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
[Addresee]
Case Number: 182665
Dear [Client]:
Subject: GST/HST INTERPRETATION
Electronic signatures
Thank you for your [correspondence] of February 21, 2017, concerning whether it is acceptable to sign a goods and services tax/harmonized sales tax (GST/HST) rebate application form using an electronic device. We apologize for the delay in our response.
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.
We understand that your law firm represents its clients with respect to the purchase and sale of real property. When a particular client is an individual who is purchasing a new home for use as a primary place of residence, the client may be eligible for a rebate of a portion of the GST/HST payable on the purchase. In that case, you will assist the client with the completion and submission of form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
Individuals claiming a new housing rebate are required to sign their application in section E on page 2 of form GST190. Your preference is to provide your clients with an electronic version of form GST190 on […] or [a] similar device and have them sign their rebate application electronically using […], a digital stylus pen that works as an input device for […]. With the […], clients “write” their signatures in the same manner they would if they were using a regular pen and paper, except that the signatures are produced and stored electronically on the […], rather than in ink on a hard copy document. Prior to having your clients sign the form, you have taken sufficient steps to confirm their identity, as required by the regulatory body governing your profession.
Form GST190 is submitted directly to the Canada Revenue Agency (CRA) by the purchaser of the home in cases where the builder did not pay the amount of the rebate to the purchaser and did not credit the amount against the total amount payable for the new home. This is referred to as a type 2 rebate application.
Alternatively, where the builder did pay or credit the rebate to the purchaser, form GST190 must be submitted to the CRA by the builder as a type 1A rebate application. In that case, once form GST190 has been signed by your client using the […], it is saved as an electronic file that you subsequently transmit to the builder on your client’s behalf. The builder then either prints a hard copy of the signed form GST190 and mails it to the CRA, or submits the rebate application electronically through Netfile or My Business Account. In either case, the builder is required to keep a copy of the form GST190 (electronic and/or hard copy) as supporting documentation in its books and records.
Some builders have informed you that the CRA does not consider a new housing rebate application to be valid if form GST190 has been signed electronically using […] or [a] similar device.
INTERPRETATION REQUESTED
Is an electronic signature produced using […] or [a] similar device acceptable for purposes of filing a GST/HST rebate application, such as form GST190?
INTERPRETATION GIVEN
We confirm that an electronic signature produced using […] or [a] similar device is acceptable for purposes of filing a GST/HST rebate application, provided the signature and any related electronic records exhibit the characteristics of reliability, integrity, and authenticity, as discussed in GST/HST Memorandum 15.2, Computerized Records.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation(s) or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 306-975-4733. 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,
Graham M. Leflar
General Operations Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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