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
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 222896r
Business Number: […]
Dear [Client]:
Subject: GST/HST INTERPRETATION - Registration
Further to the interpretation letter we provided to you on January 19, 2023 concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to your supplies of training services, this clarifies your obligations with respect to voluntary registration for the GST/HST.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Regular registration
Where a person is not required to be registered for the GST/HST under subsection 240(1), they may be permitted to voluntarily register if they meet the conditions of subsection 240(3). For example, pursuant to clause 240(3)(b)(ii)(A), a non-resident person may voluntarily register for the GST/HST if, in the ordinary course of carrying on business outside Canada, they enter into an agreement to supply services to be performed in Canada.
You voluntarily registered for the GST/HST pursuant to clause 240(3)(b)(ii)(A), effective [mm/dd/yyyy] because, at that time, as a non-resident person in the ordinary course of carrying on a business outside Canada, you entered into agreements to provide training, in person, to participants in […][Canada]. However, due to unforeseen circumstances, you did not provide any in-person training in Canada and instead you agreed to deliver the training to Canadian participants virtually, over the internet, from outside Canada.
Because you do not perform the training services in Canada, you do not meet the conditions for voluntary registration under clause 240(3)(b)(ii)(A). Accordingly, it is our understanding that your GST/HST voluntary registration under subsection 240(3) has been cancelled effective [mm/dd/yyyy].
Simplified registration
Although your GST/HST registration under the regular regime has been cancelled, please be advised that you are subject to the GST/HST digital economy measures that came into effect as of July 1, 2021 by which you may be required to register for the GST/HST under the simplified regime. For further information on those measures, please refer to our letter of January 19, 2023 under the heading “New GST/HST digital economy measures (post June 30, 2021 period)”.
DISCLAIMER
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, the interpretation(s) given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation(s) or the additional information provided herein.
CONTACT
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 236-335-0893.
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,
Kevin Tran
Rulings Officer
Border Issues Unit 2
General Operations and Border Issues Division
GST/HST Rulings Directorate
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