12 March 1996 GST/HST Interpretation 11915-7[1] - GST Status of Commercial Truck Driver Training Services

I refer to the email transmission of March 10, 1995, from XXXXX to Mr. Don Dawson, concerning the GST status of commercial truck driver training services.

Facts

1. An incorporated legal entity that is established and operated for profit operates a trade school licensed by XXXXX pursuant to XXXXX which is the legislation that governs private trade schools in the province.

2. The organization is certified by the Minister of Employment and Immigration pursuant to the subsection 118.5(1) of the Income Tax Act.

3. The company conducts courses in the following:

•   XXXXX - the course is intended to prepare an individual to receive a class two driving licence, which permits a person to drive heavy solid frame trucks on a commercial basis.

•   XXXXX - the course is intended to prepare an individual to receive a licence to train commercial bus drivers.

•   XXXXX - the course is intended to prepare an individual to receive a class one driving licence, which permits a person to drive a tractor trailer truck on a commercial basis.

•   XXXXX - the course is intended to prepare an individual who already has a class one licence to receive a a class two licence.

•   XXXXX - the course leads to a certificate issued by the organization, attesting to the competence of the individual to practice the occupation of freight handler/warehouser.

•   XXXXX - this training leads to a certificate issued by the organization, attesting to the competence of individuals to practice the occupation of off-road heavy truck driver.

The first four courses result in a certificate issued by the organization, attesting to the competence of an individual to perform the occupation for which the provincial licence is required.

4. Individuals are not required to take any of the first four courses in order to write the Department of Motor Vehicles examinations. However, if they complete the course they receive a certificate from the organization, whether or not they subsequently pass the provincial licensing examination.

5. Individuals who complete the XXXXX receive a certificate from the organization, attesting to their competence to practice the occupation of warehouser. Individuals who complete the XXXXX receive a certificate from the organization, attesting to their competence to practice the occupation of off-road heavy truck driver. However, neither course prepares the individual to write a provincial licensing examination.

6.  The organization does not make any other type of supply.

7. There is no "regulatory body" as defined in section 1 of Part III of Schedule V to the Excise Tax Act (the ETA) that governs the standards and practices of commercial truck drivers.

Request

You requested a decision as to whether the supplies at issue are exempt pursuant to section 6 of Part III of Schedule V to the ETA.

Response

The supplies at issue are not exempted pursuant to section 6 of Part III, because they do not lead to an accreditation or designation that is recognized by a regulatory body as defined in section 1 of Part III. Nor do any of the courses lead to a licence, since none of the courses are mandatory in order to write any of the provincial licence tests. However, the supplies do lead to a certificate issued by the organization, attesting to the competence of individuals to practise or perform a trade or vocation. Since the organization is a vocational school as defined by section 1 of Part III and is governed by provincial legislation respecting vocational schools, the supplies of courses are exempted by section 8 of Part III.

If you require any questions or comments, please do not hesitate to contact Joanne Houlahan, Manager, Public Service Bodies, at (613) 954-7945 or Dwayne Moore, Tax Policy Officer, at (613) 954-4206.

J.A. Venne
Director
Special Sectors
GST Rulings & Interpretations

c.c.:      D. Moore