26 January 2005 GST/HST Ruling 55468 - Application of GST/HST to XXXXX

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.

Dear XXXXX:

This is further to our letter XXXXX concerning sales of motor vehicles and trade-ins.

We have recently published an Info Sheet entitled Consigned Goods that may be of interest to you. The Info Sheet provides information on the Canada Revenue Agency's position in relation to the application of the Goods and Services Tax and the Harmonized Sales Tax (GST/HST) to goods sold on a consignment basis.

The Info Sheet distinguishes between sales of goods made through an agency relationship basis and sales of goods made through a buy-and-sell arrangement. It also outlines when the owner of the good or the consignee is responsible for charging and accounting for the tax.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 957-8223.

Yours truly,

Daniel Chamaillard
Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2005/01/25 — RITS 55471 — Consignment of Goods