Subsection 261.1(1)
Administrative Policy
GST/HST Memorandum 13.5 Non-creditable Tax Charged January 2017
Application to public service body
Example 22 – Goods acquired in a participating province and removed to another participating province
In a claim period, a non-registrant PSB purchases goods in New Brunswick for $19,000, on which it pays $2,850 in HST ($19,000 × 15%). The goods are removed from New Brunswick within 30 days after delivery and brought into Ontario for exclusive use by the PSB in that province. No provincial sales tax is applicable when the goods are brought into Ontario, because Ontario is a participating province.
The federal part of the HST paid in respect of the purchase is $950 ($2,850 × 5/15). This amount is included in subparagraph 259(1)(a)(i) when calculating the federal non-creditable HST charged in respect of the goods for the claim period. The provincial part of the HST paid in respect of the purchase is $1,900 ($2,850 × 10/15). This amount is included in subparagraph 259(1)(a)(i) when calculating the provincial non-creditable HST charged in respect of the goods for the claim period.
The PSB is eligible to claim a rebate based on the 2% difference between the 8% rate of the provincial part of the HST in Ontario and the 10% rate of the provincial part of the HST in New Brunswick. …