Freight transportation services
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Freight transportation services
Ther are no changes to the place of supply rule that currently applies to supplies of freight transportation services. A supply of a freight transportation service is made in a province if the destination of the service is in the province. This rule does not apply to most supplies of mail services supplied by the Canada Post Corporation which are subject to the place of supply rules that are explained in the section dealing with postage and mail delivery services.
Freight transportation service with a destination in more than one province
Where a supply of a freight transportation service has destinations in more than one province, the provision of the service of transporting the goods destined for each province is considered to be a separate supply made for a separate amount equal to the portion of the total amount for the supply that is reasonably attributable to the transportation of the goods to that province. As a result, if a separate supply of a freight transportation service has a destination in a participating province, that supply is considered to be made in that province for an amount equal to the portion of the total amount that is reasonably attributable to that service and the HST will apply to that amount. If a separate supply of a freight transportation service has a destination in a non-participating province, that supply is considered to be made in that province for an amount equal to the portion of the total amount that is reasonably attributable to that service and the GST will apply.
Example 1
A manufacturer in Manitoba hires a carrier to transport products to a wholesaler in Ontario. The supply of the freight transportation service is made in Ontario because the destination of the freight transportation service is in Ontario. The HST will apply to the freight transportation service at the rate of 13%.
Example 2
An individual hires a moving company to pick up the individual's personal effects at a residence in Winnipeg, Manitoba and deliver the effects to a residence in Windsor, Ontario. The supply of the freight transportation service is made in Ontario because the destination of the freight transportation service is in Ontario. The HST will apply to the freight transportation service at the rate of 13%.
For more examples, see GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax - Place of supply rules for determining whether a supply is made in a province.
Forms and publications
- Date modified:
- 2013-04-12