Couriers

The interlining rules also apply to courier services. For example, when a freight company contracts with a courier to pick up or deliver goods to the freight company, the courier bills the freight company for the service and, in turn, the freight company bills either the shipper or the consignee. The courier does not charge GST/HST on its service because it is an interlining carrier and it is not the invoicing carrier.

When a courier company contracts with a person to deliver goods, the courier company issues an invoice to its customer and is responsible for charging and collecting GST/HST. Persons who are on contract with the courier company to make deliveries and who do not invoice the customer directly can zero-rate their services to the courier company because they are interlining carriers and not the invoicing carriers.

Note
As a courier providing only interline freight transportation services, you do not collect GST/HST from the carrier for those services. In this case, even if you are a small supplier, you would benefit from registering for the GST/HST since you would be able to claim input tax credits for GST/HST you pay or owe on expenses related to your interline services.

Forms and publications

• Booklet RC4080, GST/HST Information for Freight Carriers
• GST/HST Memoranda Series Chapter 28-2, Freight Transportation Services