31 July 1997 GST/HST Interpretation HQR0000785 - Status as a Non-resident - Members of Visiting Forces

                                                                        GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
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 XXXXX                                                                                Case: HQR0000785
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                                                                        July 31, 1997

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Thank you for your fax of July 25, 1997 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to members of visiting forces.

Interpretation Requested

Confirm that by interaction of the Visiting Forces Act (VFA) and the Excise Tax Act (ETA), a member of a visiting force is deemed non resident in Canada, regardless of the duration of time stationed in Canada, and consequently is eligible for the visitor rebate with respect to goods removed from Canada within 60 days of purchase.

Interpretation Given

Section 165 of the ETA imposes GST/HST on supplies made in Canada. Subsection 252(1) of the ETA provides for a rebate of GST/HST paid by a non-resident person on goods purchased in Canada and exported or taken by the person out of Canada within 60 days of purchase. The GST/HST paid on excisable goods and wine does not qualify for a rebate under subsection 252(1) of the ETA. As well, consumers are not entitled to a rebate of GST/HST on motive fuels.

Under section 22 of the VFA, where liability for taxation depends upon residence, the period of time a member of a visiting force spends in Canada by reason of being a member of a visiting force is deemed not to be a period of residence in Canada.

The interaction of section 165 of the ETA, which imposes the GST and HST, and subsection 252(1) of the ETA, which grants relief from GST/HST in the form of a rebate based on residency, indicates that the intention of the ETA is to relieve a non-resident from any tax liability for certain goods removed from the country within 60 days of purchase. Based on our interpretation of these provisions, a member of a visiting force is considered not to be a resident of Canada while stationed in Canada and is entitled to claim a rebate of tax paid on goods (other than excisable goods, wine and motive fuels) that are removed from Canada within 60 days of purchase.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST Memoranda Series, do not bind the Department with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-7947.

Yours truly,

Darlene Wladyka
Governments Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate