1 February 1995 GST/HST Interpretation 1995-02-01 - The Application of the Legislative Provisions Would Hinge on Whether or Not Taxable Services are Provided in Canada

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Kindly note that for purposes of the GST, the application of the legislative provisions would hinge on whether or not taxable services are provided in Canada. For example: is the seafarer contracting his/her services aboard a vessel and are the services provided in Canada? In this instance, it appears that our response is to be based on the assumption that the seafarers are employees of the vessel operators/owners.

Consequently, the information provided will be with regard to goods and services acquired in Canada and taken out of Canada. Whether the GST applies will be dependent on whether the seafarer is a resident of Canada or a non-resident.

I am attaching a copy of a GST Policy Paper that outlines the criteria to be used in determining whether an individual is a resident or a non-resident of Canada.

Non-resident rebate in respect of exported goods

Generally, individuals who acquire goods and services in Canada are required to pay GST at 7% unless the goods and services are exempt or zero-rated (tax at 0%). Non-resident individuals may apply for a rebate of the GST paid on goods purchased in Canada where, the non-resident exports the goods within sixty days after its delivery to the non-resident in Canada. No rebate is available in respect of services acquired for consumption, use or enjoyment in Canada or excisable goods (includes tobacco and alcohol) and wine.

There are no similar relieving provision for goods acquired by Canadian residents and exported under the same conditions.

Accommodation Rebate to Non-resident Consumers

Generally, the supply of short-term accommodation (i.e. hotel, motel, etc.) in Canada is subject to GST. However a non-resident individual, who acquires accommodation in Canada, and pays GST, may apply for a rebate of the short-term accommodation. The accommodation must be provided for less than a month (i.e., 30 days).

There are no similar relieving provisions for short-term accommodation acquired by a person who is resident in Canada.

Should you require further information, please do not hesitate to contact Dwayne Moore, Tax Policy Officer at 954-4206.

J.A. Venne
Director
Tax Policy - Special Sectors
GST Policy & Legislation