13 February 1996 GST/HST Interpretation 11645-3[3] - Applications for Rebate of the GST Paid Upon Importation of Goods, Where the Non-resident Supplier Has Pre-collected Tax

                                                                        File #: 11645-3 (ms)

Dear XXXXX

This is in response to a facsimile message dated May 19, 1994, from XXXXX (copy attached), regarding applications for rebate of the Goods and Services Tax (GST) paid upon importation of goods, where the non-resident supplier has pre-collected tax. We regret the delay in replying.

The appropriate Tax Services Offices will be requested to ensure that these suppliers are aware of the requirements under the legislation.

A supplier who is a GST registrant is required to collect GST from the recipient only on prescribed publications (defined below). If evidence of registration is provided in a manner prescribed by the Publications Supplied by a Non-resident Registrant Regulations, Customs should not collect GST when these publications are imported by mail or courier.

Prescribed publications are defined as books, newspapers, periodicals, magazines and any similar printed publications, as well as to audio cassettes, if they relate to a printed publication and accompany that publication.

This procedure (pre-collection of GST) applies only to shipments of prescribed publications sent by mail or courier. Accordingly, GST on all other goods is correctly collected by Customs upon importation unless another relieving provision exists in the Excise Tax Act.

Therefore, if Customs collected GST on all the goods at the time of importation, then the portion of the GST that was collected with respect to the prescribed publications may have been collected in error, if all the requirements of the regulations have been met. The importer should be advised to apply to Customs for a rebate.

With respect to the collection of GST on the other goods by the supplier, this appears to have been collected in error. For example, a supplier would not normally charge GST on videotapes sent to Canada by mail. A request for a refund of GST that is collected in error by a supplier should be made by the importer to that supplier. If the supplier refuses to refund the GST, the importer may then apply to the Summerside Tax Centre (STC) for a rebate of the GST using Form 189E, General Application for Rebate of Goods and Services Tax.

Thank you for bringing this matter to our attention. Should you have any further questions on this subject, please contact Cheryl Leyton of the Imports Unit at (613) 954-5124.

Yours truly,

H.L. Jones
Director
General Applications Division
GST Rulings and Interpretations

DOC#: 397 (GEN)