Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 108576
XXXXX
XXXXX
October 16, 2008
Subject:
GST/HST RULING
GST/HST on the temporary importation of goods into Canada
XXXXX
Thank you for your fax of XXXXX and the additional information provided on
XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation of a bus and tractor trailer to be used for displaying goods in Canada.
All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.
Statement of Facts
Our understanding of the facts is as follows:
1. Your client, XXXXX is a non-resident corporation XXXXX. XXXXX is not registered for purposes of the GST/HST.
2. XXXXX is planning to temporarily import a bus and tractor trailer XXXXX.
3. The bus and tractor trailer, which are XXXXX accessible to the general public, will be used for the display and demonstration of products XXXXX.
4. Access to the bus and tractor trailer and the provision of samples and recommendations are all provided for no consideration.
5. XXXXX.
6. XXXXX.
7. The display products and samples will not be imported with the bus or the tractor trailer nor will the bus or tractor trailer be used to transport the goods in Canada. The display products and samples will be shipped directly from XXXXX Canadian subsidiary XXXXX.
8. The Canada Border Services Agency has determined that the bus and tractor trailer would qualify as a temporary import under tariff item No. 9993.00.00 and does not qualify as a temporary import under former tariff item 9819.00.00 or subheading 9823.60.00.
Ruling Requested
You would like to know whether the temporary importation of the bus and tractor trailer is a non-taxable importation for GST/HST purposes.
Ruling Given
Based on the facts set out above, we rule that the temporary importation of the bus and tractor trailer is a taxable importation and as such, is subject to tax at 5%.
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 pursuant to section 212, unless specifically relieved under section 213. Importations of goods relieved of tax under section 213 are set out in Schedule VII. Section 1 of Schedule VII identifies goods classified under former Customs tariff heading 9819.00.00 and subheading 9823.60.00 as non-taxable imports. Since the CBSA has determined that the bus and tractor trailer would not qualify as temporary imports under the aforementioned heading and subheading then section 1 of Schedule VII would not relieve tax on the importation of these goods. There are no other provisions in Schedule VII that apply to relieve the tax on the importation of the bus and tractor trailer. As a result, the importation of the bus and tractor trailer into Canada does not qualify as a non-taxable import for purposes of the GST/HST.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 957-7841. 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,
Dwayne Moore
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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