Administrative Policy
GST/HST Memorandum 13.5 Non-creditable Tax Charged January 2017
104. ...
Example 24 – Services acquired in participating province for partial use in another participating province
In a claim period, a non-registrant PSB resident in Nova Scotia purchases advertising services in Nova Scotia for $5,000, on which it pays $750 in HST ($5,000 × 15%). The advertising services will be used 60% in Nova Scotia and 40% in Ontario.
The federal part of the HST paid in respect of the advertising services is $250 ($750 × 5/15). This amount is included in subparagraph 259(1)(a)(i) when calculating the federal non-creditable HST charged in respect of the service for the claim period. The provincial part of the HST paid in respect of the advertising services is $500 ($750 × 10/15). This amount is included in subparagraph 259(1)(a)(i) when calculating the provincial non-creditable HST charged in respect of the service for the claim period.
Under section 261.3, the PSB is eligible to claim a rebate of a portion of the provincial part of the HST paid in Nova Scotia based on the 2% difference between the 10% rate of the provincial part of the HST in Nova Scotia and the 8% rate of the provincial part of the HST in Ontario to the extent that the advertising services are acquired for consumption, use, or supply in Ontario. …