7 December 1998 General Information Letter HQR0001279 - GENERAL INFORMATION LETTER [Application of the GST on the Proposed Use of Credit Cards for Purchases Relating to Hotel and Other Accommodations, Airline Tickes, and Car Rentals]

Dear XXXXX

Thank you for your letter dated July 29, 1998, concerning the proposed use of credit cards by XXXXX for purchases relating to hotel and other accommodations, airline tickets and car rentals.

In your letter, you state that all purchases made with these cards will be billed directly to the XXXXX[.] Under the XXXXX, as it is currently written, the Goods and Services Tax does not apply to purchases made directly by XXXXX[.] Therefore, as long as XXXXX is contractually liable for purchases made using the credit cards, the GST will not apply to those purchases.

XXXXX.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-9218.

Yours truly,

Brent Fleming
Governments Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate