15 January 2003 GST/HST Interpretation 43044 - Importation of Amusement Ride -

Dear XXXXX

XXXXX

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the importation of an amusement ride.

You imported an amusement ride XXXXX on a temporary basis for each of the last three seasons. The amusement ride has been used at fairs and exhibitions in Canada. You obtained partial GST relief for each of the importations based on 1/60th of the value of the amusement ride for each month or portion that the ride was in Canada using special authority number XXXXX. This amusement ride has been in Canada on a temporary basis for XXXXX months over a XXXXX period and you paid GST totalling $XXXXX on the temporary importations.

At the end of the XXXXX seasons, you exported the amusement ride to XXXXX. Following the end of the XXXXX season, you had not yet exported the amusement ride. You may decide to land the amusement ride and pay the GST owing.

Interpretation Requested

You wish to know if the GST previously paid on the temporary importations may be deducted from the GST due on the importation of the amusement ride on a permanent basis.

Interpretation Given

Based on the information provided, we offer the following interpretation:

Section 212 of the Excise Tax Act (the Act) imposes GST at a rate of 7% on the value of imported goods. There are no provisions in the Act to permit a deduction of the GST previously paid on the temporary importations in calculating the GST due on the importation of the amusement ride on a permanent basis. The temporary importations of the amusement ride for previous seasons are distinct importations that do not affect the current importation of the ride. Therefore, tax on the importation of the amusement ride on a permanent basis is calculated at the rate of 7% on the value of the amusement ride. The value of the permanent importation of the amusement ride will be as established on the date of accounting of the most recent importation of the amusement ride. However, as long as the amusement ride is still in Canada, you may amend your most recent temporary importation of the amusement ride to account for its permanent importation by filing a form B2 and by paying the balance of any GST owing with respect to that particular importation (i.e., over and above the GST that has already been paid with respect to the particular importation.) For information on how to complete a B2, please see the enclosed Customs D Memorandum D17-2-1.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Customs and Revenue Agency with respect to a particular situation.

For your convenience, please find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series. Should you have any further questions or require clarification on the above or any other GST/HST or Excise tax matter, please do not hesitate to contact me at (613) 952-4294.

Yours truly,

Michèle Routhier C.M.A.
Technical Analyst
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate