1. (1) In this Part,

“carrier”[Repealed, 1993, c. 27, s. 197]

“continuous freight movement” means the transportation of tangible personal property by one or more carriers to a destination specified by the shipper of the property, where all freight transportation services supplied by the carriers are supplied as a consequence of instructions given by the shipper of the property;

“continuous journey” of an individual or a group of individuals means the set of all passenger transportation services provided to the individual or group

(a) and for which a single ticket or voucher in respect of all the services is issued, or

(b) where 2 or more tickets or vouchers are issued in respect of 2 or more legs of a single journey of the individual or group on which there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued, and all the tickets or vouchers are issued by the same supplier or by 2 or more suppliers through one agent acting on behalf of all the suppliers where

(i) all such tickets are supplied at the same time and evidence satisfactory to the Minister is maintained by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued, or

(ii) the tickets or vouchers are issued at different times and evidence satisfactory to the Minister is submitted by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued;

“continuous outbound freight movement” means the transportation of tangible personal property by one or more carriers from a place in Canada

(a) to a place outside Canada, or

(b) to another place in Canada from which the property is to be exported,

if, after the shipper of the property transfers possession of the property to a carrier and before the property is exported, it is not (except to the extent reasonably necessary or incidental to its transportation) further processed, transformed or altered in Canada, other than, in the case of natural gas being transported by pipeline, to recover natural gas liquids or ethane from the gas at a straddle plant;

“destination”, in respect of a continuous freight movement of property, means a place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper;

“freight transportation service” means a particular service of transporting tangible personal property and, for greater certainty, includes

(a) a service of delivering mail, and

(b) any other property or service supplied to the recipient of the particular service by the person who supplies the particular service, where the other property or service is part of or incidental to the particular service, whether there is a separate charge for the other property or service,

but does not include a service provided by the supplier of a passenger transportation service of transporting an individual’s baggage in connection with the passenger transportation service;

“international flight”[Repealed, 1997, c. 10, s. 147]

“origin” means

(a) in respect of a continuous freight movement, the place where the first carrier that engaged in the continuous freight movement takes possession of the property being transported, and

(b) in respect of a continuous journey, the place where the passenger transportation service that is included in the continuous journey and that is first provided begins;

“place outside Canada”, in respect of a freight transportation service, includes at a particular time a place in Canada if, at that time, the property being transported has been imported but has not been released and the property is being transported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls or regulates the importation of goods;

“shipper” of tangible personal property means the person who, in respect of a continuous freight movement or a continuous outbound freight movement, transfers possession of the property being shipped to a carrier at the origin of the freight movement and, for greater certainty, does not include a person who is a carrier of the property to which the freight movement relates;

“stopover”, in respect of a continuous journey of an individual or a group of individuals, means any place at which the individual or group embarks or disembarks a conveyance used in the provision of a passenger transportation service included in the continuous journey, for any reason other than transferring to another conveyance or to allow for servicing or refuelling of the conveyance;

“taxation area” means Canada, the United States (except Hawaii) and the islands of St. Pierre and Miquelon;

“termination” of a continuous journey means the place where the passenger transportation service that is included in the continuous journey and that is last provided ends.

(2) For the purposes of this Part, where in respect of a continuous freight movement several carriers supply freight transportation services in the course of the continuous freight movement, and the shipper or the consignee of the property is, under the contract of carriage for the continuous freight movement, required to pay a particular carrier that is one of those carriers a particular amount that is part or all of the consideration for the freight transportation services supplied by those several carriers,

(a) the particular carrier is deemed to have made a supply of a freight transportation service, having the same destination as the continuous freight movement, to the shipper or consignee, as the case may be, for consideration equal to the particular amount, whether the particular amount includes an amount paid to the particular carrier as agent of any of the other several carriers;

(b) the shipper or consignee, as the case may be, shall be deemed to have received a supply of a freight transportation service from the particular carrier for consideration equal to the particular amount and not to have received a freight transportation service from any of the other several carriers; and

(c) to the extent that any part of the particular amount is paid by one of the several carriers (in this paragraph referred to as the “first carrier”) to another of the several carriers, the first carrier shall be deemed to be the recipient of freight transportation services supplied by the other carriers in relation to the continuous freight movement and, to the same extent, the other carriers shall be deemed to have supplied those freight transportation services to the first carrier and not to the shipper or consignee.

2. A supply of a passenger transportation service that is provided to an individual or a group of individuals and that is part of a continuous journey of the individual or group, other than a continuous journey that includes transportation by air, where

(a) the origin or termination of the continuous journey is outside Canada, or

(b) there is a stopover outside Canada,

but not including a passenger transportation service that is part of a continuous journey if both the origin and the termination of the journey are in Canada and, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of a least 24 hours during the course of the journey.

3. A supply of a passenger transportation service that is provided to an individual or a group of individuals and that is part of a continuous journey of the individual or group that includes transportation by air, where

(a) the origin or termination of the continuous journey, or any stopover in respect thereof, is outside the taxation area;

(b) the origin and termination of the continuous journey, and all stopovers in respect thereof, are outside Canada;

(c) the origin of the continuous journey is within the taxation area, but outside Canada; or

(d) all places at which the individual or group embarks or disembarks an aircraft are outside Canada and the origin or termination of the continuous journey, or any stopover in respect thereof, is outside Canada.

4. A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service included in section 2 or 3:

(a) a service of transporting an individual’s baggage; and

(b) a service of supervising an unaccompanied child.

5. A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service that would, if it were completed in accordance with the agreement for that supply, be included in section 2 or 3.

5.1 A supply to a person of a service of acting as an agent in making a supply on behalf of that person of a service that would, if it were completed in accordance with the agreement for that supply, be included in any of sections 2 to 5.

6. A supply of a freight transportation service in respect of the transportation of tangible personal property from a place in Canada to a place outside Canada where the value of the consideration for the supply is $5 or more.

7. A supply made by a carrier of a freight transportation service in respect of the transportation of tangible personal property from a place in Canada to another place in Canada, where

(a) the shipper of the property provides the carrier with a declaration in prescribed form that the property is being shipped for export and that the freight transportation service to be supplied by the carrier is part of a continuous outbound freight movement in respect of the property;

(b) the property is exported and the service is part of a continuous outbound freight movement in respect of the property; and

(c) the value of the consideration for the supply is $5 or more.

8. A supply of a freight transportation service in respect of the transportation of tangible personal property from a place outside Canada to a place in Canada.

9. A supply of a freight transportation service in respect of the transportation of tangible personal property from a place outside Canada to another place outside Canada.

10. A supply of a particular freight transportation service from a place in Canada to another place in Canada that is part of a continuous freight movement from an origin outside Canada to a destination in Canada, where the supplier of the service maintains documentary evidence satisfactory to the Minister that the service is part of a continuous freight movement from an origin outside Canada to a destination in Canada.

11. A supply of a freight transportation service made by a carrier of the property being transported to a second carrier of the property being transported, where the service is part of a continuous freight movement and the second carrier is neither the shipper nor the consignee of the property being transported.

12. A supply of a service of acting as an agent for a non-resident person who is not registered under Subdivision d of Division V of Part IX of the Act at the time the supply is made, to the extent that the service is in respect of a supply to that person of a freight transportation service that is included in section 6, 7, 8, 9 or 10.

13. A supply by a licensee under paragraph 24(1)(a) of the Customs Act of a service of warehousing imported goods at a sufferance warehouse operated by the licensee, where the purpose of the service is to enable examination of the goods before their release.

14. A supply of a service of ferrying by watercraft passengers or property to or from a place outside Canada, where the principal purpose of the ferrying is to transport motor vehicles and passengers between parts of a road or highway system that are separated by a stretch of water.

15. A supply of an air ambulance service made by a person who carries on the business of supplying air ambulance services, where the transportation is to or from a place outside Canada.

1. A supply of property or a service that is for the use of the Governor General.

2. A supply of property or a service to an international bridge or tunnel authority for use in the construction of a bridge or tunnel that crosses the boundary between Canada and the United States.

1. A supply of a financial service (other than a supply that is included in section 2) made by a financial institution to a non-resident person, except where the service relates to

(a) a debt that arises from

(i) the deposit of funds in Canada, where the instrument issued as evidence of the deposit is a negotiable instrument, or

(ii) the lending of money that is primarily for use in Canada;

(b) a debt for all or part of the consideration for a supply of real property that is situated in Canada;

(c) a debt for all or part of the consideration for a supply of personal property that is for use primarily in Canada;

(d) a debt for all or part of the consideration for a supply of a service that is to be performed primarily in Canada; or

(e) a financial instrument (other than an insurance policy or a precious metal) acquired, otherwise than directly from a non-resident issuer, by the financial institution acting as a principal.

2. A supply made by a financial institution of a financial service that relates to an insurance policy issued by the institution (other than a service that relates to investments made by the institution), to the extent that

(a) where the policy is a life or accident and sickness insurance policy (other than a group policy), it is issued in respect of an individual who at the time the policy becomes effective, is a non-resident individual;

(b) where the policy is a group life or accident and sickness insurance policy, it relates to non-resident individuals who are insured under the policy;

(c) where the policy is a policy in respect of real property, it relates to property situated outside Canada; and

(d) where the policy is a policy of any other kind, it relates to risks that are ordinarily situated outside Canada.

3. A supply of a financial service that is the supply of precious metals where the supply is made by the refiner thereof or by the person on whose behalf the precious metals were refined.

1. A supply made by Canada Post Corporation of a service under an agreement made with the Minister of Public Safety and Emergency Preparedness under subsection 147.1(3) of the Customs Act.

1990, c. 45, s. 18; 1992, c. 28, s. 41; 1993, c. 27, ss. 178 to 199; 1994, c. 9, ss. 29 to 32; 1997, c. 10, ss. 118 to 149, 253; 2000, c. 30, ss. 123 to 134; 2001, c. 15, ss. 29, 30; 2002, c. 22, s. 391; 2005, c. 38, ss. 108, 145.

1. Goods that are classified under heading No. 98.01, 98.02, 98.03, 98.04, 98.05, 98.06, 98.07, 98.10, 98.11, 98.12, 98.15, 98.16 or 98.19 or subheading No. 9823.60, 9823.70, 9823.80 or 9823.90 of Schedule I to the Customs Tariff, to the extent that the goods are not subject to duty under that Act, but not including goods that are classified under tariff item 9804.30.00 of that Schedule.

1.1 For the purposes of section 1, “duty” does not include a special duty imposed under section 54 of the Excise Act, 2001.

2. Medals, trophies and other prizes, not including usual merchantable goods, that are won outside Canada in competitions, that are bestowed, received or accepted outside Canada or that are donated by persons outside Canada, for heroic deeds, valour or distinction.

3. Printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is

(a) imported by or on the order of a foreign government or an agency or representative of a foreign government; or

(b) imported by a board of trade, chamber of commerce, municipal or automobile association or similar organization to which it was supplied for no consideration, other than shipping and handling charges.

4. Goods that are imported by a charity or a public institution in Canada, and that have been donated to the charity or institution.

5. Goods that are imported by a particular person if the goods are supplied to the particular person by a non-resident person for no consideration, other than shipping and handling charges, as replacement parts or as replacement property under a warranty.

5.1 Goods that are imported solely for the purpose of fulfilling an obligation under a warranty to repair or replace the goods if defective, where replacement goods are supplied for no additional consideration, other than shipping and handling charges, and exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of the goods.

6. Goods the supply of which is included in any of Parts I to IV and VIII of Schedule VI.

7. Goods (other than prescribed goods) that are sent to the recipient of the supply of the goods at an address in Canada by mail or courier (within the meaning assigned by subsection 2(1) of the Customs Act) and the value of which, determined under paragraph 215(1)(a) of the Act, is not more than $20.

7.1 Goods that are prescribed property for the purposes of section 143.1 of the Act and that are sent, by mail or courier, to the recipient of the supply of the goods at an address in Canada, where the supplier is registered under Subdivision d of Division V of Part IX of the Act at the time the goods are imported.

8. Prescribed goods imported in prescribed circumstances and under prescribed terms and conditions.

8.1 Particular goods that are imported at any time by a registrant to whom has been issued an authorization under section 213.2 of the Act that is in effect at that time and that are

(a) processed, distributed or stored in Canada and subsequently exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of the goods,

(b) incorporated or transformed into, attached to, or combined or assembled with, other goods that are processed in Canada and subsequently exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of those other goods, or

(c) materials (other than fuel, lubricants and plant equipment) directly consumed or expended in the processing in Canada of other goods that are exported without being consumed or used in Canada except to the extent reasonably necessary or incidental to the transportation of those other goods,

where

(d) the particular goods are imported solely for the purpose of having services performed that are supplied by the registrant to a non-resident person,

(e) throughout the period beginning at the time the particular goods are imported by the registrant and ending at the time of the exportation of the particular goods or the products (in this section referred to as the “processed products”) resulting from the processing referred to in whichever of paragraphs (a) to (c) applies,

(i) neither the particular goods nor the processed products are the property of a person resident in Canada,

(ii) the registrant does not have any proprietary interest in the particular goods or the processed products, and

(iii) the registrant is not closely related to any non-resident person referred to in paragraph (d) or to any non-resident person whose property are the particular goods or the processed products,

(f) at no time during the period referred to in paragraph (e) does the registrant transfer physical possession of the particular goods or the processed products to another person in Canada except for the purpose of their storage, their transportation to or from a place of storage or their transportation in the course of being exported,

(g) the exportation of the particular goods or the processed products, as the case may be, occurs within four years after the day on which the particular goods are accounted for under section 32 of the Customs Act,

(h) at the time of that accounting for the particular goods, the registrant discloses, on the accounting document, the number assigned to the registrant under subsection 213.2(1) of the Act, and

(i) the registrant has provided any security that is required under section 213.1 of the Act.

8.2 For the purpose of section 8.1, “processing” includes adjusting, altering, assembling or disassembling, cleaning, maintaining, repairing or servicing, inspecting or testing, labelling, marking, tagging or ticketing, manufacturing, producing, packing, unpacking or repacking, and packaging or repackaging.

8.3 For the purpose of section 8.1, a registrant and another person are closely related to each other if they would be closely related under section 128 of the Act if the other person were a registrant resident in Canada.

9. Containers that, because of regulations made under Note 11(c) to Chapter 98 of Schedule I to the Customs Tariff, may be imported free of customs duties.

10. Money or certificates or other documents evidencing a right that is a financial instrument.

11. A particular good that is an item of domestic inventory, added property or a customer’s good (as those expressions are defined in section 273.1 of the Act) imported at any time by a person who is registered under Subdivision d of Division V of Part IX of the Act and to whom has been granted an authorization that is in effect at that time to use an export distribution centre certificate (within the meaning of that section), if

(a) when the particular good is accounted for under section 32 of the Customs Act, the person certifies that the authorization is in effect at that time and discloses the number referred to in subsection 273.1(9) of the Act and the effective date and expiry date of the authorization; and

(b) the person has provided any security that is required under section 213.1 of the Act.

1990, c. 45, s. 18; 1992, c. 28, s. 42; 1993, c. 27, ss. 200 to 202; 1994, c. 9, ss. 33, 34; 1997, c. 10, s. 149.1; 2000, c. 30, s. 135; 2001, c. 15, ss. 31 to 33, c. 16, s. 42; 2002, c. 22, s. 392.

1997, c. 10, s. 254.

1. The definitions in this section apply in this Schedule.

“lease interval”, in respect of a supply by way of lease, licence or similar arrangement, has the same meaning as in section 136.1 of the Act.

“place of negotiation” of a supply means the location of the supplier’s permanent establishment at which the individual principally involved in negotiating for the supplier the agreement for the supply ordinarily works, or to which that individual ordinarily reports, in the performance of the individual’s duties in relation to the activities of the supplier in the course of which the supply is made and, for the purposes of this definition, “negotiating” includes the making or acceptance of an offer.

2. For the purposes of this Schedule,

(a) a floating home, and

(b) a mobile home that is not affixed to land

are each deemed to be tangible personal property and not real property.

3. For the purposes of this Schedule, where an agreement for the supply of property or a service is entered into but the property is never delivered to the recipient or the service is never performed, the property is deemed to have been delivered, or the service is deemed to have been performed, where the property or service was to be delivered or performed, as the case may be, under the terms of the agreement.

4. Where, for the purpose of determining, under this Schedule, if a supply is made in a province, reference is made to the ordinary location of property and, from time to time, the supplier and recipient mutually agree upon what is to be the ordinary location of the property at a particular time, that location is deemed, for the purposes of this Schedule, to be the ordinary location of that property at the particular time.

5. The definition “courier” in subsection 123(1) does not apply for the purposes of this Schedule.

1. Subject to section 3 of Part VI, a supply by way of sale of tangible personal property is made in a province if the supplier delivers the property or makes it available in the province to the recipient of the supply.

2. A supply of tangible personal property otherwise than by way of sale is made in a province if

(a) in the case of a supply made under an agreement under which continuous possession or use of the property is provided for a period of no more than three months, the supplier delivers the property or makes it available in the province to the recipient of the supply; and

(b) in any other case,

(i) where the property is a specified motor vehicle, it is required, at the time the supply is made, to be registered under the laws of the province relating to the registration of motor vehicles, and

(ii) where the property is not a specified motor vehicle, the ordinary location of the property, as determined at the time the supply is made, is in the province.

3. For the purposes of this Part and Part VII, property is deemed to be delivered in a particular province by a supplier and is deemed not to be delivered in any other province by the supplier where the supplier

(a) ships the property to a destination in the particular province that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient to ship the property to such a destination; or

(b) sends the property by mail or courier to an address in the particular province.

4. If

(a) a supply of tangible personal property is made by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of no more than three months,

(b) because of paragraph 136.1(1)(a) of the Act, there is deemed to be more than one supply of the property under that arrangement, and

(c) in the absence of that paragraph, the supply of the property under that arrangement would be made in a province,

all the supplies of the property that are, because of that paragraph, deemed to be made under that arrangement are made in that province.

1. In this Part, “Canadian rights”, in respect of intangible personal property, means that part of the property that can be used in Canada.

2. A supply of intangible personal property is made in a province if

(a) in the case of property that relates to real property,

(i) all or substantially all of the real property that is situated in Canada is situated in the province, or

(ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province;

(b) in the case of property that relates to tangible personal property,

(i) all or substantially all of the tangible personal property that is ordinarily located in Canada is ordinarily located in the province, or

(ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the tangible personal property is ordinarily located outside the province;

(c) in the case of property that relates to services to be performed,

(i) all or substantially all of the services that are to be performed in Canada are to be performed in the province, or

(ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the services are to be performed outside the province; and

(d) in any other case,

(i) all or substantially all of the Canadian rights in respect of the property can be used only in the province, or

(ii) the place of negotiation of the supply is in the province and the property can be used otherwise than exclusively outside the province.

3. Subject to section 2, where a supply of intangible personal property is made and

(a) in the case of intangible personal property that relates to real property,

(i) the real property that is situated in Canada is situated primarily in the participating provinces, and

(ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the real property is situated in Canada,

(b) in the case of intangible personal property that relates to tangible personal property,

(i) the tangible personal property that is ordinarily located in Canada is ordinarily located primarily in the participating provinces, and

(ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the personal property is ordinarily located in Canada,

(c) in the case of intangible personal property that relates to services to be performed,

(i) the services to be performed in Canada are to be performed primarily in the participating provinces, and

(ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the services are to be performed in Canada, and

(d) in the case of intangible personal property that does not relate to real property, tangible personal property or services to be performed,

(i) the Canadian rights in respect of the intangible personal property cannot be used otherwise than primarily in the participating provinces, and

(ii) where the place of negotiation of the supply is outside Canada, the property cannot be used otherwise than exclusively in Canada,

the supply of the intangible personal property is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, the tangible personal property ordinarily located in the participating provinces is ordinarily located, the services to be performed in the participating provinces are to be performed, or the Canadian rights that can be used only in the participating provinces can be used, as the case may be.

1. A supply of real property is made in a province if the property is situated in the province.

2. A supply of a service in relation to real property is made in a province if

(a) all or substantially all of the real property that is situated in Canada is situated in the province; or

(b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province.

3. Subject to section 2, where a supply of a service in relation to real property is made and the real property that is situated in Canada is situated primarily in participating provinces, the supply is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the property is situated in Canada.

1. In this Part, “Canadian element” of a service means the portion of the service that is performed in Canada.

2. Subject to Parts IV and VI to VIII, a supply of a service is made in a province if

(a) all or substantially all of the Canadian element of the service is performed in the province; or

(b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the service is performed outside the province.

3. Subject to section 2, where the Canadian element of a service is performed primarily in the participating provinces, the supply of the service is made in the participating province in which the greatest proportion of the Canadian element is performed, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the service is performed in Canada.

1. The definitions in this section apply in this Part.

“continuous journey” has the meaning assigned by section 1 of Part VII of Schedule VI.

“destination” of a freight transportation service means the place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper.

“freight transportation service” has the meaning assigned by section 1 of Part VII of Schedule VI.

“leg” of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes.

“origin” of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

“stopover”, in respect of a continuous journey, has the meaning assigned by section 1 of Part VII of Schedule VI except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.

“termination” of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

2. A supply of a passenger transportation service that is part of a continuous journey is made in a province if,

(a) where the ticket or voucher issued in respect of the passenger transportation service included in the continuous journey that is provided first specifies the origin of the continuous journey, the origin is a place in the province and the termination, and all stopovers, in respect of the continuous journey are in Canada; and

(b) in any other case, the place of negotiation of the supply is in the province.

3. Where a supply by way of sale of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the conveyance during any leg of the journey that begins in any participating province and ends in any participating province, the supply is made in the participating province in which that leg of the journey begins.

4. A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service is made in the province:

(a) a service of transporting an individual’s baggage; and

(b) a service of supervising an unaccompanied child.

4.1 A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service would, if it were completed in accordance with the agreement for that supply, be made in the province.

5. Subject to Part VII, a supply of a freight transportation service is made in a province if the destination of the service is in the province.

1. The definitions in this section apply in this Part.

“postage stamp” means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint or any “business reply” indicia or item bearing that indicia.

“permit imprint” means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any “business reply” indicia or item bearing that indicia.

2. A supply of a postage stamp or a postage-paid card, package or similar item (other than an item bearing a “business reply” indicia) that is authorized by the Canada Post Corporation is made in a province if the supplier delivers the stamp or item in the province to the recipient of the supply and, where the stamp or item is used as evidence of the payment of postage for a mail delivery service, the supply of the service is made in that province, unless

(a) the supply of the service is made pursuant to a bill of lading; or

(b) the consideration for the supply of the service is $5 or more and the address to which the mail is sent is not in a participating province.

3. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation is evidenced by a postage meter impression printed by a meter, the supply of the service is made in a province if the ordinary location of the meter, as determined at the time the recipient of the supply pays an amount to the Corporation for the purpose of paying that postage, is in the province, unless the supply is made pursuant to a bill of lading.

4. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation otherwise than pursuant to a bill of lading is evidenced by a permit imprint, the supply of the service is made in the province in which the recipient of the supply deposits the mail with the Corporation in accordance with the agreement between the recipient and the Corporation authorizing the use of the permit imprint.

1. For the purposes of this Part, the billing location for a telecommunication service supplied to a recipient is in a province if,

(a) where the consideration paid or payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to telecommunications facilities that are used or are available for use by the recipient to obtain telecommunication services, all those telecommunications facilities are ordinarily located in the province; and

(b) in any other case, the telecommunications facility used to initiate the service is located in the province.

2. A supply of a telecommunication service (other than a service referred to in section 3) is made in a province if,

(a) in the case of a telecommunication service of making telecommunications facilities available,

(i) all of those facilities are ordinarily located in the province, or

(ii) where not all of those telecommunications facilities are ordinarily located in the province, the invoice for the supply of the service is sent to an address in the province; and

(b) in any other case,

(i) the telecommunication is emitted and received in the province,

(ii) the telecommunication is emitted or received in the province and the billing location for the service is in the province, or

(iii) the telecommunication is emitted in the province and is received outside the province and the billing location for the service is not in a province in which the telecommunication is emitted or received.

3. A supply of a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel, within the meaning assigned by section 136.4 of the Act, is made in a province if the supply is deemed under that section to be made in the province.

1. Notwithstanding any other Part of this Schedule, a supply of property that is deemed under any of sections 129, 129.1, 171, 171.1 and 172, subsections 183(1) and (4) and 184(1) and (3) and sections 196.1 and 268 of the Act to have been made or received at any time is made where the property is situated at that time.

2. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is deemed under Part IX of the Act or regulations made under that Part to be made in the province.

3. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is prescribed to be made in the province.

1997, c. 10, s. 254; 2000, c. 30, ss. 136(F), 137, 138.

(Subsections 220.05(3) and 220.06(3))

1. Property that is at any time brought into a participating province and that is described in heading No. 98.01, 98.10 or 98.12 of Schedule I to the Customs Tariff to the extent that the property would not be subject to customs duties under that Act.

2. Conveyances temporarily brought into a participating province, by a person who is resident in that province, to be employed in the international non-commercial transportation of that person and accompanying persons using the same conveyance.

3. Conveyances and baggage temporarily brought into a participating province by a non-resident person for use by that person in that province.

4. Arms, military stores and munitions of war brought into a participating province by the Government of Canada in replacement of or in anticipation or actual exchange for similar goods loaned to or exchanged or to be exchanged with the governments of a foreign country designated by the Governor in Council under heading No. 98.10 of Schedule I to the Customs Tariff, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.11 of that Act.

5. Property that is clothing or books brought into a participating province for charitable purposes, and photographs, not exceeding three, where they are brought into a participating province other than for the purpose of sale.

6. Property, (other than advertising matter, tobacco or an alcoholic beverage) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.

7. Property that is brought into a participating province for a period not exceeding six months for the purpose of display at a convention (within the meaning assigned by the Display Goods Temporary Importation Regulations made under the Customs Tariff) or a public exhibition at which the goods of various manufacturers or producers are displayed.

8. Property that is brought into a participating province on a temporary basis after having been removed from Mexico or the United States, where the property is

(a) intended for display or demonstration;

(b) commercial samples;

(c) advertising films; or

(d) conveyances or containers based in the United States or Mexico engaged in the international traffic of goods.

9. Property that is at any time brought into a participating province by an individual who

(a) was formerly resident in the participating province and is, at that time, returning to resume residence in the participating province after being resident in another province for a period of not less than one year,

(b) is a resident of the participating province who is, at that time, returning after being absent from the participating province for a period of not less than one year, or

(c) is, at that time, entering the province with the intention of establishing a residence for a period of not less than twelve months, (other than a person who enters Canada in order to reside in Canada for the purpose of employment for a temporary period not exceeding 36 months or for the purpose of studying at an institute of learning)

where the property is for the individual’s personal or household use and was owned and in the individual’s possession before that time, provided that, where the property was owned and in the individual’s possession for less than 31 days prior to the time when it is brought into the participating province

(d) the individual has paid any retail sales tax applicable to the property in the province from which the property has been brought, and

(e) the individual is not entitled to claim a rebate or a refund of that retail sales tax.

10. Property that is brought into a participating province, where the property is

(a) personal and household effects of an individual who died outside the participating provinces and was, at the time of death, resident in a participating province, or

(b) personal and household effects received, by an individual who is resident in a participating province, as a result or in anticipation of the death of an individual who was not resident in a participating province,

where the property is given as a gift or bequest to an individual who is resident in a participating province.

11. Medals, trophies and other prizes, not including usual merchantable goods, that are won outside the participating provinces in competitions, that are bestowed, received or accepted outside the participating provinces or that are donated by persons outside the participating provinces, for heroic deeds, valour or distinction.

12. Printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is brought into a participating province

(a) by or on the order of a foreign government or a government outside the participating province or by an agency or representative of such a government; or

(b) by a board of trade, chamber of commerce, municipal or automobile association or similar organization to which it was supplied for no consideration, other than shipping and handling charges.

13. Property that is brought into a participating province by a charity or a public institution and that has been donated to the charity or the institution.

14. Property that is brought into a participating province by a person if it is supplied to the person for no consideration, other than shipping and handling charges, as a replacement part or as replacement property under a warranty.

15. Property that is brought into a participating province, the supply of which is included in any of Parts I to IV and VIII of Schedule VI.

16. Containers that are brought into a participating province where, because of regulations made under Note 11(c) to Chapter 98 of Schedule I to the Customs Tariff, they would, if they were imported, be imported free of customs duties under that Act.

17. Money or certificates or other documents evidencing a right that is a financial instrument.

18. Property that is brought into a participating province by a person after having been supplied to the person by another person in circumstances in which tax was payable in respect of the property by the person under subsection 165(2) or section 218.1 of the Act.

19. Property that a person brings at any time into a participating province and that at that time is being supplied in a non-participating province to the person by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of more than three months and in circumstances in which tax under subsection 165(1) is payable by the person in respect of that supply.

20. Property that is brought into a participating province by a person after having been imported by the person in circumstances in which

(a) tax was not payable under section 212 of the Act in respect of the property because of section 213 of the Act; or

(b) tax was payable under section 212.1 of the Act and the person was not entitled to a rebate of that tax under section 261.2 of the Act.

21. Property that is brought into a participating province by a person after having been used in, and removed from, a participating province by the person and in respect of which the person was not entitled to claim a rebate under section 261.1.

22. Property, other than a returnable container (within the meaning assigned by subsection 226(1)) or a specified motor vehicle, that is brought into a participating province by a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant.

23. Prescribed property brought into a participating province in prescribed circumstances, subject to such terms and conditions as may be prescribed.

24. A specified motor vehicle that is brought into a participating province by a person after having been supplied to the person by way of sale in a non-participating province in circumstances in which tax was not payable under subsection 165(1) of the Act in respect of the supply.

25. A mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals.

26. Property referred to in subsection 178.3(1) or 178.4(1) of the Act where it is brought into a participating province by an independent sales contractor (within the meaning of section 178.1 of the Act) who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with a direct seller is in effect.

(Subsection 220.08(3))

1. A supply of property or a service to a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST) Regulations) who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the registrant.

2. A zero-rated supply.

3. A supply of a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of tangible personal property that is removed from the participating provinces as soon after the service is performed as is reasonable having regard to the circumstances surrounding the removal and is not consumed, used or supplied in the participating provinces after the service is performed and before the removal of the property.

4. A supply of a service rendered in connection with criminal, civil or administrative litigation outside the participating provinces, other than a service rendered before the commencement of such litigation.

5. A supply of a transportation service.

6. A supply of a telecommunication service.

7. A prescribed supply of property or a service where the property or service is acquired by the recipient of the supply in prescribed circumstances, subject to such terms and conditions as may be prescribed.

1997, c. 10, s. 254; 2000, c. 30, s. 139; 2005, c. 38, ss. 109, 110, 145.