A registrant that makes a taxable supply in Canada must collect GST/HST. As a result, it must be determined whether a supply is made in Canada or outside Canada.
If the supply is made in Canada, it must also be determined whether the supply is made in a particular participating province to determine if HST applies and the applicable rate.
Determining Place of Supply
- A sale of goods is deemed to be made in Canada if the goods are delivered or made available to the purchaser at a place in Canada.
- A service is deemed to be supplied in Canada if the service is performed in whole or in part in Canada.
- A supply of real property or of services relating to real property is deemed to be made where the real property is situated.
- A supply of intangible personal property is deemed to be made in Canada if the property may be used in whole or in part in Canada, or relates to real property situated in Canada, to tangible personal property ordinarily situated in Canada or to a service to be performed in Canada.
- Supplies of personal property or services made in Canada by a non-resident are deemed to be made outside Canada unless the non-resident carries on a business in Canada, is registered for GST/HST purposes, or is supplying admissions to seminars, public speaking engagements, concerts, sports events, stage performances, exhibits, and other events.
If UBC purchases intangible personal property or services supplied outside Canada it may be required to self-assess GST under the imported taxable supply rules.
Participating Provinces
Taxable supplies made in Canada are subject to GST or to HST if the supplies are made in a participating province. GST applies at a rate of 5%. HST applies at the rates below:
- Ontario – 13%
- Nova Scotia – 15%
- New Brunswick – 15%
- Newfoundland – 15%
- Prince Edward Island – 15%
A supply of goods by way of sale or lease or licence takes place in the province in which the vendor delivers it or makes them available to the purchaser. The rate of GST/HST then depends on the province where goods are delivered, or deemed to be delivered.
The place of supply of a service is generally where the recipient is located and is based on the recipient’s address most closely related to the service. More specific place of supply rules apply in certain situations, such as:
- The place of supply of a service to goods is generally in the province where the goods are situated at the time the service is performed
- The place of supply of a service performed primarily at a location-specific event (e.g. a conference or a performance or athletic event) is in the province where the event is located
- The place of supply of a service to real property is in the province where the real property is situated
The place of supply of intangible personal property depends on a number of factors. Please contact the University Tax Manager at 604-827-2219 if you have any questions.