Excise Tax Act (R.S.C., 1985, c. E-15)
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Act current to 2024-11-26 and last amended on 2024-06-28. Previous Versions
SCHEDULE VI(Subsection 123(1))Zero-Rated Supplies
PART I
Prescription Drugs and Biologicals
1 In this Part,
authorized individual means an individual, other than a medical practitioner, who is authorized under the laws of a province to make an order directing that a stated amount of a drug or mixture of drugs specified in the order be dispensed for the individual named in the order;
medical practitioner means a person who is entitled under the laws of a province to practise the profession of medicine or dentistry;
pharmacist means a person who is entitled under the laws of a province to practise the profession of pharmacy;
practitioner[Repealed, 1997, c. 10, s. 118]
prescription means a written or verbal order, given to a pharmacist by a medical practitioner or authorized individual, directing that a stated amount of any drug or mixture of drugs specified in the order be dispensed for the individual named in the order.
2 A supply of any of the following drugs or substances:
(a) a drug included in Schedule C or D to the Food and Drugs Act,
(b) a drug that is set out on the list established under subsection 29.1(1) of the Food and Drugs Act or that belongs to a class of drugs set out on that list, other than a drug or mixture of drugs that may, under that Act or the Food and Drug Regulations, be sold to a consumer without a prescription,
(c) a drug or other substance included in the schedule to Part G of the Food and Drug Regulations,
(d) a drug that contains a substance included in the schedule to the Narcotic Control Regulations, other than a drug or mixture of drugs that may, pursuant to the Controlled Drugs and Substances Act or regulations made under that Act, be sold to a consumer with neither a prescription nor an exemption by the Minister of Health in respect of the sale,
(d.1) a drug included in Schedule 1 to the Benzodiazepines and Other Targeted Substances Regulations,
(e) any of the following drugs, namely,
(i) Digoxin,
(ii) Digitoxin,
(iii) Prenylamine,
(iv) Deslanoside,
(v) Erythrityl tetranitrate,
(vi) Isosorbide dinitrate,
(vi.1) Isosorbide-5-mononitrate,
(vii) Nitroglycerine,
(viii) Quinidine and its salts,
(ix) Medical oxygen,
(x) Epinephrine and its salts, and
(xi) Naloxone and its salts,
(f) a drug the supply of which is authorized under the Food and Drug Regulations for use in an emergency treatment, and
(g) plasma expander,
but not including a supply of a drug or substance when it is labelled or supplied for agricultural or veterinary use only.
3 A supply of a drug when the drug is for human use and is dispensed
(a) by a medical practitioner to an individual for the personal consumption or use of the individual or an individual related thereto; or
(b) on the prescription of a medical practitioner or authorized individual for the personal consumption or use of the individual named in the prescription.
4 A supply of a service of dispensing a drug where the supply of the drug is included in this Part.
5 A supply of human sperm.
6 A supply of an ovum, as defined in section 3 of the Assisted Human Reproduction Act.
PART II
Medical and Assistive Devices
1 In this Part,
cosmetic means a property, whether or not possessing therapeutic or prophylactic properties, commonly or commercially known as a toilet article, preparation or cosmetic that is intended for use or application for toilet purposes or for use in connection with the care of the human body, or any part thereof, whether for cleansing, deodorizing, beautifying, preserving or restoring, and includes a toilet soap, skin cream or lotion, mouth wash, oral rinse, toothpaste, tooth powder, denture cream or adhesive, antiseptic, bleach, depilatory, perfume, scent and any similar toilet article, preparation or cosmetic;
medical practitioner[Repealed, 2012, c. 19, s. 32]
practitioner[Repealed, 1997, c. 10, s. 121]
specified professional means
(a) in respect of a supply included in any of sections 23, 24.1 and 35,
(i) a person that is entitled under the laws of a province to practise the profession of medicine, physiotherapy, occupational therapy, chiropody or podiatry, or
(ii) a registered nurse, and
(b) in respect of any other supply,
(i) a person that is entitled under the laws of a province to practise the profession of medicine, physiotherapy or occupational therapy, or
(ii) a registered nurse.
1.1 For the purposes of this Part, other than section 33, a supply of property that is not designed for human use or for assisting an individual with a disability or impairment is deemed not to be included in this Part.
1.2 For the purposes of this Part, a cosmetic service supply (as defined in section 1 of Part II of Schedule V) and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes are deemed not to be included in this Part.
2 A supply of a communication device, other than a device described in section 7, that is specially designed for use by an individual with a hearing, speech or vision impairment.
3 A supply of a heart-monitoring device if the device is supplied on the written order of a specified professional for use by a consumer with heart disease who is named in the order.
4 A supply of a hospital bed, if the bed is supplied to the operator of a health care facility (as defined in section 1 of Part II of Schedule V) or on the written order of a specified professional for use by an incapacitated individual named in the order.
5 A supply of an artificial breathing apparatus that is specially designed for use by an individual with a respiratory disorder.
5.1 A supply of an aerosol chamber or a metered dose inhaler for use in the treatment of asthma if the chamber or inhaler is supplied on the written order of a specified professional for use by a consumer named in the order.
5.2 A supply of a respiratory monitor, nebulizer, tracheostomy supply, gastro-intestinal tube, dialysis machine, infusion pump or intravenous apparatus, that can be used in the residence of an individual.
6 A supply of a mechanical percussor for postural drainage treatment or a chest wall oscillation system for airway clearance therapy.
7 A supply of a device that is designed to convert sound to light signals if the device is supplied on the written order of a specified professional for use by a consumer with a hearing impairment who is named in the order.
8 A supply of a selector control device that is specially designed to enable an individual with a disability to select, energize or control household, industrial or office equipment.
9 A supply of eyeglasses or contact lenses if the eyeglasses or contact lenses are, or are to be, supplied under the authority of a prescription prepared, or an assessment record produced, by a person for the treatment or correction of a defect of vision of a consumer named in the prescription or assessment record and the person is entitled under the laws of the province in which the person practises to prescribe eyeglasses or contact lenses, or to produce an assessment record to be used for the dispensing of eyeglasses or contact lenses, for the treatment or correction of the defect of vision of the consumer.
9.1 A supply of eyewear that is specially designed to treat or correct a defect of vision by electronic means, if the eyewear is supplied on the written order of a person that is entitled under the laws of a province to practise the profession of medicine or optometry for the treatment or correction of a defect of vision of a consumer who is named in the order.
10 A supply of an artificial eye.
11 A supply of artificial teeth.
11.1 A supply of an orthodontic appliance.
12 A supply of a hearing aid.
13 A supply of a laryngeal speaking aid.
14 A supply of a chair, walker, wheelchair lift or similar aid to locomotion, with or without wheels, including motive power and wheel assemblies therefor, that is specially designed to be operated by an individual with a disability for locomotion of the individual.
14.1 A supply of a chair that is specially designed for use by an individual with a disability if the chair is supplied on the written order of a specified professional for use by a consumer named in the order.
15 A supply of a patient lifter that is specially designed to move an individual with a disability.
16 A supply of a wheelchair ramp that is specially designed for access to a motor vehicle.
17 A supply of a portable wheelchair ramp.
18 A supply of an auxiliary driving control that is designed for attachment to a motor vehicle to facilitate the operation of the vehicle by an individual with a disability.
18.1 A supply of a service of modifying a motor vehicle to adapt the vehicle for the transportation of an individual using a wheelchair and a supply of property (other than the vehicle) made in conjunction with, and because of, the supply of the service.
19 A supply of a patterning device that is specially designed for use by an individual with a disability.
20 A supply of a toilet seat, bath seat, shower seat or commode chair that is specially designed for use by an individual with a disability.
21 A supply of an insulin infusion pump, insulin syringe, insulin pen or insulin pen needle.
21.1 A supply of an extremity pump, intermittent pressure pump or similar device for use in the treatment of lymphedema if the pump or device is supplied on the written order of a specified professional for use by a consumer named in the order.
21.2 A supply of a catheter for subcutaneous injections if the catheter is supplied on the written order of a specified professional for use by a consumer named in the order.
21.3 A supply of a lancet.
22 A supply of an artificial limb.
23 A supply of an orthotic or orthopaedic device that is made to order for an individual or is supplied on the written order of a specified professional for use by a consumer named in the order.
23.1 [Repealed, 1997, c. 10, s. 130]
24 A supply of a specially constructed appliance that is made to order for an individual who has a crippled or deformed foot or ankle.
24.1 A supply of footwear that is specially designed for use by an individual who has a crippled or deformed foot or other similar disability, if the footwear is supplied on the written order of a specified professional.
25 A supply of a medical or surgical prosthesis, or an ileostomy, colostomy or urinary appliance or similar article that is designed to be worn by an individual.
25.1 A supply of an intermittent urinary catheter if the catheter is supplied on the written order of a specified professional for use by a consumer named in the order.
26 A supply of an article or material, not including a cosmetic, for use by a user of, and necessary for the proper application and maintenance of, a prosthesis, appliance or similar article described in section 25.
27 A supply of a cane or crutch that is specially designed for use by an individual with a disability.
28 A supply of a blood-glucose monitor or meter.
29 A supply of blood-sugar testing strips, blood-ketone testing strips, urinary-sugar testing strips, reagents or tablets, or urinary-ketone testing strips, reagents or tablets.
29.1 A supply of
(a) a blood coagulation monitor or meter specially designed for use by an individual requiring blood coagulation monitoring or metering; or
(b) blood coagulation testing strips or reagents compatible with a blood coagulation monitor or meter referred to in paragraph (a).
30 A supply of any article that is specially designed for the use of blind individuals if the article is supplied for use by a blind individual to or by the Canadian National Institute for the Blind or any other bona fide institution or association for blind individuals or on the order or certificate of a specified professional.
31 A supply of a prescribed property or service.
32 A supply of a part, accessory or attachment that is specially designed for a property described in this Part.
33 A supply of an animal that is or is to be specially trained to assist an individual with a disability or impairment with a problem arising from the disability or impairment, or a supply of a service of training an individual to use the animal, if the supply is made to or by an organization that is operated for the purpose of supplying such specially trained animals to individuals with the disability or impairment.
33.1 [Repealed, 2008, c. 28, s. 92]
34 A supply of a service (other than a service the supply of which is included in any provision of Part II of Schedule V except section 9 of that Part) of installing, maintaining, restoring, repairing or modifying a property the supply of which is included in any of sections 2 to 32 and 37 to 41 of this Part, or any part for such a property if the part is supplied in conjunction with the service.
35 A supply of a graduated compression stocking, an anti-embolic stocking or similar article if the stocking or article is supplied on the written order of a specified professional for use by a consumer named in the order.
36 A supply of clothing that is specially designed for use by an individual with a disability if the clothing is supplied on the written order of a specified professional for use by a consumer named in the order.
37 A supply of an incontinence product that is specially designed for use by an individual with a disability.
38 A supply of a feeding utensil or other gripping device that is specially designed for use by an individual with impaired use of hands or other similar disability.
39 A supply of a reaching aid that is specially designed for use by an individual with a disability.
40 A supply of a prone board that is specially designed for use by an individual with a disability.
41 A supply of a device that is specially designed for neuromuscular stimulation therapy or standing therapy, if supplied on the written order of a specified professional for use by a consumer with paralysis or a severe mobility impairment who is named in the order.
PART II.1
Other Products
1 A supply of a product that is marketed exclusively for feminine hygiene purposes and is a sanitary napkin, tampon, sanitary belt, menstrual cup or other similar product.
2 [Repealed, 2024, c. 17, s. 112]
3 [Repealed, 2024, c. 17, s. 112]
4 [Repealed, 2024, c. 17, s. 112]
5 [Repealed, 2024, c. 17, s. 112]
PART III
Basic Groceries
1 Supplies of food or beverages for human consumption (including sweetening agents, seasonings and other ingredients to be mixed with or used in the preparation of such food or beverages), other than supplies of
(a) wine, spirits, beer, malt liquor or other alcoholic beverages;
(b) cannabis products, as defined in section 2 of the Excise Act, 2001;
(c) carbonated beverages;
(d) non-carbonated fruit juice beverages or fruit flavoured beverages, other than milk-based beverages, that contain less than 25% by volume of
(i) a natural fruit juice or combination of natural fruit juices, or
(ii) a natural fruit juice or combination of natural fruit juices that have been reconstituted into the original state,
or goods that, when added to water, produce a beverage included in this paragraph;
(e) candies, confectionery that may be classed as candy, or any goods sold as candies, such as candy floss, chewing gum and chocolate, whether naturally or artificially sweetened, and including fruits, seeds, nuts and popcorn when they are coated or treated with candy, chocolate, honey, molasses, sugar, syrup or artificial sweeteners;
(f) chips, crisps, puffs, curls or sticks (such as potato chips, corn chips, cheese puffs, potato sticks, bacon crisps and cheese curls), other similar snack foods or popcorn and brittle pretzels, but not including any product that is sold primarily as a breakfast cereal;
(g) salted nuts or salted seeds;
(h) granola products, but not including any product that is sold primarily as a breakfast cereal;
(i) snack mixtures that contain cereals, nuts, seeds, dried fruit or any other edible product, but not including any mixture that is sold primarily as a breakfast cereal;
(j) ice lollies, juice bars, flavoured, coloured or sweetened ice waters, or similar products, whether frozen or not;
(k) ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, non-dairy substitutes for any of the foregoing, or any product that contains any of the foregoing, when packaged or sold in single servings;
(l) fruit bars, rolls or drops or similar fruit-based snack foods;
(m) cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products where
(i) they are prepackaged for sale to consumers in quantities of less than six items each of which is a single serving, or
(ii) they are not prepackaged for sale to consumers and are sold as single servings in quantities of less than six,
but not including bread products, such as bagels, English muffins, croissants or bread rolls, without sweetened filling or coating;
(n) beverages (other than unflavoured milk) or pudding, including flavoured gelatine, mousse, flavoured whipped dessert product or any other products similar to pudding, except
(i) when prepared and prepackaged specially for consumption by babies,
(ii) when sold in multiples, prepackaged by the manufacturer or producer, of single servings, or
(iii) when the cans, bottles or other primary containers in which the beverages or products are sold contain a quantity exceeding a single serving;
(o) food or beverages heated for consumption;
(o.1) salads not canned or vacuum sealed;
(o.2) sandwiches and similar products other than when frozen;
(o.3) platters of cheese, cold cuts, fruit or vegetables and other arrangements of prepared food;
(o.4) beverages dispensed at the place where they are sold;
(o.5) food or beverages sold under a contract for, or in conjunction with, catering services;
(p) food or beverages sold through a vending machine;
(q) food or beverages when sold at an establishment at which all or substantially all of the sales of food or beverages are sales of food or beverages included in any of paragraphs (a) to (p) except where
(i) the food or beverage is sold in a form not suitable for immediate consumption, having regard to the nature of the product, the quantity sold or its packaging, or
(ii) in the case of a product described in paragraph (m),
(A) the product is prepackaged for sale to consumers in quantities of more than five items each of which is a single serving, or
(B) the product is not prepackaged for sale to consumers and is sold as single servings in quantities of more than five,
and is not sold for consumption at the establishment; and
(r) unbottled water, other than ice.
2 A supply of unbottled water for human consumption made to a consumer, when the water is dispensed to the consumer in a quantity exceeding a single serving through a vending machine or at a permanent establishment of the supplier.
PART IV
Agriculture and Fishing
1 A supply of farm livestock (other than rabbits), poultry or bees that are ordinarily raised or kept to produce, or to be used as, food for human consumption or to produce wool.
1.1 A supply of a rabbit made by a person otherwise than in the course of a business in the course of which the person regularly supplies animals as pets to consumers.
2 A supply of
(a) grains or seeds (other than viable seeds that are cannabis as defined in subsection 2(1) of the Cannabis Act) in their natural state, treated for seeding purposes or irradiated for storage purposes,
(b) hay or silage, or
(c) other fodder crops,
that are ordinarily used as, or to produce, food for human consumption or feed for farm livestock or poultry, when supplied in a quantity that is larger than the quantity that is ordinarily sold or offered for sale to consumers, but not including grains or seeds or mixtures thereof that are packaged, prepared or sold for use as feed for wild birds or as pet food.
2.1 A supply of feed, made by the operator of a feedlot, that is deemed to be a separate supply under paragraph 164.1(2)(a) of the Act.
3 A supply of hops, barley, flax seed, straw, sugar cane or sugar beets.
3.1 A supply of grain or seeds, or of mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if
(a) in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food;
(b) in the case of viable grain or seeds, they are included in the definition industrial hemp in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act or they are industrial hemp for the purposes of the Cannabis Act; and
(c) the supply is made in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, if applicable.
4 A supply of poultry or fish eggs that are produced for hatching purposes.
5 A supply of fertilizer (other than a good sold as soil or as a soil mixture, whether or not containing fertilizer) made at any time to a recipient when the fertilizer is supplied
(a) in bulk, or
(b) in a container that contains at least 25 kg of fertilizer,
where the total quantity of fertilizer supplied at that time to the recipient is at least 500 kg.
6 A supply of wool, not further processed than washed.
7 A supply of tobacco leaves, not further processed than dried and sorted.
8 A supply of fish or other marine or freshwater animals not further processed than frozen, salted, smoked, dried, scaled, eviscerated or filleted, other than any such animal that is
(a) not ordinarily used as food for human consumption; or
(b) sold as bait in recreational fishing.
9 A supply made to a registrant of farmland by way of lease, licence or similar arrangement, to the extent that the consideration for the supply is a share of the production from the farmland of property the supply of which is a zero-rated supply.
10 A supply of prescribed property.
PART V
Exports
1 A supply of tangible personal property (other than an excisable good) made by a person to a recipient (other than a consumer) who intends to export the property where
(a) in the case of property that is a continuous transmission commodity that the recipient intends to export by means of a wire, pipeline or other conduit, the recipient is not registered under Subdivision D of Division V of Part IX of the Act;
(b) the recipient exports the property as soon after the property is delivered by the person to the recipient as is reasonable having regard to the circumstances surrounding the exportation and, where applicable, to the normal business practice of the recipient;
(c) the property is not acquired by the recipient for consumption, use or supply in Canada before the exportation of the property by the recipient;
(d) after the supply is made and before the recipient exports the property, the property is not further processed, transformed or altered in Canada except to the extent reasonably necessary or incidental to its transportation; and
(e) the person maintains evidence satisfactory to the Minister of the exportation of the property by the recipient.
1.1 A taxable supply made by way of sale to a recipient (other than a consumer) who is registered under Subdivision D of Division V of Part IX of the Act of tangible personal property (other than property that is an excisable good or is a continuous transmission commodity that is to be transported by or on behalf of the recipient by means of a wire, pipeline or other conduit), where
(a) the recipient provides the supplier with an export certificate (within the meaning of section 221.1 of the Act), certifying that an authorization to use the certificate granted to the recipient under that section is in effect at the time the supply is made, and discloses to the supplier the number referred to in subsection 221.1(4) of the Act and the expiry date of the authorization; and
(b) if an authorization granted by the Minister to use the certificate is not, in fact, in effect at the time the supply is made or the recipient does not export the property in the circumstances described in paragraphs 1(b) to (d), it is the case that the supplier did not know and could not reasonably be expected to have known, at or before the latest time at which tax in respect of the supply would have become payable if the supply were not a zero-rated supply, that the authorization was not in effect at the time the supply was made or that the recipient would not so export the property.
1.2 A taxable supply made by way of sale to a recipient who is registered under Subdivision D of Division V of Part IX of the Act of property (other than property that is an excisable good or is a continuous transmission commodity that is to be transported by or on behalf of the recipient by means of a wire, pipeline or other conduit), where
(a) the recipient provides the supplier with an export distribution centre certificate (within the meaning of section 273.1 of the Act), certifying that an authorization to use the certificate granted to the recipient under that section is in effect at the time the supply is made and that the property is being acquired for use or supply as domestic inventory or as added property of the recipient (as those expressions are defined in that section), and discloses to the supplier the number referred to in subsection 273.1(9) of the Act and the expiry date of the authorization;
(b) the total amount, included in a single invoice or agreement, of the consideration for that supply and for all other supplies, if any, that are made to the recipient and are otherwise included in this section is at least $1000; and
(c) if an authorization granted by the Minister to use the certificate is not, in fact, in effect at the time the supply is made or the recipient is not acquiring the property for use or supply as domestic inventory or as added property (as those expressions are defined in that section) in the course of commercial activities of the recipient, it is the case that, at or before the latest time at which tax in respect of the supply would have become payable if the supply were not a zero-rated supply, the supplier did not know, and could not reasonably be expected to have known, that the authorization was not in effect at the time the supply was made or that the recipient was not acquiring the property for that purpose.
2 A supply of property or a service (other than a supply of real property by way of sale) made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, where the property or service is acquired by the person for consumption, use or supply
(a) where the person carries on a business of transporting passengers or property to or from Canada or between places outside Canada by ship, aircraft or railway, in the course of so transporting passengers or property;
(b) in the course of operating a ship or aircraft by or on behalf of a government of a country other than Canada; or
(c) in the course of operating a ship for the purpose of obtaining scientific data outside Canada or for the laying or repairing of oceanic telegraph cables.
2.1 A supply of fuel made to a person who is registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, where
(a) the person carries on a business of transporting passengers or property to or from Canada or between places outside Canada by ship, aircraft or railway; and
(b) the fuel is acquired by the person for use in the course of so transporting passengers or property.
2.2 A supply of an air navigation service (as defined in subsection 2(1) of the Civil Air Navigation Services Commercialization Act) made to a person who is registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, if
(a) the person carries on a business of transporting passengers or property to or from Canada, or between places outside Canada, by aircraft; and
(b) the service is acquired by the person for use in the course of so transporting passengers or property.
3 A supply of an excisable good if the recipient exports the good without the payment of duty in accordance with the Excise Act or the Excise Act, 2001.
4 A supply of
(a) a service (other than a transportation service) in respect of tangible personal property that is
(i) ordinarily situated outside Canada,
(ii) temporarily imported for the sole purpose of having the service performed, and
(iii) exported as soon as is practicable after the service is performed; and
(b) any tangible personal property supplied in conjunction with the service.
5 A supply made to a non-resident person of a service of acting as an agent of the person or of arranging for, procuring or soliciting orders for supplies by or to the person, where the service is in respect of
(a) a supply to the person that is included in any other section of this Part; or
(b) a supply made outside Canada by or to the person.
6 A supply made by a person to a non-resident recipient of an emergency repair service, and of any tangible personal property supplied in conjunction with the service, in respect of a conveyance or cargo container that is being used or transported by the person in the course of a business of transporting passengers or property.
6.1 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of an emergency repair service, and of any tangible personal property supplied in conjunction with the service, in respect of railway rolling stock that is being used in the course of a business to transport passengers or property.
6.2 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of
(a) an emergency repair service in respect of, or a service of storing, an empty cargo container that
(i) is used in transporting property to or from Canada, and
(ii) is classified under heading No. 98.01 or subheading No. 9823.90 of Schedule I to the Customs Tariff,
other than a container less than 6.1 metres in length or having an internal capacity less than 14 cubic metres; and
(b) any tangible personal property supplied in conjunction with the repair service referred to in paragraph (a).
6.3 A supply made to a non-resident person that is not registered under Subdivision D of Division V of Part IX of the Act of
(a) a service of refining a metal to produce a precious metal; or
(b) an assaying, gem removal or similar service supplied in conjunction with the service referred to in paragraph (a).
7 A supply of a service made to a non-resident person, but not including a supply of
(a) a service made to an individual who is in Canada at any time when the individual has contact with the supplier in relation to the supply;
(a.1) a service that is rendered to an individual while that individual is in Canada;
(b) an advisory, consulting or professional service;
(c) a postal service;
(d) a service in respect of real property situated in Canada;
(e) a service in respect of tangible personal property that is situated in Canada at the time the service is performed;
(f) a service of acting as an agent of the non-resident person or of arranging for, procuring or soliciting orders for supplies by or to the person;
(g) a transportation service; or
(h) a telecommunication service.
8 A supply of a service of advertising made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the service is performed.
9 A supply made to a non-resident person of an advisory, consulting or research service that is intended to assist the person in taking up residence or establishing a business venture in Canada.
10 A supply of an invention, patent, trade secret, trademark, trade-name, copyright, industrial design or other intellectual property or any right, licence or privilege to use any such property, where the recipient is a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made.
10.1 A supply of intangible personal property made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, but not including
(a) a supply made to an individual unless the individual is outside Canada at that time;
(b) a supply of intangible personal property that relates to
(i) real property situated in Canada,
(ii) tangible personal property ordinarily situated in Canada, or
(iii) a service the supply of which is made in Canada and is not a zero-rated supply described by any section of this Part or Part VII or IX;
(c) a supply that is the making available of a telecommunications facility that is intangible personal property for use in providing a service described in paragraph (a) of the definition telecommunication service in subsection 123(1) of the Act;
(d) a supply of intangible personal property that may only be used in Canada; or
(e) a prescribed supply.
11 A supply of tangible personal property made by a person operating a duty free shop licensed as such under the Customs Act to an individual at a duty free shop for export by the individual.
12 A supply of tangible personal property (other than a continuous transmission commodity that is being transported by means of a wire, pipeline or other conduit) if the supplier
(a) ships the property to a destination outside Canada that is specified in the contract for carriage of the property;
(b) transfers possession of the property to a common carrier or consignee that has been retained, to ship the property to a destination outside Canada, by
(i) the supplier on behalf of the recipient, or
(ii) the recipient’s employer; or
(c) sends the property by mail or courier to an address outside Canada.
13 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of
(a) tangible personal property, or a service performed in respect of tangible personal or real property, if the property or service is acquired by the person for the purpose of fulfilling an obligation of the person under a warranty; or
(b) tangible personal property, where the supply is deemed under section 179 of the Act to have been made as a consequence of a transfer of possession of the property in the performance of an obligation of the person under a warranty.
14 (1) In this section,
die means a solid or hollow form used for shaping materials by stamping, pressing, extruding, drawing or threading;
fixture means a device for holding goods in process while working tools are in operation that does not contain any special arrangement for guiding the working tools;
jig means a device used in the accurate machining of goods in process by holding the goods firmly and guiding tools exactly to position;
mould means a hollow form, matrix or cavity into which materials are placed to produce goods of desired shapes;
tool means a device for use in, or attachment to, production machinery that is for the assembling of materials or the working of materials by turning, milling, grinding, polishing, drilling, punching, boring, shaping, shearing, pressing or planing.
(2) A supply of property that is a jig, die, mould, tool or fixture, or an interest therein, made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, where the property is to be used directly in the manufacture or production of tangible personal property for the non-resident person.
15 A supply of natural gas made by a person to a recipient who is not registered under Subdivision D of Division V of Part IX of the Act and who intends to export the gas by pipeline, if
(a) the recipient
(i) exports the gas, or
(ii) receives a supply, included in section 15.3, of a service provided for a period in respect of the gas and subsequently exports the gas,
as soon after the gas is delivered to the recipient by the supplier of the gas, or, if subparagraph (ii) applies, after the gas is delivered to the recipient on the expiry of the period, as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, to the normal business practice of the recipient;
(b) the gas is not acquired by the recipient for consumption or use in Canada (other than by a carrier as fuel or compressor gas to transport the gas by pipeline) or for supply in Canada (other than to supply natural gas liquids or ethane as described in subsection 153(6) of the Act) before the exportation of the gas by the recipient;
(c) after the supply is made, and before the exportation, the gas is not, except to the extent reasonably necessary or incidental to its transportation, further processed, transformed or altered in Canada other than to recover natural gas liquids or ethane from the gas at a straddle plant; and
(d) the person maintains evidence satisfactory to the Minister of the exportation of the gas by the recipient.
15.1 A supply of
(a) a continuous transmission commodity made by a supplier (in this section referred to as the “first seller”) to a person (in this section referred to as the “first buyer”) who is not registered under Subdivision D of Division V of Part IX of the Act, if
(i) the first buyer makes a supply of the commodity to a registrant and delivers it in Canada to the registrant,
(ii) all or part of the consideration for the first buyer’s supply of the commodity to the registrant is property of the same class or kind delivered to the first buyer outside Canada,
(iii) between the time at which the commodity is delivered to the first buyer and the time at which the first buyer delivers it to the registrant,
(A) the first buyer does not use the commodity except, in the case of natural gas, to the extent that it is used by a carrier as fuel or compressor gas to transport the gas by pipeline, and
(B) the commodity is not (except to the extent reasonably necessary or incidental to its transportation) further processed, transformed or altered other than, in the case of natural gas, to recover natural gas liquids or ethane from the gas at a straddle plant,
(iv) between the time at which the first seller’s supply is made and the time at which the registrant receives delivery of the commodity, the commodity is not transported by any means other than a wire, pipeline or other conduit, and
(v) the first seller maintains evidence satisfactory to the Minister of the first buyer’s supply of the commodity to the registrant; and
(b) any service, supplied by the registrant to the first buyer, of arranging for or effecting the exchange of the commodity for the property of the same class or kind, if the first buyer is a non-resident person.
15.2 A particular supply made by a supplier to a recipient who is registered under Subdivision D of Division V of Part IX of the Act of a continuous transmission commodity, if the recipient provides the supplier with a declaration in writing that
(a) the recipient intends to export the commodity by means of a wire, pipeline or other conduit in the circumstances described in
(i) in the case of natural gas, paragraphs 15(a) to (c), and
(ii) in any other case, paragraphs 1(b) to (d), or
(b) the recipient intends to supply the commodity in the circumstances described in subparagraphs 15.1(a)(i) to (iv),
provided that, if the recipient subsequently neither exports the commodity as described in paragraph (a) nor supplies it as described in paragraph (b), it is the case that the supplier did not know, and could not reasonably be expected to have known, at or before the latest time at which tax in respect of the particular supply would have become payable if the supply were not a zero-rated supply, that the recipient would neither so export nor so supply the commodity.
15.3 A supply made by a person to a non-resident recipient who is not registered under Subdivision D of Division V of Part IX of the Act of a service of storing natural gas for a period, or of taking up surplus natural gas of the recipient for a period, and returning the gas to the recipient at the end of the period, if
(a) at the end of the period, the gas is to be delivered to the recipient for export;
(b) at the end of the period, the recipient holds a valid licence or order for the export of the natural gas issued under the Canadian Energy Regulator Act; and
(c) it is not the case that, at or before the latest time at which tax in respect of the supply would have become payable if the supply were not a zero-rated supply, the person knew or could reasonably be expected to have known either that
(i) the recipient would not export the gas as soon after the end of the period as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, to the normal business practice of the recipient, or
(ii) the gas would not be exported
(A) in the same measure as was stored or taken up except for any loss due to its use by a carrier as fuel or compressor gas for transporting the gas by pipeline, and
(B) in the same state except to the extent of any processing or alteration reasonably necessary or incidental to its transportation or necessary to recover natural gas liquids or ethane from the gas at a straddle plant.
15.4 A supply made by a supplier to a non-resident recipient who is not registered under Subdivision D of Division V of Part IX of the Act of a service of taking up surplus electricity of the recipient for a period and returning the electricity to the recipient at the end of the period or of deferring delivery of electricity supplied to the recipient at the beginning of a period until the end of the period, if
(a) the electricity is exported by the supplier or recipient
(i) in the same measure and state except for any consumption or alteration reasonably necessary or incidental to its transportation, and
(ii) as soon after the end of the period as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, to the normal business practice of the exporter; and
(b) at the end of the period, the requirement under the Canadian Energy Regulator Act with respect to the holding of a valid licence, order or permit for the export of the electricity issued under that Act is met.
16 A supply of tangible personal property made by way of sale to a person operating a duty free shop licensed as such under the Customs Act where the person acquires the property as inventory for supply by way of sale at the shop to an individual for export by the individual and the person provides the supplier with the licence number of the shop.
17 A supply made to a non-resident person of a custodial or nominee service in respect of securities or precious metals of the person.
18 A supply made to a non-resident person, other than an individual, who is not registered under Subdivision D of Division V of Part IX of the Act of a service of instructing non-resident individuals in, or administering examinations in respect of, courses leading to certificates, diplomas, licences or similar documents, or classes or ratings in respect of licences, that attest to the competence of the individuals to whom the service is rendered or the examination is administered to practise or perform a trade or vocation.
19 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of a service of destroying or discarding tangible personal property.
20 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of a service of dismantling property for the purpose of exporting the property.
21 A supply made to a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act of a service of testing or inspecting tangible personal property that is imported or acquired in Canada for the sole purpose of having the service performed and that is to be destroyed or discarded in the course of providing, or on completion of, the service.
22 A supply of a postal service where the supply is made, by a registrant who carries on the business of supplying postal services, to a non-resident person who is not a registrant and who carries on such a business.
22.1 A supply of a telecommunication service where the supply is made, by a registrant who carries on the business of supplying telecommunication services, to a non-resident person who is not a registrant and who carries on such a business, but not including a supply of a telecommunication service where the telecommunication is emitted and received in Canada.
23 A supply of an advisory, professional or consulting service made to a non-resident person, but not including a supply of
(a) a service rendered to an individual in connection with criminal, civil or administrative litigation in Canada, other than a service rendered before the commencement of such litigation;
(b) a service in respect of real property situated in Canada;
(c) a service in respect of tangible personal property that is situated in Canada at the time the service is performed; or
(d) a service of acting as an agent of the non-resident person or of arranging for, procuring or soliciting orders for supplies by or to the person.
23.1 A supply of a service of rendering to individuals technical or customer support by means of telecommunications if the supply is made to a non-resident person that is not registered under Subdivision D of Division V of Part IX of the Act and is not a consumer of the service, but not including a supply of
(a) an advisory, consulting or professional service; or
(b) a service of acting as an agent of the non-resident person or of arranging for, procuring or soliciting orders for supplies by or to the non-resident person.
24 For the purposes of this Part,
(a) a floating home, and
(b) a mobile home that is not affixed to land
shall each be deemed to be tangible personal property and not real property.
PART VI
Travel Services
1 A supply of the part of a tour package that is not the taxable portion of the package.
PART VII
Transportation Services
1 (1) In this Part,
carrier[Repealed, 1993, c. 27, s. 197]
continuous freight movement means the transportation of tangible personal property by one or more carriers to a destination specified by the shipper of the property, where all freight transportation services supplied by the carriers are supplied as a consequence of instructions given by the shipper of the property;
continuous journey of an individual or a group of individuals means the set of all passenger transportation services provided to the individual or group
(a) and for which a single ticket or voucher in respect of all the services is issued, or
(b) where 2 or more tickets or vouchers are issued in respect of 2 or more legs of a single journey of the individual or group on which there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued, and all the tickets or vouchers are issued by the same supplier or by 2 or more suppliers through one agent acting on behalf of all the suppliers where
(i) all such tickets are supplied at the same time and evidence satisfactory to the Minister is maintained by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued, or
(ii) the tickets or vouchers are issued at different times and evidence satisfactory to the Minister is submitted by the supplier or agent that there is no stopover between any of the legs of the journey for which separate tickets or vouchers are issued;
continuous outbound freight movement means the transportation of tangible personal property by one or more carriers from a place in Canada
(a) to a place outside Canada, or
(b) to another place in Canada from which the property is to be exported,
if, after the shipper of the property transfers possession of the property to a carrier and before the property is exported, it is not (except to the extent reasonably necessary or incidental to its transportation) further processed, transformed or altered in Canada, other than, in the case of natural gas being transported by pipeline, to recover natural gas liquids or ethane from the gas at a straddle plant;
destination, in respect of a continuous freight movement of property, means a place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper;
freight transportation service means a particular service of transporting tangible personal property including
(a) a service of delivering mail,
(a.1) a service of driving an automotive vehicle designed or adapted to be used on highways and streets for the purpose of delivering the vehicle to a destination, and
(b) any other property or service supplied to the recipient of the particular service by the person who supplies the particular service, where the other property or service is part of or incidental to the particular service, whether there is a separate charge for the other property or service,
but not including a service provided by the supplier of a passenger transportation service of transporting an individual’s baggage in connection with the passenger transportation service;
international flight[Repealed, 1997, c. 10, s. 147]
origin means
(a) in respect of a continuous freight movement, the place where the first carrier that engaged in the continuous freight movement takes possession of the property being transported, and
(b) in respect of a continuous journey, the place where the passenger transportation service that is included in the continuous journey and that is first provided begins;
place outside Canada, in respect of a freight transportation service, includes at a particular time a place in Canada if, at that time, the property being transported has been imported but has not been released and the property is being transported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls or regulates the importation of goods;
shipper of tangible personal property means the person who, in respect of a continuous freight movement or a continuous outbound freight movement, transfers possession of the property being shipped to a carrier at the origin of the freight movement and, for greater certainty, does not include a person who is a carrier of the property to which the freight movement relates;
stopover, in respect of a continuous journey of an individual or a group of individuals, means any place at which the individual or group embarks or disembarks a conveyance used in the provision of a passenger transportation service included in the continuous journey, for any reason other than transferring to another conveyance or to allow for servicing or refuelling of the conveyance;
tangible personal property includes money;
taxation area means Canada, the United States (except Hawaii) and the islands of St. Pierre and Miquelon;
termination of a continuous journey means the place where the passenger transportation service that is included in the continuous journey and that is last provided ends.
(2) For the purposes of this Part, where in respect of a continuous freight movement several carriers supply freight transportation services in the course of the continuous freight movement, and the shipper or the consignee of the property is, under the contract of carriage for the continuous freight movement, required to pay a particular carrier that is one of those carriers a particular amount that is part or all of the consideration for the freight transportation services supplied by those several carriers,
(a) the particular carrier is deemed to have made a supply of a freight transportation service, having the same destination as the continuous freight movement, to the shipper or consignee, as the case may be, for consideration equal to the particular amount, whether the particular amount includes an amount paid to the particular carrier as agent of any of the other several carriers;
(b) the shipper or consignee, as the case may be, shall be deemed to have received a supply of a freight transportation service from the particular carrier for consideration equal to the particular amount and not to have received a freight transportation service from any of the other several carriers; and
(c) to the extent that any part of the particular amount is paid by one of the several carriers (in this paragraph referred to as the “first carrier”) to another of the several carriers, the first carrier shall be deemed to be the recipient of freight transportation services supplied by the other carriers in relation to the continuous freight movement and, to the same extent, the other carriers shall be deemed to have supplied those freight transportation services to the first carrier and not to the shipper or consignee.
2 A supply of a passenger transportation service that is provided to an individual or a group of individuals and that is part of a continuous journey of the individual or group, other than a continuous journey that includes transportation by air, where
(a) the origin or termination of the continuous journey is outside Canada, or
(b) there is a stopover outside Canada,
but not including a passenger transportation service that is part of a continuous journey if both the origin and the termination of the journey are in Canada and, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.
3 A supply of a passenger transportation service that is provided to an individual or a group of individuals and that is part of a continuous journey of the individual or group that includes transportation by air, where
(a) the origin or termination of the continuous journey, or any stopover in respect thereof, is outside the taxation area;
(b) the origin and termination of the continuous journey, and all stopovers in respect thereof, are outside Canada;
(c) the origin of the continuous journey is within the taxation area, but outside Canada; or
(d) all places at which the individual or group embarks or disembarks an aircraft are outside Canada and the origin or termination of the continuous journey, or any stopover in respect thereof, is outside Canada.
4 A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service included in section 2 or 3:
(a) a service of transporting an individual’s baggage; and
(b) a service of supervising an unaccompanied child.
5 A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service that would, if it were completed in accordance with the agreement for that supply, be included in section 2 or 3.
5.1 A supply to a person of a service of acting as an agent in making a supply on behalf of that person of a service that would, if it were completed in accordance with the agreement for that supply, be included in any of sections 2 to 5.
6 A supply of a freight transportation service in respect of the transportation of tangible personal property from a place in Canada to a place outside Canada where the value of the consideration for the supply is $5 or more.
7 A supply made by a carrier of a freight transportation service in respect of the transportation of tangible personal property from a place in Canada to another place in Canada, where
(a) the shipper of the property provides the carrier with a declaration in prescribed form that the property is being shipped for export and that the freight transportation service to be supplied by the carrier is part of a continuous outbound freight movement in respect of the property;
(b) the property is exported and the service is part of a continuous outbound freight movement in respect of the property; and
(c) the value of the consideration for the supply is $5 or more.
8 A supply of a freight transportation service in respect of the transportation of tangible personal property from a place outside Canada to a place in Canada.
9 A supply of a freight transportation service in respect of the transportation of tangible personal property from a place outside Canada to another place outside Canada.
10 A supply of a particular freight transportation service from a place in Canada to another place in Canada that is part of a continuous freight movement from an origin outside Canada to a destination in Canada, where the supplier of the service maintains documentary evidence satisfactory to the Minister that the service is part of a continuous freight movement from an origin outside Canada to a destination in Canada.
11 A supply of a freight transportation service made by a carrier of the property being transported to a second carrier of the property being transported, where the service is part of a continuous freight movement and the second carrier is neither the shipper nor the consignee of the property being transported.
12 A supply of a service of acting as an agent for a non-resident person who is not registered under Subdivision D of Division V of Part IX of the Act at the time the supply is made, to the extent that the service is in respect of a supply to that person of a freight transportation service that is included in section 6, 7, 8, 9 or 10.
13 A supply by a licensee under paragraph 24(1)(a) of the Customs Act of a service of warehousing imported goods at a sufferance warehouse operated by the licensee, where the purpose of the service is to enable examination of the goods before their release.
14 A supply of a service of ferrying by watercraft passengers or property to or from a place outside Canada, where the principal purpose of the ferrying is to transport motor vehicles and passengers between parts of a road or highway system that are separated by a stretch of water.
15 A supply of an air ambulance service made by a person who carries on the business of supplying air ambulance services, where the transportation is to or from a place outside Canada.
PART VIII
International Organizations
1 [Repealed, 2013, c. 33, s. 52]
2 A supply of property or a service to an international bridge or tunnel authority for use in the construction of a bridge or tunnel that crosses the boundary between Canada and the United States.
PART IX
Financial Services
1 A supply of a financial service (other than a supply that is included in section 2) made by a financial institution to a non-resident person, except where the service relates to
(a) a debt that arises from
(i) the deposit of funds in Canada, where the instrument issued as evidence of the deposit is a negotiable instrument, or
(ii) the lending of money that is primarily for use in Canada;
(b) a debt for all or part of the consideration for a supply of real property that is situated in Canada;
(c) a debt for all or part of the consideration for a supply of personal property that is for use primarily in Canada;
(d) a debt for all or part of the consideration for a supply of a service that is to be performed primarily in Canada; or
(e) a financial instrument (other than an insurance policy or a precious metal) acquired, otherwise than directly from a non-resident issuer, by the financial institution acting as a principal.
2 A supply made by a financial institution of a financial service that relates to an insurance policy issued by the institution (other than a service that relates to investments made by the institution), to the extent that
(a) where the policy is a life or accident and sickness insurance policy (other than a group policy), it is issued in respect of an individual who at the time the policy becomes effective, is a non-resident individual;
(b) where the policy is a group life or accident and sickness insurance policy, it relates to non-resident individuals who are insured under the policy;
(c) where the policy is a policy in respect of real property, it relates to property situated outside Canada; and
(d) where the policy is a policy of any other kind, it relates to risks that are ordinarily situated outside Canada.
3 A supply of a financial service that is the supply of precious metals where the supply is made by the refiner thereof or by the person on whose behalf the precious metals were refined.
PART X
Collection of Customs Duties
1 A supply made by Canada Post Corporation of a service under an agreement made with the Minister of Public Safety and Emergency Preparedness under subsection 147.1(3) of the Customs Act.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1990, c. 45, s. 18; 1992, c. 28, s. 41; 1993, c. 27, ss. 178 to 199; 1994, c. 9, ss. 29 to 32; 1997, c. 10, ss. 118 to 149, 253; 2000, c. 30, ss. 123 to 134; 2001, c. 15, ss. 29, 30; 2002, c. 22, s. 391; 2005, c. 38, ss. 108, 145; 2007, c. 18, ss. 57, 58, c. 29, s. 52; 2008, c. 28, ss. 85 to 93; 2010, c. 12, ss. 88, 89; 2012, c. 19, ss. 31 to 43, 418; 2013, c. 33, ss. 51, 52; 2014, c. 20, ss. 61, 366(E), c. 39, s. 98; 2016, c. 7, ss. 69 to 71, c. 12, s. 93; 2017, c. 20, s. 41; 2018, c. 12, ss. 97 to 99
- 2019, c. 28, s. 100
- 2019, c. 29, s. 76
- 2019, c. 29, s. 77
- 2021, c. 23, s. 114
- 2021, c. 23, s. 115
- 2023, c. 26, s. 122
- 2024, c. 17, s. 112
- Date modified: