Telephone #: (613) 954-8585
Fax #: (613) 990-1233
XXXXX File #: 11690-8(glr)
XXXXX HQR0000122
XXXXX ss. 123(1), 132(2)
XXXXX
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ATTENTION: XXXXX
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November 15, 1996
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I refer to XXXXX E-mail message of August 9, 1996, concerning the eligibility of a XXXXX company, specializing in hospital software, to register for Goods and Services Tax (GST) purposes.
XXXXX provided the following facts in his message:
• AXXXXX company specializing in hospital m.i.s.-software applications has an employee in Canada solely for the purpose of installing XXXXX-supplied software.
• The service of installing the software is included in the price of the software.
• The only additional billings for the employee's services will be for training or emergency support services (the likelihood of either is small to insignificant as "user-support" services are supplied from XXXXX either on-line or by telephone).
• The Canada-based employee works from an office in his home.
Based on the above information, it appears that XXXXX-based company is making supplies of training and emergency support services through a fixed place of business in Canada — the office in the employee's home (paragraph (a) of the definition of "permanent establishment" in subsection 123(1) of the Excise Tax Act (Act)). Therefore, XXXXX-based company is considered to be resident in Canada pursuant to subsection 132(2) of the Act.
Please contact me at (613) 952-6743 if further information is required.
Garry L. Ryhorchuk
Senior Policy Officer
Border Issues Unit
General Operations and Border Issues Division
GST Rulings and Interpretations
Policy and Legislation Branch
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R. Nanner
G. Ryhorchuk |
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