General Rules

Generally, under the place of supply rules for supplies of intangible personal property (IPP):

• Supplies of IPP that can be used in Canada that can only be used primarily (more than 50%) in the participating provinces will be considered to be made in a participating province and subject to the HST.
• Supplies of IPP that can be used in Canada that can only be used primarily (more than 50%) outside the participating provinces will be considered to be made in a non-participating province and subject to the GST.
• The place of supply for supplies of IPP that can be used in Canada that can be used other than only primarily in the participating provinces and other than only primarily outside the participating provinces will depend on a number of additional factors.

The place of supply rules can require a determination of the extent, if any, to which the use of the Canadian rights is limited to one or more provinces. The extent, if any, to which the rights can be used in one or more provinces will generally be determined based on the terms of the agreement for the supply governing the use of the rights. If there are no limitations about the province in which the rights can be used and it is possible for those rights to be used in a province, we consider that the rights can be, but are not limited to being, used in that province for purposes of the place of supply rules.

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:

2013-04-12