10 March 2000 GST/HST Ruling 8361/HQR0001967 - Application of the GST/HST to Supplies Made Under Point-of-Purchase

Dear XXXXX

Thank you for your facsimile transmission of March 1, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction described below. We apologize for the delay in this response.

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency.

Statement of Facts

Our understanding of the facts, the transaction, and the purpose of the transaction is as follows:

1. Pursuant to XXXXX[.]

2. The P.O. is issued under the name of XXXXX[.]

3. Using a certification clause, the "XXXXX"[.]

Ruling Requested

Is XXXXX required to charge the XXXXX GST/HST in respect of the supplies made to it under the P.O.?

Ruling Given

Based on the facts set out above, we rule that XXXXX is required to charge the XXXXX XXXXX GST/HST in respect of the supplies made to it under the P.O.

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 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.

EXPLANATION

Schedule "A" to the Reciprocal Taxation Agreement (RTA) between Canada and the XXXXX lists provincial government entities that are relieved of GST/HST at point-of-purchase. Suppliers to these entities are required to maintain sufficient evidence (e.g. a certification clause) to support the tax relieved sales to listed entities.

As neither the XXXXX are listed in Schedule "A" to the RTA, they are not entitled to GST/HST relief on their purchases.

As the XXXXX are currently negotiating the renewal of the RTA, we have taken the liberty of forwarding a copy of your letter and our response to the Department of Finance.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-7952.

Yours truly,

Lynn Renner
Technical Officer
Government Sectors
Excise and GST/HST Rulings Directorate