Place of supply – Postage services

Use the following rules to determine which GST/HST rate applies for:

• Stamps and postage-paid cards
• Mail delivery
• Mail delivery using a postage meter
• "Lettermail"
• "Business reply" mail

Stamps and postage-paid cards

The supply of a Canada Post postage stamp is made in the province where the purchaser receives the stamp. GST/HST applies at the rate for that province.

This rule also applies to a postage-paid card, package, or similar item purchased from Canada Post.

This rule does not apply to "business reply" mail.

Mail delivery

A mail delivery service is made in the province where the mail is delivered if either of the following situations applies:

• the mail delivery service is performed under a bill of lading
• the amount payable for the service is $5 or more and the address to which the mail is sent is not in a participating province

Mail delivery using a postage meter

Payment of postage for a mail delivery service by Canada Post can be based on the weight taken from a postage meter. In this case, the supply is considered to be made in the province where the meter is normally located. GST/HST applies at the rate for that province.

"Lettermail"

"Lettermail" is a service offered by Canada Post that enables businesses and organizations to use an imprint on an envelope as evidence of payment for postage. In this case, the supply is considered to be made in the province where the mail is deposited for delivery.

"Business reply" mail

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