GST self-assessment is required on an imported taxable supply.
This is a taxable supply of a service or intangible personal property (e.g. software) made outside Canada to UBC, unless the service or property is being acquired by UBC exclusively (90% or more) for use in a commercial activity where UBC would otherwise be able to recover all of the tax through an input tax credit. Note that a commercial activity involves the making of taxable supplies and also includes a zero-rated supply of services made to a non-resident - so, generally, we are also not required to self-assess GST on a service/property acquired exclusively for use in making a supply of a service to a non-resident. In addition, self-assessment is not required for services in the following situations:
- A service consumed by an individual exclusively outside Canada (other than a training service, the supply of which is made to a person who is not a consumer)
- A service in respect of real property situated outside Canada
- A service in respect of goods situated outside Canada at the time that the service is performed
- A service in respect of goods that are exported as soon after the service is performed as is reasonable with regard to the circumstances surrounding the exportation and is not consumed, used or supplied in Canada after the service is performed and before the exportation of the property
- A transportation service
- A service rendered in connection with criminal, civil or administrative litigation outside Canada, other than a service rendered before the commencement of the litigation
Self-assessment is not required on the purchase of intangible personal property that may not be used in Canada.
A taxable supply made by a non-resident that is not registered and is not required to be registered for GST purposes is deemed to be made outside Canada so we have to consider whether self-assessment is appropriate even if the service is actually performed in Canada.
Self-assessment of GST is not required on the purchase of tangible personal property (i.e. goods). Goods are subject to GST, if applicable, on importation into Canada. The tax is collected at the border by the Canada Border Services Agency. A person importing commercial goods into Canada must self-assess the provincial component of the HST, if applicable.
Similarly, self-assessment is not required on a purchase of goods in Canada. In that case, the vendor is responsible for collecting GST if it is applicable.