Imported services and intangible personal property

If you buy services (such as architectural services for a building in Canada) or intangible personal property (IPP) (such as the right to use a patent in Canada) from an unregistered non-resident person outside Canada, you do not pay the GST or the federal part of the HST if you acquire them to use at least 90% in your commercial activities. (100% in the case of financial institution)

If you do not use the imported services or IPP at least 90% in your commercial activities, you have to report the GST or the federal part of the HST on line 405 of your GST/HST return and remit the tax directly to us.

The tax is calculated on the amount you were charged for the service or IPP in Canadian dollars. The tax is payable in the reporting period in which the amount for the service or the IPP was paid or became payable.

If you are not registered for the GST/HST, you still have to pay tax on imported services or IPP. Use Form GST59, GST/HST Return for Imported Taxable Supplies and Qualifying Consideration, to remit the tax. The tax is due by the end of the month following the calendar month in which the amount for the services or IPP was paid or became payable.

Imported services and IPP into a participating province

If you are a resident in a participating province, you may have to pay the provincial part of the HST if you buy services or IPP in a non-participating province and the following conditions apply:

• the imported services or IPP are not used at least 90% in your commercial activities; and
• the services or IPP are for consumption, use, or supply more than 10% in the participating provinces.

You may also have to self-assess if you use, consume, or supply goods, services or IPP in a participating province with a higher HST rate than the participating province where you acquired them.

You do not have to self-assess the provincial part of the HST if the tax payable from all amounts to be self-assessed in a calendar month is less than $25.

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

For more information on the rules, and the formula for self-assess for services and IPP, see Guide RC4022, General Information for GST/HST Registrants.

How to self-assess

If you are registered, the tax is payable when the services or IPP are brought into a participating province. Enter this amount on line 405 of your GST/HST return.

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

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• GST/HST Technical Information Bulletin B-079, Self-Assessment of the HST on Supplies Brought Into a Participating Province
• Form GST59, GST/HST Return for Imported Taxable Supplies and Qualifying Consideration
• Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST)