Intangible personal property considered to be sold in a participating province

In general, a supply of intangible personal property such as franchise rights is made in a participating province if:

• in the case of Canadian rights (that is, rights that can be used in Canada), at least 90% of the rights that may be used or exercised in Canada can be used only in that province;

• where the intangible property relates to real property, at least 90% of the real property in Canada is situated in that province;

• where the intangible property relates to goods, at least 90% of the goods ordinarily located in Canada are in that province; or

• where the intangible property relates to services, at least 90% of the services to be performed in Canada are to be performed in that province.

Example
The sale of a franchise to operate a retail establishment and sell the franchiser's product in Sydney, Nova Scotia, is subject to HST.

Forms and publications

• B-078, Place of Supply Rules Under the HST.