Place of supply rules for intangible personal property (IPP)

There are significant changes to the place of supply rules for supplies of IPP. Although the general rules in most cases continue to be based in large part on where the IPP can be used, the place of negotiation will no longer be a factor, and greater emphasis will be placed on the location of the recipient of the supply of the IPP. Specific place of supply rules will apply to supplies of IPP that relate to goods, real property and services.

Canadian rights

The Canadian rights for IPP means that part of the property that can be used in Canada.

Deemed supplies of IPP

Where a supply of IPP is made by way of lease, licence or similar arrangement for an amount that is for a period (referred to as a "lease interval") that is the whole or a part of the period during which possession or use of the IPP is provided under the arrangement, a separate supply of the IPP for a separate amount is considered to be made by the supplier and received by the recipient for each lease interval. Furthermore, the supply for each lease interval is considered to be made on the earliest of the first day of the lease interval; the day on which the lease payment for that interval becomes payable and the day that payment is made. The separate supplies of the IPP that are considered to be made for each lease interval can be subject to HST at a different rate to the extent that those supplies can be considered made in a different province based on the application of the place of supply rules for IPP.

Forms and publications

• 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