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]
Dear [Client]:
Subject: GST/HST RULING
Temporary importation of racing […] equipment
Thank you for your fax 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; 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. Your client, […]([…][the Company]), is a non-resident located in […][Country X] and is in the business of producing […] events.
2. [The Company] is planning to temporarily import [racing] […] equipment […] at various events across Canada from [mm/yyyy] to [mm/yyyy].
3. The [racing] […] equipment [is] being imported to take part in […][event A] and […][event B].
4. The [racing] […] equipment […][is] not for sale, for lease or for further manufacturing or further processing.
5. The Canada Border Services Agency (CBSA) has determined that the temporary importation of the […][racing] equipment […] [qualifies] for temporary importation […] and that these goods are described in item 38 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 [racing] […] 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 [racing] […] 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 sub-paragraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully 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. 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 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 W. Smith
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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