Part I
Section 2
Cases
Hedges v. Canada, 2016 FCA 19
The appellant (“Hedges”) sold illegally produced dried marihuana to an intermediary (“BCCS”) which, in turn, sold it to individual members...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | illogical to infer a tax benefit from illegal sales | 153 |
| Tax Topics - Statutory Interpretation - Headings | heading did not contemplate illegal drugs | 100 |
See Also
Hedges v. The Queen, 2014 TCC 270, aff'd 2016 FCA 19
Hedges was assessed for his failure to charge GST on his sales of illegally produced dried marihuana to an intermediary ("BCCCS"), which in turn...
Administrative Policy
Excise and GST/HST News - No. 97 17 November 2015
Importations of donor eggs
[S]upplies of human sperm and oocytes are not drugs that are included in section 2 of Part I of Schedule VI and...
GST Memoranda Series 4.1 "Prescription Drugs and Biologicals" ETA - Schedule VI Part II
GST M 300-4-2 "Health Care Services"
Paragraph 2(a)
Administrative Policy
8 March 2018 CBA Commodity Taxes Roundtable, Q.3
Although CRA’s position was that supplies of in vitro diagnostic test kits designed for laboratory use are taxable, the Centre Hospitalier Le...
Paragraph 2(b)
Administrative Policy
Excise and GST/HST News - No. 101 March 2017
Hormonal, but not copper, intrauterine devices are zero-rated
Hormonal IUDs have a reservoir which slowly releases hormones used for...
Paragraph 2(e)
Cases
Patterson Dental Canada Inc. v. Canada, 2020 FCA 40
The taxpayer sold anesthetic solutions containing epinephrine to dentists, and was assessed for failure to charge GST on the basis that such...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | the single supply doctrine did not deem an anesthetic containing a drug substance to be that drug | 143 |
See Also
Patterson Dental Canada Inc. v. The Queen, 2018 TCC 112, aff'd 2020 FCA 40
The taxpayer sold anesthetic solutions containing epinephrine to dentists, and (notwithstanding an adverse Technical Interpretation letter...
Administrative Policy
Excise and GST/HST News - No. 108 September 2020
CRA’s existing policy re drugs with mixed substances is consistent with Patterson Dental
[Patterson Dental held] that the supply of epinephrine...
Section 6
Administrative Policy
GST/HST Notice 312 Proposed GST/HST Treatment of Supplies of Human Ova and In vitro Embryos May 2019
Effect of zero-rating on importations
The first proposed amendment to the Act would add, under section 6 of Part I of Schedule VI to the Act, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VII - Section 13 | 390 | |
| Tax Topics - General Concepts - Effective Date | CRA allows immediate application of the new non-supply rules for human ova or embryos but won’t process rebate claims until passed | 168 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Institutional Health Care Service | assimilation of provision of ovum or embryo to single supply at fertility clinic of institutional health care service | 80 |
Part II
Section 9
Cases
Contact Lens King Inc. v. Canada, 2022 FCA 154
The appellant, a U.S. corporation, sold and delivered contact lenses (typically replacement contact lenses) to Canadian consumers without...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 286 - Subsection 286(1) | no particular form of documentary evidence required by s. 286(1) | 228 |
| Tax Topics - Income Tax Act - Section 230 - Subsection 230(1) | taxpayer flexibility to determine corroborative documents | 103 |
| Tax Topics - Statutory Interpretation - Inserting Words | not role of courts to add words | 134 |
See Also
Contact Lens King Inc. v. The Queen, 2020 TCC 71, aff'd on other grounds 2022 CAF 154
The appellant, a GST/HST registered Nevada corporation with a distribution centre in New York state, sold and delivered contact lenses (typically...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 286 - Subsection 286(1) | failure to obtain and retain copies of customers' prescriptions did not comply with s. 286(1) | 238 |
Section 11
See Also
Axelrod v. The King, 2022 TCC 157 (Informal Procedure)
Dr. Axelrod, a dentist, provided dentures, bridges, crowns and implants and reconstruction materials for more than half of a tooth, which the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 | supply of crown or other prosthesis by dentist was a single supply of a health care service | 417 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Commercial Activity | para. (a) made exempt supplies paramount over zero-rated supplies | 179 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | dentist who was providing artificial teeth (listed as a zero-rated item) was making a single supply of health care services | 346 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 34 | legislative approach in VI-II-34 reinforced a conclusion that dental crown or implant work was an exempted service | 66 |
Section 11.1
Cases
Canada v. Dr. Kevin L. Davis Dentistry Professional Corporation, 2023 FCA 76
The respondent (Davis Dentistry) had claimed input tax credits (ITCs) on the basis that a portion of its supplies to each orthodontic patient was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 | orthodontist was supplying orthodontic services separately from zero-rated orthodontic devices | 221 |
| Tax Topics - Statutory Interpretation - Drafting Style | imprecise drafting is not typical of taxing statutes | 101 |
See Also
Dr. Kevin L. Davis Dentistry Professional Corporation v. The Queen, 2021 TCC 25, aff'd 2023 FCA 76
CRA disallowed ITCs claimed by one of the practices of orthodontist’s professional corporation on the basis that the patient invoices did not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Input Tax Credit Information (GST/HST) Regulations - Section 3 - Paragraph 3(b) | invoices showing nil tax and not allocating between the included zero-rated and exempt supply complied with s. 3 | 369 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(5) | agreement with the Canadian Dental Association was an exercise of discretion under s. 169(5) | 273 |
Dr. Brian Hurd Dentistry Professional Corporation v. The Queen, 2017 TCC 142 (Informal Procedure)
Campbell J found that an incorporated orthodontic practice was making a single supply of exempt orthodontic health services rather than (as argued...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 | single supply by incorporated orthodontist of health care services | 262 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Institutional Health Care Service - Paragraph (h) | single supply of orthodontic services by incorporated orthodontic practice qua health care facility | 165 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | single supply of orthodotic service | 87 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Institutional Health Care Service - Paragraph (b) | orthodontic appliance was not a "medical prosthesis" | 164 |
Administrative Policy
GST/HST Notice 339, “Input Tax Credits Related to Dental Practices,” October 2024
Administrative arrangement with the Canadian Dental Association
Under the CRA arrangement made in 1991 with the Canadian Dental Association, a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | revocation of CRA administrative arrangement regarding ITC claims by orthodontic practices | 237 |
7 April 2022 CBA Roundtable, Q.6
At the 2018 CBA Roundtable, Q.5 regarding Brian Hurd, and CRA’s administrative arrangement to allow 35% input tax credits to orthodontal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | CRA has postponed proceeding with treating orthodontists as making a single exempt supply | 182 |
Section 24.1
See Also
Health Quest Inc v. The Queen, 2014 TCC 211 (Informal Procedure)
The appellant ("Health Quest") distributed footwear for the relief of various disabling conditions of the foot. The Minister reassessed the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | mixed assumptions of fact and law | 189 |
Section 32
See Also
Tremblay v. The Queen, [2001] GSTC 64 (TCC) (Informal Procedure)
An elevator shaft constructed by the builder of the appellant's home in order to permit the operation of a wheelchair lift provided by a separate...
Section 33
Administrative Policy
Excise and GST/HST News, No. 104, July 2018
The following are considered service animals for purposes of section 33:
- seeing-eye horses (miniature ponies);
- seeing-eye dogs;
- hearing-ear...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Insurance Policy | 293 | |
| Tax Topics - Excise Tax Act - Section 154 - Subsection 154(2) | GST on B.C. sales tax applicable to sales of expensive autos | 259 |
| Tax Topics - Excise Tax Act - Regulations - Taxes, Duties and Fees (GST/HST) Regulations - Section 3 - Paragraph 3(b) | 74 |
Section 34
See Also
Buccal Services Ltd. v. The Queen, [1994] GSTC 70 (TCC)
A healthcare facility through a dentist (as independent treatment provider) provided various laboratory and diagnostic services such as special...
Administrative Policy
4 May 2021 GST/HST Ruling 199267 - Tax paid on construction services
CRA found that a registered charity received a single supply of renovation work notwithstanding that an identified component of the work was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | renovation work constituted a single supply so that component wheelchair hoist work was not zero-rated | 246 |
Section 37
Administrative Policy
Excise and GST/HST News - No. 97 17 November 2015
Design features must assist in coping with incontinence
To be an incontinence product specially designed for use by an individual with a...
Part III
Section 1
See Also
River Road Co-Op Ltd. v. The Queen, [1995] GSTC 34 (TCC)
A direct charge retail co-operative charged $3.50 per week to each member of the co-operative irrespective of the type or volume of goods...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(2) | 64 |
Administrative Policy
29 March 2017 Ruling 183173
In finding that a bottled product that was to be mixed with water did not qualify under Sched. VI, Pt II, s. 1, CRA stated:
[T]he CRA considers a...
GST/HST Technical Information Bulletin B-110 Application of the GST/HST to the Practice of Acupuncture April 2017
Separate supplies of herbal goods by acupuncturist
Sales of products such as dried herbs and herbal goods for medicinal purposes are generally...
Paragraph 1(e)
See Also
Ike Enterprises Inc. v. The Queen, 2017 TCC 59
The appellant sold crystallized ginger; sticks (made of wheat, rice and spelt); and granola in special packaging in bulk to retailers for sale in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(f) | fried sticks were sold as snack and were not baked | 233 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(h) | granola in cereal aisle intended primarily as breakfast cereal | 194 |
Paragraph 1(f)
See Also
Ike Enterprises Inc. v. The Queen, 2017 TCC 59
The appellant sold crystallized ginger; sticks (made of wheat, rice and spelt); and granola in special packaging in bulk to retailers for sale in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(e) | crystallized ginger sold as baking ingredient rather than candy | 251 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(h) | granola in cereal aisle intended primarily as breakfast cereal | 194 |
Paragraph 1(h)
See Also
Ike Enterprises Inc. v. The Queen, 2017 TCC 59
The appellant sold crystallized ginger; sticks (made of wheat, rice and spelt); and granola in special packaging in bulk to retailers for sale in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(e) | crystallized ginger sold as baking ingredient rather than candy | 251 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(f) | fried sticks were sold as snack and were not baked | 233 |
Paragraph 1(k)
See Also
Hubka v. The Queen, [1995] GSTC 58 (TCC)
Supplies of ice cream made in the form of boxes of 12, 24 or 36 single serving packages were excluded from zero-rating by s. 1(k). Bonner TCJ....
Part V
Section 1
See Also
Muller v. Baldwin, L.R. 9 Q.B. 457
In the absence of anything in the governing legislation to the contrary, "exported from the port" was to be construed in its ordinary meaning of...
Administrative Policy
8 March 2018 CBA Commodity Tax Roundtable, Q.9
Company B, a registered resident, agreed to sell tangible personal property (the “Property”) to Company C, an unregistered non-resident, using...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(2) - Paragraph 142(2)(a) | Incoterms did not govern the place of delivery of goods | 163 |
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
Overview of requirements
3. A supply of tangible personal property (other than an excisable good) made by a person to a recipient (other than a...
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 1
Where the taxpayer has failed to provide information pursuant to a requirement under s. 289.1, "CRA's general policy is to proceed with a...
94 CPTJ - Q. 1
RC will be amending its administrative policy to allow certificates to be issued by purchasers containing prescribed information as evidence of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(3) | 11 | |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | 17 | |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | 35 |
Section 2
Administrative Policy
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
Example 3
An unregistered non-resident airline is supplied with meals for consumption on board, and parts used to operate the aircraft while the...
Paragraph 2(a)
Administrative Policy
7 April 2022 CBA Roundtable, Q.14
Does Sched. VI, Pt. V, s. 2 zero-rate all property that is purchased or leased by a non-resident airline whose sole activity is to carry on the...
Section 5
See Also
MELP Enterprises Ltd. v. The King, 2024 TCC 130
The appellant (MELP) was found to be performing its services to Canadian patients who underwent bariatric surgery at the surgical unit in Mexico...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 306 | an appeal of 12 assessments that is joined under Rule 25 retains its character as an appeal of 12 assessments | 194 |
| Tax Topics - General Concepts - Agency | agency implied on the basis of conduct/ acts of agent were those of principal | 173 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Institutional Health Care Service | services provided by Canadian agent on behalf of a Mexican hospital were not exempted under V‑II‑2 because they were performed in part out of its (non-hospital) Canadian facilities | 122 |
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(1) - Paragraph 142(1)(g) | services performed by Mexican hospital were partly performed in Canada by virtue of its Canadian agent, so that their place of supply under s. 142(1)(g) was in Canada | 147 |
| Tax Topics - Excise Tax Act - Section 143 - Subsection 143(1) | Mexican hospital was carrying on business in Canada by reason of its Canadian agent’s activities | 288 |
Administrative Policy
16 March 2018 Ruling 158124
As a small part of its business, a U.S. resident who is not registered for GST/HST purposes (“USco”) supplies information services to Canadian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) | USco’s use of a Canadian affiliate for substantial marketing support for web-delivered services did not constitute carrying on business in Canada | 446 |
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) | USco not carrying on business in Canada by virtue of extensive marketing assistance (without client contact) work provided by Canadian affiliate | 234 |
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 17. ("Supplier Reliance on Purchaser Certificates")
Respecting a certificate of a non-resident that it is not carrying on business in Canada:
CRA has not indicated in GST/HST Memorandum 4.5.1, nor...
Section 6.1
Administrative Policy
8 March 2018 CBA Commodity Tax Roundtable. Q. 17
In the railway industry, maintenance orders generally are tracked as either scheduled maintenance - or as “bad orders,” being for repair...
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
Emergency
38. The term "emergency" is not defined in the Act but generally refers to an unforeseen event or combination of events that calls for...
Section 6.3
See Also
ACN 154 520 199 Pty Ltd (in liquidation) v Commissioner of Taxation, [2020] FCAFC 190
The applicant (“ACN 154”) described its business to the respondent (the Commissioner) as involving the acquisition and refining of scrap gold...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Precious Metal | market criteria for gold to be in investment form | 312 |
Section 7
Cases
Canada v. Adboss, Ltd., 2023 FCA 201
The Minister’s reply, to the taxpayers’ appeals of assessments denying zero-rating of taxable supplies made by them to a Cyprus company...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | the Minister’s assumption that a company’s “controlling mind and management” was in Canada was an abuse of process | 184 |
See Also
Adboss, Ltd. v. The King, 2022 TCC 125, aff'd 2023 FCA 201
The Minister’s reply, to the taxpayer’s appeal of an assessment of it to deny zero-rating of taxable supplies made by it to a mooted...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | assumption that a company’s “controlling mind and management” was in Canada struck as a mixed statement of fact and law | 239 |
Administrative Policy
8 December 2022 GST/HST Interpretation 222719 - Supplies of digital marketing services made to a non-resident
A resident registrant (CanCo) provided, to non-resident clients from a location in Canada, digital advertising, digital marketing, content...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 8 | digital marketing services were not zero-rated | 391 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 23 | meaning of professional service | 204 |
"GST/HST In Electronic Commerce", CCRA Discussion Paper, November 2001.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 143 - Subsection 143(1) | 0 |
23 October 2000 Interpretation 11640-1
The Canadian operator of an internet auction site would be considered, with respect to non-resident vendors, to be arranging for, procuring or...
GST/HST Memorandum 4.5.1 “Exports - Determining Residence Status” January 1998
Supplier responsible for determining zero-rated residency status of recipient including s. 132(2) branches
Non-resident requirement
3. Along with...
6 May 1998 HQ Letter
administrative services provided to an RRSP with a non-resident beneficiary and a resident trustee will be zero-rated if paid for by the annuitant...
Paragraph 7(d)
Administrative Policy
GST/HST Memorandum 4.5.3 “Exports – Services and Intellectual Property” June 1998
Principles re "in respect of" exclusion
Determining connection between service and property
46. The following guidelines help in determining...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 10 | 61 |
Paragraph 7(f)
Administrative Policy
28 February 2019 CBA Roundtable, Q.8
A registered non-resident (NR) does not itself have any presence in Canada but uses a resident (sub)contractor (RC) to provide marketing and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(1) - Paragraph 142(1)(g) | registered non-resident marketer using services of a Canadian subcontractor was thereby making supplies in Canada | 148 |
Section 8
Administrative Policy
8 December 2022 GST/HST Interpretation 222719 - Supplies of digital marketing services made to a non-resident
A resident registrant (CanCo) provided, to non-resident clients from a location in Canada, services comprised of digital advertising, digital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 7 | meaning of advisory service | 222 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 23 | meaning of professional service | 204 |
Section 10
See Also
Canada v. Dawn’s Place Ltd., [2006] GSTC 137, 2006 FCA 349
International subscribers to the registrant's internet website were granted a "non-exclusive, limited and revocable licence to download and view...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | incidental use of copyright in acquiring data did not create a copyright supply | 119 |
Administrative Policy
B-090 "GST/HST and Electronic Commerce" July 2002
Software zero-rating (Example 1 under Supplies Made to Non-Residents)
[T]he supply of software is a supply of intellectual property.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 10.1 | 138 |
GST/HST Memorandum 4.5.3 “Exports – Services and Intellectual Property” June 1998
Example -zero-rating of global database (para. 51)
Canadian company sells the international rights to operate a global database to a foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 7 - Paragraph 7(d) | 697 |
29 October 1997 Ruling HQR0000558
Respecting the provision of CD-ROM discs containing databases and software permitting the retrieval of the data, protected by copyright, CRA...
Articles
James Swanson, David Ross, "Taxing Intangibles - GST and the Supply of Digital Images", GST & Commodity Tax, Vol. XVII, No. 4, May 2003, p. 25.
Section 10.1
Administrative Policy
8 April 2016 Ruling 158060
A non-resident lawyer who does not practise law in Canada is a “not in Province” member of a specified Class of a provincial law society, and...
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 33. ("Application of S. 10.1, Sch. VI, P. V – Service Related to Intangible Personal Property")
A Canadian GST-registered supplier sells custom software that it has been using to perform a service electronically, with such supplies being made...
2 November 2012 Ruling Case No. 140160
Operator, a registered resident of province 1, has developed a program that consists of a secure network and various business, communications and...
14 February 2012 Ruling Case No. 99181 [non-exclusive information use rights]
A Canadian company which is a registrant (the "Resident Supplier") enters into an agreement with a non-registered non-resident company to supply...
4 February 2012 Ruling Case No. 99181 [information licence]
A resident supplier agrees to supply an unregistered non-resident recipient with the non-exclusive use rights to information belonging to the...
GST/HST Info Sheet GI-034 "Exports of Intangible Personal Property" April 2007
Examples of supplies of IPP that will now be eligible for zero-rating under the proposed provision include:
- subscriptions to Web sites that...
B-090 "GST/HST and Electronic Commerce" July 2002
Factors that generally indicate that a supply made by electronic means is one of intangible personal property are:
- a right in a product or a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 10 | 27 |
Section 12
Cases
Escape Trailer Industries Inc. v. Canada (Attorney General), 2020 FCA 54
When a B.C.-based company (the “applicant”) sold an RV to a U.S. customer, it could have avoided the requirement to charge HST on the sale...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Financial Administration Act - Section 23 - Subsection 23(2) | CRA had not unreasonably referenced the specific requirements of the zero-rating provision | 249 |
See Also
Dow & Duggan Log Homes International (1993) Limited v. The Queen, 2019 TCC 280
CRA assessed on the basis that sales by the appellant of log homes were not zero-rated under Sched. VI, Pt. V. s. 12. In contrast to Sched. VI,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 168 - Subsection 168(9) | meaning of deposit adopted | 55 |
Administrative Policy
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
Common carrier
19. A "common carrier" is not defined in the Act but generally refers to a person engaged in the business of transporting property...
Paragraph 12(a)
Cases
Montecristo Jewellers Inc. v. Canada, 2020 FCA 12
Customers would purchase watches or jewellery at Vancouver stores of the appellant in order to take them as gifts on their regular trips to China....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(1) - Paragraph 142(1)(a) | “delivery” for ETA purposes had its meaning under the Sale of Goods Act | 353 |
Montecristo Jewellers Inc. v. The Queen, 2019 TCC 31, aff'd 2020 FCA 12
Customers would purchase watches or jewellery at Vancouver stores of the appellant in order to take them as gifts on their regular trips to China....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(1) - Paragraph 142(1)(a) | delivery in Canada as full voluntary transfer of possession there | 328 |
Section 14
Administrative Policy
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
Example 8
A manufacturer in Canada charges its customers for moulds required in manufacturing a specific product. The moulds remain in Canada but...
Section 15.1
Administrative Policy
May 2016 Alberta CPA Roundtable, GST Q.1
What documentation satisfies Sch. VI, Pt. V, s. 15.1? CRA responded:
In order for the "first seller" to zero-rate the supply of the continuous...
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
62. Continuous transmission commodities situated in Canada are frequently exchanged for similar commodities situated outside Canada. For example,...
Section 15.2
Administrative Policy
GST/HST Memorandum 4.5.2 (4-5-2) "Exports – Tangible Personal Property" August 2014
69. If the recipient subsequently neither exports the commodity as described in paragraph 15.2(a), nor supplies it as described in paragraph...
5 February 2013 Ruling Case No. 141852
Company A (a Canadian-resident registrant) sells crude oil for its market value to Company B (its U.S.-resident affiliate and also a registrant),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(3) | 195 | |
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) | 156 |
GST Memorandum (New Series) 3.7 (Draft), February 2012 para. 1040105: General Discussion. 2 August 2001 TI RITS 32561
"Where a registrant receives a zero-rated supply of natural gas intended for export and a taxable supply of natural gas that is not zero-rated...
Section 18
Administrative Policy
GST/HST Memorandum 20-8 “Educational Services Made to a Non-resident” December 2019
Meaning of competence to perform a trade
4. The CRA will consider a course to provide individuals with the competence to practise or perform a...
GST/HST Memorandum 20-1 "School Authorities - Elementary and Secondary Schools" December 2019
No requirement that supplier be a school authority
34. Although section 18 of Part V of Schedule VI is similar to section 8 of Part III of...
Section 20
Paragraph 20(c)
Administrative Policy
3 April 2019 GST/HST Ruling 188947 - Tax status of supplies made by a municipality
The Municipality, which issues Building Permits for the construction of new buildings or major renovations to ensure compliance with local...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 20 - Paragraph 20(c) - Subparagraph 20(1)(c)(ii) | fees for Municipality reviewing liquor licence application, including any public consultation charges, were exempt | 86 |
| Tax Topics - Excise Tax Act - Section 146 | additional building inspection charges of municipality were taxable | 88 |
Subparagraph 20(1)(c)(ii)
Administrative Policy
3 April 2019 GST/HST Ruling 188947 - Tax status of supplies made by a municipality
A Municipality, after reviewing an application for a liquor licence, charges fees in order to provide comments and recommendations to BC’s...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 20 - Paragraph 20(c) | exemption for building permits does not extend to charges for extra inspections or reviews or overtime | 241 |
| Tax Topics - Excise Tax Act - Section 146 | additional building inspection charges of municipality were taxable | 88 |
Section 22
Section 23
Administrative Policy
8 December 2022 GST/HST Interpretation 222719 - Supplies of digital marketing services made to a non-resident
A resident registrant (CanCo) provided, to non-resident clients from a location in Canada, digital advertising, digital marketing, content...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 8 | digital marketing services were not zero-rated | 391 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 7 | meaning of advisory service | 222 |
31 August 2004 Headquarter Letter - RITS 50657
In indicating that legal services provided to a non-resident manufacturer to defend it against product liability claims would be zero-rated, the...
24 July 2003 Ruling Case No. 41660
Preparation of written appraisals of specific real properties located in Canada were "in respect of" such properties and, accordingly, were not...
9 April 2001 T.I. 33818
Professional services provided to a non-resident insurer with regard to the liability of the non-resident insurer under an insurance contract...
P-169R Meaning of in Respect of Real Property Situated in Canada and in Respect of Tangible Personal Property that is Situated in Canada at Time the Service is Performed, for Purposes of Schedule VI, Part V, Sections 7 and 23 to the Excise Tax Act
"In respect of" criteria
The following guidelines will be applied by the Department to aid in the determination of whether the connection between...
15 June 2000 Headquarters Letter RITS 31364
A legal account rendered to a non-resident insurer was not zero-rated because the services were in respect of the defence of an individual...
1 September 1999 Headquarters Letter RITS HQR0001873
Ruling that a contingency fee charged to a non-resident could be pro-rated based on the litigation services provided by the law firm before and...
Memorandum (New Series) 4-5-3 "Export - Services and Intellectual Property" June 1998
48. The following are examples of services that are considered to be in respect of real property for purposes of Part V of Schedule VI:
- (a)...
Part VI
Part VII
Section 1
Subsection 1(1)
Continuous Journey
Administrative Policy
GST/HST Memorandum 28-3 [28.3] Passenger Transportation Services July 2019
Continuous journey where 1 ticket agent issues 2 tickets with 3-hour stopover (para. 6)
Example 4
An individual travels by bus from Windsor,...
| Other locations for this summary | |
|---|---|
GST/HST Info Sheet GI-170 "Charter Flights Supplied to Third-Party Charterers"May 2015
Continuous journey
[T]he supply of a "passenger transportation service" is a supply of a service of transporting or carrying travellers (i.e., an...
Freight Transportation Service
See Also
Daville Transport Inc. v. The Queen, 2021 TCC 47
The taxpayer (DTI) used its trucks, and independent contractors as drivers (to whom it paid a per-trip fee), to transport freight in Canada and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(2) - Paragraph 142(2)(a) | trucking company was considered to make an immediate on-supply of fuel to truckers in the country where it acquired fuel at service stations | 427 |
| Tax Topics - Excise Tax Act - Section 142 - Subsection 142(2) - Paragraph 142(2)(g) | apportionment of trans-border supplies of maintenance services | 213 |
Stopover
Administrative Policy
GST/HST Memorandum 28-3 [28.3] Passenger Transportation Services July 2019
Interruption under 24 hours generally not a stopover
14. An interruption between 2 legs of a journey to transfer between conveyances is not...
| Other locations for this summary | |
|---|---|
GST/HST Info Sheet GI-170 "Charter Flights Supplied to Third-Party Charterers"May 2015
"Stopover", in respect of a continuous journey of an individual or group of individuals, means any place at which the individual or group embarks...
Subsection 1(1)
Section 2
See Also
Sunshine Coach Ltd v. The Queen, 2019 TCC 72 (Informal Procedure)
The appellant was an Alberta-incorporated tour operator based out of Calgary that operated tour bus trips between a resort in Banff (“Sunshine...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part VII - Section 3 | Alberta bus tours were not part of continuous journey entailing continuous flight | 102 |
| international flight tickets were not issued by agents for Canadian bus tour operator | 76 |
Administrative Policy
GST/HST Memorandum 28-3 [28.3] Passenger Transportation Services July 2019
Exclusion if day trip returning to Canada
40. Specifically excluded from this zero-rating provision is a passenger transportation service that is...
Section 3
See Also
Sunshine Coach Ltd v. The Queen, 2019 TCC 72 (Informal Procedure)
The appellant was an Alberta-incorporated tour bus operator based out of Calgary that operated tour bus trips between a resort in Banff...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part VII - Section 2 | Alberta bus tours were not part of continuous journey performed outside Canada | 112 |
| international flight tickets were not issued by agents for Canadian bus tour operator | 76 |
Administrative Policy
GST/HST Memorandum 28-3 [28.3] Passenger Transportation Services July 2019
Bus trip to Seattle and plane flight to Lima form continuous journey (para. 41)
Example 11
A bus ticket for return travel from Vancouver, British...
GST/HST Info Sheet GI-170 "Charter Flights Supplied to Third-Party Charterers"May 2015
Distinction between passenger transportation service to the public, who are independent of the operator, and lease of aircraft
Passenger...
Section 4
Administrative Policy
GST/HST Info Sheet GI-170 "Charter Flights Supplied to Third-Party Charterers"May 2015
[T]he excess valuation charges for baggage would be viewed as a separate charge in respect of a passenger's baggage and not part of the...
Section 5
Administrative Policy
GST/HST Memorandum 28-3 [28.3] Passenger Transportation Services July 2019
Zero-rating of charge for extending ticket (para. 55)
55. Where the supplier of a passenger transportation service provides a service (listed in...
Section 8
See Also
Andrews v. The Queen, 2017 TCC 23 (Informal Procedure)
The taxpayer arranged for drivers to drive back to Canada the cars of those who had suffered an incapacitating medical emergency in the U.S. In...
Section 15
Administrative Policy
27 April 2018 Ruling 185888
The Corporation provides medical repatriation services which involve arranging to transport an individual (the patient) from a foreign hospital to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | medical escort services were single supply | 225 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 6 | medical escort services could be single supply of nursing services where nurse etc. involved | 208 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 | medical escort services could be single supply of physician’s services where physician involved, but not including delegated paramedic services | 228 |
Part IX
Section 1
Cases
Bank of Montreal v. Canada (Attorney General), 2020 FC 1014, aff'd 2021 FCA 189
Before going on to find that the Minister’s decision to reject (under s. 141.02(20)) the request of the registrant (“BMO”) for approval of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | flexibility in choice of ITC allocation method for non-FIs | 116 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | borrowing and paying interest is the supply of a financial service | 144 |
| Tax Topics - Excise Tax Act - Section 141.02 - Subsection 141.02(18) | Minister's rejection of bank's proposed methodology based on perceived distortions, was reasonable | 478 |
National Bank Life Insurance v. Canada, 2006 FCA 161
The appellant provided administrative services to a non-resident company (Natcan) which operated in the reinsurance field and for which the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | zero-rating re insurance was to be dealt with exclusively under provision re insurance | 147 |
See Also
CIBC World Markets Inc. v. The Queen, 2018 TCC 103, rev'd 2019 FCA 147
Administrative services provided by the appellant (“WMI”) to its parent (“CIBC”) respecting activities carried on by CIBC through its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 150 - Subsection 150(1) | s. 150 election precluded zero-rating of services rendered to parent's NR branches | 159 |
Administrative Policy
17 December 2015 Interpretation 153009
A corporation, which is not engaged exclusively in commercial activities, issues shares and pays dividends to its shareholders, who are both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | required shareholder communications not a supply | 177 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f) | dividend a financial supply to recipient | 87 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | share issuance a financial supply to shareholder | 170 |
11 July 1997 Technical Interpretation HQR0000416
Sales commissions and trailer fees received by a dealer who sells units in a mutual fund to non-resident investors would be zero-rated.
Guide for Providers of Financial Services under "Zero-rated Financial Services"
General synopsis of ss.1 and 2.
Articles
David Schlesinger, "De Minimis Financial Institutions", 1995 Commodity Tax Symposium Papers, C. 17: Danny Cisterna, "Hot Topics for Financial Institutions," 1999 Commodity Tax Symposium Papers, C. 7: suggests that "relates to" requires a direct connection.
indicates that an investment by a financial institution in dividend-bearing treasury shares of a non-resident company is a zero-rated supply.
Paragraph 1(a)
See Also
Royal Bank of Canada v. The King, 2024 TCC 125
When cardholders of credit cards issued by the appellant (RBC) used their cards for purchases from a foreign merchant, RBC would earn an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(1.11) | issue should be stated "reasonably" | 131 |
| Tax Topics - Excise Tax Act - Section 141.02 - Subsection 141.02(21) | pre-approval of method for allocating inputs between foreign and domestic supplies did not stop CRA from assessing to deny zero-rating of the foreign supplies | 202 |
| Tax Topics - Excise Tax Act - Section 141.02 - Subsection 141.02(31) - Paragraph 141.02(31)(f) | s. 141.02(31)(f) is merely confirmatory of normal taxpayer onus | 98 |
| Tax Topics - Excise Tax Act - Section 141.02 - Subsection 141.02(1) - Direct Input | expenses of redeeming credit card loyalty points were inextricably linked to the issuer’s extension of credit, and only remotely linked to its earning zero-rated interchange fees | 368 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | expenses of redeeming credit card loyalty points were an integral component of the issuer’s extension of credit, and not sufficiently connected to earning interchange fees | 181 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient | merchant acquirer was the recipient of credit card interchange services even though it was a conduit to the merchant | 91 |
| Tax Topics - Statutory Interpretation - Exclusionary provisions | exclusionary provisions should be narrowly construed | 267 |
| Tax Topics - Excise Tax Act - Section 301 - Subsection 301(1.2) - Paragraph 301(1.2)(a) | taxpayer not precluded from raising an argument that the Minister was bound by an ITC method that it had described in detail in its pleadings | 175 |
Subparagraph 1(a)(ii)
See Also
Canadian Imperial Bank of Commerce v. The King, 2024 TCC 160
In 2001 (before the three annual fiscal periods in issue) the appellant (CIBC) outsourced part of its Visa-card transaction processing and payment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 280 - Subsection 280(1) - Paragraph 280(1)(a) | due diligence defence established based on reasonable filing position | 55 |
Paragraph 1(e)
Administrative Policy
25 March 2021 CBA Commodity Taxes Roundtable, Q.4
Are supplies of VPI by financial institutions to non-resident persons zero-rated? CRA responded:
We note that paragraph 1(e) of Part IX of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | supplies of crypto to resident recipient are exempt financial services | 181 |
Section 2
Paragraph 2(d)
Cases
Northbridge Commercial Insurance Corporation v. Canada, 2023 FCA 211
The appellant (“Northbridge”) issued fleet insurance policies to trucking companies who operated their vehicles in both Canada and the U.S....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Ordinary Meaning | “risks” interpreted from perspective of insurer | 119 |
See Also
Northbridge Commercial Insurance Corporation v. The Queen, 2020 TCC 132, rev'd 2023 FCA 211
The appellant issued fleet insurance policies to trucking companies who operated their vehicles in both Canada and the US. The appellant claimed...
Section 3
Administrative Policy
Guide for Providers of Financial Services
Any supply of precious metals not described in s. 3 will be treated as a supply of a financial service.