Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Case Number: 110512
Attention: XXXXX
December 15, 2008
Dear XXXXX:
Subject:
GST/HST RULING
Temporary importation of XXXXX
Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation XXXXX.
HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
Our understanding of the facts is as follows:
1. Your client, XXXXX, is a non-resident located in XXXXX and is in the business of XXXXX.
2. XXXXX is planning to temporarily import XXXXX.
3. XXXXX.
4. The XXXXX are not for sale, for lease or for further manufacturing or further processing.
5. The Canada Border Services Agency has determined that the conditions of item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the XXXXX.
Ruling Requested
You would like to know whether the temporary importation of XXXXX by XXXXX is a non-taxable importation for GST/HST purposes.
Ruling Given
Based on the facts set out above, we rule that the importation of the XXXXX by XXXXX is a non-taxable importation for GST/HST purposes pursuant to section 8 of Schedule VII to the Excise Tax Act (ETA), section 213 of the ETA and subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions.
Explanation
Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA. Section 8 of Schedule VII to the ETA deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes. Subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations includes goods described in item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a non-resident person imports the goods in circumstances where the terms and conditions of the regulations have been met.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-737-7856. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Donato Licursi
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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