Section 220.08

Subsection 220.08(1)

Administrative Policy

GST/HST Memorandum 13.5 Non-creditable Tax Charged January 2017

Programming services used in two provinces

49. ...

Example 7 – Service supplied in a participating province

In a claim period, a non-registrant PSB acquires software programming services from a supplier in Ontario for $35,000. The PSB will use the services 80% at its head office in Ontario and 20% at one of its offices in Prince Edward Island. The supplier has determined that the supply of the software programming services is made in Ontario and collects HST at a rate of 13% in respect of the supply. The PSB pays $4,550 in HST ($35,000 × 13%). …

The PSB is required to self-assess tax at the rate of 2% on the value of the consideration for the supply of the services purchased in Ontario (2% being the difference between the 10% rate of the provincial part of the HST in Prince Edward Island and the 8% rate of the provincial part of the HST in Ontario) to the extent (expressed as a percentage) that the services are used in Prince Edward Island. The PSB self-assesses tax of $140 ($35,000 × 2% × 20%) on Form GST489… .

...refer to NOTICE 266....