28 August 1995 GST/HST Interpretation 11849-3 - Treatment of the GST to a Provincial Entity Which Is Entitled to Use Exemption Certificates

                                                                        File: 11849-3(dh)
1314REG

                                                                        Domus 1314REG
XXXXX                                                                                 August 28, 1995

Dear XXXXX

We are writing in response to a memo dated June 13, 1995, from XXXXX of your staff. In her memo XXXXX requested confirmation of the treatment of the XXXXX

Statement of Facts

1) The XXXXX is listed in Schedule "A" of the Reciprocal Taxation Agreement (RTA) as a provincial entity which is entitled to use exemption certificates. That is, it does not pay the Goods and Services Tax (GST) on its purchases.

2) The XXXXX is a GST registrant. GST registration XXXXX

3) The XXXXX has been claiming a 50% rebate as a government funded non-profit organization.

We have been asked to confirm that as part of the provincial government entity, any GST collected by the XXXXX should be remitted under the Province of XXXXX account number, or alternatively the XXXXX should be filing a separate GST branch return.

We have also been asked to confirm that as part of the XXXXX government entity, the XXXXX is eligible to use the exemption certificate for point of purchase relief from the GST. In addition, as the XXXXX has been paying the GST on its purchases and subsequently claiming a 50% rebate, that they may claim a rebate under section 261 of the Excise Tax Act (ETA) for any GST which they have paid but that has not previously been claimed as a rebate.

In March of 1994 the Government of Canada and the Government of XXXXX signed a Reciprocal Taxation Agreement (RTA) which sets out the terms of the arrangements reached between both governments with respect to the payment of taxes and fees.

Schedule "A" to the RTA lists the XXXXX entities that are exempt from the payment of GST and are eligible to use the exemption certificate to obtain point-of-purchase relief from the GST.

As the XXXXX is included on schedule "A" to the RTA, we confirm that it is eligible to use the exemption certificate, and should not have paid GST on any of its purchases. Therefore, it would be acceptable for the XXXXX to claim a rebate under section 261 of the ETA for any GST so paid and for which no other rebate has been claimed.

We also confirm that as the XXXXX is part of the XXXXX Government entity for GST purposes, it should not have its own GST registration number, but rather should be filing as a branch of the provincial government.

Should you have any questions please contact Donna Harding at 613-952-8531 or the undersigned at 613-954-3551.

M. Viger
Manager - Governmental Sectors
GST Rulings and Interpretations