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.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 123250
May 13, 2011
Dear [Client]:
Subject:
GST/HST RULING
Evidence of Registration for Purposes of the Publications Supplied by a Registrant (GST/HST) Regulations
Thank you for your letter of March 25, 2010, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to magazines shipped to Canada by your client, [...] [(the Company)].
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
We understand that:
• [The Company] is registered for GST/HST purposes.
• Persons within Canada place an order with [the Company] to purchase a subscription to [...] magazine.
• Once [the Company] receives an order, it invoices the Canadian customer accordingly and collects the applicable GST/HST.
• [...] magazines are shipped to Canada in bulk, to be delivered to Canadian customers (e.g., individuals, commercial businesses) through the Canada Post system.
• [The Company] acts as the importer of record when a shipment of magazines comes across the border.
• [The Company] indicates its GST/HST registration number on the Canada Customs commercial invoice to facilitate the release of the shipment.
• Once a shipment is released, the magazines are distributed through the Canada Post system for delivery to the Canadian customers.
Ruling Requested
Does the inclusion of a GST/HST registration number on the Canada Customs commercial invoice constitute adequate proof of registration for purposes of paragraph 4(b) of the Publications Supplied by a Registrant (GST/HST) Regulations (the "Regulations")?
Ruling Given
Based on the facts set out above, we rule that including a GST/HST registration number on the Canada Customs commercial invoice that accompanies imported publications at the time that they are submitted to a customs officer constitutes adequate proof of registration for purposes of paragraph 4(b) of the 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
Under section 143.1, and notwithstanding subsections 142(2) and 143(1), a supply of prescribed tangible personal property made by a person who is registered for GST/HST purposes is deemed to be made in Canada if the property is sent, by mail or courier, to the recipient of the supply at an address in Canada. Under paragraph 3(a) of the Regulations, prescribed tangible personal property for purposes of section 143.1 includes a book, newspaper, periodical, magazine and any similar printed publication, other than a publication included in section 1 of Schedule VII.
Under section 4 of the Regulations, if a person that has a GST/HST registration number makes a supply of a publication included in paragraph 3(a) that is deemed under section 143.1 of the Act to have been made in Canada, the person shall provide:
(a) the person's registration number
(i) in the masthead of the publication, or on one of the first five pages of the publication if the masthead is not in the first five pages,
(ii) on the back cover of the publication if the address of the person appears on that cover, or
(iii) on the mailing label affixed to the publication; or
(b) the person's registration number on the packaging of the publication or on a separate document that accompanies the publication, when it is submitted to the Canada Post Corporation or a customs officer;
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-6743. 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,
Andrew Otto
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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