Section 142

Subsection 142(1) - General Rule — in Canada

Administrative Policy

P-193R "Supplies of Tangible Personal Property Otherwise than by Way of Sale"

P-078R "Meaning of the Phrase 'Delivered or Made Available in (or Outside) Canada to the Recipient

P-200R "Place of Supply of Intangible Personal Property and Real Property"

GST M 300-5 "Place of Supply"

General discussion.

Paragraph 142(1)(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....

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Words and Phrases
delivery
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 12 - Paragraph 12(a) no zero-rating where no delivery to common carrier 258

Escape Trailer Industries Ltd v. Canada (Attorney General), 2019 FC 31, aff'd 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...

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Locations of other summaries Wordcount
Tax Topics - Other Legislation/Constitution - Federal - Financial Administration Act - Section 23 - Subsection 23(2) business continued to prosper after assessment, CRA oral contrary advice not substantiated and not unreasonable for CRA to apply literal over purposive ETA interpretation 385
Tax Topics - Statutory Interpretation - Ordinary Meaning jurisprudence has applied ETA literally 175

See Also

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....

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Words and Phrases
delivery
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 12 - Paragraph 12(a) items were not “shipped” to China under a “contract of carriage” when they were handed directly to the customer on boarding the aircraft 190

Jayco, Inc. v. The Queen, 2018 TCC 34

The appellant (Jayco – which was registered for GST/HST purposes) would arrange for a wholly-owned freight transportation company (“JET”) to...

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Words and Phrases
delivery
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 306.1 - Subsection 306.1(1) - Paragraph 306.1(1)(a) issue of multiple supplies not raised in Notice of Objection (or Notice of Appeal) 155
Tax Topics - General Concepts - Agency statement in agreement that taxpayer was not an agent was not followed in practice 142

Erris Promotions Ltd. v. Commissioner of Inland Revenue (2003), 6 ITLR 364 (NZ HC)

While the medium which carries software may be tangible property, the actual software itself is not. Because software is not tangible property, it...

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Words and Phrases
tangible property

ADV Ltd. v. Canada, [1997] G.S.T.C. 60 (TCC) (Informal Procedure), briefly aff'd [1998] G.S.T.C. 64 (FCA)

The two appellants, who were U.S.-resident GST registrants, sold goods under mail orders which had been solicited in Canada through bulk mail and...

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Administrative Policy

13 June 2011 Headquarters Letter Case No. 133042

In finding that a supply of goods shipped by a non-resident supplier to a GST/HST registrant at an address in a participating province was a...

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16 February 2005 Ruling Case No. 46992

A non-registrant who designed book covers and arranged for books, with the designed covers, to be printed by a printer and shipped directly to...

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GST/HST Memorandum 3.3 "Place of Supply" April 2000

Meaning of the phrase "delivered or made available"..

7. For purposes of paragraphs 142(1)(a) and 142(2)(a) which deem supplies of tangible...

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Articles

Rob Kreklewetz & Stuart Clark, "Incoterms® 2020 Changes Incoming!", Millar Kreklewetz Tax & Trade Bog, 21 November 2019

Incoterms changed effective 1 January 2020

The International Chamber of Commerce’s (“ICC”) Incoterms® are … critical to the application...

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Brent F. Murray, "Incoterms 2010 Rules and Place of Delivery", Canadian GST Monitor, No. 274, July 2011, p.1.

Common law meaning of delivery

Under common law, delivery occurs when and where the goods are placed under the dominion and control of the person...

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James J. White, Robert S. Summers, Uniform Commercial Code, 4th ed., Vol. 1 (West Publishing Co., 1995)

Place of Delivery under §2-308 and §2-504 of the UCC (pp. 128-129)

The contract of the parties may be wholly silent on the place for delivery....

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Paragraph 142(1)(b)

Administrative Policy

25 May 2019 GST/HST Interpretation 185880 - Lease modification and renewal

An unregistered non-resident lessor leases equipment to a registered resident for use in the course of its commercial activities in Canada. At the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 136.1 - Subsection 136.1(1) - Paragraph 136.1(1)(d) an amendment of a lease to extend its term would result in a new agreement for ss. 142(2)(b) and 136.1(1)(d) purposes 265

10 September 2003 Headquarter Letter Case No. 39822

Where tangible personal property supplied by way of sale is shipped "CIP [name place in Canada] Incoterms 2000", the goods are delivered or made...

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GST/HST Memorandum 3.3 "Place of Supply" April 2000

Terms of the agreement

16. The place where possession or use of the tangible personal property is given or made available can be determined based...

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Paragraph 142(1)(c)

Administrative Policy

4 February 2012 Ruling Case No. 99181

A resident supplier agrees to supply an unregistered non-resident recipient with the non-exclusive use rights to information belonging to the...

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18 May 2011 Headquarters Letter Case No. 123947

A resort developer supplies memberships that entitle a member to use certain real property at one or more resort locations located in Canada and...

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15 October 2004 Ruling RITS 52698

In connection with rulings on the consequences of the seizure by creditors and resale by them of resort points, the Directorate noted that the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 183 - Subsection 183(7) 16

15 October 2004 Headquarter Letter RITS 52554

Where there is a supply of resort points (a form of intangible personal property) relating to real property situated in and outside Canada, it is...

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19 December 2003 Headquarters Letter Case No. 45870

Charges for electrical capacity, if regarded as consideration for a supply separate from a supply of electricity, would represent consideration...

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30 March 2001 T.I. 13555

The supply to Canadian clients by a non-resident registrant of the right to access and use existing information or data stored in a website would...

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Subparagraph 142(1)(c)(i)

See Also

Monsanto Canada Inc. v. Schmeiser, 2004 SCC 34, [2004] 1 S.C.R. 902

A canola farmer (“Schmeiser”), who did not purchase Roundup-tolerant canola (“Roundup-Ready Canola”) or obtain a licence to plant it, was...

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Words and Phrases
use

Subparagraph 142(1)(c)(ii)

Administrative Policy

23 March 2017 CBA Commodity Taxes Roundtable, Q.22

A supplier makes a supply to a non-registered non-resident recipient of intangible personal property (IPP) that may not be used in Canada and that...

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Paragraph 142(1)(d)

Cases

Club Intrawest v. Canada, 2017 FCA 151

A Canadian and U.S. developer in the Intrawest group transferred individual “vacation homes (i.e., resort condos), which they had acquired in...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Agency absence of direct agreement that expenses were incurred as agent 254
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply service in relation to a cross-border vacation home portfolio split into two (GST-taxable and non-taxable) geographic components 435

See Also

Club Intrawest v. The Queen, 2016 TCC 149, varied 2017 FCA 151

The members of the Appellant (which was a non-share Delaware corporation resident in Canada) included Canadian and U.S.-resident individuals who...

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Words and Phrases
in relation to
Locations of other summaries Wordcount
Tax Topics - General Concepts - Agency annual fees charged by non-share corporation to its members were not reimbursements for expenses incurred by it as their agent 377
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Service payment of condo operating expenses was a service 211
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply single supply of covering all time share operating costs 172
Tax Topics - Excise Tax Act - Section 168 - Subsection 168(1) GST collectible based on invoicing times 79
Tax Topics - Excise Tax Act - Section 306.1 - Subsection 306.1(1) objecting to quantum was sufficient particularity 177
Tax Topics - General Concepts - Ownership beneficial owner did not transfer property risk 183
Tax Topics - General Concepts - Evidence foreign law assumed the same 101

Administrative Policy

8 March 2018 CBA Commodity Tax Roundtable, Q.20

Club Intrawest held that that although there was a single supply of services respecting real estate situated inside and outside Canada, the single...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply CRA not generally prepared to bifurcate supplies 73

Paragraph 142(1)(g)

See Also

Three-W Canada International Corporation v. The Queen, 2013 TCC 295 (Informal Procedure)

The appellant (“Three-W”), which carried on the business of recruiting foreign students abroad for private schools in Canada and the United...

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Administrative Policy

28 February 2019 CBA Roundtable, Q.8

A non-resident registered supplier (NR) of marketing and solicitation services (in the credit card processing line of business) contracts with a...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 7 - Paragraph 7(f) soliciting orders for Canadian customer of NR did not oust zero-rating 117

5 February 2016 Interpretation 153241

A medical doctor residing in the U.S. who is registered for GST purposes would, at the request of insurance companies, interview and physically...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 pre-2013 medical evauations for insurers generally exempt 274
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Qualifying Health Care Supply medical evaluations for insurers now excluded 294
Tax Topics - Excise Tax Act - Regulations - New Harmonized Value-Added Tax System Regulations - Subsection 13(1) situs of medical evaluation for insurer based on its address rather than patient's 79

CBAO National Commodity Tax, Customs and Trade Section – 2014 GST/HST Questions for Revenue Canada, Q. 27

S. 142.1 provides a "two out of three" rule for deeming a telecommunication service to be made in Canada - for example, in the case of a telephone...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 142.1 - Paragraph 142.1(2)(b) telecommunication service not within s. 142.1 is not made in Canada 205

8 October 2004 Headquarter Letter RITS 53429

The supply of advertising space sold in the Canadian edition of a magazine would be considered to be a supply made in Canada as the magazines were...

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31 October 2003 Interpretation Case No. 46235

A non-resident registrant ("ForCo") is engaged in the publication and sale of various magazine which are sold both by subscription and on...

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31 October 2003 Interpretation Case No. 41478

Advertising messages provided by a non-resident appeared in a magazine that was distributed in part in Canada. Accordingly, the advertising...

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Technical Information Bulletin B-090 "GST/HST and Electronic Commerce" July 2002

Although traditionally, the place of performance has referred to where the person who is performing the service is physically present, where...

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Subsection 142(2)

Paragraph 142(2)(a)

See Also

Daville Transport Inc. v. The Queen, 2021 TCC 47

The taxpayer, which used its trucks, and independent contractors as drivers (a.k.a., contract truckers), to transport freight in Canada and the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part VII - Section 1 - Subsection 1(1) - freight transportation service fuel supplies and maintenance services made to truckers were not part of the zero-rated “freight transportation service” made by them 190
Tax Topics - Excise Tax Act - Section 142 - Subsection 142(2) - Paragraph 142(2)(g) apportionment of trans-border supplies of maintenance services 213

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...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 1 no zero-rating of sale to Cdn purchaser who provided physical delivery of goods in Canada to NR ultimate purchaser 169

Paragraph 142(2)(g)

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...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part VII - Section 1 - Subsection 1(1) - freight transportation service fuel supplies and maintenance services made to truckers were not part of the zero-rated “freight transportation service” made by them 190
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