7 March 2000 GST/HST Ruling 7408/HQR0001014 - Supply of Photocopies and Fax Services by Universities

Dear XXXXX

I refer to your letter dated August 28, 1997, regarding the application of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) to the supply of photocopies and fax services. We apologize for the delay in responding to your letter.

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency (the "CCRA").

Statement of Facts

Our understanding of the facts is as follows:

A university, which is a registered charity under the Income Tax Act, provides photocopies and fax services to its students. With respect to the fax services, we understand that the student supplies the document which is then sent via facsimile to the location requested by the student.

Rulings Requested

1. Is the supply of photocopies by a university subject to the GST/HST?

2. Is the supply of fax services by a university subject to the GST/HST?

Rulings Given

1. The supply of photocopies by a university is subject to the GST/HST effective July 1, 2000.

2. The supply of fax services by a university is exempt from GST/HST.

Analysis

Prior to July 1, 2000, the treatment of photocopies was not consistent. When the supply of photocopies was treated as a service it was exempt under section 2 of Part VI of Schedule V to the Excise Tax Act (ETA). However, when the supply of photocopies was treated as tangible property it was excluded from the exemption under paragraph 2(e) of Part VI of Schedule V to the ETA and therefore taxable. To remedy this situation CCRA's position is that the supply of photocopies is a supply of tangible property as of July 1, 2000, and is subject to GST/HST. A prospective date was chosen to allow universities and colleges enough time to implement the changes.

The supply of a fax transmission is considered to be a supply of a service. This has and continues to be the position of the CCRA.

On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%[.] Example: Goods that are delivered or made available in a participating province are subject to the HST, to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST 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 me at (613) 957-1175.

Yours truly,

Don Gagnon
Aboriginal Affairs Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate