29 March 2005 GST/HST Ruling 58721 - Application of Section 159 to the Supply of Parking

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:

Further to our telephone conversation XXXXX, XXXXX has been completed. XXXXX.

All references are to the Excise Tax Act (ETA).

Statement of Facts

Our understanding of the facts is as follows:

1. The XXXXX operates coin-operated parking meters.

2. XXXXX the parking meters are XXXXX used by U.S. visitors, who deposit coins denominated in U.S. currency into the parking meters. The parking meters are not capable of distinguishing between Canadian and U.S. $0.25 coins and will accept the U.S. coins.

3. The parking meters request $0.25 for the supply of the parking space for a specified period of time. The consideration for the supply of the parking space is not expressed in U.S. currency (i.e., the XXXXX does not indicate on the meters or elsewhere that it will accept U.S. $0.25 coins as consideration for the supply).

Ruling Requested

Does section 159 apply to the transaction when U.S. coins are deposited and accepted in the coin-operated parking meters, as consideration for the supply of the parking space?

Ruling Given

Based on the facts set out above, we rule that section 159 does not apply to the transaction as the consideration for the supply of the parking space is not expressed in a foreign currency.

This ruling is subject to the general limitations and qualifications outlined in Chapter 1.4 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the ETA, or to our interpretative policy; and that you have fully described all necessary facts and transactions for which you requested a ruling.

Explanation

Subsection 165(1) provides, in part, that every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at 7% of the value of the consideration for the supply.

Section 159 provides that where the consideration for a supply is expressed in a foreign currency, the value of the consideration shall be computed on the basis of the value of that foreign currency in Canadian currency, on the day tax is payable, or on such other day, as is acceptable to the Minister.

The consideration for the supply of a parking space for a specified period of time in the XXXXX is not expressed in a foreign currency. As such, section 159 does not apply. Therefore, the XXXXX will account for the GST in respect of the parking space based on the value of the consideration expressed in Canadian currency, taking into account the provisions of section 160, even if the recipient of the supply deposits U.S. currency into the parking meter.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 613-954-7945.

Yours truly,

Susan Mills
Specialty Tax Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

2005/03/10 — RITS 59013 — FMV XXXXX Meeting