RC4027(E) Rev.23

The CRA's publications and personalized correspondence are available in braille, large print, e-text, and MP3. For more information, go to Order alternate formats for persons with disabilities or call 1-800-959-5525.

Unless otherwise stated, all legislative references are to the Excise Tax Act or, where appropriate, the GST/HST Regulations.

The CRA uses the term "Indian" as it has legal meaning under the Indian Act.

This guide uses plain language to explain the most common tax situations. It is provided for information only and does not replace the law.

La version française de ce guide est intitulée Renseignements sur la TPS/TVH pour les non-résidents qui font affaire au Canada.

Table of Contents

• Find out if this guide is for you
• Definitions
• What is the GST/HST?
  • Who pays the GST/HST?
  • False GST/HST exemptions
  • Who charges the GST/HST?
• Taxable supplies
  • Taxable supplies (other than zero-rated)
  • Zero-rated supplies
• Exempt supplies
• Determining resident and non-resident status in Canada
  • Individuals
  • Persons other than individuals
  • Permanent establishment
  • Are you carrying on business in Canada?
  • Meaning of carrying on business
  • Meaning of carrying on business in Canada
• Should you register?
  • Small supplier
  • Voluntary registration
  • Business number
  • Security deposit
  • Foreign conventions
• Calculating your net tax
• Input tax credits
  • GST/HST payable and not paid
  • Time limits for claiming ITCs
  • ITCs for reimbursements and allowances paid to employees and partners
  • ITCs on imports into Canada
  • Flow-through of ITCs
• Streamlined accounting methods
  • Streamlined Input Tax Credit Method
  • Streamlined Accounting Quick Method
• Filing your GST/HST returns
  • Reporting periods
  • GST/HST returns filed by non-residents
  • Filing and remitting due dates
  • Filing nil returns
  • Filling out your return
  • How to file your return
  • How to remit an amount owing
• Instalment payments
  • Who has to make instalment payments?
• Penalties and interest
  • Penalties
  • Interest
• Books and records
• Point-of-sale rebates
• Place-of-supply rules
  • Sales of goods
  • Supplies of services
  • Real property and services related to real property
  • Intangible personal property
• Goods imported into Canada
  • Calculating the tax
  • Time of payment
  • Goods brought into a participating province
  • Temporary imports
  • Temporarily imported conveyances
  • Imports by exporters of processing services
  • Goods imported by mail or courier
  • Rebate and refund procedures
  • Special rebate and refund procedures
• Services and intangible personal property imported into Canada
  • Supplies between branches
• Mail or courier imports of prescribed publications
  • Prescribed publications
  • Soliciting sales
  • Customs processing of publications imported by mail
  • Bulk shipments of direct mail publications
  • Bulk shipments not individually addressed and not sent by mail or courier
  • Casual imports
  • Samples
• Exports from Canada
  • Proof of residency and GST/HST registration status
  • Exported goods
  • Exported services
  • Exported intangible personal property
• Foreign carriers
  • Supplies bought by foreign carriers who are not registered for the GST/HST
  • Emergency repair services
• Drop-shipments
  • Drop-shipments to registered persons
  • Drop-shipments to unregistered persons
  • Transfer of goods to a carrier or warehouse
  • Goods kept by registered suppliers
  • Goods subsequently exported
  • Events and supplies that do not qualify for the drop-shipment rules
• GST/HST rebates
  • Rebate for exported goods
  • Production of artistic works for export
  • Installation services
  • Foreign Convention
• Questions and answers
• Example of an assignment of rights agreement
• Non-taxable imports
• Publications and forms
• Digital services
• For more information
• If you need help

Find out if this guide is for you

This guide explains how the Canadian goods and services tax/harmonized sales tax (GST/HST) applies to non-residents doing business in Canada. It provides guidelines to help you determine whether you are carrying on business in Canada, information on GST/HST registration requirements, and instructions on how to charge, record, calculate, and remit the GST/HST. It also provides detailed information about the GST/HST as it applies to specific business activities carried on by non-residents of Canada.

Selected listed financial institutions

This guide does not include information on the special rules for selected listed financial institutions (SLFI). If you are an SLFI, see Guide RC4050, GST/HST Information for Selected Listed Financial Institutions.

Digital economy businesses

This guide does not cover the new digital economy measures applicable to digital economy businesses including businesses that are registered or required to be registered under the simplified GST/HST registration regime of the digital economy provisions of Subdivision E of Division II of the Excise Tax Act, and to platform operators and non-resident digital economy businesses that are registered or required to be registered under the normal GST/HST registration regime. You can refer to “GST/HST for digital economy businesses: Overview", or contact us at 1-833-585-1463 (from Canada and the U.S.) or 1-613-221-3154 (from elsewhere – collect calls are accepted) for more information.

For more information, see Guide RC4022, General Information for GST/HST Registrants.

GST/HST and Quebec

In Quebec, Revenu Québec generally administers the GST/HST. If the physical location of your business is in Quebec, you have to file your returns with Revenu Québec using its forms, unless you are a person that is an SLFI for GST/HST or Quebec sales tax (QST) purposes or both. For more information, see the Revenu Québec publication IN-203-V, General Information Concerning the QST and the GST/HST, available at Revenu Québec. If you are an SLFI, go to GST/HST and QST – Financial institutions, including selected listed financial institutions.

Definitions

Arm’s length generally refers to a relationship or a transaction between persons who act in their separate interests. An arm’s length transaction is generally a transaction that reflects ordinary commercial dealings between parties acting in their separate interests.

Related persons are not considered to deal with each other at arm’s length. Related persons include individuals connected by blood relationship, marriage, common-law partnership, legal adoption or adoption in fact. A corporation and another person or two corporations may also be related persons. In addition, for GST/HST purposes, a member of a partnership is related to the partnership.

Unrelated persons may not be dealing with each other at arm’s length at a particular time. Each case will depend upon its own facts. The following factors are useful criteria that will be considered in determining whether parties are not dealing at arm’s length:

• whether there is a common mind that directs the bargaining for both parties to a transaction
• whether the parties to a transaction act in concert without separate interests; “acting in concert” means, for example, that parties act with considerable interdependence on a transaction of common interest
• whether there is de facto control (that is, effective without legal control) of one party by the other because of, for example, advantage, authority, or influence

For more information, see Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm’s Length.

Associated person, for GST/HST purposes, means a person that is generally associated with another person where one controls the other. Associated persons (referred to generally as “associates”) may include:

• two or more corporations
• an individual and a corporation
• a person and a partnership or trust
• two persons, if they are associated with the same third person

Calendar quarter means a period of three months beginning on the first day of January, April, July, or October in each calendar year.

Calendar year means a year that begins on January 1 and ends on December 31.

Charity means a registered charity or registered Canadian amateur athletic association for income tax purposes, but does not include a public institution. A charity can issue official donation receipts for income tax purposes.

For the definition of charity for the purposes of the public service bodies' rebate, see Guide RC4034, GST/HST Public Service Bodies' Rebate.

Commercial activity means any business or adventure or concern in the nature of trade carried on by a person, but does not include:

• the making of exempt supplies
• any business or adventure or concern in the nature of trade carried on without a reasonable expectation of profit by an individual, a personal trust, or a partnership where all of the members are individuals

Commercial activity also includes a supply of real property, other than an exempt supply, made by any person, whether or not there is a reasonable expectation of profit, and anything done in the course of making the supply or in connection with the making of the supply.

Exempt supplies means supplies of property and services that are not subject to the GST/HST. GST/HST registrants generally cannot claim input tax credits to recover the GST/HST paid or payable on property and services acquired to make exempt supplies.

Financial institution includes a person that is a listed financial institution and a person (referred to as a de minimis financial institution) whose income from certain financial services exceeds specific thresholds. For more information, see GST/HST Memorandum 17-6, Definition of “Listed Financial Institution” and GST/HST Memorandum 17.7, De Minimis Financial Institutions.

Fiscal year means the tax year of the person, or where a person has elected to change their fiscal year, the period that the person elected to be their fiscal year. Where the person is a selected listed financial institution that is either an investment plan or a segregated fund of an insurer, it generally means a calendar year.

Input tax credit (ITC) means a credit that GST/HST registrants can claim to recover the GST/HST paid or payable for property or services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of their commercial activities.

Listed financial institution includes:

• a bank
• a corporation that is authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee
• a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money
• a credit union
• an insurer
• a segregated fund of an insurer
• a person whose principal business is the lending of money or the purchasing of debt securities or a combination of these activities
• an investment plan
• a tax discounter
• a corporation that is deemed to be a financial institution because it has elected to have certain taxable supplies deemed to be financial services

For more information, see GST/HST Memorandum 17.6, Definition of “Listed Financial Institution.”

Participating province means a province that has harmonized its provincial sales tax with the GST to implement the harmonized sales tax (HST). Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities, as defined in subsection 123(1) of the Excise Tax Act, are carried on in that area.

Person means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, a union, a club, an association, a commission or other organization of any kind.

Property means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money.

Public institution means a registered charity for income tax purposes that is also a school authority, a public college, a university, a hospital authority, or a local authority determined by the Minister of National Revenue to be a municipality.

Public service body means a charity, non-profit organization, municipality, university, public college, school authority, or hospital authority.

Registrant means a person that is registered or required to be registered for the GST/HST, but generally excludes a person that is registered or required to be registered under special rules applicable to digital economy businesses unless that person registered under those special rules begins carrying on business in Canada, requiring them to register under the regular rules that apply to most persons.

Service means anything other than:

• property
• money
• anything that is supplied to an employer by an employee in the course of employment

Small supplier means a person whose revenue (along with the revenue of all persons associated with that person) from worldwide taxable supplies was equal to or less than $30,000 ($50,000 for public service bodies) in a single calendar quarter and over the last four consecutive calendar quarters. The calculation excludes consideration attributable to the sale of goodwill of a business, supplies of financial services, and supplies by way of sale of capital property.

Charities and public institutions are also considered small suppliers if they meet the gross revenue test of $250,000 or less.

For more information, see GST/HST Memorandum 2-2, Small suppliers.

Supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, or disposition.

Taxable supply means a supply that is made in the course of a commercial activity and is generally subject to the GST/HST (including zero rated supplies).

Zero rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies.

What is the GST/HST?

The goods and services tax (GST) is a tax that applies to most supplies of goods and services made in Canada. The GST also applies to many supplies of real property (for example, land, buildings, and interests in such property) and intangible personal property such as trademarks, rights to use a patent, and digitized products downloaded from the internet and paid for individually.

The participating provinces harmonized their provincial sales tax with the GST to implement the harmonized sales tax (HST) in those provinces. Generally, the HST applies to the same base of property (for example, goods) and services as the GST. In some participating provinces, there are point-of-sale rebates equivalent to the provincial part of the HST on certain qualifying items. For more information, see Point-of-sale rebates.

GST/HST registrants who make taxable supplies (other than zero-rated supplies) in the participating provinces collect tax at the applicable HST rate. GST/HST registrants collect tax at the 5% GST rate on taxable supplies they make in the rest of Canada (other than zero-rated supplies). Special rules apply for determining the place of supply. For more information, see Place-of-supply rules.

The HST rate can vary from one participating province to another. For the list of all applicable GST/HST rates, go to GST/HST calculator (and rates).

Who pays the GST/HST?

Almost everyone has to pay the GST/HST on purchases of taxable supplies of property and services (other than zero-rated supplies). However, in some situations, individuals registered under the Indian Act, Indian bands and band-empowered entities are relieved of paying the GST/HST on taxable supplies. In addition, some groups and organizations, such as certain provincial and territorial governments, do not always pay the GST/HST on their purchases. For more information, see Guide RC4022, General Information for GST/HST Registrants.

False GST/HST exemptions

Some individuals, businesses, and organizations are falsely claiming to be exempt from paying the GST/HST. In some cases, they may even present a fake exemption card to avoid paying the tax on their purchases.

If you do not collect the GST/HST from a person who falsely claims to be exempt from paying the GST/HST, you still have to account for the tax you should have collected.

Some provinces exempt farmers, municipalities, and certain businesses from paying the provincial sales tax. However, these provincial exemptions do not apply to the GST/HST.

Who charges the GST/HST?

Generally, GST/HST registrants have to charge and collect the GST/HST on all taxable (other than zero-rated) supplies of property and services they provide to their customers. For more information, see Should you register?

Taxable supplies

Most property and services supplied in or imported into Canada are subject to the GST/HST.

Taxable supplies (other than zero-rated)

The items listed below are examples of taxable supplies (other than zero-rated supplies):

• sales and rentals of commercial real property
• sales and leases of automobiles
• car repairs
• taxi or commercial ride-sharing services
• legal and accounting services
• publications such as books, magazines, and periodicals
• rights to operate franchises
• hotel accommodation
• barber and hairstylist services

For the list of all applicable GST/HST rates, go to GST/HST calculator (and rates)

Zero-rated supplies

Some supplies are zero-rated under the GST/HST – that is, GST/HST applies at a rate of 0%. This means that you do not charge GST/HST on these supplies, but you may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies. The following are examples of supplies taxable at 0% (zero-rated):

• basic groceries such as milk, bread, and vegetables
• agricultural products such as wheat, grain, raw wool, and dried tobacco leaves
• prescription drugs and drug-dispensing services
• certain medical devices such as hearing aids and artificial teeth
• exports (most goods and services for which you charge and collect the GST/HST in Canada, are zero-rated when exported)
• feminine hygiene products
• international passenger air travel, except to the continental United States and the islands of St. Pierre and Miquelon
• inbound international freight transportation services for transporting goods to the destination specified by the shipper
• outbound international freight transportation services for transporting goods when the charge for the service is $5 or more

As a GST/HST registrant, you can generally claim an ITC for any GST/HST paid or payable on your business purchases which you use to provide taxable property and services (including zero-rated supplies).

For more information, see GST/HST Memoranda Series, Chapter 4, Zero-rated supplies.

Exempt supplies

Some supplies are exempt from the GST/HST – that is, no GST/HST applies to them. This means that you do not charge the GST/HST on these supplies of property and services, and you are generally not entitled to claim ITCs on property and services acquired to provide these supplies. Generally, you cannot register for the GST/HST if your business provides only exempt supplies; one exception is if you are a listed financial institution resident in Canada.

The following are examples of exempt supplies:

• most health, medical, and dental services performed by licensed physicians or dentists for medical reasons
• bridge, road, and ferry tolls (ferry tolls are zero-rated if the ferry service is to or from a place outside Canada)
• many educational services such as:
  • tutoring services made to an individual in a course that follows a curriculum designated by a school authority
• most services provided by financial institutions such as lending money or operating deposit accounts
• long-term rentals of residential accommodation (of one month or more) and residential condominium fees

Determining resident and non-resident status in Canada

This section provides guidelines to help you determine whether you are a resident or a non-resident of Canada for GST/HST purposes.

Individuals

Residency status is determined according to:

• the length and reason for your stay abroad
• your residential ties with Canada
• your residential ties elsewhere
• the regularity and length of your visits to Canada

For example, if you have a dwelling, spouse or dependants, personal property, and social ties in Canada, this is a strong indication that you are resident in Canada.

In addition, government personnel posted abroad are treated as residents of Canada for GST/HST purposes.

For more information, see GST/HST Memorandum 3-4, Residence and Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.

Persons other than individuals

A person other than an individual includes a corporation, a partnership, a trust, an estate, or any organization such as a society, a union, a club, an association, or a commission. These persons are considered to be Canadian residents for GST/HST purposes in the following circumstances:

• a corporation is resident if it is incorporated or continued in Canada, and not continued elsewhere
• a partnership, an organization such as an unincorporated society, a club, an association, or a branch of any of these entities is resident if the member, or a majority of the members having management and control, is resident in Canada at that time
• a labour union is resident if it is carrying on labour union activities in Canada and has a local union or branch in Canada at that time

Further, according to general legal principles, a corporation that is not incorporated in Canada may still be considered a resident of Canada, if the central management and control of the activities of the corporation is exercised in Canada. The central management and control issue is a question of fact and is the determining factor in deciding the resident status of a corporation.

Generally, a trust is resident in the country where the more substantial central management and control actually takes place.

Permanent establishment

Even if persons are considered to be non-residents based on any of the previous factors, they may be considered to be Canadian residents in relation to activities carried on through their permanent establishment in Canada.

A permanent establishment of a person means:

• a person's fixed place of business, including a place of management, a branch, an office, a factory, or a workshop, and a mine, an oil or gas well, a quarry, timberland, or any other place where natural resources are extracted, through which the person supplies property or services
• a fixed place of business of someone else (other than a broker, general commission agent, or other independent agent acting in the ordinary course of business) who is acting in Canada on behalf of the person and through whom the person supplies property and services in the ordinary course of business

If you are a Canadian resident, but have a permanent establishment located outside Canada, we consider you to be a non-resident of Canada only for the activities carried on through that establishment.

Whether a person has a permanent establishment in Canada is a question of fact requiring consideration of all relevant facts.

For more information, see GST/HST Policy Statement P-208R, Meaning of Permanent Establishment in Subsection 123(1) of the Excise Tax Act (the Act).

Are you carrying on business in Canada?

Determining whether you are carrying on business in Canada is an important step in establishing if you have to register for the GST/HST. Non-residents who carry on business in Canada must register for the GST/HST under the normal GST/HST regime if they make taxable supplies in Canada and are not small suppliers. Additionally, non residents who do not carry on business in Canada may still be required to register under the simplified GST/HST regime and collect tax on certain types of supplies made into Canada.

Meaning of carrying on business

A business includes a profession, calling, trade, manufacture, or undertaking of any kind, whether or not the activity or undertaking is performed for profit. It also includes any activity done regularly or continually that involves providing property by way of lease, licence, or similar arrangement. This does not include an office or employment.

The meaning of business is not limited to the examples noted above, but also includes the commonly accepted meaning of business.

Carrying on business means that the business activity is done regularly or continually. Each case is evaluated on its own facts such as the person's history and intentions.

Meaning of carrying on business in Canada

After you determine if you are carrying on business, you have to determine if you are carrying on business in Canada. You can be carrying on business in Canada even if you do not have a permanent establishment in Canada.

Whether a person is carrying on business in Canada is a question of fact requiring consideration of all relevant facts. The factors determining whether a non-resident person is carrying on business in Canada for GST/HST purposes in a particular situation are:

• the place where agents or employees of the non-resident are located
• the place of delivery
• the place of payment
• the place where purchases are made or assets are acquired
• the place from which transactions are solicited
• the location of assets or an inventory of goods
• the place where business contracts are made
• the location of a bank account
• the place where the non-resident's name and business are listed in a directory
• the location of a branch or office
• the place where the service is performed
• the place of manufacture or production

For more information, see GST/HST Policy Statement P-051R2, Carrying on business in Canada.

Should you register?

You have to register under the normal GST/HST regime if:

• You provide taxable (including zero-rated) supplies in Canada and you are not a small supplier.
• You make taxable supplies of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada.
• You sponsor (host) a convention in Canada and more than 25% of the delegates are residents of Canada, as you are not considered to be a small supplier.
• You are not a small supplier and you solicit sales for books, newspapers, magazines, periodicals, or similar printed publications in Canada or you offer such goods for sale in Canada, either through an employee or agent, or by means of advertising directed at the Canadian market, and send the publications by mail or courier to the recipient at an address in Canada.

If your business is registered for the GST, it is also registered for the HST.

Companies, corporations, and partnerships register for the GST/HST as single entities. Branches and divisions cannot usually register separately. However, if you have divisions or branches that have separate accounting systems, and are separately identifiable by their activities or locations, you can apply to have these branches file separate GST/HST returns by filling out Form GST10, Application or Revocation of the Authorization to File Separate GST/HST Returns and Rebate Applications for Branches or Divisions and send it to the CRA.

New measures for digital economy businesses are in effect as of July 1, 2021. Digital economy businesses, including platform operators, may have new potential GST/HST obligations under these new measures. This means you may have new obligations, including registering, charging, collecting and reporting the GST/HST.

Type of digital economy businesses that are affected by the new measures:

• Cross-border digital products and services
  • You may be required to register under the simplified GST/HST regime
• Platform-based short-term accommodation
  • You may be required to register under the simplified GST/HST regime.
• Supply of qualifying goods
  • You may be required to register under the normal GST/HST regime. The simplified GST/HST regime is not available to you.

Go to Find out if you need to register for the GST/HST: GST/HST for digital economy businesses.

For more general information on these new measures and the definitions for the digital economy, go to GST/HST for digital economy businesses.

You do not have to register under the normal registration provisions if you are either:

• a non-resident who does not carry on business in Canada (except if you make taxable supplies of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada)
• a non-resident whose only commercial activity is selling taxable real property located in Canada otherwise than in the course of a business

For non-residents, the Tax Centre (TC) you should contact depends on the physical location of your business outside of Canada. Should your physical business location be within Canada, contact the Non-Resident TC that is closest to where you conduct your business: Prince Edward Island TC or Sudbury TC. To get the mailing address and telephone number, go to Non-resident GST/HST enquiries.

Small supplier

You are a small supplier and do not have to register under the normal GST/HST regime if you meet one of the following conditions:

• You are a sole proprietor and the total amount of all revenues (before expenses) from your worldwide taxable supplies from all your businesses and those of your associates (if they were associated at the beginning of the particular calendar quarter), is $30,000 or less in any single calendar quarter and in the last four consecutive calendar quarters.
• You are a partnership or a corporation and the total amount of all revenues (before expenses) from your worldwide taxable supplies and those of your associates (if they were associated at the beginning of the particular calendar quarter), is $30,000 or less in any single calendar quarter and in the last four consecutive calendar quarters.
• You are a public service body and the total amount of all revenues (before expenses) from your worldwide taxable supplies from all of the organization's activities and those of your associates (if they were associated at the beginning of the particular calendar quarter), is $50,000 or less in any single calendar quarter and in the last four consecutive calendar quarters. A gross revenue threshold of $250,000 also applies to charities and public institutions. For more information, see Guide RC4082, GST/HST Information for Charities.

In determining the total amount of revenues from taxable supplies of property and services made inside and outside Canada by you and your associates, do not include revenues from supplies of financial services, sales of capital property, and goodwill from the sale of a business.

Voluntary registration

Even if you do not have to register for the normal GST/HST regime because you are a small supplier or because you do not carry on business in Canada, you may have to register under the simplified GST/HST regime even if you do not carry on business in Canada. You can choose to register in the following cases:

• you are engaged in a commercial activity in Canada
• you are a non-resident person who, in the ordinary course of carrying on business outside Canada, regularly solicits orders for goods (except prescribed goods) to be exported or delivered to Canada
• you are a non-resident person who, in the ordinary course of carrying on business outside Canada, enters into an agreement to supply services to be performed in Canada
• you are a non-resident person who, in the ordinary course of carrying on business outside Canada, enters into an agreement to supply intangible personal property such as intellectual property:
  • to be used in Canada
  • that relates to real property situated in Canada
  • that relates to goods that are ordinarily situated in Canada
  • that relates to services to be performed in Canada

You have to stay registered for at least one year before you can ask to cancel your registration. By registering, you may be eligible to claim ITCs for the GST/HST paid or payable on purchases related to your commercial activities. If you are a small supplier and register voluntarily, you have to charge, collect, and remit the GST/HST on your taxable supplies of property and services (other than zero-rated).

If you choose not to register, you do not charge the GST/HST, and you cannot claim ITCs.

Business number

The business number (BN) is the standard identifier for businesses and is unique to each business. It is combined with program accounts which are used for specific business activities that must be reported to the CRA. For example, a GST/HST program account. For more information, see Business number registration.

If you have to register for the GST/HST, or you choose to do so voluntarily, contact a Non-Resident Tax Centre (TC) to apply for a BN. The Tax Centre (TC) you should contact depends on the physical location of your business outside of Canada. Should your physical business location be within Canada, contact the Non Resident TC that is closest to where you conduct your business: Prince Edward Island TC or Sudbury TC. You will have to complete the Non Resident Business Number and Account Registration Web Form. For more information, go to How to register for a business number or Canada Revenue Agency program accounts. Alternatively, you may fill out Form RC1, Request for a business number and certain program accounts, and send it to your TC. For more information on the appropriate TC for your location, go to Non-resident GST/HST Enquiries.

Security deposit

Generally, if you do not have a permanent establishment in Canada, or if you make supplies in Canada only through another person's fixed place of business, and you apply to be registered for the GST/HST, you have to provide the CRA with a security deposit.

The initial amount of the security deposit is 50% of your estimated net tax, whether positive or negative, during the 12-month period after you register. For subsequent years, the amount of security is equal to 50% of your actual net tax for the previous 12-month period whether this amount is positive or negative. The maximum security deposit that we may require is $1 million, and the minimum is $5,000.

Your security deposit may be in the form of cash, certified cheque, money order, or a qualifying bond. The use of cash or cash equivalents (certified cheque or money order, etc.) may result in the cash being used to pay other outstanding debts to the CRA at the time the security is released. The CRA does not accept non-transferable bonds such as Canada Savings Bonds.

For current security requirements, contact your Tax Centre. The Tax Centre (TC) you should contact depends on the physical location of your business outside of Canada. Should your physical business location be within Canada, contact the Non-Resident TC that is closest to where you conduct your business: Prince Edward Island TC or Sudbury TC. To get the mailing address and telephone number, go to Non-resident GST/HST enquiries.

Foreign conventions

If you are the sponsor of a foreign convention, you cannot register for the GST/HST if your only commercial activity in Canada is making sales of admissions or related convention supplies or leasing exhibition space at a foreign convention. However, if you sell books, posters, education material, or other items at the foreign convention, you may be able to, or you may have to register for the GST/HST.

A foreign convention is a convention held in Canada where both of the following applies:

• at the time you determine the amount to be charged for the admissions, it is reasonably expected that at least 75% of the admissions will be provided to non-residents of Canada
• your head office is situated outside Canada or, if you have no head office, the member or the majority of members having management and control of your organization are non-residents

If more than 25% of the admissions are reasonably expected to be Canadian residents, you have to register for the GST/HST and you must do so before the event takes place.

If you are a non-resident exhibitor, the requirement to register for the GST/HST is based on whether you are carrying on business in Canada or whether you sell admission fees directly to spectators or attendees.

For more information about foreign conventions, go to Foreign Convention and Tour Incentive Program, or see Guide RC4036, GST/HST Information for the Travel and Convention Industry.

Calculating your net tax

If you are a GST/HST registrant, you have to calculate your net tax for each GST/HST reporting period and report this on your GST/HST return. To do so, calculate both:

• the GST/HST collected or that became collectible by you on your taxable supplies made during the reporting period
• the GST/HST paid and payable on your business purchases and expenses for which you can claim an ITC

The difference between these two amounts, including any adjustments, is called your net tax. It is either your GST/HST remittance or your GST/HST refund. If you charged or collected more GST/HST than the amount paid or payable on your purchases, send the difference to the CRA. If the GST/HST paid or payable is more than the GST/HST you charged or collected, you can claim a refund of the difference.

Input tax credits

As a registrant, you recover the GST/HST paid or payable on your purchases and expenses related to your commercial activities by claiming an input tax credit (ITC) in your line 108 calculation if you are filing electronically or on line 106 if you are filing a paper GST/HST return.

You may be eligible to claim ITCs only to the extent that your purchases and expenses are for consumption, use, or supply in your commercial activities.

GST/HST payable and not paid

When you calculate your ITCs, you can include the GST/HST for purchases and expenses for which you have been invoiced but not yet paid. This means that you can get a credit for the GST/HST you owe to your suppliers before you pay the invoice.

Time limits for claiming ITCs

Most registrants claim their ITCs when they file their GST/HST return for the reporting period in which they made their purchases. However, you may have ITCs that you did not claim when you filed the return for the corresponding reporting period.

If so, you can claim those previously unclaimed ITCs on a future GST/HST return. ITCs must be claimed by the due date of the return for the last reporting period that ends within four years after the end of the reporting period in which the ITC could have first been claimed.

To support your claim for ITCs, the invoices or receipts you use must contain specific information. See the chart, "Input tax credit information requirements" in Guide RC4022, General Information for GST/HST Registrants, for details on what is required.

The time limit for claiming ITCs is reduced to two years for:

• listed financial institutions (other than corporations that are deemed to be a financial institution because they have elected to have certain taxable supplies deemed to be financial services)
• persons whose threshold amounts exceed $6 million for both the person’s fiscal year that includes the reporting period and the person’s preceding fiscal year, except for:
  • charities
  • persons whose supplies of property and services (other than financial services) during either of the two preceding fiscal years are at least 90% taxable supplies

Under the two-year limit, you can claim your ITCs on any future return that is filed by the due date of the return for the last reporting period that ends within two years after the end of your fiscal year that includes the reporting period in which the ITC could have first been claimed.

ITCs for reimbursements and allowances paid to employees and partners

If you are a GST/HST registrant and you reimburse your employees or partners (in the case of a partnership), or pay them a reasonable allowance for expenses they incurred in Canada in relation to your commercial activities, you may be able to claim an ITC for the GST/HST you are considered to have paid with respect to the reimbursement or allowance.

If you are a non-resident corporation or a non-resident affiliate of a Canadian corporation and send your employees to Canada for meetings, training sessions, work projects, and so forth, you have to be a GST/HST registrant to claim an ITC for the GST/HST you pay on expenses incurred by your employees.

Employees of a non-resident affiliate of a Canadian corporation are not employees of the Canadian corporation. Therefore, you cannot recover the GST/HST paid or payable on your employees' expenses in Canada by having the Canadian corporation reimburse the employees and claim the ITC.

For more information, see GST/HST Memorandum 9-3, Allowances, and GST/HST Memorandum 9-4, Reimbursements, to make sure you qualify.

ITCs on imports into Canada

If you are an importer, you have to pay the GST or the federal part of the HST on most commercial goods you import into Canada, whether or not you are a GST/HST registrant. If you are a registrant, you can generally claim an ITC to recover the GST or the federal part of the HST paid or payable to the extent that the goods are imported for consumption use or supply in the course of your commercial activities.

Flow-through of ITCs

If you import goods into Canada and you are not a GST/HST registrant, you cannot claim an ITC for the GST or the federal part of the HST in respect of the importation. However, if you supply the imported goods, and deliver or make them available in Canada, to a GST/HST registrant, that registrant may be able to claim the GST or the federal part of the HST paid in respect of the importation as an ITC. As long as you give the registrant a satisfactory proof that you paid the GST or the federal part of the HST when you imported the goods, you can pass on the ITC to that registrant. Satisfactory proof includes a copy of Canada Border Services Agency (CBSA) Form B3-3, Canada Customs Coding Form, showing that the GST or the federal part of the HST was paid at the time of import.

You may also need the sales invoice, an agreement in writing between you and the buyer, or other relevant documents showing both:

• that the goods were delivered, or made available to the registrant in Canada without being used by you, or on your behalf, in Canada
• the quantity of goods bought

If you distribute products to more than one registered customer who is a Canadian resident, CBSA Form B3-3 alone may not provide enough information to support an ITC claim by your customers. For example, there may not be a CBSA Form B3-3 for each transaction. If this is the case, your customers must get a statement from you indicating the amount of tax paid or payable on the goods delivered to them. Each declaration must be accompanied by the corresponding CBSA Form B3-3 transaction number.

You can also pass on an ITC to a registrant if the registrant takes physical possession of the imported goods in Canada for the purpose of supplying commercial services to you in respect of the goods, including:

• manufacturing
• testing
• processing, which includes marginal manufacturing such as packaging, repackaging, finishing, and cutting to size
• evaluation
• inspecting
• repair or maintenance

A commercial service in respect of a good does not include a service of shipping the good supplied by a carrier, and a financial service. You have to give the registrant satisfactory proof that you paid the GST or the federal part of the HST when you imported the goods.

New registrants

If you are a new registrant, and you have been a small supplier immediately before you became a registrant, you are considered to have received a supply, by way of sale of each property that was held immediately before you became a registrant, for consumption, use, or supply in the course of commercial activities. We consider that you bought the property at that time and paid GST/HST equal to the basic tax content of the property, such as capital property, real property, and inventory that you had on hand to use in your commercial activities at the time you became a registrant. You may be eligible to claim an ITC for the GST/HST paid or payable on these supplies.

You can also claim an ITC for any GST/HST that was payable before you became a registrant in respect of services to be supplied to you after you became a registrant, or that you prepaid for rent, royalties, or similar payments for property that relate to the period after you became a registrant, to the extent that the service or property is for consumption, use or supply in the course of your commercial activities. You cannot claim an ITC for the GST/HST paid or payable on services supplied to you before you became a registrant, or on the value of any rent, royalty, or similar payment that relates to a period before you became a registrant, even if you paid that GST/HST after you became a registrant.

Streamlined accounting methods

We have developed two streamlined accounting methods to help reduce paperwork and bookkeeping costs associated with calculating the GST/HST:

• a Streamlined Input Tax Credit Method to calculate input tax credits
• a Streamlined Accounting Quick Method to calculate your net GST/HST remittance

If you qualify to use these methods, you can use either one or both of them for any given fiscal year.

Streamlined Input Tax Credit Method

The Streamlined Input Tax Credit Method for claiming ITCs is another way for eligible registrants to calculate their ITCs when filling out their GST/HST return using the regular method of filing.

When you use the Streamlined Input Tax Credit Method for claiming ITCs, you do not have to show the GST/HST separately in your records. Instead, total the amount of your taxable purchases for which you can claim an ITC. You still have to keep the usual documents to support your ITC claims in case the CRA asks to see them.

You are eligible to use the Streamlined Input Tax Credit Method for claiming ITCs if you meet all of the following conditions:

• Your annual worldwide revenues from taxable property and services (including those of your associates) are $1 million or less in your last fiscal year.
• Your total taxable supplies (including those of your associates) for all preceding fiscal quarters of the current fiscal year must also be $1 million or less. These limits do not include goodwill, zero-rated financial services, or sales of capital real property.
• You have $4 million or less in taxable purchases made in Canada in your last fiscal year. The $4 million purchase limit does not include zero-rated purchases, but it does include purchases imported into Canada as well as the GST/HST paid or payable on those purchases and importations.

In addition, if you are a public service body, you must be able to reasonably expect that your taxable purchases in the current fiscal year will not be more than $4 million.

If you qualify, you can start using the Streamlined Input Tax Credit Method for claiming ITCs at the beginning of a reporting period. You do not have to file any forms to use it. Once you decide to use this method, you have to use it for at least one year if you continue to qualify.

How does the Streamlined Input Tax Credit Method work?

If you make purchases in both participating and non-participating provinces, you have to separate your taxable purchases based on the rate of GST/HST you paid.

You can use this method to calculate ITCs only for purchases you use to provide taxable property and services. If you use your purchases for personal use, or to provide both taxable and exempt property and services, only the part used for providing taxable property and services can be included in the ITC calculation. If you use a purchase at least 90% of the time to provide taxable property and services, include the total purchase price in your ITC calculation.

With the Streamlined Input Tax Credit Method, you do not have to separate the amount of the GST/HST payable on each invoice; instead, you only have to track the total amount of your eligible taxable purchases. However, you have to separate your GST-taxable purchases from your HST-taxable purchases, and you have to keep the usual documents to support your ITC claims in case the CRA asks to see them.

To calculate ITCs using this method, follow these steps:

Step 1

Add up your ITC eligible business expenses. When you make purchases in both participating and non-participating provinces, you have to separately add up your purchases that are taxed at different GST/HST rates. For the list of all applicable GST/HST rates, go to GST/HST calculator (and rates).

Include purchases of capital personal property and improvements to such property if you use the property more than 50% in your commercial activities.

Your totals will include:

• the GST or the HST
• non-refundable provincial sales tax (PST) (only for GST-taxable purchases)
• taxes or duties on imported goods
• reasonable tips
• interest and penalty charges related to purchases taxable at the GST or the HST rate
• reimbursements paid to employees, partners, and volunteers for taxable expenses

Do not include:

• expenses on which you have not paid the GST/HST such as employees’ salaries, insurance payments, interest, exempt or zero-rated purchases, and purchases from a non-registrant
• purchases you made outside Canada that are not subject to the GST/HST
• real property purchases or leases
• refundable or rebatable PST
• purchases for which you are not entitled to claim an ITC such as:
  • the part of any purchase that you use for personal use
  • the part of any purchase that you use to provide exempt goods and services
  • capital personal property that you do not use more than 50% in your commercial activities
  • the part of the cost of a passenger vehicle that is more than the capital cost limitation for income tax purposes (for more information, see the chart “ITCs for acquisition of capital personal property – Passenger vehicles and aircraft” in Guide RC4022, General Information for GST/HST Registrants)
• 50% of the meal and entertainment expenses (you can include 100% of the expense and make the 50 % adjustment at the end of your fiscal year). This does not apply to charities and public institutions (they can include 100% of the meal and entertainment expense with no adjustment)
• if you are a long-haul truck driver, the applicable percentage of food and beverage expenses for which you cannot claim an ITC. For the appropriate percentages, see “Long-haul truck drivers” in Guide RC4022 (you can include 100% of the expenses and make the adjustment at the end of your fiscal year)
• if you are an individual or partnership, passenger vehicles or aircraft you bought or imported that you will not use 90% or more in commercial activities (for more information, see the chart “ITCs for acquisition of capital personal property – Passenger vehicles and aircraft” in Guide RC4022)
• amounts paid or payable in reporting periods before you started using the simplified method to calculate your ITCs

Step 2

Multiply the amount(s) you calculated in Step 1 by:

• 5/105 for purchases on which you paid 5% GST
• 13/113 for purchases on which you paid 13% HST
• 15/115 for purchases on which you paid 15% HST

Step 3

Add the following amounts, if they apply, to your ITC amount calculated in Step 2:

• ITCs you did not claim before you started using the simplified method, as long as the time limit for claiming them has not expired
• ITCs for the GST/HST paid or payable on real property purchases or leases (for more information, see “Claiming ITCs for capital real property” in Guide RC4022)
• if you are an individual or a partnership, the ITC you can claim for a passenger vehicle or an aircraft used less than 90% in your commercial activities

Include this total in your line 108 calculation if you are filing electronically or enter it on line 106 of your paper GST/HST return.

Streamlined Accounting Quick Method

The Streamlined Accounting Quick Method is another option for eligible registrants to calculate their net tax for GST/HST purposes. This method reduces paperwork and makes it easier to calculate GST/HST remittances and file GST/HST returns because it eliminates the need to report the actual GST/HST paid or payable on most purchases.

When using the quick method, you still charge the GST at the rate of 5% or the HST at the applicable rate on your taxable supplies of property and services. To calculate the amount of GST/HST to remit, multiply the revenue from your supplies (including the GST/HST) for the reporting period by the quick method remittance rate, or rates, that apply to your situation.

The remittance rates of the quick method are less than the applicable rates of GST/HST that you charge. This means that you remit only a part of the tax that you collect, or that is collectible. Since you cannot claim ITCs on most of your purchases when you use this method, the part of the tax that you keep accounts for the approximate value of the ITCs you would otherwise have claimed.

You can begin using this method if the total revenue from your annual worldwide taxable supplies and those of your associates (including zero-rated supplies) is no more than $400,000 (including the GST/HST) in any four consecutive fiscal quarters over the last five fiscal quarters. The $400,000 limit does not include the following:

• supplies of financial services
• sales of real property
• sales of capital assets
• goodwill

You must have a permanent establishment in Canada to use the quick method. Certain registrants cannot use the quick method, including lawyers (or law offices), accountants, bookkeepers, financial consultants, and listed financial institutions (for the complete list, see ‘’Exceptions’’ under ‘’Quick method of accounting’’ in Guide RC4022, General Information for GST/HST Registrants).

For more information or wish to use the Streamlined Accounting Quick Method, see Guide RC4058, Quick Method of Accounting for GST/HST.

How does the Streamlined Accounting Quick method work?

With the quick method of accounting, you charge and collect the GST/HST on taxable property and services you supply to your customers in the usual way. However, to calculate the net GST/HST to remit, you multiply your taxable supplies including the GST and your taxable supplies including the HST made during the reporting period by the applicable quick method remittance rate(s).

The remittance rates depend on the following factors:

• whether you are in the service, retail, or manufacturing business
• the province in which your permanent establishment is located
• the province where your supplies are made or your services are provided

The quick method remittance rates are less than the GST/HST rates of tax that you charge. This means that you remit only a part of the tax that you charge or collect. The part that is not remitted under this method is reported as income on your income tax return.

If you use the quick method of accounting, you have to continue using it for at least a year. There are other rules as well.

For more information, see Guide RC4058, Quick Method of Accounting for GST/HST.

Input tax credits

You cannot claim ITCs for your operating expenses if you use the quick method of accounting. The quick method remittance rates take into account the GST/HST you pay on these purchases and expenses. You do not have to keep track of the GST/HST paid or payable on your operating expenses (such as utilities, rent, and telephone expenses), meal and entertainment expenses, and inventory purchases. However, you still have to keep records of your purchases and expenses.

You may be eligible to claim ITCs for certain purchases such as purchases of land and purchases for which you can claim a capital cost allowance for income tax purposes, such as computers, vehicles, and other large equipment and machinery.

How do I start using the quick method?

Before you start using the quick method of accounting, file a quick method election. To do this, use the CRA's online services at My Business Account or Represent a Client, or fill out and send Form GST74, Election and Revocation of an Election to Use the Quick Method of Accounting to your tax service office.

For more information and line-by-line instructions on how to fill out your GST/HST return using the quick method, see Guide RC4058, Quick Method of Accounting for GST/HST.

How long does the election stay in effect?

Generally, the election stays in effect as long as the total annual revenue from your worldwide taxable supplies (including the GST/HST), and those of your associates, does not exceed the $400,000 limit (explained above), or until you become a person that cannot use the quick method because of the type of business you carry on.

If your election ceases to be in effect, you have to start accounting for the GST/HST using the regular method:

• at the beginning of your next fiscal year if both of the following apply:
  • you file annual returns
  • you exceed the $400,000 threshold or become a person that cannot use the quick method because of the type of business you carry on, in your current fiscal year
• at the beginning of your second fiscal quarter of a fiscal year if all of the following apply:
  • you file monthly or quarterly returns
  • your election to use the quick method was in effect at the beginning of that year
  • you exceeded the $400,000 threshold in your previous fiscal year
• at the beginning of your next fiscal quarter if all of the following apply:
  • you file monthly or quarterly returns
  • your election to use the quick method was not in effect at the beginning of the fiscal year
  • you exceeded the $400,000 threshold in both the first four and the last four consecutive quarters of the previous five fiscal quarters
• at the beginning of a fiscal quarter if both of the following apply:
  • you file monthly or quarterly returns
  • you become a person that cannot use the quick method because of the type of business you began to carry on in the fiscal quarter

For more information and line-by-line instructions on how to fill out your GST/HST return using the quick method, see Guide RC4058, Quick Method of Accounting for GST/HST.

Filing your GST/HST returns

Reporting periods

When you register for the GST/HST, we give you a reporting period. Reporting periods are the periods of time for which you file your GST/HST returns. For each reporting period, you have to prepare and send the CRA a GST/HST return showing the amount of the GST/HST you charged or collected from your customers and the amount of the GST/HST paid or payable to your suppliers.

Your reporting period is determined based on the revenue from your total taxable supplies of property and services made in Canada in your immediately preceding fiscal year or in all preceding fiscal quarters ending in that fiscal year. This revenue includes zero-rated supplies of property and services made in Canada, and those of your associates.

Do not include revenue from:

• supplies made outside Canada
• zero-rated exports of property and services
• zero-rated supplies of financial services
• exempt supplies
• taxable supplies of capital real property
• goodwill

When you register for the GST/HST, we generally assign an annual reporting period. However, you may choose a more frequent reporting period. The chart, "Assigned and optional reporting periods" that follows shows the threshold revenue amounts that determine the assigned reporting periods, and the optional reporting periods available if you want to file a return more frequently.

To change your assigned reporting period, send the CRA a filled out Form GST20, Election for GST/HST Reporting Period.

If your revenue from taxable supplies is more than the threshold amount for your reporting period, you have to report more frequently. For more information, see “When does your reporting period change?” in Guide RC4022, General Information for GST/HST Registrants.

We assign annual reporting periods to most listed financial institutions and charities, regardless of their revenues. They can choose to file monthly or quarterly GST/HST returns using Form GST20, Election for GST/HST Reporting Period. For more information, see GST/HST Notice 265, GST/HST Registration for Listed Financial Institutions (Including Selected Listed Financial Institutions), or Guide RC4082, GST/HST Information for Charities.

GST/HST returns filed by non-residents

If you are a non-resident, fill out your GST/HST return in Canadian dollars, sign the return, and remit any amounts owing in Canadian dollars.

If you choose to make your payment in foreign funds, the exchange rate you receive for converting the payment to Canadian dollars is determined by the financial institution processing your payment, and may be different from the exchange rate that the CRA uses.

Filing and remitting due dates

Monthly and quarterly filers

If you have a monthly or quarterly reporting period, you have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.

Annual filers

If you have an annual reporting period, you usually have to file your return and remit any amount owing no later than three months after the end of your fiscal year.

As an annual filer, you may have to pay quarterly instalments. If so, they are due no later than one month after the last day of each fiscal quarter. For more information, see Instalment payments.

Filing nil returns

File a GST/HST return for every reporting period, even if you have no net tax to remit and are not expecting a refund. In other words, even if you have no business transactions in a reporting period, you still have to file a return. Otherwise, you may experience delays in getting refunds and you could receive a failure to file notice and may be liable for a failure-to-file penalty. For more information, see Penalties and interest.

If you are filing a nil return, be sure to fill it out using zeros. Do not send a blank return to the CRA.

Notice of (re)assessment

We issue a notice of (re)assessment if we owe you a refund or rebate or if the (re)assessment results in an amount owing greater than the payment made on filing. If you are registered for online mail, once we have processed your GST/HST return we will send you an email notification to inform you that there is mail available for you to view online. You can sign up for online mail by entering an email address when filing a GST/HST NETFILE return.

This notice explains the results of our assessment of your GST/HST return. It also explains any changes that we made to your return. If there is an amount owing, we will send you Form RC159, Remittance Voucher – Amount Owing, with your notice. Use this form to pay any outstanding amount.

You will not receive a notice of (re)assessment when either:

• a return is filed and no business activity has been reported (nil return)
• a return is filed and the amount owing on the return equals the payment made on filing

You can also pay the outstanding amount online at Pay now with My Payment.

Filling out your return

Calculate the total amount of the GST/HST you have collected or charged on your taxable supplies during the reporting period and the total amount of the GST/HST that was paid or payable on your business purchases and expenses. Use these figures to fill out your GST/HST return.

If you make two consecutive electronic payments, the CRA will no longer send you an electronic filing package unless you request one. You still have to file your return by the due date even if you did not receive a personalized return.

If you file a paper return, the CRA will send you the GST34-2 filing information package, which includes personalized returns for each period in your fiscal year. You can use the access code provided in the package if you decide to start filing your returns using GST/HST NETFILE or GST/HST TELEFILE. To stop receiving the printed GST/HST returns go to My Business Account or Represent a Client and select “Enquiries service” and then “Change mailing instructions.”

If you need a new return package or access code, do one of the following:

• to request a new GST34-2 or GST34-3, call the Business Enquiries phone line at 1-800-959-5525
• to get a new access code for GST/HST NETFILE or GST/HST TELEFILE, go to Need an access code?
• to get a non-personalized version of the paper return (Form GST62), go to Order forms and publications

If you are filing a nil return, be sure to fill it out using zeros. Do not send a blank return to the CRA.

You have to fill out and sign your GST/HST return and remit your payment in Canadian dollars or foreign funds.

How to file your return

It is mandatory for many registrants to file electronically. GST/HST registrants, excluding registrants that have accounts administered by Revenu Québec, are eligible to file their GST/HST returns and remit amounts owing electronically. GST/HST returns in paper format can be filed by mail or, if you are making a payment, at your Canadian financial institution.

A penalty will apply if you are required to file electronically and you do not do so. For more information, see Failure to file electronically.

There are sixmethods of electronically filing a GST/HST return. They are:

• My Business Account (MyBA) is a service available to GST/HST registrants in Canada. To register for MyBA, go to My Business Account. You do not need an access code when filing your GST/HST return through MyBA. If you are a non resident who does not have a Canadian social insurance number (SIN), you will not be able to access MyBA.
• Represent a Client is a service available to representatives in Canada and the United States. You can authorize a Canadian resident or non-resident representative living in the United States to access the Represent a Client service on your behalf. For more information, go to Represent a Client.

If your representative is a non-resident living in the United States, follow these steps:

1. Your representative must apply for a non-resident representative number (NRRN) by filling out Form RC391, Application for a Canada Revenue Agency Non-Resident Representative Number (NRRN).
2. When your representative receives the NRRN, they can access the Represent a Client service to submit an authorization request.

For more information, go to Registration process to access the CRA sign-in services.

• GST/HST NETFILE is available to GST/HST registrants across Canada, excluding accounts administered by Revenu Québec. You can file GST/HST returns online using your four digit access code from your Filing Information Package by going directly to GST/HST NETFILE.
• GST/HST TELEFILE allows eligible registrants to file their returns using their touch-tone telephone and a toll-free number. To file your return electronically using GST/HST TELEFILE, call 1-800-959-2038 from Canada and the continental United States using your touch-tone telephone. An automated telephone process will prompt you to give your GST/HST information, starting with your access code. For more information, go to GST/HST TELEFILE.
• Electronic data interchange allows returns and remittances to be filed electronically through a participating financial institution. You will not require an access code. For more information, go to GST/HST EDI filing and remitting or contact your financial institution.
• GST/HST Internet file transfer is an option that allows eligible registrants to file their return electronically using third-party CRA certified accounting software. An access code is needed. For more information, go to GST/HST Internet File Transfer.

We offer a printer-friendly version of the GST/HST return working copy. This working copy is provided to enable registrants who file electronically to keep a copy of their GST/HST return calculations for record purposes. Do not use the printer-friendly version to replace and file a lost pre-printed return or to make payments at your financial institution. To print a copy, go to GST/HST Return Working Copy.

For payment options, see How to remit an amount owing.

Mandatory electronic filing

Most GST/HST registrants must file their returns electronically, if:

• their annual taxable supplies are more than $1.5 million (except for charities)
• they are required to recapture input tax credits (ITCs) for the provincial part of the HST
• they are builders who have been affected by the transitional housing measures in Ontario, and British Columbia

For builders who need more information, see GST/HST Info Sheet GI-099, Builders and Electronic Filing Requirements, to help determine the filing option that can or must be used.

Penalties will be applied to any person who does not file electronically when required to do so.

How to remit an amount owing

There are four ways to make a payment:

• remit electronically
• remit at your financial institution in Canada
• send your payment by mail
• pay without a Canadian bank account at Pay without a Canadian bank account

Non-residents who do not have a Canadian bank account can make their payments to the CRA by wire transfer or with an internationally issued credit card through a third party service provider who charges a fee for their services.

GST/HST payments of $50,000 or more must be paid electronically or at your financial institution.

You have to make arrangements with your financial institution when you make a payment of more than $25 million.

Electronic payments and paying at a Canadian financial institution

You can pay electronically using your financial institution’s online or telephone banking services. You do not need a remittance voucher to pay online.

You can also pay electronically using the CRA’s My Payment option. My Payment allows individuals and businesses to make payments online from an account at a participating financial institution, using the CRA website. For more information, go to Pay now with My Payment.

Another online option is to authorize the CRA to withdraw a pre-determined payment from your bank account to pay tax on a specific date or dates. You can set up an agreement at My Business Account.

You can make a payment at your financial institution for an amount owing on a return that has already been electronically filed using GST/HST NETFILE or GST/HST TELEFILE. However, you must include Form RC158, Remittance voucher – Payment on Filing, when making the payment.

If you are not filing electronically, you can file your return and make your payment at your participating financial institution in Canada.

If you are paying at a financial institution and your return requires attached documentation, you will have to send these documents separately to the CRA.

You cannot file your return at a financial institution if you are:

• required to file your GST/HST return electronically
• claiming a refund
• filing a nil return
• offsetting an amount owing on the return by a rebate or refund

In these cases, you have to use one of the other filing methods described in this section.

By mail

If you are not filing electronically, or at a participating financial institution in Canada, mail your return and your payment that is under $50,000, to the address shown on your GST/HST return.

If you are filing using GST/HST NETFILE or GST/HST TELEFILE or GIFT, you can pay by cheque or money order. However, you must include Form RC158, Remittance Voucher – Payment on Filing, with your payment when you send it to the CRA. Do not photocopy or include any portion of any paper GST/HST return that you may have. Form RC158 is not available on our website. We only provide it in pre-printed format.

Print your business number on your cheque or money order and make it payable to the Receiver General. Do not send cash in the mail. To avoid processing delays, do not staple or attach receipts or other supporting document to our return.

Instalment payments

Who has to make instalment payments?

If you are an annual filer and your net tax for the previous fiscal year was $3,000 or more, and your net tax for the current fiscal year is $3,000 or more, you have to make quarterly instalment payments during the current fiscal year, even if you have a rebate that reduces your amount owing to less than $3,000. If you do not remit instalments, you may incur penalty and interest.

To calculate your instalment payments and view the related due dates, go to My Business Account or Represent a Client.

These quarterly payments are due within one month after the end of each of your fiscal quarters and are usually equal to one quarter of your net tax from the previous year. You may also choose to base your quarterly instalment payments on an estimate of your net tax for the current year if you expect that your net tax for the current year will be less than it was for the previous year.

When you file your GST/HST return at the end of the fiscal year, deduct the instalment payments you made throughout the year from the net tax you owe on line 110 of your return.

Generally, if the instalments you paid are less than your net tax, you have to remit the difference. If the instalments you paid are more than your net tax, you can claim the difference as a refund. For more information, see Guide RC4022, General Information for GST/HST Registrants.

Penalties and interest

Penalties

Failure to file

A penalty will apply to any return you file late unless there is a $0 amount owing or we owe you a refund on that return. We calculate the penalty as follows:

A + (B x C)

where:

A is 1% of the amount owing

B is 25% of A

C is the number of complete months the return is overdue (to a maximum of 12 months)

Demand to file

If you receive a demand to file a return and do not do so, a penalty of $250 will be charged.

You cannot claim an income tax deduction for any penalty paid or payable for failing to file a GST/HST return.

Failure to file electronically

If you are required to file your returns electronically (see Mandatory electronic filing), but you do not do so, a penalty will be applicable:

• $100 for the initial return not filed electronically
• $250 for each following return not filed electronically

There are additional penalties, which can be significant, for failing to correctly report certain amounts and information on an electronically filed return, if they are not included, are under/over-reported, or are otherwise reported incorrectly. These amounts include:

• recaptured input tax credits (RITCs)
• sales of housing subject to HST, purchased on a grandparented basis
• the transitional tax adjustment
• provincial transitional new housing rebates

For these specific amounts, the penalties will generally be 5% of the difference between what is reported and what should have been reported plus 1% per month until the amounts are corrected (to a maximum of 10%).

Interest

Interest equal to the basic rate plus 4% will be charged on an overdue amount.

The basic rate is based on the rate charged on 90-day Treasury Bills, adjusted quarterly, and rounded up to the nearest whole percentage.

The CRA charges interest on:

• any overdue amount owing on a GST/HST return
• late or insufficient instalment payments
• any other overdue GST/HST amount that you have to remit to the Receiver General

Books and records

Every person who carries on a business or a commercial activity in Canada, every person who is required to file a return for purposes of the GST/HST, and every person who makes an application for a rebate or refund, should keep records in English or French in Canada. If you find this impractical, you can submit a written request to your tax services office asking for permission to keep such books and records outside Canada. The request has to include both:

• the reasons for keeping the books and records outside Canada
• an address where we can examine the books and records

The CRA will review your request and notify you as to whether or not the CRA will grant permission. Permission to keep books and records outside Canada may be subject to certain conditions. These conditions will be identified in an agreement signed by you or a person authorized to sign for you. Under this agreement, you may have to:

• make the books and records available to the CRA
• give every opportunity necessary to inspect the books, records, accounts, and vouchers
• pay the travel and living expenses incurred by us to perform the inspection

The CRA may also ask for access to foreign-based information or records maintained or located outside Canada that we need to administer the GST/HST.

You have to keep all records and books of account for a period of six years from the end of the year to which they refer.

For more information, see GST/HST Memorandum 15.1, General Requirements for Books and Records.

Point-of-sale rebates

Participating provinces provide a point-of-sale rebate of the provincial part of the HST payable on qualifying items, which are included in the following chart. When vendors provide point-of-sale rebates for the provincial part of the HST, they only collect the 5% federal part of the HST payable on the sale of these items.

A vendor's ability to claim ITCs would not be affected by crediting purchasers in this manner.

If the vendor does not credit the point-of-sale rebate, the purchaser would be able to apply for a rebate of the provincial part of the HST using Form GST189, General Application for GST/HST Rebates.

For a detailed description of the qualifying items and more information about the point-of-sale rebate, see the following publications:

• GST/HST Info Sheet GI-060, Harmonized Sales Tax for Ontario – Point-of-Sale Rebate on Newspapers
• GST/HST Info Sheet GI-063, Point-of-Sale Rebate on Children's Goods
• GST/HST Info Sheet GI-064, Harmonized Sales Tax for Ontario – Point-of-Sale Rebate on Prepared Food and Beverages
• GST/HST Info Sheet GI-065, Point-of-Sale Rebate on Books
• GST/HST Info Sheet GI-169, Point-of-Sale Rebate on Heating Oil
• Guide RC4033, General Application for GST/HST Rebates (“Reason code 16”)

Place-of-supply rules

Specific rules apply to determine whether a supply that is made in Canada is made in or outside a participating province. The province of supply then determines whether suppliers must charge the HST, and if so, at which rate. Unless otherwise indicated, the supplies referred to throughout this section are taxable (other than zero-rated) supplies.

The following sections explain some of the place-of-supply rules. For more information, see Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province, or go to GST/HST rates and place-of-supply rules.

Sales of goods

You collect the HST if you sell goods and deliver them or make them available to the customer in a participating province. Goods are also considered to be delivered in a particular province if you either:

• ship the goods to a destination in the particular province that is specified in the contract for carriage of the goods
• transfer possession of the goods to a common carrier or consignee that you retain on behalf of the customer to ship the goods to such a destination
• send the goods by courier or mail to an address in the particular province

Supplies of services

When a service is performed in whole or in part in Canada, we consider it to be made in Canada.

Rule 1: If, in the ordinary course of its business, the supplier of a service obtains a home or business address in Canada of the recipient, the supply will be regarded as made in the province in which the particular address is situated.

If, in the ordinary course of its business, the supplier of a service obtains more than one home or business address in Canada of the recipient, the supply will be regarded as made in the province in which the home or business address of the recipient that is most closely connected with the supply is situated.

If, in the ordinary course of its business, the supplier does not obtain a home or business address in Canada of the recipient but obtains another address in Canada of the recipient in the ordinary course of its business, the supply will be regarded as made in the province in which the address that is most closely connected with the supply is situated.

Rule 2: If, in the ordinary course of its business, an address in Canada of the recipient is not obtained by the supplier of a service, the supply will be regarded as having been made in a participating province if the part of the service that is performed in Canada is performed primarily (more than 50%) in the participating provinces. In such instances, the supply will be regarded as made in the participating province in which the greatest proportion of the service is performed.

Rule 3: If Rule 2 applies (in other words, no address in Canada of the recipient is obtained and the service that is performed in Canada is performed primarily in the participating provinces), but a single participating province cannot be determined as being the participating province in which the greatest proportion of the service is performed because the service is performed equally in two or more particular participating provinces, the supply will be regarded as made in the particular participating province for which the rate of the provincial part of the HST is highest.

Rule 4: If Rule 3 applies, but a single participating province still cannot be determined to be the place of supply because the particular rate of the provincial component of the HST in two or more of the particular participating provinces is the same, the supply will be regarded as having been made in the participating province among those particular participating provinces where the business address of the supplier that is most closely connected with the supply is located. If such an address is not located in one of those particular participating provinces, the supply will be regarded as having been made in the particular participating province among those provinces that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.

The general rules for supplies of services described above are subject to specific place-of-supply rules for certain services, some of which are explained in the following sections. For more information, see Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province, or go to GST/HST rates and place-of-supply rules.

Personal services

A personal service, generally, is a service that is all or substantially all (90% or more) performed in the physical presence of the individual to whom the service is rendered. For example, a hair cutting service performed at a hair salon located in Sudbury, Ontario will be subject to the HST at 13%.

A personal service does not include an advisory, consulting or professional service.

The following rules apply to personal services:

• If the service is performed primarily (more than 50%) in the participating provinces, the supply will be subject to the HST. The supply is made in the participating province where the greatest proportion of the service is performed and the HST rate for that province will apply.
• If the service is equally performed in two or more participating provinces, the HST will apply at the rate that is highest among those provinces.
• If the service cannot be determined to be made in a single participating province because the particular rate of the provincial component of the HST in two or more of the particular participating provinces is the same, the supply will be regarded as having been made in the participating province among those particular participating provinces where the business address of the supplier that is most closely connected with the supply is located. If such an address is not located in one of those particular participating provinces, the supply is regarded as having been made in the particular participating province among those provinces that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.
• If the service is performed primarily in the non-participating provinces or if it is performed equally in non-participating provinces and participating provinces, the supply is made in a non-participating province and will be subject to the GST at 5%.

Services in relation to tangible personal property

Generally, a supply of a service in relation to tangible personal property (TPP) that remains in the same province while the Canadian element of the service is being performed will be considered to be made in that province.

Real property and services related to real property

A supply of real property is considered to be made in the province where the real property is situated. For example, the sale of a warehouse situated in Goose Bay, Newfoundland and Labrador, is considered to be made in Newfoundland and Labrador and is therefore subject to the HST.

The following rules apply to services in relation to real property:

Rule 1: A supply of a service in relation to real property will be regarded as having been made in a participating province if the real property in Canada to which the service relates is situated primarily in the participating provinces. The supply will be regarded as having been made in the participating province in which the greatest proportion of the real property is situated.

Rule 2: If a single participating province cannot be determined as being the participating province in which the greatest proportion of the real property is situated because equal proportions of the real property are situated in two or more particular participating provinces, the supply is made in the particular participating province for which the rate of the provincial part of the HST is highest.

Rule 3: If a single participating province still cannot be determined to be the place of supply because the particular rate of the provincial part of the HST in two or more of the particular participating provinces is the same, the supply will be regarded as having been made in the participating province among those particular participating provinces where the business address of the supplier that is most closely connected with the supply is located. If such an address is not located in one of those particular participating provinces, the supply is regarded as having been made in the particular participating province among those provinces that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.

Intangible personal property

Generally, the place of supply for intangible personal property (IPP), such as franchise rights, depends on where the IPP can be used.

As a general rule, if the Canadian rights in respect of the IPP can only be used in a single province, that province would be the place of supply.

Goods imported into Canada

Goods imported into Canada are subject to the GST/HST, except for non-taxable imports. For more information, see Non-taxable imports.

You have to declare and report imported goods to CBSA for immediate inspection. When the goods are sent by common carrier, the carrier has to report their arrival to CBSA. In all other cases, the person importing the goods has to declare and report the goods to CBSA.

Generally, if you are a GST/HST registrant and the importer of record of commercial goods that you supply and that are delivered or made available to purchasers in Canada:

• you pay the GST or the federal part of the HST at the time of importation
• you can claim an ITC for the GST or the federal part of the HST paid or payable to the extent that the goods are imported for consumption, use or supply in your commercial activities
• you charge the GST/HST to your customers on the sale price other than for exempt supplies

If you are not a GST/HST registrant and the importer of record of goods imported into Canada that you supply:

• you pay the GST or the federal part of the HST at the time of importation
• you do not charge the GST/HST to customers, even when the goods are delivered or made available to the customers in Canada.

If you are not a GST/HST registrant, you cannot claim ITCs for the GST or the federal part of the HST you pay at the time of importation. However, if a customer is a GST/HST registrant, the customer may be able to claim ITCs. For more information, see Flow-through of ITCs and GST/HST Policy Statement P-125R, Input Tax Credit Entitlement for Tax on Imported Goods.

Calculating the tax

CBSA calculates tax on the following two amounts:

• the value of the goods as determined under the Customs Act for the purpose of calculating duties imposed on the goods at a percentage rate, whether or not the goods are in fact subject to duty
• the total amount of all duties and taxes, if any, payable under the Customs Tariff, the Special Import Measures Act, the Excise Tax Act (other than the GST/HST), or any other Canadian law relating to the importation of goods into Canada

Time of payment

The person responsible for paying the GST/HST on imported goods is the person responsible for paying the customs duty, or who would be responsible if the goods were subject to duty.

Duties and taxes on imported goods are payable when CBSA processes the accounting or entry documents. Importers or their customs brokers can post security to guarantee that customs duties and the GST or the federal part of the HST will be paid. When security has been posted, the presentation of accounting documents and the payment of duties and the GST or the federal part of the HST can take place after CBSA has released the goods.

Importers who have posted security with CBSA can take advantage of periodic payment rules. Under these rules, importers can delay paying any duties and taxes until the last business day of the current calendar month for goods imported and accounted for between the 25^th of the past calendar month and the 24^th of the current calendar month.

Under the periodic payment system, importers still have to account for their imports daily, and will continue to have up to five business days after the date of release to present the accounting documents to CBSA.

Goods brought into a participating province

Taxable non-commercial goods imported by a resident of a participating province are generally subject to the HST on importation, except for motor vehicles required to be registered in a participating province. While the federal part of the HST is payable on importation, The provincial part of the HST on imported motor vehicles is generally payable when the vehicle is registered or required to be registered in a participating province. Taxable non-commercial goods imported by residents of a non-participating province are only subject to the GST.

Although the provincial part of the HST is not payable when you import commercial goods that are destined for the participating provinces, the goods may be subject to self-assessment of the provincial part of the HST once they are brought into a participating province.

Generally, if you are a GST/HST registrant and you consume, use or supply the goods (other than specified motor vehicles) 90% or more in the course of your commercial activities, you do not have to self-assess the provincial part of the HST.

If you are a GST/HST registrant and you will not consume, use or supply the goods 90% or more in the course of your commercial activities, you will have to self-assess the provincial part of the HST on line 405 of your regular GST/HST return for the reporting period in which the tax became payable.

If you are not a GST/HST registrant, you have to self-assess the provincial part of the HST on Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST), no later than the last day of the calendar month following the month in which the tax became payable.

Under certain conditions, the provincial part of the HST is not applied to goods brought into a participating province. For more information, including information on goods brought into a participating province from another province, see GST/HST Notice 266, Draft GST/HST Technical Information Bulletin, Harmonized Sales Tax – Self Assessment of the provincial part of the HST in respect of property and services brought into a participating province.

Temporary imports

Commercial goods imported into Canada are generally subject to the GST or the federal part of the HST. However, in certain circumstances such as importing goods for a temporary period, partial or full relief from the GST or the federal part of the HST may be available. If you import goods temporarily, you should contact a CBSA office to determine if relief provisions apply to your situation. A variety of relief provisions are available for temporary importations of certain classes of goods.

Item 8 outlines the Non-Taxable Imported Goods (GST/HST) Regulations. It lists the conditions under which goods can be imported into Canada without paying the GST/HST at the time of importation. The regulations provide relief in circumstances where the goods remain in Canada, as well as for some situations where goods are temporarily imported into Canada.

Examples of goods covered in these regulations are precious metals and goods for public exhibit by a public sector body such as artifacts in a King Tut exhibition for display at a public museum, as well as goods imported for repair in Canada. Certain items that are considered non-taxable importations in these regulations are described in the CBSA Memorandum D8-1-1, Administration of Temporary Importation (Tariff Item No. 9993.00.00) Regulations.

The Value of Imported Goods (GST/HST) Regulations provide partial relief from the GST/HST under certain circumstances. The relief may be that the GST/HST is only payable on 1/60 of the value of the temporarily imported goods for every month the goods are in Canada. Examples of goods that are subject to this relief are vessels, railway rolling stock, and the temporarily imported conveyances described below. Certain items listed in these regulations are further described in the CBSA Memorandum D8-1-1.

Temporarily imported conveyances

Usually, duty and taxes do not apply to foreign-based conveyances such as buses and aircraft engaged in the international commercial transport of passengers or freight. However, buses and aircraft imported temporarily under a short-term lease for use in Canada may be subject to the GST/HST based on 1/60 of the value of the conveyance for each month the conveyance is used in Canada. Buses or aircraft imported under this provision must be the subject of a short-term lease, that is, two years or less cumulative, between a lessee who is a Canadian importer and a lessor who is a person outside Canada with whom the importer is dealing at arm's length. For more information, see CBSA Memorandum D8-1-1, and section 14 of the Value of Imported Goods (GST/HST) Regulations.

Imports by exporters of processing services

Generally, the GST or the federal part of the HST is payable on any goods imported into Canada for further manufacture or processing. However, registered Canadian businesses may not have to pay the GST or the federal part of the HST on goods they import that are owned by a non-resident person when the goods are imported for processing in Canada and subsequently returned to the non-resident owner.

Processing includes the alteration, assembly, manufacture, modification, production, packaging, or repackaging of the imported goods.

Certain restrictions apply. The Canadian processor has to be a GST/HST registrant. The processor cannot be closely related to the non-resident owner of the imported goods to be processed and cannot have ownership interest in the imported goods or the processed products. The goods must be exported from Canada within four years of the date they were reported and accounted for on importation.

You must apply for authorization to import the goods without paying the GST or the federal part of the HST. For more information, contact your tax services office. To obtain the address and phone number of your tax services office, go to Contact the Canada Revenue Agency and select “Find an address.”

Goods imported by mail or courier

Certain goods valued at $20 or less that are imported into Canada by mail or courier are not subject to the GST/HST when entering Canada. Some exceptions to this include excisable goods (for example, beer, spirits, wine, and tobacco products) and prescribed publications. All goods valued at more than $20 are subject to the GST/HST, which the CRA will assess. For more information on importing prescribed publications, see Mail or courier imports of prescribed publications.

CBSA examines all international mail to determine if a mail item is subject to customs duty or the GST/HST. If an amount is payable, CBSA turns the item over to the Canada Post Corporation for delivery and collection of the amount owing from the addressee. Canada Post also collects a $9.95 handling fee from the addressee before releasing the item.

If you are mailing goods to Canada, place a customs postal declaration on the outside of packages to ensure that CBSA calculates the correct amount of duty and the GST/HST. The declaration should give a clear description of, and value for, the goods in the package. Without a declaration of the value, CBSA will have to use the best information available to determine the value on which to base the calculation of duty and the GST/HST payable.

Rebate and refund procedures

Customs duties and GST/HST paid in error on imported commercial goods

If you are not a GST/HST registrant and you have overpaid duties, the GST, or the federal part of the HST, on imported goods, you can recover the overpayment by filing CBSA Form B2, Canada Customs – Adjustment Request. CBSA will refund the duty part of the claim and the CRA will send you a rebate for the GST or the federal part of the HST. If you have any questions about your GST/HST rebate, contact the Business Enquiries line at 1-800-959-5525. If you are not a resident of Canada, contact the Non-Resident Tax Centre (TC) that is closest to where you conduct your business: Prince Edward Island TC or Sudbury TC. For more information, go to Non-resident GST/HST enquiries.

If only the GST or the federal part of the HST was overpaid at the time of importation because the goods were not subject to customs duty, file CBSA Form B2 to request an adjustment. Once the CBSA approves your request, you can recover the overpayment by filing Form GST189, General Application for GST/HST Rebates. If the problem relates to a redetermination of tariff classification or reappraisal of the value for duty of the goods, file CBSA Form B2 with customs officials. They will ask the CRA to pay you the rebate of the GST or the federal part of the HST you are entitled to after the claim has been reviewed and approved.

If you are a GST/HST registrant, use CBSA Form B2 to request an adjustment for an overpayment of customs duties, GST or the federal part of the HST on imported goods. Once the CBSA approves your request, you may file Form GST189 to recover the overpayment of the GST or the federal part of the HST on imported goods. If the rebate claim involves a customs issue such as a redetermination of tariff classification or reappraisal of value for duty, do not file Form GST189 until CBSA approves your Form B2 request. Then use the CBSA decision to support your claim for the rebate of the GST or the federal part of the HST.

If you are a GST/HST registrant and have claimed an ITC to recover an amount you paid in error as the GST or the federal part of the HST on imported goods, you cannot claim a rebate for the same amount.

Special rebate and refund procedures

Other GST/HST rebates may be available in respect of imported goods. You may be able to claim a rebate of all or part of the GST or the federal part of the HST paid on imported goods under the following situations when the goods:

• have been damaged or destroyed
• are of an inferior quality, defective, or not what was ordered
• have been imported on consignment, approval, or a sale-and-return basis, and have been exported within 60 days for the purpose of returning them to the supplier

For more information, see guide RC4033, General Application for GST/HST Rebates.

Services and intangible personal property imported into Canada

This section explains how the GST/HST applies to imported services and intangible personal property (IPP) acquired outside Canada, for consumption, use or supply in Canada. Services include management and consulting services. IPP includes copyrights to creative works, film and stage rights, patents, and industrial design.

Generally, if you are a GST/HST registrant, you have to charge the GST/HST on taxable (other than zero-rated) supplies of services that you perform in whole or in part in Canada and IPP that your customers acquire from you for for consumption, use or supply in whole or in part in Canada. If your customers are GST/HST registrants, they can claim an ITC for the GST/HST you charged to the extent that the services or IPP were imported for consumption, use or supply in their commercial activities.

If you are not a GST/HST registrant, you do not charge the GST/HST. If your Canadian customer imports services or IPP other than for consumption, use or supply exclusively (90% or more) in a commercial activity, the customer has to self-assess the GST/HST payable on the value of the services or IPP. The customer then remits the GST/HST owing to the CRA. However, a customer who imports services or IPP for consumption, use or supply 90% or more in a commercial activity does not pay the GST/HST.

Supplies between branches

Where a person carries on business through a permanent establishment in Canada and through another permanent establishment outside Canada, the transfer of property or rendering of a service by one permanent establishment to another may be deemed to be a supply and may be subject to the GST/HST.

Self-assessment of the GST/HST applies to taxable imports of services and intangibles between separate branches of the same person. This ensures that a transfer of property or a rendering of a service exists where a person uses resources outside Canada for, or allocates costs incurred for those resources to, a Canadian business of the person.

If you are a financial institution and you are a qualifying taxpayer, you may have to self-assess the GST/HST on an amount of qualifying consideration. For more information, see GST/HST Technical Information Bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).

Mail or courier imports of prescribed publications

Special rules require GST/HST registration for non-resident publishers and other suppliers of prescribed publications sent to Canada by mail or courier.

Generally, if you solicit sales of prescribed publications in Canada, you are considered to be carrying on business in Canada. You have to register and collect the GST/HST from your customers, even though the order is supplied from a place outside Canada. This means that foreign publications sold to Canadian residents are taxed the same way as Canadian publications.

As a registered supplier, you collect the GST/HST from your customers in Canada. If you have collected the GST/HST on prescribed publications, we will not assess the tax on mail or courier imports, and Canada Post will not charge the $9.95 handling fee.

Prescribed publications

Prescribed publications include:

• books, newspapers, periodicals, magazines, and any similar printed publications, other than those described in section 1 of Schedule VII to the Excise Tax Act (for example, donations of books for charitable purposes)
• audio recordings that relate to publications and accompany those publications when submitted to Canada Post or a customs officer

The CRA considers you to be carrying on business in Canada if you send prescribed publications by mail or courier to a recipient with a Canadian address and you solicit orders for, or offer to supply, prescribed publications in Canada, either:

• by yourself or through an employee or agent
• by means of advertising directed at the Canadian market

You therefore have to register unless you are a small supplier.

Soliciting sales

As a guideline, soliciting sales includes:

• advertising the sale of prescribed publications using Canadian print or broadcast media directed at the Canadian market
• advertising in non-Canadian broadcast, print media, or websites, where the advertisement is directed at the Canadian market (for example, you quote the sale price in Canadian dollars or include a special toll-free number, mailing address, or e-mail address for Canadian subscribers)
• including subscription offer notices such as card inserts in your publications or in another company's publications that are targeted specifically at the Canadian market (for example, including a reference on the subscription offer insert stating that the offer is directed at the Canadian market, such as pre-paid Canadian postage or a specific sale price quoted in Canadian funds)
• hand-delivering or mailing flyers or leaflets advertising the publication to Canadian homes and businesses
• distributing addressed mail, electronically or otherwise, advertising a publication to Canadian homes and businesses
• mentioning an additional charge in any currency for residents of Canada

The CRA would not consider the following to be soliciting sales for prescribed publications in Canada:

• advertising in non-Canadian broadcast or print media available to Canadian residents, when the advertising is not specifically directed at the Canadian market
• including subscription offer notices in your publications or in another non-resident company's publications destined for the Canadian market, when the offers are not specifically directed at the Canadian market

If you send a renewal notice to a Canadian resident for a subscription that you did not originally solicit, we do not consider this activity to be solicitation if you have not undertaken any activity to identify a market in Canada or to pursue that market. In these circumstances, you are continuing a business relationship that was previously established through the Canadian resident's own initiative. Even if you send a notice quoting a renewal price in Canadian dollars directly to the subscriber, we do not consider this activity to be solicitation. The fact that you are not seeking sales beyond your existing subscribers shows that you have not developed specific plans or advertising activities designed to make additional sales in Canada, and you are not soliciting sales or offering publications in Canada. Therefore, you do not have to register.

If we consider you to be soliciting sales in Canada, as described above, you have to register for the GST/HST.

If you are a GST/HST registrant offering a subscription to Canadian residents, you have to indicate whether the price includes the GST/HST or whether it is charged separately. This fulfills the requirement to disclose the tax to the buyer when the offer is the only document provided on the subscription sale.

If you are not soliciting sales or offering supplies of publications in Canada, or you are a small supplier and do not have to register for the GST/HST, it may be to your benefit to register voluntarily and collect the GST/HST payable on publications you send by mail or courier to Canadian recipients. If you register, CBSA will not delay the publications for GST/HST assessment and collection, and Canada Post will not charge the $9.95 postal handling fee. You may even be able to recover the GST/HST you pay on any goods or services you used to supply the publications in Canada (by claiming an ITC).

If you are registered, you collect the GST/HST only on sales of prescribed publications where those publications are sent to an address in Canada by mail or courier. The GST/HST applies to the sales of the publication or subscription bought by a recipient in Canada.

Customs processing of publications imported by mail

All goods arriving in Canada by mail are subject to examination by the CBSA at selected postal terminals across Canada before they are released to Canada Post for delivery.

Publications sent by mail or courier

If you are registered for the GST/HST and give proof of your registration on the documentation accompanying your shipment, CBSA will release the publications to Canada Post for delivery to the addressee.

If you are not registered for the GST/HST and you do not have to register for the GST/HST, CBSA will also release for delivery publications sent by mail or courier valued at $20 or less.

If you have to register, but fail to do so, CBSA will delay the release of the publications, regardless of their value, to assess the appropriate amount of the GST/HST, and then return them to Canada Post for delivery and collection of the GST/HST payable by the addressee, as well as the $9.95 postal handling fee.

Proof of registration

If you are registered for the GST/HST, you have to provide proof of your registration with the publications you export to Canada. Proof of registration includes your business number (BN), located in one of the following places:

• in the masthead of the publication, or on one of the first five pages of the publication if the masthead is not in the first five pages of the publication
• on the back cover of the publication if the address of the subscriber appears on that cover
• on the mailing label affixed to the publication
• on the packaging of the publication or on a separate document that accompanies the publication

If you have applied for GST/HST registration, but have not received your BN, you have to give CBSA proof of your registration documentation.

If we cannot find proof of your BN, CBSA will assess the GST/HST and return the publications to Canada Post for delivery and collection.

Bulk shipments of direct mail publications

Bulk shipments include publications that:

• are individually addressed to a recipient at an address in Canada
• arrive by any mode of transportation
• are destined for the mail stream in Canada

If you provide proof of your GST/HST registration, CBSA will not delay the release of these publications for GST/HST assessment and collection.

CBSA will document the shipment on CBSA Form B3-3, Canada Customs Coding Form, and release it for delivery to Canada Post. Importers should indicate code 48 in field 35 of CBSA Form B3-3. If there is no proof of your GST/HST registration, CBSA will collect the tax from the importer of record at the time of importation.

CBSA will treat bulk shipments that are not individually addressed to recipients in Canada in the same way as those that are individually addressed. However, you have to provide satisfactory proof that:

• you, the shipper, are registered for the GST/HST
• the publications are destined for a labelling and wrapping operation in Canada
• an individual subscriber will receive the publication by Canadian mail

Bulk shipments not individually addressed and not sent by mail or courier

You should not collect the GST/HST in advance on bulk shipments of publications that are not individually addressed such as those destined for resale through bookstores, and that are sent to Canada by any mode of transport other than mail or courier. CBSA will collect the GST/HST on these shipments whether or not it finds proof of your GST/HST registration. The importer of record, or agent, has to account for the publications on customs accounting documents and pay the appropriate amount of tax.

Casual imports

Shipments of books to Canada by mail need a completed customs declaration attached to the package. You can get this form from your post office. If you are registered for the GST/HST, you should clearly show your business number on the outside of the package to facilitate customs processing. If you are not registered, CBSA will collect the GST/HST on the total value of the shipment.

Samples

If you are not registered for the GST/HST and send samples of publications to people in Canada, these samples are taxable unless the shipment is valued at $20 or less and you do not have to register. CBSA collects the GST/HST on the price for which the gift or sample publications would usually be sold to consumers on the retail market.

If you are registered for the GST/HST and provide proof of your registration, as described on this page, CBSA will not collect the GST/HST. In addition, you do not collect the GST/HST on sample publications if they are provided free of charge.

Exports from Canada

Exports of most property and services from Canada are zero-rated (taxable at the rate of 0%). Therefore, as long as certain conditions are met, you will not pay any GST/HST on property or services exported to you from Canada.

Proof of residency and GST/HST registration status

To export goods or services to you on a zero-rated basis, a Canadian supplier may ask to verify your non-resident status and, in some cases, your status as a person that is not registered under the normal GST/HST regime.

The CRA will accept written certification as proof that you are not a resident of Canada and that you are not registered under the normal GST/HST regime. Please date this certification and keep it up to date. It must be signed and in effect on the date the purchase is made. You do not have to give the Canadian supplier this written certification with each purchase, but the Canadian supplier has to keep it on file.

Appendices A and B to GST/HST Memorandum 4.5.1, Exports – Determining Residence Status, contain examples of satisfactory proof of non-residence in Canada and non-registration for GST/HST purposes.

Exported goods

Generally, goods exported from Canada by a Canadian vendor are zero-rated. If the goods are delivered or made available to you outside Canada, no GST/HST is charged.

If you, the recipient, take possession of goods in Canada that you intend to export (except for excisable goods such as tobacco, beer, wine, and spirits) these goods may be zero-rated if all of the following conditions are met:

• you are not a consumer (a consumer is usually an individual who is buying the goods for his or her personal use)
• you export the goods as soon as can reasonably be expected and, if applicable, according to your usual business practices
• you do not acquire the goods for consumption, use, or supply in Canada before the goods are exported
• the goods are not further processed, transformed, or altered in Canada before being exported, except to the extent necessary or incidental to their transportation
• the vendor has satisfactory proof that you exported the goods

Certain services performed in relation to exporting goods, prior to their export, do not constitute further processing, transformation, or alteration. These include:

• inventory taking
• warehousing
• export labelling
• loading and unloading
• consolidating
• refrigerating
• export packing or repacking
• export crating
• dismantling for transportation purposes

Testing goods is not considered further processing if the goods are not transformed or altered in any way as a result of the testing. However, any repairs that have to be done because of test results are considered further processing.

From your proof of export, we have to be able to trace the entire shipment of goods from its origin in Canada to its destination outside Canada. If the specific destination cannot be determined (for example, because of industry practices) we have to be able to verify that the goods left Canada. For information on what constitutes proof of exportation, see the Appendix to GST/HST Memorandum 4.5.2, Exports – Tangible Personal Property.

Generally, the following goods are zero-rated:

• excisable goods such as tobacco, beer, wine and spirits, if you, the buyer, export these goods in bond
• goods bought from and sold to duty-free shops licensed under the Customs Act
• goods a supplier delivers to a common carrier for export or mails for export
• goods supplied with services that are being performed on temporarily imported tangible personal property
• goods supplied in conjunction with emergency repair services in respect of a conveyance or cargo container that is being used in the course of a business of transporting passengers or property
• goods supplied in conjunction with services being performed under warranty for a non-resident
• jigs, moulds, and dies, or an interest in them, when provided to an unregistered non-resident for use directly in producing goods for the non-resident, whether or not the goods are exported
• a supply of natural gas, crude oil, electricity or any tangible personal property that is transportable by means of a pipeline, power-line, or other conduit for purposes of export. The unregistered recipient of the supply cannot acquire the gas for consumption, use, or supply in Canada (special rules apply to supplies of natural gas which allow for a limited amount of processing of the gas). Documentary proof that the gas was exported is required, but differs depending on whether or not the recipient is registered for the GST/HST
• a supply of natural gas, crude oil, electricity or any tangible personal property that is transportable by means of a pipeline, power-line, or other conduit to a non-registrant located in Canada that is subsequently exchanged by the non-registrant with a registrant for a similar commodity located outside Canada. Documentary proof must be maintained by the supplier of the subsequent exchange of the commodity
• floating or mobile homes for export

Rebate for exported goods

A non-resident purchaser may be able to apply for a rebate to recover the tax paid on goods acquired for commercial use primarily (more than 50%) outside Canada (other than gasoline and excisable goods, such as beer, wine, spirits, and tobacco products). To qualify for the GST/HST rebate, the non-resident purchaser has to export the goods from Canada within 60 days of delivery, as well as meet other conditions.

For more information, see Guide RC4033, General Application for GST/HST Rebates, which includes Form GST189, General Application for GST/HST Rebates.

Exported services

The following services are zero-rated when provided to a non resident that is not registered under the normal GST/HST regime:

• a supply of storing natural gas for an unregistered non resident where the non resident exports the gas at the end of the storage period. The non resident must hold a valid licence for the export of the natural gas
• a supply of taking up surplus electricity for an unregistered non resident where the supplier or the non resident exports the electricity at the end of the storage period. The non resident must hold a valid licence for the export of the electricity
• precious metal refining services
• call centre services

Services provided in whole, or in part, in Canada

Many services provided in whole, or in part, in Canada are zero-rated when supplied to a non-resident.

However, if a service is made to an individual who is in Canada at any time when the individual has contact with the supplier in relation to the supply, the supply is not zero rated.

If you are the recipient of a service that is rendered to an individual, the individual generally has to be outside Canada while the service is being performed for the service to be zero rated. For example, personal care and entertainment services rendered to an individual in Canada are not zero rated.

An advertising service provided to a non resident person that is not registered under the normal GST/HST regime is zero rated.

A supply would be zero-rated when made to a non resident person that is not registered under the normal GST/HST regime, other than an individual, of a service of instructing non-resident individuals in, or administering examinations in respect of, courses leading to certificates, diplomas, licences or similar documents, or classes or ratings in respect of licences, that attest to the competence of the individuals to whom the service is rendered or the examination is administered to practise or perform a trade or vocation. For more information, see GST/HST Memorandum 20-8, Educational Services Made to a Non- resident.

Certain financial services provided by financial institutions to non-residents are zero-rated. However, there are various exceptions; for example, a service relating to a debt arising from lending money primarily for use in Canada.

An advisory, consulting, or research service is zero-rated when provided to a non-resident person to help the person establish a residence or business in Canada.

Other advisory, consulting, or professional services provided to a non-resident are also zero-rated, except:

• a service rendered to an individual in connection with criminal, civil, or administrative litigation in Canada (however, a service rendered before the start of such litigation may be zero-rated)
• a service in respect of real property situated in Canada (see below for exception relating to a service provided to fulfill an obligation under a warranty)
• a service in respect of goods situated in Canada at the time the service is performed (however, in certain situations, services performed on temporarily imported goods are zero-rated)
• a service of acting as an agent for a non-resident person, or of arranging for, procuring or soliciting orders for supplies by or to the person

Services performed on temporarily imported goods (other than a transportation service) are zero-rated. The goods must be ordinarily situated outside Canada, brought into Canada for the sole purpose of having the service performed on them, and must be exported as soon as can reasonably be expected. Any parts supplied along with these services are also zero-rated.

Certain emergency repair services are zero-rated when provided to a non-resident in respect of a conveyance or a cargo container. For more information, see Emergency repair services.

Services in respect of goods or real property are zero-rated if the services are provided to a non-resident that is not registered under the normal GST/HST regime to fulfill an obligation under a warranty issued by a non-resident person.

The following services are zero-rated when provided to a non resident that is not registered under the normal GST/HST regime:

• destroying or discarding goods
• dismantling goods for export purposes
• testing or inspecting goods imported or acquired in Canada only for this service, and to be destroyed by this service, or destroyed or discarded on completion of this service

Other supplies of exported services eligible for zero-rating include:

• air navigation services
• certain postal services
• certain transportation services
• a custodial or nominee service provided to a non-resident person for the person's securities or precious metals
• telecommunication services when the supply is made by a registrant who carries on the business of supplying telecommunication services to a non-resident who is not a registrant and who carries on such a business (this does not include a supply of a telecommunication service when the telecommunication is emitted and received in Canada)

For more information, see GST/HST Memorandum 4.5.3, Exports – Services and Intellectual Property.

Exported intangible personal property

Supplies of intangible personal property (IPP) made to non-residents who are not registered under the normal GST/HST regime, are generally zero-rated, except for any of the following:

• a supply made to an individual who is in Canada when the supply is made
• a supply of IPP that relates to real property in Canada or to goods that are ordinarily situated in Canada
• a supply of IPP that relates to a supply of a service that is made in Canada and is not zero-rated as an export, a transportation service, or a financial service
• a supply of IPP that may only be used in Canada
• a supply of making a telecommunications facility that is IPP available for use in providing a telecommunication service

A supply in Canada of an invention, patent, trade secret, trademark, trade name, copyright, industrial design, or other intellectual property, or any right to use such property that is made to a non-registered non-resident may also be zero-rated.

Supplies of IPP eligible for zero-rating include:

• subscriptions to websites that provide non-resident subscribers that are not registered under the normal GST/HST regime with a right to access and use digitized content on a site (such as information in a database or images) and that may also include a right to download a copy of the digitized content
• subscriptions to interactive websites that provide non-resident subscribers that are not registered under the normal GST/HST regime with a right to access and use digitized content (such as games, music, and videos, on the sites while they are online)
• digitized information (such as news items or stock market data) that is delivered electronically on a periodic basis to non-resident subscribers that are not registered under the normal GST/HST regime based on their personal preferences
• digitized products (such as music, images, and books) that are downloaded from websites and paid for individually

For more information, see GST/HST Info Sheet GI-034, Exports of Intangible Personal Property, and GST/HST Memorandum 4.5.3, Exports – Services and Intellectual Property, or go GST/HST rates and place-of-supply rules

Foreign carriers

A company incorporated in a country other than Canada, where all or most of its activities consist of international shipping and all or most of its revenues come from shipping, will be considered not to be a resident of Canada for GST/HST purposes.

Supplies bought by foreign carriers who are not registered for the GST/HST

A non-resident person that is not registered under the normal GST/HST regime can acquire property or services in Canada (except real property supplied by way of sale) on a zero-rated basis as long as the property or services are for consumption, use, or supply in the course of any of the following activities:

• transporting passengers or goods, if the person is in the business of transporting passengers or goods to or from Canada, or between places outside Canada, by ship, aircraft, or railway
• operating a ship or aircraft by or for a government of a country other than Canada
• operating a ship to gather scientific data outside Canada, or to lay or repair oceanic telegraph cables

Supplies eligible for zero-rating under this provision include:

• fuel and other supplies
• railway junction and switching services, pilotage services, aircraft landing rights, railway right-of-way rights, and warehouse services
• stevedoring services
• spare parts, repair, and maintenance services
• air navigation services

Emergency repair services

Emergency repair services, including repair parts, are zero-rated when they are provided to a non-resident that is not registered under the normal GST/HST regime and they relate to conveyances or cargo containers while these items are being used or transported by the supplier in a business of transporting passengers and goods.

Emergency repair services, including repair parts, are zero-rated when they are provided to a non-resident that is not registered under the normal GST/HST regime and they are for railway rolling stock that is being used in a business to transport passengers or property.

Emergency repair services, including repair parts, or a service of storing certain empty cargo containers, may be zero-rated when provided to a non-resident that is not registered under the normal GST/HST regime.

Drop-shipments

Some non-residents that are not registered under the normal GST/HST regime that supply goods to customers in Canada originally obtain those goods from another person in Canada. In this situation, the non-resident will normally arrange for the Canadian supplier to have the goods "drop-shipped" to the customer in Canada on behalf of the non-resident.

The Canadian supplier may also perform commercial services (manufacturing, processing, inspecting, testing, repair, storage, or maintenance) on goods owned by the non-resident that is not registered under the normal GST/HST regime and then deliver them to a third party. The third party may be a customer of the non-resident or another resident who is taking physical possession of the goods for the purpose of performing additional work on them.

The drop-shipment rules streamline the GST/HST treatment of drop-shipments for non-residents by generally relieving the non-resident suppliers that are not registered under the normal GST/HST regime of their obligations to pay tax.

Drop-shipments to registered persons

When a GST/HST registrant transfers physical possession of your goods to a third party (consignee) who is registered under the normal GST/HST regime, the consignee must issue a drop-shipment certificate to the registrant so that tax will not apply to the supply of goods or commercial services from the GST/HST registrant to you.

Drop-shipment certificates ensure that consignees are aware of their potential GST/HST liability when another registrant transfers physical possession of your goods to them. Generally, by issuing the certificate, the consignees acknowledge that they have a potential obligation to self-assess the GST/HST payable in respect of an imported taxable supply of the goods if they do not acquire the goods for consumption, use, or supply exclusively (90% or more) in the course of commercial activities, or to collect tax in relation to the goods based on the application of the general drop-shipment rule.

The CRA accepts blanket drop-shipment certificates. These certificates cover more than one transfer of physical possession of goods from one registrant to another (the consignee). Generally, a valid drop-shipment certificate has to:

• state the consignee's name and business number
• acknowledge that the consignee has taken or will take physical possession of the goods
• state that the goods are acquired for the purpose of performing commercial services on them or that they are for the recipient's consumption, use, or supply
• acknowledge that the consignee assumes liability to pay or remit any GST/HST that may become payable

A sample of a drop-shipment certificate that is acceptable to the CRA is provided in Appendix B of GST/HST Memorandum 3.3.1, Drop-Shipments.

In the above example, the supplier that is registered under the normal GST/HST regime, transfers physical possession of the radios to the inspector that is registered under the normal GST/HST regime on your behalf. After inspecting the radios, the inspector delivers them to the customer. The radio supplier and the inspector invoice you for their property and services. You invoice the customer for the radios. No GST/HST is charged on the sale of the radios to you, the inspector’s services, and the resale of the radios to the customer that is registered under the normal GST/HST regime, as long as the inspector is registered under the normal GST/HST regime provides the supplier registered under the normal GST/HST regime with a drop shipment certificate and the customer registered under the normal GST/HST regime provides the drop shipment certificate to the registered inspector.

Drop-shipments to unregistered persons

If you instruct a GST/HST registrant to deliver goods in Canada to a consignee that is not registered under the normal GST/HST regime, such as a consumer, the GST/HST is payable by you when the registrant delivers or transfers physical possession of the goods to the recipient. The GST/HST is either:

• based on the fair market value of the goods, if the registrant transfers physical possession of the goods in Canada to you or to a third person
• nil, if you provide the goods to a customer free of charge and the registrant transfers physical possession of the goods to the customer in Canada on your behalf

These rules also apply if a consignee registered under the normal GST/HST regime does not issue a drop-shipment certificate to the GST/HST registrant.

Transfer of goods to a carrier or warehouse

If a GST/HST registrant transfers physical possession of your goods to a carrier or warehouse (bailee) and at the same time instructs the bailee to transfer physical possession of the goods to a third party, for purposes of the drop-shipment rules, the registrant must obtain a drop-shipment certificate from the third party so that tax will not apply to the supply of goods or commercial services from the GST/HST registrant to you.

If a GST/HST registrant transfers physical possession of your goods to a warehouse and the warehouse operator is instructed under the agreement for the storage of the goods to store the goods until a third party purchaser is found, the registrant is not required to charge tax on the sale of the goods to you. However, the registrant remains potentially liable for tax on the fair market value of the goods unless, at the time of the transfer of physical possession of the goods to the third party, the registrant obtains a drop-shipment certificate from the third party.

If a GST/HST registrant transfers physical possession of your goods to a warehouse and instructs the warehouse operator to release the goods to you, the registrant is regarded as transferring physical possession to you in Canada and the transaction is generally subject to the GST/HST. If you plan to sell the goods to a third party who is a registrant, and the goods will not leave Canada, in order not to pay tax to the first registrant, you can instruct the warehouse to issue a drop shipment certificate to the first registrant. On issuance of the certificate, the warehouse operator becomes potentially liable for tax on the fair market value of the goods unless, at the time of the transfer of physical possession of the goods to a third party, the warehouse operator obtains a drop-shipment certificate from the third party.

If a warehouse operator acts as the importer of record for goods you transfer to the warehouse and claims an ITC for the import of the goods, we consider the warehouse operator to have taken physical possession of the goods. The warehouse operator has to pay the GST/HST to the CRA if and when physical possession of the goods is transferred to another person on your behalf, unless the warehouse operator obtains a drop-shipment certificate from the person to whom he or she transfers physical possession of the goods.

Goods kept by registered suppliers

When a GST/HST registrant sells goods to you and transfers ownership, but not physical possession of the goods to you, the registrant does not charge the GST/HST on the sale if the registrant keeps physical possession of the goods in order to either:

• transfer physical possession of the goods to you, a subsequent owner, or another person designated by you or a subsequent owner
• perform a commercial service on the goods for you or a subsequent owner

The registrant assumes potential liability for the goods when physical possession of the goods is transferred to another person. The registrant is relieved of this liability when the registrant receives a drop-shipment certificate from the third party at the time physical possession is transferred.

Goods subsequently exported

A GST/HST registrant does not charge the GST/HST on the sale of goods and the supply of commercial services to a non-resident that is not registered under the normal GST/HST regime if the registrant:

• transfers physical possession of the goods at a place in Canada to a person who will export the goods within a reasonable amount of time and the conditions for zero-rated exports are met (see Exports from Canada)
• transfers physical possession of the goods to a carrier for export and delivery to a person outside Canada
• transfers physical possession of the goods to a person at a place outside Canada
• ships the goods to a destination outside Canada that is specified in the contract for carriage of the particular property
• sends the goods by mail or courier to an address outside Canada

Events and supplies that do not qualify for the drop-shipment rules

The drop-shipment rules do not apply to common carriers that take possession of goods for the sole purpose of shipping the goods. In all cases, fees for shipping goods are subject to the GST/HST based on the normal GST/HST rules that apply to such services. The transfer of the physical possession of the goods to the carrier for transportation and delivery to another person is considered to be a transfer of physical possession of the goods to the person to whom the goods are to be delivered – that person can elect to follow the drop-shipment rules.

The drop shipment rules do not apply where a registrant takes possession of goods for the purpose of making a taxable supply to a non-resident person not registered under the regular registration provisions of a service acquired for consumption, use or supply in the course of, or in connection with, the performance of mining activities in Canada.

For more information, see GST/HST Memorandum 3.3.1, Drop-Shipments.

GST/HST rebates

Rebate for exported goods

Non-resident businesses that purchase goods for commercial export can receive a rebate of the GST/HST they pay on goods they buy in Canada. They can apply for the rebate using Form GST189, General Application for GST/HST Rebates, and Form GST288, Supplement to Forms GST189 and GST498.

For more information, see Guide RC4033, General Application for GST/HST Rebates.

Production of artistic works for export

You can apply for a rebate of the GST/HST you paid on goods, intangible property such as a patent or copyright, and services you bought in Canada to use or consume only in producing artistic works for export, if you are not a GST/HST registrant and you are not a consumer. To apply, fill out Form GST189 and send it to the CRA. For more information, see Guide RC4033.

Assignment of rights to the rebate

You can assign your rights to a GST/HST rebate to your Canadian supplier of the goods, intangible property, or services if:

• you are not a GST/HST registrant
• you acquire the goods or services (except for a service of storing or shipping property), to consume or use only for making or producing an original literary, musical, artistic, motion picture, or other work with copyright protection
• you are not a consumer of the goods or services
• you manufacture or produce the work and all copies of it for export

By assigning your rights to the rebate, you can, in effect, buy the goods, intangible property, or services free of the GST/HST. You will find an example of an assignment of rights agreement to the GST/HST rebate. You can use it, or design your own agreement. You have to give your supplier a copy of this assignment as documentation required to allow them to credit you the GST/HST payable.

Installation services

If you are not a GST/HST registrant, you may be eligible for a rebate of the tax paid on the charge made for installing tangible personal property in Canada. To apply, fill out Form GST189 and send it to the CRA. For more information, see Guide RC4033.

Foreign Convention

Sponsors and unregistered organizers of a foreign convention can claim a rebate for the GST/HST paid on a convention facility and related convention supplies. Unregistered non-resident exhibitors attending domestic or foreign conventions can claim a rebate of the GST/HST paid on convention space and related convention supplies.

For more information, go to Foreign Convention and Tour Incentive Program.

Questions and answers

Example of an assignment of rights agreement

The following is an example of an assignment of rights to a GST/HST rebate agreement that would appear on the non-resident person's official letterhead:

Non-taxable imports

Certain imports into Canada are not subject to the GST/HST. While the list below includes goods described in the Excise Tax Act and its regulations, there are other importations that may be relieved of the GST/HST. For example, goods imported by seasonal residents may be relieved of the GST/HST pursuant to a remission order if certain conditions are met. For additional information, see Canada Border Services Agency (CBSA), Memorandum D2.2.3, Seasonal Residents’ Effects – Tariff Item No. 9829.00.00:

1. Goods classified under the following headings of Schedule I to the Customs Tariff, if the goods are not subject to duty under that Act, but not including goods classified under tariff item No. 9804.30.00. The GST/HST does not apply to these goods when they are imported into Canada, if there are no customs duties on them under the Customs Tariff.

98.01: Foreign-based conveyances used in the international transporting of passengers or goods to and from Canada such as internationally registered aircraft, ships, and trains. This item allows these conveyances to enter Canada without incurring duties or taxes.

98.02: Conveyances temporarily imported by Canadian residents for their personal use. For example, this item allows residents of Canada who work in the United States to use a car to commute to their jobs.

98.03: Tourists' conveyances and baggage. This item allows tourists visiting Canada to bring their personal effects, vehicles, and boats into Canada for their personal use without incurring duties or taxes.

98.04: Personal exemptions for returning residents. There are duty and tax-free exemption entitlements for Canadian residents who return from a trip outside the country. For more information, see Canada Border Services Agency (CBSA) Guide BSF5056, I Declare.

98.05: Former residents' effects. This item allows a former resident of Canada who has lived abroad for at least one year to import personal and household effects duty-free and tax-free. For more information, visit the CBSA website.

98.06: Estates and bequests. Personal effects that are left as a bequest by a Canadian resident who died abroad can be imported free of duties and taxes.

98.07: Settler's effects. People immigrating into Canada can import their personal effects free of duties and taxes.

98.10 and 98.11: Military arms, stores, and other goods from certain countries may be imported into Canada free of duties and taxes under specified circumstances.

98.12: Publications of the UN and NATO, or any of their specialized agencies, can be imported without paying duties and taxes.

Books borrowed from free foreign lending libraries can be imported for a specified period of time without paying duty or taxes, if they are returned within 60 days.

98.15: Donations of clothing and books for charitable purposes can be imported duty-free and tax-free.

98.16: Gifts sent by people living abroad to friends and relatives in Canada can be imported free of duty and taxes if their value is not more than $60. Gifts do not include advertising matter, tobacco products, or alcoholic beverages.

98.19: Goods for display at a convention or public exhibition. Certain restrictions apply.

9823.60: Display or demonstration goods imported temporarily from a North American Free Trade Agreement (NAFTA) country.

9823.70: Commercial samples imported temporarily from Mexico or the United States can enter free of duty for a specified period of time. Certain restrictions apply.

9823.80: Advertising films imported temporarily from a NAFTA country.

9823.90: International commercial transportation of goods between NAFTA countries.

2. Medals, trophies, and other prizes, not including usual merchantable goods that are won outside Canada in competition, that are bestowed, received, or accepted outside Canada, or that are donated by persons outside Canada, for heroic deeds, valour, or distinction.

This allows someone who is awarded or wins a medal, trophy, or other prize (other than marketable goods such as an automobile) outside Canada, to import the prize free of the GST/HST.

3. Printed matter to be provided to the general public, without charge, for the promotion of tourism, when the printed matter is either:

• imported by or on the order of a foreign government or an agency or representative of a foreign government
• imported by a board of trade, chamber of commerce, municipal or automobile association, or similar organization to which it was supplied for no consideration, other than shipping and handling charges

This allows tourist literature of governments or other described bodies to be imported free of the GST/HST when such literature is for distribution without charge.

4. Goods imported by a charity or a public institution in Canada that have been donated to the charity or public institution.

This allows goods that have been donated outside Canada and then imported by a registered Canadian charity or a public institution to be imported free of the GST/HST.

5. Goods imported by a person when the goods are supplied to the person by a non-resident person for no payment, other than shipping and handling charges, as replacement parts or replacement property under a warranty.

This item is restricted to warranty replacement parts provided free of charge. If a charge other than shipping or handling costs is made to the recipient or, if during the course of a warranty repair, other modifications or improvements are made to the goods, these changes are subject to the GST/HST.

6. Goods the supply of which is included in any of Parts I to IV or VIII of Schedule VI to the ETA.

Certain domestic supplies of goods are zero-rated in Schedule VI: for example, prescription drugs (section 2 of Part I), medical devices (Part II), basic groceries (Part III), agricultural and fishing supplies (Part IV), and supplies for international bridges (Part VIII). This section extends the same treatment to such goods when they are imported into Canada.

7. Goods, other than prescribed goods, sent by mail or courier to the recipient of the goods at an address in Canada, whose value, determined under paragraph 215(1)(a) of the ETA, is not more than $20.

With this provision, a resident of Canada does not have to pay the GST/HST on goods valued at no more than $20 that the resident receives by mail or by courier.

The prescribed goods excluded from this provision are listed in the Mail and Courier Imports (GST/HST) Regulations. These goods include:

• excisable goods
• books, newspapers, magazines, periodicals, and any similar printed publications, as well as audio-recordings that accompany these publications, from a foreign supplier who is required to register for the GST/HST, but is not so registered
• goods whose value for duty is reduced by the application of section 85 of the Customs Tariff
• goods bought from a retailer in Canada and mailed or transported from outside Canada directly to the buyer
• goods that are bought or ordered through or from a person in Canada acting for a person outside Canada who is selling the goods

7.01. Goods, other than prescribed goods, transported by courier that are imported from Mexico or the United States as determined by the Customs Tariff, whose value, determined under paragraph 215(1)(a) of the ETA, is not more than $40.

7.1. Books, newspapers, magazines, periodicals and similar publications, as well as audio-recordings that relate to and accompany these publications, which are sent by mail or courier to a recipient at an address in Canada, if the supplier is registered when the goods are imported.

8. Prescribed goods imported in prescribed circumstances and under prescribed terms and conditions. This section provides for the granting of relief by way of regulation.

Prescribed goods for purposes of section 8 of Schedule VII to the ETA, which are listed in the Non-Taxable Imported Goods (GST/HST) Regulations, are the following:

(a) precious metals (as defined in the ETA) imported under any circumstances

(b) unwrought silver, gold, or platinum, waste and scrap of precious metal or of metal clad with precious metal, and concentrates of silver, gold, or platinum, when imported to be refined into precious metals

(c) goods imported only for public exhibit by a public sector body, if, while the goods are in Canada:

• title to the goods is not intended to pass and does not pass to a person in Canada
• beneficial use of the goods is not intended to pass and does not pass to a person in Canada that is not a public sector body

(d) goods imported only for maintenance, overhaul, or repair of those goods in Canada if:

• neither title to nor beneficial use of the goods is intended to pass, or passes, to a person in Canada while the goods are in Canada
• the goods are exported as soon after the maintenance, overhaul, or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the usual business practice of the importer

(e) crude oil if:

• it is imported only to be refined in Canada
• the title to the crude oil is not held by a person in Canada at the time of importation
• the title to the crude oil is not intended to pass and does not pass to a person in Canada while the crude oil is in Canada
• the title to all refined products produced from the crude oil is not intended to pass and does not pass to a person in Canada while the refined products are in Canada
• the refined product is exported as soon after the refining is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the usual business practice of the importer

(f) foreign-based conveyances if:

• the conveyance is non-taxable by reason of the reference to heading No. 98.01 of Schedule I to the Customs Tariff in section 1 of Schedule VII to the ETA, and the conveyance is diverted for maintenance, overhaul, or repair in Canada
• neither title to nor beneficial use of the conveyance is intended to pass, or passes, to a person in Canada while the conveyance is in Canada
• the conveyance is exported as soon after the maintenance, overhaul, or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, if applicable, to the usual business practice of the importer

(g) a print, an etching, a drawing, a painting, a sculpture, or other similar work of art if:

• the work is part of a shipment of imported art on consignment and the total value of the shipment determined according to section 215 of the ETA is at least $250,000
• at the time of importation, considering the importer's previous experience, if any, in importing works of art, it is reasonable to expect that at least 75% of the value of the shipment will be exported within one year of importation
• the work is imported for supply by the importer in the ordinary course of the importer's business
• the importer provides a declaration as outlined in section 4 of the Non-Taxable Imported Goods (GST/HST) Regulations

When an importer imports works of art referred to in paragraph 8(g), and less than 75% of the value of the shipment is exported within one year of the import, the importer has to notify a Customs officer, in writing, of the actual percentage in value of the works of art in the shipment that was exported

(h) locomotives, railway rolling stock, and vessels imported in circumstances where customs duties have been remitted or removed under any of the following:

• Railway Rolling Stock (International Service) Remission Order No. 3
• code 2338 of Schedule II to the Customs Tariff
• Railway Rolling Stock (International Service) Remission Order No. 4
• section 5, 6, 7, 15, 16, or 17 of the Vessel Duties Reduction or Removal Regulations

(h.1) railway passenger, baggage or freight cars (referred to as “imported cars”) if:

• the imported cars are imported temporarily for use in the transportation of passengers, baggage or freight from a place in Canada to another place in Canada
• railway cars of the same kind and number as the imported cars could not have been acquired from Canadian production or other Canadian sources at a reasonable cost or could not have been delivered or made available in Canada when needed
• the imported cars are exported on or before the earlier of:
  • the day that is one year after the day on which the imported cars are imported, and
  • the day on or before which railway cars of the same kind and number as the imported cars could be delivered or made available in Canada after having been acquired from Canadian production or other Canadian sources at a reasonable cost

(i) goods described in the following items of the schedule to the Temporary Importation Regulations imported in circumstances where the terms and conditions of those regulations are met:

• items 3, 16 to 18, 27, 32, 33, 36, 39 to 44, 49, 52 to 54, and 57
• items 38 and 47, when the goods are imported by a non-resident person

(j) goods imported after having been exported for warranty repair work

If the above export report is unavailable, because of circumstances beyond the importer's control, the importer has to provide one of the following:

• a customs document showing that the goods were exported according to the Customs Act
• a transportation company document for the export of the goods
• a customs accounting document for the importation of the goods into the country where the warranty repair work was performed
• a declaration from the foreign exporter that the goods exported to Canada are the goods that had been imported to that country for warranty repair
• other satisfactory proof showing that the goods were exported from Canada

(j.1) a representational gift that is either:

• presented by a donor acting in the capacity as a Head of State, Head of Government or representative of a government, a public body of a foreign country or a political subdivision of a foreign country, to a donee acting in the capacity of the Governor General, the Prime Minister of Canada, a minister of the Government of Canada, a member of the Senate or House of Commons, a provincial premier or a municipal mayor, in the course of an official visit by the donee outside Canada
• to be presented by a donor acting in the capacity as a Head of State, Head of Government or representative of a government, a public body of a foreign country or a political subdivision of a foreign country in the course of an official visit by the donor to Canada and that is subsequently so presented

(k) medals, trophies, plaques, or other similar articles to be presented by the importer at awards ceremonies

(l) goods enumerated in code 1910 of Schedule II to the Customs Tariff that are imported pursuant to the requirements of that code

(m) a vehicle that is imported temporarily by an individual resident in Canada and not accounted for as a commercial good (defined in subsection 212.1(1) of the ETA) under section 32 of the Customs Act if:

• the vehicle was last supplied in the course of a vehicle rental business to the individual by way of lease, licence or similar arrangement under which continuous possession or use of the vehicle is provided for a period of less than 180 days
• immediately before the importation, the individual was outside Canada for an uninterrupted period of at least 48 hours
• the qualifying vehicle is exported within 30 days after the importation

(n) goods that are classified under tariff item No. 9813.00.00 or 9814.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, or that would be so classified in the absence of paragraphs (a) and (b) of those tariff items, if certain conditions are met.

8.1 Goods that are imported at any time by a registrant to whom has been issued an authorization under section 213.2 of the ETA that is in effect at that time and that are either:

• processed, distributed or stored in Canada and subsequently exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of the goods
• incorporated or transformed into, attached to, or combined or assembled with, other goods that are processed in Canada and subsequently exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of those other goods
• materials (other than fuel, lubricants and plant equipment) directly consumed or expended in the processing in Canada of other goods that are exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of those other goods

All of the following conditions must be met:

• the goods must be imported solely for the purpose of having services performed that are supplied by the registrant to a non resident person
• throughout the period beginning at the time the goods are imported by the registrant and ending at the time of the exportation of the goods or the altered products resulting from the processing
  • neither the goods nor the processed products are the property of a person resident in Canada
  • the registrant does not have any proprietary interest in the goods or the processed products
  • the registrant is not closely related to any non resident person whose property are the goods or the processed products
• at no time during this period does the registrant transfer physical possession of the goods or the processed products to another person in Canada except for the purpose of their storage, their transportation to or from a place of storage or their transportation in the course of being exported
• the exportation of the goods or the processed products occurs within four years after the day on which the particular goods are accounted for under section 32 of the Customs Act
• at the time of that accounting for the goods, the registrant discloses, on the accounting document, the number assigned to the registrant under subsection 213.2(1) of the ETA
• the registrant has provided any security that is required under section 213.1 of the ETA

9. Containers that, because of regulations made under Note 11(c) of Chapter 98 of Schedule I to the Customs Tariff, may be imported free of customs duties.

This ensures that if a person exports containers and later imports a similar quantity of like containers, the import is free of customs duties and the GST/HST.

10. Money, certificates, or other documents evidencing a right that is a financial instrument.

This section confirms that such things as stock certificates, bond certificates, promissory notes, and money are not taxable when brought into Canada.

CBSA administers the provisions for importing goods, and is responsible for determining how the goods will be taxed when they are imported.

9. Containers that, because of regulations made under Note 11(c) of Chapter 98 of Schedule I to the Customs Tariff, may be imported free of customs duties.

This ensures that if a person exports containers and later imports a similar quantity of like containers, the import is free of customs duties and the GST/HST.

10. Money, certificates, or other documents evidencing a right that is a financial instrument.

This section confirms that such things as stock certificates, bond certificates, promissory notes, and money are not taxable when brought into Canada.

11. An item of domestic inventory, added property or a customer's good (as those expressions are defined in section 273.1 of the ETA) imported at any time by a person who is registered under Subdivision D of Division V of Part IX of the ETA and to whom has been granted an authorization that is in effect at that time to use an export distribution centre certificate (within the meaning of that section), if:

• when the good is accounted for under section 32 of the Customs Act, the person certifies that the authorization is in effect at that time and discloses the number referred to in subsection 273.1(9) of the ETA and the effective date and expiry date of the authorization
• the person has provided any security that is required under section 213.1 of the ETA

12. Imported grain or seeds, or imported mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if:

• in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food
• in the case of viable grain or seeds, they are included in the definition industrial hemp in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act or they are industrial hemp for the purposes of the Cannabis Act
• the importation is in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, if applicable

13. In vitro embryos, as defined in section 3 of the Assisted Human Reproduction Act.

CBSA administers the provisions for importing goods, and is responsible for determining how the goods will be taxed when they are imported.

Publications and forms

The CRA offers a wide range of publications in both official languages. For a list of all GST/HST publications, go to GST/HST related forms and publications.

• Pamphlets and booklets are available on a variety of subjects.
• Guides contain more detailed information on how the GST/HST affects specific types of businesses and organizations.
• Info Sheets provide explanations on specific topics.
• GST/HST Memoranda give more in-depth technical information on administrative and policy aspects of the GST/HST, and are aimed at tax professionals.
• GST/HST Notices provide explanations on recent changes.
• Technical Information Bulletins announce changes to GST/HST legislation and administrative policy in specific areas.

Revenu Québec administers the GST/HST in Quebec. If the physical location of your business is located in Quebec, contact Revenu Québec at 1-800-567-4692, unless you are a person that is an SLFI for GST/HST or QST purposes or both then go to GST/HST and QST – Financial institutions, including selected listed financial institutions.

Forms

There are a number of options available to businesses and organizations to make it easier to comply with the GST/HST. These options, called elections or applications, allow you to adapt the administrative requirements of the GST/HST to your own business activity. While some options are available to all registrants, other options are available only to organizations and businesses that meet certain conditions.

Other forms are used to remit an amount of tax. They are called returns or remittance vouchers.

Elections

You can use an election if you meet all the eligibility criteria.

You are responsible for ensuring that you meet the conditions of the election. At the time of an audit, we reserve the right to verify your eligibility and to disallow an election if you have not met the requirements.

Applications

Applications are different from elections. You have to meet the necessary requirements, and for many applications, you can call the CRA or fill out the form and mail it to the CRA. The CRA has to acknowledge that we have processed and approved your application before you can begin to use the procedure for which you have applied.

Digital services

GST/HST electronic filing and remitting

You have several options for filing your GST/HST return or remitting an amount owing electronically. For more information, go to Complete and file a return.

Handle your business taxes online

My Business Account lets you view and manage your business taxes online.

Use My Business Account throughout the year to:

• make a payment online to the CRA with My Payment, create a pre-authorized debit (PAD) agreement, or create a QR code to pay in person at Canada Post
• file a return, view the status of filed returns, and adjust returns online
• submit documents to the CRA
• manage authorized representatives and authorization requests
• register to receive email notifications and to view mail from the CRA in My Business Account
• manage addresses, direct deposit information, program account names, operating names, phone numbers, and business numbers in your profile
• file an election related to GST/HST
• view and pay account balances
• calculate and pay instalment payments
• calculate a future balance
• transfer payments and immediately view the updated balance
• make an online request regarding your account and view answers to common enquiries
• track the progress of certain files you have submitted to the CRA
• submit an audit enquiry
• request relief of penalties and interest
• manage multi-factor authentication settings

To sign in to or register for the CRA’s digital services, go to:

• My Business Account, if you are a business owner
• Represent a Client, if you are an authorized representative

For more information, go to E-services for businesses.

Receive your CRA mail online

Register for email notifications to find out when CRA mail, like your notice of assessment, is available in My Business Account.

For more information, go to Email notifications from the CRA – Businesses.

Create a pre-authorized debit agreement from your Canadian chequing account

A pre-authorized debit (PAD) is a secure, online self-service payment option for individuals and businesses to pay their taxes. A PAD lets you authorize withdrawals from your Canadian chequing account to pay the CRA. You can set the payment dates and amounts of your PAD agreement using the CRA’s secure My Business Account service. PADs are flexible and managed by you. You can use My Business Account to view your account history and modify, cancel, or skip a payment. For more information, go to Pay by pre-authorized debit.

Non-Resident Business Number and Account Registration Web Form

Non Resident can now register their business for a CRA business number and certain program accounts using the Non Resident Business Number and Account Registration Web Form. For more information go to How to register for a business number or Canada Revenue Agency program accounts.

Electronic payments

Make your payment using:

• your Canadian financial institution’s online or telephone banking services
• the CRA’s My Payment service at Pay now with My Payment
• your credit card, Interac e-transfer, or PayPal through one of the CRA’s third-party service providers
• pre-authorized debit (PAD) at My Business Account
• wire transfer and internationally issued credit card payments (option for non-residents)

For more information, go to Payments to the CRA.

For more information

If you need help

If you need more information after reading this guide, go to Non-resident GST/ HST Enquiries.

Direct deposit

Direct deposit is a fast, convenient, and secure way to receive your CRA payments directly in your account at a financial institution in Canada. For more information and ways to enrol, go to Direct deposit – Canada Revenue Agency.

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA’s forms and publications, go to Forms and publications or call one of the following numbers:

• 1-800-959-5525, from Canada and the United States
• 613-940-8497, from outside Canada and the United States. The CRA only accepts collect calls made through a telephone operator. After your call is accepted by an automated response, you may hear a beep and notice a normal connection delay. This service operates in Eastern Standard Time and is open Monday to Friday from 8:00 am to 8:00 pm and Saturday from 9:00 am to 5:00 pm.

Electronic mailing lists

The CRA can send you an email when new information on a subject of interest to you is available on the website. To subscribe to the electronic mailing lists, go to Canada Revenue Agency electronic mailing lists.

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA's automated service, TIPS, by calling 1-800-267-6999.

Teletypewriter (TTY) users

If you use a TTY for a hearing or speech impairment, call 1-800-665-0354.

If you use an operator-assisted relay service, call the CRA's regular telephone numbers instead of the TTY number.

GST/HST rulings and interpretations

You can request a ruling or interpretation on how the GST/HST applies to a specific transaction for your operations. This service is provided free of charge. For the mailing address or fax number of the closest GST/HST Rulings centre, see GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, or call 1-800-959-8287.

Formal disputes (objections and appeals)

You have the right to file a formal dispute if you disagree with an assessment, determination, or decision.

For more information about objections and related deadlines, go to Service feedback, objections, appeals, disputes, and relief measures.

CRA service feedback program

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the CRA. For more information about the Taxpayer Bill of Rights, go to Taxpayer Bill of Rights.

You may provide compliments or suggestions, and if you are not satisfied with the service you received:

1. Try to resolve the matter with the employee you have been dealing with or call the telephone number provided in the correspondence you received from the CRA. If you do not have contact information for the CRA, go to Contact the Canada Revenue Agency.
2. If you have not been able to resolve your service-related issue, you can ask to discuss the matter with the employee’s supervisor.
3. If the problem is still not resolved, you can file a service related complaint by filling out Form RC193, Service Feedback. For more information and to learn how to file a complaint, go to Submit service feedback.

If you are not satisfied with how the CRA has handled your service-related complaint, you can submit a complaint to the Office of the Taxpayers’ Ombudsperson.

Reprisal complaints

If you have received a response regarding a previously submitted service complaint or a formal review of a CRA decision and feel you were not treated impartially by a CRA employee,, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint.

For more information, go to Service feedback, objections, appeals, disputes, and relief measures.

Cancel or waive penalties and interest

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA discretion to grant relief is limited to any period that ends within 10 calendar years before the year in which a relief request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later.

Taxpayer relief requests can be made online using the CRA's My Account, My Business Account (MyBA), or Represent a Client digital services:

My Account: After signing in, select “Accounts and payments,” then “Request relief of penalties and interest.”

MyBA or Represent a Client: After signing in, on the MyBA overview page, select the appropriate program from the navigation menu, then select the correct account. Finally, select “Request relief of penalties and interest” under the “Request” heading.

You can also fill out Form RC4288, Request for Taxpayer Relief - Cancel or Waive Penalties and Interest, and send it with one of the following ways:

• online with My Account: select “Submit documents” under the “Correspondence” section
• online with MyBA or Represent a Client: select “Submit documents” from the banner at the top of the page
• by mail to the designated office, as shown on the last page of the form, based on your place of residence

For information, go to Submit Documents online.

For more details on the required supporting documents, relief from penalties and interest, and other related forms and publications, go to Cancel or waive penalties or interest.