Place of supply – Goods

Use the rules on this page to determine the GST/HST rate for the following:

• Sales of goods
• Sales of most vehicles
• Options to purchase
• Rentals and leases – three months or less
• Rentals and leases – more than three months

Sales of goods

Generally, when you sell goods, the supply of those goods is made in the province where you make the goods available to the purchaser or where you deliver the goods.

Goods are considered to be delivered to one of the following:

• the destination where you ship the goods
• the place where you transfer possession of the goods to a shipper or consignee that you contracted on behalf of the purchaser
• the address that you send the goods by mail or courier

GST/HST applies at the rate for that province.

Sales of most vehicles

The supply of a vehicle is considered to be made in the province where the vehicle is registered if the following conditions are met:

• the vehicle is delivered to or made available in a participating province
• the vehicle is registered in a province with a lower GST/HST rate
• the registration is made no later than 7 days after being delivered or made available to the purchaser
• the vehicle is a "specified motor vehicle"

If the above conditions are met, GST/HST applies at the rate for the province where the vehicle is registered. In all other cases, the rules for sales of goods apply.

What is a "specified motor vehicle"?

A "specified motor vehicle" generally includes motor vehicles other than racing cars.

Options to purchase

If you lease goods with an option to purchase, and the lessee exercises that option, the place of supply is the location of the goods when the recipient no longer possesses those goods as a lessee and begins to possess them as a purchaser.

GST/HST applies at the rate for the province where the goods are located when the option to purchase is exercised.

Rentals and leases – three months or less

When you rent or lease goods for a period of three months or less, the supply of those goods is made in the province where you make the goods available or where you deliver the goods.

Goods are considered to be delivered to one of the following:

• the destination where you ship the goods
• the place where you transfer possession of the goods to a shipper or consignee that you contracted on behalf of the recipient
• the address that you send the goods by mail or courier

GST/HST applies at the rate for that province.

Rentals and leases – more than three months

When you rent or lease goods for a period of more than three months, each period of the lease for which there is a payment is considered to be a separate supply.

Each separate supply of the rented or leased goods is considered to be made in the province where the goods are ordinarily located.

GST/HST applies at the rate for that province.

In the case of a specified motor vehicle, the supply is considered to be made in the province where you register the vehicle during the lease period.

What is the ordinary location of goods?

The ordinary location of the goods during each lease period is generally the location where the supplier and the recipient mutually agree, even if those goods are actually located at a different place.

Forms and publications

• GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax - Place of supply rules for determining whether a supply is made in a province

Date modified:

2016-07-07