Place of supply rules for services
There are a number of significant changes to the current place of supply rules for supplies of services. The rules for supplies of services are generally based on the home or business address of the recipient (or another address of the recipient) obtained by the supplier in the normal course of business except for certain types of services for which specific place of supply rules will apply.
The Canadian element of a service means the portion of the service that is performed in Canada.
Deemed performance of service
For purposes of the place of supply rules that apply to services, where an agreement for a supply of a service is entered into but the service is never performed, the service is deemed to have been performed where the service was to be performed, as the case may be, under the terms of the agreement.
The new rules for determining in which province a supply of a service is made are described below.
Topics for Place of supply rules for services
- General rules
- Personal services
- Services in relation to real property
- Services in relation to tangible personal property (goods)
- Services in relation to a location-specific event
- Services rendered in connection with litigation
- Customs brokerage services
- Air navigation services
- Telecommunication services
- Freight transportation services
- Passenger transportation services
- Postage and mail delivery services
- Premium rate telephone services
- Computer-related services and Internet access
- Repairs, maintenance, and photographic-related goods
- Services of a trustee for a trust governed by an RRSP, RRIF, RESP, TFSA or RDSP
Deemed supplies of services
Where a supply of a service is made for an amount that includes a payment that is for a period (referred to as a "billing period") that is the whole or a part of the period during which the service is or is to be rendered under the arrangement, a separate supply of the service for a separate amount is considered to be made by the supplier and received by the recipient for each billing period. Furthermore, the supply for each billing period is considered to be made on the earliest of the first day of the billing period, the day on which the payment for that period becomes due and the day that payment is made. The separate supplies of the services that are considered made for each billing period can be subject to HST at a different rate to the extent that those supplies can be considered made in a different province based on the application of the place of supply rules for 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
- GST/HST Technical Information Bulletin B-079, Self-Assessment of the HST on Supplies Brought Into a Participating Province
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