1 June 1996 GST/HST Interpretation 11645-2 - Clarification of the Regulations Governing Evidence of GST Registration

                                                                        Telephone #: (613) 954-5124
Fax #: (613) 990-1233
11645-2 (crl)
s. 413.1
Sch. VII/7.1

XXXXX

This refers to your facsimile message dated June 4, 1996, requesting clarification of the regulations governing evidence of GST registration and to the telephone conversation with Cheryl Leyton of my division.

Your facsimile provided the following information:

•   newsstand copies of magazines are bulk shipped by motor carrier into Canada;

•   the magazines are cleared Customs by either XXXXX and XXXXX depending on the destination of the shipment;

•   when the magazines are shipped, the GST number appears on the papers presented to the Customs officer

I understand from your facsimile that the GST registration number (Business Number) is being shown in the Identification Statement which usually appears in XXXXX pages of the magazine. For our information, you attached a copy of a sheet from the XXXXX issue of XXXXX showing the location of the GST registration number.

Section 4 of the Regulations Prescribed by a Non-resident Regulations provide for a number of methods of showing evidence of registration, which you listed in your facsimile. As you are aware, evidence of registration must be shown when the goods are sent by mail or courier to the recipient at an address in Canada to facilitate clearance by Customs. From the information submitted in your facsimile, the magazines are being shipped to Canada by truck for distribution at newsstands and, for this reason, it is not necessary to show evidence of registration. The magazines are cleared Customs by various Customs brokers and the GST is paid at time of importation. However, if the same magazines are sent by mail or courier to a subscriber, from whom the GST is collected by XXXXX, evidence of registration must be shown to avoid the additional collection of the GST when the magazines are imported into Canada.

Although the business number does appear on XXXXX pages of the magazine, I would suggest that, on those copies sent directly to a subscriber, the business number should appear in accordance with one of the methods listed in your facsimile. The proper placement of the registration number will ensure that tax will not be collected, a second time, by Canada Customs.

The foregoing comments represent our general views with respect to the subject matter of your facsimile. Proposed or future amendments to the legislation may result in changes to our interpretation. These comments are not rulings and, in accordance with the guidelines set out in GST Memoranda Series Section 1.4, do not bind the Department with respect to a particular situation.

If you have any questions or require additional information, please contact Cheryl Leyton at (613) 954-5124 or Randy Nanner at (613) 952-8810.

H.L. Jones
Director
General Operations and Border Issues
GST Rulings and Interpretations
Policy and Legislation Branch

GOBI # 3046 (Genl)