31 January 2001 GST/HST Interpretation 31875 - Supply of Service or Admission

This is in reply to your memorandum of November 17, 2000 and your recent telephone conversation with Michael Place of this unit.

As we advised in our telephone conversation, it is our view that the supply in question by XXXXX is described under paragraph 143(1)(c) of the Excise Tax Act, and therefore is not deemed to be made outside Canada pursuant to this subsection. Further, whether the supply is viewed as one of a service or admission, it is deemed to be made in Canada pursuant to either paragraph 142(1)(c) or paragraph 142(1)(g). Accordingly, since the supply is a taxable supply made in Canada, and it is apparent that XXXXX is not a small supplier, it will be required to register and charge GST (in fact, it is our understanding that XXXXX is currently registered).

On this basis, we generally agree with the XXXXX reply XXXXX prepared by XXXXX of your offices. We will make two small suggestions concerning it:

•   the last line of the first paragraph under "Explanation" should be reworded to indicate that paragraph 143(1)(c) applies (similar to our explanation above)

•   Since there is no indication that this supplier will make supplies in the participating provinces, perhaps the "place of supply" explanation could be simplified (e.g., just mention that supplies in the provinces of Nova Scotia ... are subject to the "Harmonized Tax Rate" of 15%). Feel free to expand on this if you wish, but we believe that the present explanation in the XXXXX reply will be quite confusing to the reader.

Concerning your query about the difference between a "course" and a "seminar" it is our view that these terms are often used synonymously. Based on the facts given in the present situation, it is our view that the supply is a "seminar" as referred to in paragraph 143(1)(c), whether it is referred to as a "course" or "seminar." In other situations, such as when there are a series of classes in a program, it is our view that such a program may be described as a "course" but not as a "seminar."

We trust that this will be of assistance. Please contact me at 952-0329 if you have any comments or questions.