Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
Place de Ville, Tower A, 5th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 245674
Dear [Client]:
Subject: GST/HST RULING
Temporary importation of […] equipment for racing events
Thank you for your correspondence of [mm/dd/yyyy], and the supporting document from the Canada Border Services Agency (CBSA) dated [mm/dd/yyyy], concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to temporary importation of […] equipment for racing events.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the following:
1. […] ([…][the Company]) is a non-resident located […][outside of Canada].
2. […](information about the Companies activities)
3. For the event, [the Company] is planning to temporarily import: […](equipment X and equipment Y).
4. As we discussed on [mm/dd/yyyy], the timeframe of the temporary importation of the above-noted goods will be between [mm/dd/yyyy and mm/dd/yyyy], to allow for travel to and from the event.
5. You have confirmed that none of the items described above are for sale, lease, or further manufacturing or processing while in Canada. They will all be exported from Canada upon the completion of the events.
6. It was confirmed in a telephone call with CBSA, on [mm/dd/yyyy], that they have determined that the temporary importation of […][equipment X qualifies] for temporary importation under tariff item no. 9993.00.00.00 and these goods are described in items 38 and 41 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations made under the Customs Act.
7. It was also confirmed by CBSA in the same call that they have determined that the temporary importation of […][equipment Y qualifies] for temporary importation under tariff item no. 9993.00.00.00 and these goods are described in item 42 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations.
RULING REQUESTED
You would like to know whether the temporary importation of […] equipment [X], as well as […] equipment [Y], are non-taxable importations for GST/HST purposes.
RULING GIVEN
Based on the facts set out above, we rule that the temporary importation of […] equipment [X], as well as the temporary importation of […] equipment [Y], are non-taxable importations for GST/HST purposes.
EXPLANATION
Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213. Importations of goods relieved of tax under section 213 are set out in Schedule VII. Section 8 of Schedule VII deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes.
Goods described in item 38 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a non-resident imports the goods in circumstances where the terms and conditions of the regulations have been met are non-taxable importations pursuant to subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.
Similarly, goods described in item 41 and 42 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations in circumstances where the terms and conditions of the regulations have been met are non-taxable importations pursuant to subparagraph 3(i)(i) of the Non-Taxable Imported Goods (GST/HST) Regulations.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling given in this letter provided that: none of the issues discussed in the ruling are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 905-706-7621. Should you have additional questions on the interpretation and application of the GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Sincerely,
Philippa Howard
Senior Rulings Officer
Border Issues Unit
General Operations and Border Issues Unit
GST/HST Rulings Directorate
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