Section 143

Subsection 143(1) - Supply by Non-Resident

Administrative Policy

"GST/HST In Electronic Commerce", CCRA Discussion Paper, November 2001.

GST M 300-5 "Place of Supply" under "Supply Made by a Non-Resident"

A non-resident person who gives seminars in Canada and charges a fee directly to each participant is required to collect an account for GST.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 143 - Subsection 143(2) 43

GST M 200-1-1 "Carrying on Business in Canada"

Policy Statement P-051R2 "Carrying on Business in Canada" 29 April 2005

In leasing transactions, the most important factors generally are where the lessor acquires the property and it is delivered to the lessee.

  • Example 2: equipment is leased and delivered outside Canada and then imported by the lessee, who is responsible for maintaining the equipment and makes payments to the lessor in Canada who has a Canadian bank account but otherwise not much Canadian presence - lessor is not carrying on business in Canada.
  • Example 3: the lease agreement is concluded in Canada and equipment delivered to lessee at its Canadian facility. Payments are made in Canada to the lessor who has a Canadian bank account but otherwise does not have much presence in Canada - lessor is carrying on business in Canada.
  • Example 6: lessor is carrying on business in Canada by virtue of a net lease of Canadian real estate.

In services contracts, the the location of performance of the services is important. Isolated transactions in Canada may not result in carrying on business in Canada (e.g., Example 18 - one employee week in Canada).

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) 336

Subsection 143(2)

Administrative Policy

GST M 300-5 "Place of Supply" under "Supply Made by a Non-Resident"

The combined effect of ss.143(2) and 240(4) is to ensure that imports are placed on an equal footing with domestic goods. For example, foreign publishers are required to account for GST on their subscription sales in Canada on the same basis as domestic publishers.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 143 - Subsection 143(1) 24