8 December 1998 General Information Letter HQR0001388 - GENERAL INFORMATION LETTER Government Charge Card

Dear XXXXX

Thank you for your letter of August 7, 1998, with attachments, concerning the planned XXXXX or XXXXX XXXXX. Under this project, XXXXX will use charge cards to make purchases of accommodation, airline tickets and car rentals.

You have requested confirmation that the documentary evidence provided to suppliers under the project will be sufficient to support the non-collection of the Goods and Services Tax.

It is our understanding that the charge cards will be embossed with the terms XXXXX and "GST exempt" and will have account numbers which start with the same five digit prefix that indicates the charges are centrally billed. Therefore, suppliers will obtain the necessary documentary evidence, in the form of a charge card receipt, to support the fact that no GST was charged on purchases and that the purchases are paid for with Crown funds. XXXXX will also provide an information letter to the suppliers explaining the use of the credit cards and pointing out that the purchases made with the cards are to be paid for with Crown funds[.]

The Department has determined that the documentary evidence to be provided by the XXXXX is adequate to support the tax-free treatment of their purchases by suppliers.

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