Continuous inbound freight services

The supply of a freight transportation service from one place in Canada to another place in Canada is zero-rated when the service is part of a continuous freight movement that originates outside Canada and has a destination in Canada. If you are a carrier who is responsible for invoicing or billing a customer for the domestic service (the customer is not a carrier), you must keep documents to show that the domestic service is part of a continuous inbound freight movement.

Example
A shipment arrives in Halifax, Nova Scotia, from London, England, on an ocean bill of lading. The shipper has specified on the original bill of lading that the goods are destined for Montréal, Quebec. Under a separate contract, a rail carrier is to deliver the goods to the consignee in Montréal. The freight transportation service by the rail carrier is zero rated if the rail carrier has a copy of the original bill of lading. If the rail carrier cannot get a copy of the original bill of lading, the rail carrier should get a certification from the ocean carrier or the ocean carrier’s agent that the cargo originated outside Canada as specified on the shipper’s bill of lading.

For more information, see Booklet RC4080, GST/HST Information for Freight Carriers.

Forms and publications

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