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Return to GST/HST for Partnerships

Return to Harmonized sales tax (HST)

Services considered to be sold in a participating province

Generally, when you provide a service that is performed at least 90% in a province, we consider the service to be provided in that province.

A special place of supply rule applies when a service is performed in two or more provinces and at least 90% of the service is not performed in any of the province. The service is provided in the province where the negotiation took place, as long as more than 10% of the service is performed in that province. Therefore, if the place of negotiation is located in a participating province, HST applies on the service.

Example
An accounting firm in Halifax, Nova Scotia, is hired to audit a company with its headquarters in Halifax and offices in Ontario, Quebec, and New Brunswick. The agreement is negotiated with one of the firm's partners working out of the Halifax office. The audit is performed 60% in the Nova Scotia office. The remaining 40% is evenly distributed between the other three provinces. HST applies on this service, since the place of negotiation is in a participating province, Nova Scotia, and more than 10% of the service is performed in that province.

When you provide a service partly in and partly outside Canada, we consider it to be provided in Canada. For HST purposes, a service is made in a participating province if the part of the service that is performed in Canada is performed at least 90% in that province.

Note
Other rules apply to determine the place of supply if you are not in one of the situations described above. See Technical Information Bulletin B-078 Place of Supply Rules Under the HST. That bulletin also gives the place of supply rules for transportation, postage, and telecommunication services.

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Date modified: 2006-07-01	Top of page	Important notices