Goods brought into a participating province

You have to self-assess the provincial part of the HST when:

  • you buy taxable (other than zero-rated) goods:
    • in a non-participating province and you later bring, or cause someone else to bring, the goods into a participating province; or
    • in a participating province and you later bring, or cause someone else to bring, the goods into another participating province for which the rate of HST is higher; and
  • you consume, use, or supply the goods less than 90% in your commercial activities.

Note

You do not have to self-assess the provincial part of the HST if you are a registrant and the property is consumed, used, or supplied at least 90% in your commercial activities.

If you purchased the goods (other than a motor vehicle) from someone with whom you are dealing at arm's length, you have to remit the provincial part of the HST on the lesser of:
  • the amount paid or payable for the goods; and
  • the fair market value of the goods when they are brought into a participating province.

If you purchased goods (other than a motor vehicle) from someone with whom you are not dealing at arm's length, you have to remit the provincial part of the HST on the fair market value of the goods when they are brought into a participating province.

Example

You are a registrant located in Newfoundland and Labrador. You buy a $2,000 computer in Alberta, which you bring back to Newfoundland and Labrador. At that moment, the fair market value of the computer is $2,000. You use the computer 40% in your business. You have to self-assess the 10% provincial part of HST and remit $200 ($2,000 × 10%). You cannot claim an input tax credit (ITC) for this tax since you are using the computer less than 50% in your commercial activities.

How to self-assess

If you are registered, the tax is payable when the goods are brought into a participating province. Enter this amount on line 405 of your GST/HST return. You may be entitled to claim an ITC for the tax you self-assess on the goods depending on the percentage of use in your commercial activities. For more details on ITCs, see Input tax credits.

If you are not registered for the GST/HST and have to self-assess the part of the HST, use Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST).

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