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: 133041
April 18, 2011
Dear [Client]:
Subject:
GST/HST RULING
Temporary Importation - Racing [...] Equipment
Thank you for your letter of January 28, 2011, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation of racing [...] equipment.
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 the facts to be as follows:
1. The [...] [(Company)] is a non-resident located in [...] [Country X] and runs [...]. [...]
2. The [...] will each be holding [...] events in [...] [Province X] [...]
3. [...] the [Company] intends to temporarily import: [...]
4. The racing [...] equipment and the [...] equipment are not for sale, for lease or for further manufacturing or further processing while in Canada.
5. The Canada Border Services Agency has determined that the conditions of items 38 and 41 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the racing [...] equipment. Additionally, the Canada Border Services Agency has determined that the conditions of item 42 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the [...] equipment.
Ruling Requested
You would like to know whether the temporary importation of the racing [...] equipment and the temporary importation of the [...] 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 the [...] equipment are non-taxable importations for GST/HST purposes.
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. 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. Subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations includes 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. Similarly, subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations includes 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.
For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-4294. 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,
Donato Licursi
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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