GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX K1A 0L5
|
Subject:
|
GST/HST APPLICATION RULING
Whether GST has to be Paid on Customs Brokers Licences and on Customs Brokers Examinations
|
Dear XXXXX
Thank you for your letter of October 11, 1996 (with attachments) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).
Our understanding of the facts are as follows.
Statement of Facts
1. Section 3 of the Agents' Accounting for Imported Goods and Payment of Duties Regulations stipulates that a broker licence is required for a person to account for goods and pay duties under section 32 of the Customs Act, as an agent of the importer or owner of the goods.
2. Customs brokers licences are issued under section 9 of the Customs Act by the Minister of National Revenue or any person designated by the Minister to persons who are qualified under the Customs Brokers Licensing Regulations.
3. Sections 3 and 4 of the Customs Brokers Licensing Regulations contain prescribed qualifications for "customs brokers". One of the conditions to qualify for the licence is to attain a grade of at least 60 percent on the Customs Brokers Qualifying Examination and the Customs Brokers Professional Examinations given pursuant to section 15 of the same regulations.
4. A fee for a licence to transact business as a customs broker is payable annually to the Receiver General as specified in section 11 of the Customs Brokers Licensing Regulations.
5. Fees for the examinations are payable to the Receiver General as specified in section 16 of the Customs Brokers Licensing Regulations.
6. The examinations are currently administered on behalf of the Department of National Revenue by the Canadian Society of Customs Brokers (CSCB) under contract. The CSCB conducts and oversees the conducting of the examinations and is reimbursed on a per candidate basis. Candidates who wish to discuss their examination results have to contact the Examinations Co-ordinator at the Licensing Division of the Department of National Revenue.
Ruling Requested
Is GST payable on customs brokers licences and on customs brokers examinations?
Ruling Given
Based on the facts set out above, we rule that:
1) The supply of a customs brokers licence is an exempt supply under paragraph 20(c) of Part VI of Schedule V to the Excise Tax Act (ETA).
2) The supply of customs brokers examinations is an exempt supply under section 6 of Part III of Schedule V to the ETA, unless the supplier (i.e. the Minister) filed an election under this section to have such supplies made taxable.
On April 1, 1997, the Harmonized Sales Tax (HST) replaced the Goods And Services Tax (GST) and the Provincial Sales Tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%. Where there is a supply of services to be performed in a participating province, to the extent that they are taxable supplies, tax must be collected at the harmonized rate.
This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, 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.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-9589.
Yours truly,
Béatrice Mulinda
Governments Unit
Public Service Bodies And Governments Division
GST/HST Rulings and Interpretations Directorate
| Legislative References: |
Sections 1 and 6 of Part III of Schedule V to the ETA
Paragraph 20(c) of Part VI of Schedule V to the ETA |
| NCS Subject Code(s): |
11915-6 |
Email this Content