Services in relation to tangible personal property (goods)

The general rules for supplies of services will not apply to the supply of services in relation to property that is situated in Canada when the Canadian element (the part of the service that is performed in Canada) of the service is performed.

Property remaining in same provinces while service is performed

A supply of a service in relation to property that is situated in one or more provinces at the time the Canadian element of the service begins to be performed and that remains situated in that province or those provinces, as the case may be, while the Canadian element of the service is performed will be considered as having been made in a participating province if the property is situated primarily (more than 50%) in participating provinces when the Canadian element of the service is performed. The service will be considered to be made in the participating province in which the greatest proportion of the property, which is situated in the participating provinces, is situated.

Example
An individual hires a repair person to fix a washing machine at the individual's home in Cornwall, Ontario. The HST will apply to the service at the rate of 13%.

If the greatest proportions of the property are situated in two or more participating provinces, the supply of the service is made in the participating province where the rate of the provincial part of the HST is highest. If two or more of the participating provinces in this case, have the same rates for the provincial part of the HST, the supplier will use that rate.

Example
A national appliance repair company is hired to provide appliance repair services for a flat fee, for appliances situated in three provinces as follows: 40% of the appliances are in Ontario; 40% of the appliances are in British Columbia (BC); and 20% of the appliances are in Alberta.

The appliances are situated primarily in participating provinces (80%) and the greatest proportions of those appliances are situated in Ontario and BC. As the provincial part of the HST in Ontario is the greatest, the supply of the service is made in Ontario and the company will charge the HST at a rate of 13%.

If the property situated in one or more provinces at the time the Canadian element of the service begins to be performed and that remains situated in that province or those provinces, as the case may be, while the Canadian element of the service is performed is situated otherwise than primarily (50% or less) in participating provinces (for example, situated primarily in non-participating provinces or situated equally in participating and non-participating provinces) when the Canadian element of the service is performed, the supply of the service in relation to the property is made in a non-participating province.

Property not remaining in same provinces while service is performed

A supply of a service in relation to property that is situated in one or more provinces at the time the Canadian element of the service begins to be performed and that does not remain situated in that province or those provinces, as the case may be, while the Canadian element of the service is performed will be considered as having been made in a participating province if:

• the property is situated primarily in participating provinces at any time the Canadian element of the service is performed;
• the service is performed primarily in participating provinces; and
• the greatest proportion of the performance of the service, which is performed in the participating provinces, is performed in that participating province.

Example
A company is hired by another company to conduct tests on a vehicle. The service is performed 60% in Ontario and 40% in Manitoba. The vehicle is situated in Ontario when the Ontario portion of the service is performed and in Manitoba when the Manitoba portion of the service is performed. The vehicle is moved from Ontario to Manitoba after the Ontario portion of the service is performed. The vehicle is situated primarily in the participating provinces when the Ontario portion of the service is performed and the service as a whole is performed primarily in participating provinces, the greatest proportion of which is performed in Ontario. As a result, the supplier will charge HST at a rate of 13%.

If the greatest proportions of the service are performed in two or more participating provinces, the service is made in the participating province, among those in which the greatest proportions of the services are performed, for which the rate of the provincial part of HST is highest. In such cases where the provincial part of the HST is the same, the supplier will charge tax using that rate.

A service in relation to property that is situated in one or more provinces at the time the Canadian element of the service begins to be performed and that does not remain situated in that province or those provinces, as the case may be, while the Canadian element of the service is performed will be considered as having been made in a non-participating province if the property is situated otherwise than primarily (50% or less) in participating provinces (for example, situated primarily in non-participating provinces or situated equally in participating and non-participating provinces) at any time the Canadian element of the service is performed or the service is performed otherwise than primarily (50% or less) in participating provinces.

Example
A company is hired by another company to conduct tests on a vehicle. The service is performed 60% in Manitoba and 40% in Ontario. The vehicle is situated in Manitoba when the Manitoba portion of the service is performed and in Ontario when the Ontario portion of the service is performed. The vehicle is moved from Manitoba to Ontario after the Manitoba portion of the service is performed. While the vehicle is situated primarily in the participating provinces when the Ontario portion of the service is performed, the service as a whole is not performed primarily in participating provinces. As a result the supply is made in a non-participating province and is subject to GST at 5%.

For more information, see Repairs, maintenance, and photographic - related goods.

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