5 November 1998 GST/HST Ruling HQR0001049 - Application of the GST/HST to a Certification Workshop Supplied to Non-residents

Dear XXXXX

Thank you for your facsimile message of October, 22, 1998, requesting a confirmation of the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the following transaction currently under audit.

Statement of Facts

Our understanding of the facts is as follows:

•   XXXXX a company resident in Canada, is registered for the GST/HST (registration number [).]

•   XXXXX operates under the name XXXXX[.]

•   Through XXXXX a number of courses on instructional or training techniques are offered in Canada to both residents and non-residents of Canada.

•   One of the courses offered by XXXXX is an XXXXX (Workshop).

•   The Workshop, as described in the XXXXX is the industry standard for delivery skills of both technical and non-technical training programs.

•   As the cornerstone for trainer certification, the Workshop follows the fundamentals of knowledge and classroom performance as defined by the International Board of Standards for Training Performance and Instruction ("IBSTPI").

•   Participants practice the concepts and skills learned in the Workshop by delivering three instructional presentations related to training programs given in their own environment. All presentations are observed by highly skilled Workshop leaders who give constructive oral and written feedback. Participants also receive a videotape of their presentations for personal viewing.

•   The Schedule indicates that instructors who require instructional certification should attend the Workshop.

•   The Workshop is one of four options to demonstrate an individual's instructional skills for XXXXX[.] The participant must be a certified trainer or have attended a Workshop offered by XXXXX, or any other preapproved instructional skills course, in order to apply for XXXXX[.] As proof of attendance at those courses, a participant must enclose a copy of the student course certificate or letter with the application.

•   A participant in the Workshop can obtain a certificate if the participant passes the course with a rating of XXXXX or more but it must be at least XXXXX[.]

•   A certificate is awarded to a participant at the end of the Workshop indicating that person has successfully completed the requirements of the Workshop.

Ruling Requested

XXXXX given to non-residents, qualifies for zero-rating pursuant to section 18 of Part V of Schedule VI to the Excise Tax Act ("the Act").

Ruling Given

Based on the facts set out above, we rule that XXXXX offered by XXXXX, to non-residents, is a supply of a service performed in whole in Canada and, is thus deemed to be made in Canada pursuant to paragraph 142(1)(g) of the Act. By virtue of the fact that all or substantially all of the Canadian element of XXXXX is performed in XXXXX [paragraph 2(a) of Part V of Schedule IX to the Act], section 144.1 of the Act deems the supply to be made in a non-participating province. Therefore, the supply of XXXXX is subject to the GST at 7% pursuant to subsection 165(1) of the Act.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under objection or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

The certificate awarded to a participant at an XXXXX does not attest to the competency of the individual participating in the Workshop to practice or perform a trade or vocation. The certificate merely attests to the fact that a person has taken and passed the course. Due to the fact that the certificate issued by XXXXX does not attest to the competence of the person to practice or perform a trade or vocation, but merely states that the person has taken and passed the course, the zero-rating provisions of section 18 of Part V of Schedule VI to the Act cannot be applied to XXXXX[.] Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-5124.

Yours truly,

Cheryl R. Leyton
Border Issues Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate