8 December 1999 GST/HST Interpretation HQR0001713 - Supplies Made By Universities

Dear XXXXX

I refer to your letter of March 19, 1999, regarding the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies made by universities. Your letter outlines the issues that were discussed during a meeting of February 16, 1999, with Mr. Pierre Bertrand and other members of my staff. Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency.

I understand that you are concerned about an interpretation we issued on April 29, 1998 regarding the supply of the following: statements of attendance, transcripts of academic records, individual course descriptions, replacement diplomas, certified copies of academic documents, letters of permission, original and replacement student identification cards, duplicate T2202A's and duplicate tuition statements for income tax. In our April 29, 1998 letter, we stated that the supply of each is considered to be a supply of tangible personal property and is excluded from

the general exemption by paragraph 2(e) of Part VI of Schedule V to the Excise Tax Act (the "Act"). You requested that we review our position and consider these supplies as a supply of a service.

Each of the supplies identified in your letter is considered to be a "supply of information". We are currently reviewing the issue of whether a "supply of information" is considered to be property or a service. Until our review is completed, we cannot categorize the supplies listed in your letter as either property or a service. We understand that universities had been treating these supplies as the supply of a service and exempt from the GST/HST.

Given that the "supply of information" issue is under review, we will withdraw that part of our April 29, 1998 interpretation that dealt with these supplies. Specifically, until such time as this issue is resolved, the following supplies will be treated as an exempt supply pursuant to section 2 of Part VI of Schedule V to the Act: statements of attendance, transcripts of academic records, individual course descriptions, replacement diplomas, certified copies of academic documents, letters of permission, original and replacement student identification cards, duplicate T2202A's and duplicate tuition statements for income tax.

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%. If you supply goods that are delivered or made available in a participating province, services to be performed in a participating province or intangible personal property that may be used in a participating province, [Example: Goods that are delivered or made available in a participating province are subject to the HST] to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact Tim Krawchuk at 954-7957.

Yours truly,

E.H. Gauthier
Director General
Excise and GST/HST Rulings Directorate