Place of supply

Whether a supply is made in or outside Canada, and, if made in Canada, whether it is made in or outside a participating province, affects the rate of tax that applies to that supply. Generally, a supply of property or a service made outside Canada is not subject to the GST/HST. For the rates of each province, see GST/HST rates.

Supplies made in Canada

Intangible personal property (IPP)

Generally, a supply of IPP is considered to be made in Canada if it may be used in whole or in part in Canada, or it relates to real property situated in Canada.

A supply of IPP may be used if it is allowed to be used. In other words, a supply of IPP could be considered to be made in Canada even if it is not actually used in Canada.

In determining whether IPP may be used in Canada, any written agreement for the supply that contains terms governing the place where it may be used should be considered.

Services

Generally, a supply of a service is considered to be made in Canada if the service is, or is to be, performed in whole or in part in Canada. A supply of a service may also be considered to be made in Canada where the service is in relation to real property that is situated in Canada. A supply of a service is deemed to be made outside Canada if the service is, or is to be, performed wholly outside Canada or is in relation to real property situated outside Canada.

If part of the activities in performing a service are carried out in Canada, the place of supply is considered to be in Canada. For example, a supplier may prepare a report in Canada about programming services carried on outside Canada. Because the report is a part of the services supplied, the place where the report is prepared must be considered when determining the place of supply.

Electronic commerce allows services to be provided remotely. A supplier can provide a service to a customer in Canada without physically being in Canada. For example, a supplier can have a technician perform work from outside Canada by electronically accessing a customer's computer located in Canada, rather than sending the technician to Canada. Work is being performed both at the location of the service provider, as well as the location of the customer's property. You need to take into account the location of the customer's property when determining the place of performance.

Whether a service is performed in whole or in part in Canada is a question of fact and must be evaluated on a case-by-case basis. However, a supply of a service is performed at least in part in Canada if:

• the service requires a person to perform a task (for example, the supplier acts through one or more of its employees), and the person performing the task is situated in Canada at the time the activity is done;
• the service includes operations performed by a supplier's equipment (for example, computer equipment), and the equipment is located in Canada;
• the supply involves doing something to or with a recipient's equipment by accessing it from a remote location, and the recipient's equipment is located in Canada (however, this does not apply to a service wholly performed outside Canada, where the results are subsequently delivered electronically to a recipient's computers in Canada such as a programming service carried out at the supplier's location outside Canada and e-mailed to a recipient in Canada); or
• any activity related to the performance of the service is undertaken in Canada.

Telecommunication services

Generally, a supply of a telecommunication service is considered to be made in Canada if it consists of making available telecommunications facilities, and the facilities or any part of the facilities are located in Canada.

For more information, see GST/HST Memoranda Series Chapter 3.3, Place of Supply.

Supplies made in a participating province

There are special place of supply rules for determining whether a supply that is made in Canada is made in a province. For more information, see Harmonized sale tax (HST).

IPP

For information, see Place of supply rules for intangible personal property.

Services

For information , see Place of supply rules for services and for specific information, see Computer-related services and Internet access.

Telecomunication services

For information, see Telecommunication services.

Forms and publications

• GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax - Place of supply rules for determining whether a supply is made in a province