20 October 1997 GST/HST Interpretation 11842-8 - Application of GST on Private Vehicles Purchased by a Member of a Visiting Force

                                                                        GST/HST Rulings and
 Interpretations Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
 XXXXX                                                                                K1A 0L5

Dear Sir

Thank you for your letter of July 20, 1995 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to purchases and exportation of private vehicles by a member of a visiting force. As noted to you during our telephone conversation, the original request has been misplaced by our office. As you are unable to provide a copy of that request, we offer the following general information related to the subject.

Please note that the following information addresses the issue of purchases (other than services) made by members of a visiting force while stationed in Canada. The information applies, but is not restricted to, private vehicles.

Prior to 1991, relief from excise taxes, customs duties and federal sales tax (FST) was granted to members of visiting forces on domestic purchases of vehicles for personal use. However, the FST was replaced with the Goods and Services Tax (GST) effective January 1, 1991, and no relief from payment of GST is provided for domestic purchases of vehicles for personal use by members of a visiting force. Relief from payment of customs duties and excise taxes (such as the tax on air conditioning units installed in a vehicle or the tax on a vehicle which exceeds standard weight specification) continues to be available to members of a visiting force.

For purchases (including personal use vehicles) made after March 31, 1997, a member of a visiting force will be permitted to apply for a rebate of GST/HST paid, provided the goods are exported from Canada within 60 days of the date of purchase. The rebate of tax may be claimed under the GST Visitor Rebate program. The rules for applying for this rebate and documentary evidence required to support such claims is attached for your convenience. Details on completing the rebate claim may be obtained from your local Revenue Canada Tax Services Office.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 613 952-8533.

Yours truly

Sean M. Dooley
Governments Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate

enclosure

Encl.:   RC 4031(E)

Legislative References: ETA 2(6); 165(1); 252(1); Visiting Forces Act section 22