Place of supply – IPP relating to real property

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http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/hst-tvh/ntngbl/rlprpty-eng.html

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Place of supply – IPP relating to real property

Use the following rules to determine which GST/HST rate applies for intangible personal property(IPP) relating to:

Real property located in one province

If your supply of IPP relates to real property located entirely in one province, GST/HST applies at the rate for that province.

Real property located in more than one province

Real property may be located in more than one province (for example, a highway stretching across several provinces). For a single supply of IPP relating to real property located in more than one province, use the following rules to determine the GST/HST rate.

Note

If the real property is located partially outside Canada, use only the portion of the property in Canada to determine where the supply of IPP is made.

IPP relating to real property in two provinces

A supply of IPP that relates to real property is considered to be made in the province where the greatest portion of the real property is located.

Note

If the real property is located exactly 50% in a participating province  and 50% in a non-participating province, GST applies at the rate of 5%.

IPP relating to real property in more than two provinces

You must first determine if the real property is located primarily in the participating provinces or at least 50% in the non-participating provinces.

If your supply of IPP relates to real property that is located at least 50% in the non-participating provinces, GST applies at the rate of 5%.

If your supply of IPP relates to real property that is located primarily in the participating provinces, HST applies at the rate for the participating province with the greatest portion of the real property.

If there is not a province with the greatest portion of the real property, HST generally applies at the highest rate among the provinces where the real property is primarily located if the following conditions are met:

  • the real property is primarily located in the participating provinces
  • the real property is located equally in two or more participating provinces
  • a greater portion of the real property is not located in any other participating province

However, in that situation, if the provinces where the real property is equally located have the same highest rate, HST applies at the rate for the province where your business address that is most closely connected with the supply is located.

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Date modified:
2016-07-07