16 December 1998 GST/HST Interpretation HQR0000882 - 9-1-1 Services

Dear Sir:

I refer to XXXXX letter of September 23, 1997, and the letter of October 15, 1997 from XXXXX[.] At issue is the interpretative policy regarding the supply of 9-1-1 dispatch services and the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to these supplies.

Background

As stated in the correspondence from your office, you have been advised that discussions have taken place between Revenue Canada and the Department of Finance concerning the supply of centralized emergency call services between municipalities and bodies established by municipalities. It is your understanding that pursuant to these discussions, the intention of paragraph 20(g) has been clarified to exempt centralized emergency call services between these types of organizations.

XXXXX is of the opinion that the emergency dispatch service is a separate supply from law enforcement and fire protection services under paragraph 20(g). It is XXXXX view that, in light of the absence of the definition of law enforcement service or fire protection service, a service of receiving and retransmitting emergency calls is not an integral part of the exempt supply of a law enforcement service or fire protection service under paragraph 20(g). In conclusion, XXXXX has expressed the view that the call taking and retransmission could be considered incidental to the supply of a law enforcement service or fire protection service when these services are supplied together for a single consideration.

Interpretation Requested

The service of receiving and retransmitting emergency calls are not an integral part of the law enforcement or fire protection service for the purposes of paragraph 20(g) of Part VI of Schedule V to the Excise Tax Act (the Act).

Interpretation Given

It is Revenue Canada's position that the supply of 9-1-1 emergency response call taking and dispatch services are an integral component of the exempt supply of law enforcement and fire protection as was intended by paragraph 20(g) of Part VI of Schedule V to the Act.

This position was taken based on discussions with the Department of Finance at which time the intent of paragraph 20(g) was clarified. It is the Department's view that these services are an integral component of law enforcement and fire protection in that these services are often provided by police and fire departments using trained officers to take and dispatch calls and/or under the direct supervision of these officers. This position was approved at the policy review committee level.

XXXXX[.] Should you have any questions, please contact Ms. Enikö Vermes, Manager, Municipalities, at (613) 954-5127 or the undersigned at (613) 954-7656.

N. Staple
A/Director
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate