Place of supply – Services relating to goods

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http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/hst-tvh/srvcs/gd-eng.html

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Place of supply – Services relating to goods

Use the following rules for to determine which GST/HST rate applies for:

A supply of services relating to goods is made in the province where the goods are delivered or made available to the recipient for the following types of services:

  • repairing, maintaining, cleaning, adjusting, or altering goods
  • producing a negative, transparency, photographic print, or other photographic related good

GST/HST applies at the rate for that province.

For most other supplies of services relating to goods, the following rules apply.

Services relating to goods located in one province

If your supply of service relates to goods that are located entirely in one province, GST/HST applies at the rate for that province.

If the goods are moved to another province while your service is performed, your supply is made in the province where you perform the service. GST/HST applies at the rate for that province.

Exception for Customs brokerage services

Customs brokerage services in relation to imported commercial goods are considered to be performed in the province where the goods are at the time of their release. GST/HST applies at the rate for that province.

 

For information on customs brokerage services in relation to imported non-commercial goods, see GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax - Place of supply rules for determining whether a supply is made in a province.

Services relating to goods located in more than one province

If your supply of service relates to goods located in more than one province and you determine that your service is a single supply, use the following rules to determine the GST/HST rate.

Note

If the service is performed partially outside Canada, use only the portion of the service performed in Canada when determining where the service is performed.

Services relating to goods located in two provinces

If your supply of service relates to goods that are located in two provinces, GST/HST applies at the rate for the province where the goods are primarily located.

Note

If exactly 50% of the goods are located in a participating province and 50% in a non-participating province, GST applies at the rate of 5%.

If the goods are moved to another province while your service is performed, GST/HST applies at the rate for the province where the services are primarily performed.

Note

If your service relating to the goods that are moved is performed exactly 50% in a participating province and 50% in a non-participating province, GST applies at the rate of 5%.

Services performed on goods located in more than two provinces

You must first determine if the goods are located primarily in the participating provinces or at least 50% in the non-participating provinces.

Note

If at least 50% of the goods are located in the non-participating provinces, GST applies at the rate of 5%.

If your supply of service relates to goods that are located primarily in the participating provinces, HST applies at the rate for the participating province where the greatest portion of the goods are located.

If the goods are moved to another province while your service is performed, HST applies at the rate for the participating province where the greatest portion of the service is performed if both of the following conditions apply:

  • the goods are located primarily in the participating provinces while your service is performed
  • your service is performed primarily in participating provinces

Note

If both of those conditions are not met, GST applies at the rate of 5% on the goods that are moved.

HST generally applies at the highest rate among the provinces where the goods are located or where the service was performed if those goods are moved, if the following three conditions are met:

  • the goods are located, or the service is performed if the goods are moved, primarily in the participating provinces
  • the goods are located, or the service is performed if the goods are moved, equally in two or more provinces
  • a greater portion of the goods are not located, or the service is not performed if the goods are moved, in any other participating province

However, in that situation, if the provinces where the goods are equally located, or the service is equally performed, have the same highest rate, HST applies at the rate for the province where your business address that is most closely connected with the supply is located.

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Date modified:
2016-07-07