30 January 1997 GST/HST Interpretation 11830-4 - Goods and Services Tax (GST) Treatment of Payments Received by Under an Agreement (the Agreement) Signed

Dear XXXXX

This is in response to XXXXX letter of January 19, 1994 in which he requested our comments on the Goods and Services Tax (GST) treatment of payments received by XXXXX from XXXXX under an agreement (the agreement) signed XXXXX. We apologize for the delay in responding to your inquiry.

Background

XXXXX entered into a contribution agreement under which XXXXX agreed to provide up to two years financial support to assist in implementing XXXXX work plans for the development and support of XXXXX[.] As a result of its requirements under the contribution agreement, XXXXX entered into the XXXXXXXXX agreement with the college. Under this agreement the college, a registered charity, agreed to develop and deliver an "XXXXX training package" for XXXXX[.]

Question

Does GST apply to payments received by the college from XXXXX under the agreement signed XXXXX to develop and deliver the "XXXXX training package"?

Comments

We agree with XXXXX opinion that the college is providing a service to XXXXX[.] However, it is our opinion that the supply in question is exempt under section 2 of Part VI of Schedule V to the Excise Tax Act (Act) and is not a supply excluded by paragraph 2(l) of Part VI of Schedule V.

In the case in question, it is our opinion that the college is providing an "XXXXX training package". It could be argued that the XXXXX training package is comprised of two supplies, namely the development XXXXX and the training of individuals. However, taking into consideration our administrative policy concerning single and multiple supplies, it our opinion that these activities are not in and of themselves separate supplies, but rather are inputs to the supply of the individualized business training package.

I hope that the above information will be of assistance to you. Should you require additional information, please feel free to contact the undersigned at(613) 952-9215.

Sincerely,

Fernand Koutsimouka
Government Unit
Public Service Bodies and Governments
GST Rulings and Interpretations