17 March 2000 GST/HST Interpretation 6510/HQR0000116 - Supply of Photocopies

This is in response to your memorandum of January 9, 1995, and Mr. Garry Ryhorchuk's E-Mail message of February 19, 1996, and our subsequent telephone conversations concerning the nature of the supply of printing, i.e. whether printing is the supply of a service or the supply of tangible personal property. Your request relates specifically to supplies of printing and photocopies made to the XXXXX[.] Although the file was referred to us, I understand that your office has replied to the XXXXX[.]

Opinions Requested

1. Is the supply of a printed annual report a supply of property or a supply of a service, where the design on the cover of the report is provided by the print company but the information contained in the report is supplied by a band-empowered entity?

2. Is the supply of seminar folders, made by a printing company, a supply of property or a supply of a service where they are provided to a band-empowered entity and the design on the cover is the logo of the band-empowered entity?

3. Is there a difference in the type of supply (i.e. property or a service) if the material provided by the printing company is wrapped or bound or if it has metal rings binding the material?

4. Is the supply of cheques and invoices with the band-empowered entity's name and logo on them a supply of property or a supply of a service?

5. Is the supply of photocopying material of a band-empowered entity by a printing company a supply of property or a supply of a service?

The nature of the supply of "printing" remains unresolved. Matters related to printing will be dealt within a policy at a later date. However, it is our understanding that on August 23, 1995, you provided an interpretation indicating that supplies listed in paragraphs one to four are supplies of tangible property. Please be aware that these issues are still under review.

The policy on the supply of photocopies has recently been approved. As discussed, we agreed to answer the question relating to the supply of photocopies and to close the file. Please accept our apologies for the delay in this response.

As per item no 5, it is our further understanding that in your August 23,1995, interpretation you indicated that where th XXXXX contracts a supplier to photocopy a document provided by XXXXX the supply is not subject to the GST, whether it was acquired on or off reserve as it would have been a service acquired for band management activities. You also indicated that if XXXXX paid a fee to photocopy a document on a supplier's photocopy machine it would be viewed, for GST purposes, as consideration for the right to use the supplier's property. You went on to specify that a supply of the right to use property is a supply by way of lease, licence or similar arrangement and is deemed to be a supply of the property itself.

The recently approved policy statement of the supply of photocopies states that the supply of photocopies is a supply of tangible personal property. The effective date of the policy is July 1, 2000. The effective date was required given that the tax status of supplies of photocopies by public institutions and charities differed depending on whether the supply was categorized as tangible property or a service. If the supply of photocopies was treated as a supply of tangible property before July 1, 2000, the public institution or charity will not have to make any adjustments with respect to change in use.

In circumstances where the supply of photocopies was categorized as a service, the supply to Indians, Indian bands and band-empowered entities would be relieved of tax if the service was performed on a reserve, or is for band management activities. However, as indicated above, effective July 1, 2000, the supply of photocopies is considered to be a supply of tangible personal property. Therefore, in order for the supply to be relieved from tax, the property will have to be acquired on reserve or delivered to a reserve. Please refer to TIB B-039R for additional information with respect to delivery and appropriate documentation.

If you have any questions or require further information, please contact me at (613) 957-1175.