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Goods considered to be sold or leased in a participating province
Sales
You are considered to have sold goods in a participating province if:
- you deliver or make the goods available to the customer in that province;
- you ship the goods to that province or transfer them to a common carrier that you retain for the customer to ship the goods to that province; or
- you send the goods by courier or mail to an address in that province.
Example
A bank orders cheques to be delivered by the supplier directly to its branches across Canada, including the three participating provinces. HST applies to the cheques delivered to the branches in those provinces. GST applies to cheques delivered to the branches in the rest of Canada.
Rentals and leases–three months or less
When you rent or lease goods and your customer has continuous possession or use of the property for three months or less, all rent or lease payments are considered to be made in a participating province when:
- you deliver or make the goods available to the customer in that province;
- you ship the goods to that province or transfer them to a common carrier that you retain for the customer to ship the goods to that province; or
- you send the goods by mail or courier to that province.
Example
You rent a video camera from a store in Truro, Nova Scotia, to use while traveling through several provinces. The rental agreement is for two weeks. Nova Scotia is the place of supply, and HST applies on the rental.
Rentals and leases–more than three months
When you rent or lease goods (other than most motor vehicles) for a period of more than three months, the agreement is treated as a series of separate supplies for each period (that is, lease interval) to which a particular payment is attributable.
We consider each lease interval to be made in the province where the good is ordinarily located as indicated at the beginning of each lease interval.
Example
A national leasing company leases a photocopier for a four-year period to a consulting firm operating in New Brunswick. The photocopier is usually stored and maintained at the firm's office in New Brunswick. During the second lease interval, the firm expands its operations to Ontario and relocates the photocopier to the firm's new office in Ontario. In this case, the payment for the first two lease intervals is subject to HST and the third lease interval is subject to GST.
Forms and publications
- B-078 Place of Supply Rules Under the HST
- B-079 Self-Assessment of the HST on Supplies Brought Into a Participating Province
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Date modified: 2006-07-01 |
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