Section 180

Administrative Policy

P-125 "Input Tax Credit Entitlement for Tax on Imported Goods" 1 June 2007

Example No. 13

A registered non-resident wholesaler agrees to purchase goods from a non-registrant non-resident manufacturer and then agrees to sell the goods to a registered resident retailer for sale by it in Canada, with delivery to occur at the premises of the retailer in Canada. Under its agreement with the retailer, the wholesaler must have the goods shipped from the premises of the manufacturer to those of the retailer. The manufacturer agrees to be the importer of record and to pay the tax on importation.

CRA stated:

[T]he wholesaler is the constructive importer of the goods. However…section 180 applies as a result of the manufacturer having paid the tax on the importation. Where the manufacturer provides the wholesaler with a copy of the import documentation…the wholesaler is entitled to an ITC for the tax on the importation of the goods.

16 August 1994 Headquarter Letter

In a situation where an unregistered non-resident was listed as the importer of record, and it supplied goods to a registrant who wishes to obtain an ITC under s. 180, CCRA indicated that "a copy of the B3 Customs Coding Form will be considered sufficient evidence for purposes of paragraph 169(4)(a) and subparagraph 180(a)(ii) of the Act ... . An agreement in writing between the supplier and the recipient of the commercial service, or other relevant documents which will provide sufficient evidence in determining the identity of the supplier and the recipient of the commercial service and verify that the non-resident caused the transfer of the physical possession of the goods to the resident will also constitute sufficient documentary evidence."