the Customs Act.
7. The CBSA has also determined that the temporary importation of the […] equipment, qualify for temporary importation […], and these goods are described in item 42 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations.
RULING REQUESTED
You would like to know whether the temporary importation of the racing […] equipment, […] are non-taxable importations for GST/HST purposes.
RULING GIVEN
Based on the facts set out above, we rule that the temporary importation of the racing […] equipment and the temporary importation of […] equipment are non-taxable importations for GST/HST purposes.
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(s) given in this letter provided that: none of the issues discussed in the ruling(s) 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.
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. Section 8 of Schedule VII to the ETA deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes.
Goods described in items 41 and 42 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations in circumstances where the terms and conditions of the regulations have been met are non-taxable importations pursuant to subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations.
Similarly, goods described in item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a non-resident imports the goods in circumstances where the terms and conditions of the regulations have been met are non-taxable importations pursuant to subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-9891. 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,
Kevin Smith
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
Email this Content