GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario
XXXXX K1A 0L5
XXXXX
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April 29, 1998
XXXXX
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Subject:
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GST/HST INTERPRETATION
Vouchers Issued to Recipients of Provincial Social Services and Used to Buy Goods and Services
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Dear XXXXX
Thank you for your letter of May 25, 1995 sent to the Revenue Canada office in XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your operations. The letter has been forwarded to us for direct response. We apologize for the delay in responding.
Interpretation Requested
Are purchases made with welfare vouchers issued to welfare recipients by provincial governments and by x the Northwest and Yukon territories subject to the GST/HST?
Interpretation Given
Based on the information provided, purchases made with welfare vouchers issued by a territorial welfare authority or by a provincial welfare authority of a non-participating province are not subject to GST/HST assuming the welfare authority is included in the schedule to the provinces/territories Reciprocal Taxation Agreement. If it happens that the welfare authority is a separate entity and is not eligible to make purchases without paying GST/HST, then the purchases would be subject to GST/HST.
Purchases made with vouchers by participating provinces will be subject to GST/HST as the provincial governments have agreed to pay the GST/HST.
The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST Memoranda Series, do not bind the Department with respect to a particular situation.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9589.
Yours truly,
Béatrice Mulinda
Governments Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate
Legislative References: |
Constitution Act, RTA |