GST/HST Rulings and Interpretations
Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, Ontario
XXXXX K1A 0L5
XXXXX
XXXXX Case: HQR0000599
Business Number: XXXXX
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Attention: XXXXX XXXXX
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September 29, 1998
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Subject:
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GST/HST APPLICATION RULING
Processing of an application for a Septic System Use Permit
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Dear XXXXX
Thank you for your letter of 21 October 1996 (with attachments), which was forwarded to this office for reply, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction described below.
Our understanding of the facts,the transaction, and the purpose of the transaction is as follows.
Statement of Facts
1. XXXXX (Health Unit), which was established by XXXXX, has been determined to be a municipality and is considered a para-municipal body for purposes of Part IX of the Excise Tax Act.
2. Any person in XXXXX who wishes to construct a septic system or alter an existing system must apply to the Health Unit for a Certificate of Approval. The application must include: a completed request form, a copy of the deed to the property, a lot diagram and sewage system plan, a confirmation of zoning signed by a municipal building inspector, and a completed questionnaire on plumbing information. Payment in full of XXXXX must accompany the application. Cheques are made payable to the Health Unit.
3. The Health Unit reviews and processes the application and if all the requirements under XXXXX are met, issues a Certificate of Approval under XXXXX of that Act. The Certificate is on a form prescribed by XXXXX[.] If the application is denied, the reasons are provided and the applicant has the right to appeal to XXXXX[.]
4. Upon presentation of the Certificate, the municipality issues a building permit and the applicant may install or alter the septic system.
5. The completed system is then inspected by the Health Unit and if it meets all specifications, a Use Permit is issued by the Health Unit, again on a form prescribed by the Ministry. By law, a septic system may not be used untilunless a Use Permit has been issued.
6. If the XXXXX fee is not paid, the application is not processed and no certificate or permit is issued.
7. The Director of the Health Unit, XXXXX has been sub-delegated the authority to sign the Certificate of Approval and the Use Permit.
Transaction
A XXXXX application fee is paid which sets in motion a process ultimately resulting in the issue of a Use Permit.
Ruling Requested
Is the processing of an application for a Use Permit an exempt supply under Schedule V, Part VI, subsection 20(c) of the Excise Tax Act?
Alternatively, is the service of processing the application deemed to be an exempt service pursuant to section 189.1 of the Excise Tax Act?
Ruling Given
Based on the facts set out above, we rule that the processing of an application for a Use Permit is an exempt supply under Schedule V, Part VI, subsection 20(c) of the Excise Tax Act.
Having reached this conclusion, it is unnecessary to determine whether the service of processing the application is exempt under s. 189.1 of the Excise Tax Act.
This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact Darlene Wladyka at 613[-]7947.
Yours truly,
Oscar Jacobs
Governments Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate
| c.c.: |
D. Harding
Windsor TIS |
| Legislative References: |
para. 20(c), Pt. VI, Sch. V |
| NCS Subject Code(s): |
11848-7 |
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