12 December 2002 GST/HST Interpretation 41849 - Embassy Employees

This memorandum is in response to the issue discussed at our meeting of XXXXX. XXXXX[.] The meeting was attended by yourself, Jo-Ellen Langevin, Louise Graveline, and Victor Gaudet of Visitor Rebates, BRPP; and from Excise and GST/HST Rulings, Roy Osudar and Trent MacDonald of the Government Sectors Unit; Jeff Frobel of the Border Issues Unit and myself.

XXXXX[.] The question posed to us is whether or not Embassy employees' are eligible for non-resident rebates available under subsections 252(1) and 252.1(2) of the ETA.

Our comments are limited to the eligibility of Embassy employees for the rebate and the determination of residency for purposes of the rebate.

Subject to the restrictions of section 252.2 of the ETA, subsection 252(1) of the ETA provides for a rebate of the GST/HST paid by a non-resident person on eligible tangible personal property (TPP) purchased by the non-resident for use primarily outside Canada and exported by the non-resident within 60 days of delivery to the non-resident. Subject to the same restrictions mentioned above, subsection 252.1(2) of the ETA provides for a rebate of the GST/HST paid on eligible short-term accommodations where the recipient is a non-resident and the short-term accommodation is supplied by a registrant. In addition to satisfying the other eligibility requirements, a person must be a non-resident of Canada both at the time of purchase and, pursuant to section 252.2 of the ETA, at the time of filing a rebate application in order to qualify for a GST/HST rebate under the Visitor's Rebate Program.

Subsection 123(1) of the ETA states that non-resident means "not resident in Canada". Therefore, even if a person has a residence outside Canada, the person may still not be regarded as a non-resident for GST/HST purposes.

Subsection 132(1) of the ETA deems a person to be resident in Canada for purposes of the GST/HST. Specifically, paragraph 132(1)(d) of the ETA relating to individuals states, if the individual is deemed under XXXXX the Income Tax Act (ITA) to be resident in Canada at any time then the individual is deemed, at that time, to be resident in Canada for GST/HST purposes. XXXXX.

Please do not hesitate to contact Alyson Trattner, Manager, Services and Intangibles, at (613) 952-8813 or myself at (613) 952-8814 should anything further be required.

Robert Douthwright
Rulings Officer, Services and Intangibles Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate