Techtronic Industries – Quebec Superior Court finds the place of supply of goods for QST purposes was the customer destination rather than place of their legal delivery into FedEx’s hands

Although in broad brush terms, the situs of sales of goods for GST/HST purposes is governed by the place of legal delivery, this result is overridden by Sched. IX, Pt. II, s. 3 of the interprovincial place-of-supply rules, which deems the place of supply to be in the province of the customer, notwithstanding that legal delivery occurs in the province of the supplier, where the goods are shipped by a common carrier retained by the supplier. Accordingly, under the equivalent Quebec rule, a supply of goods was deemed to occur in Quebec where the goods were delivered FOB the Toronto distribution centre but with the Ontario supplier retaining the "common carrier" (FedEx) for shipment to the Quebec destination.

Neal Armstrong. Summary of Techtronic Industries Canada Inc. v. Agence du revenu du Québec, 2014 QCCQ 7394 under ETA, Sched. IX, Pt. II, s. 3.