30 January 2002 GST/HST Interpretation 37416 - Non-resident Rebate in Respect of Exported Goods

This is in reply to your e-mail of September 21, 2001, in which you enquire whether the Visitor Rebate under subsection 252(1) of the Excise Tax Act (ETA) for exported goods is available to a non-resident person who does not actually visit Canada. The specific situation involves a non-resident purchaser of a motor vehicle who arranges for another person to take delivery of the vehicle in Canada and to drive the vehicle outside Canada on behalf of the non-resident. The agreement for the supply of the motor vehicle is between the non-resident individual and the resident supplier of the motor vehicle.

Generally, subsection 252(1) of the ETA provides for the payment of a rebate of tax paid by a non-resident person who is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada and who exports the property within sixty days after it is delivered to the person.

If a non-resident individual such as in the situation described authorizes another individual to take delivery of the non-resident's vehicle and to export it on the non-resident's behalf, that other individual would be considered under the law of agency to be acting as an agent on behalf of the non-resident in performing those actions. In this case, for purposes of the rebate under subsection 252(1) of the ETA, the delivery of the vehicle to the non-resident's agent would be considered to be a delivery of the vehicle to the non-resident and the export of the vehicle by the non-resident's agent would be considered to be an export of the vehicle by the non-resident. With respect to your specific question, a non-resident individual is therefore not required to have actually visited Canada in order to be eligible for the rebate under subsection 252(1) of the ETA where the non-resident's agent has taken delivery of the goods in Canada and exported them.

XXXXX[.] Should you wish to discuss this matter further, please do not hesitate to contact me at 954-9700.