IPP that can only be used primarily outside participating provinces

If the Canadian rights for a supply of IPP (other than a supply of IPP that relates to real property or tangible personal property (goods) or a supply of IPP that relates to services that is deemed to be made in a province based on the specific place of supply rule for IPP that relates to services), can only be used primarily (more than 50%) outside participating provinces, the supply of the IPP is made in a non-participating province.

Example
An individual purchases a theatre pass that provides the right to attend seven plays in Alberta and three plays in British Columbia. The supply is made in Alberta since the IPP can only be used primarily in Alberta. The supply is therefore subject to GST at a rate of 5%.

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