New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Services in relation to tangible personal property

16 If a person makes a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed and, at any time during the period when the Canadian element of the service is performed, the tangible personal property does not remain in the province in which it was situated at the particular time, the supply is made

• (a) in a participating province if the tangible personal property is situated primarily in participating provinces at any time when the service is performed, the Canadian element of the service is performed primarily in participating provinces and

  • (i) an equal or greater proportion of the service is not performed in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and

• (b) in a non-participating province if the tangible personal property is not situated primarily in participating provinces at all times when the service is performed or the Canadian element of the service is not performed primarily in participating provinces.

Marginal note:Personal services

17 A supply of a service (other than an advisory, consulting or professional service) all or substantially all of which is performed in the presence of the individual to whom it is rendered is made

• (a) in a participating province if the Canadian element of the service is performed primarily in participating provinces and

  • (i) an equal or greater proportion of the service is not performed in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and

• (b) in a non-participating province if the Canadian element of the service is not performed primarily in participating provinces.

Marginal note:Same highest rate

18 If a supply of a service cannot be determined under any of subparagraphs 13(2)(a)(ii), 14(a)(ii), 15(a)(ii), 16(a)(ii) and 17(a)(ii) to be made in a single participating province because the tax rates for two or more participating provinces (each of which is referred to in this section as a “specified province”) are the same, the supply is made in the specified province where the business address of the supplier that is most closely connected with the supply is located or, if the business address of the supplier that is most closely connected with the supply is not located in one of the specified provinces, in the specified province that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.

DIVISION 4Transportation Services

Marginal note:Application

19 This Division applies despite Divisions 2 and 3.

Marginal note:Definitions

20 The following definitions apply in this Division.

leg

leg of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes. (étape)

origin

origin of a continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (point d’origine)

stopover

stopover, in respect of a continuous journey, has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, 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. (escale)

termination

termination of a continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (destination finale)

Marginal note:Passenger transportation services

21 A supply of a passenger transportation service is made

• (a) in a participating province if the passenger transportation service

  • (i) is part of a continuous journey in respect of which there is a ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the origin is a place in the participating province, and

    • (B) the termination and all stopovers in respect of the continuous journey are in Canada,

  • (ii) is part of a continuous journey in respect of which there is no ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the passenger transportation service included in the continuous journey that is provided first cannot begin otherwise than in the participating province, and

    • (B) the termination and all stopovers in respect of the continuous journey are in Canada, or

  • (iii) is not part of a continuous journey and

    • (A) the passenger transportation service begins in the participating province, and

    • (B) the passenger transportation service ends in Canada; and

• (b) in a non-participating province if the passenger transportation service

  • (i) is part of a continuous journey in respect of which there is a ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the origin is a place outside the participating provinces, or

    • (B) the termination or a stopover in respect of the continuous journey is outside Canada,

  • (ii) is part of a continuous journey in respect of which there is no ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the passenger transportation service included in the continuous journey that is provided first cannot begin in a participating province, or

    • (B) the termination or a stopover in respect of the continuous journey is outside Canada, or

  • (iii) is not part of a continuous journey and

    • (A) the passenger transportation service begins outside the participating provinces, or

    • (B) the passenger transportation service ends outside Canada.

Marginal note:Passenger transportation pass — special case

• 22 (1) If, at the time when a supply of intangible personal property that is, or is similar to, a passenger transportation pass entitling an individual to one or more passenger transportation services is made, the supplier can determine that each passenger transportation service could not begin otherwise than in the same participating province and would terminate in Canada, the supply of the intangible personal property is made in that participating province.

• Marginal note:Passenger transportation pass — special case

  (2) If, at the time when a supply of intangible personal property that is, or is similar to, a passenger transportation pass entitling an individual to one or more passenger transportation services is made, the supplier can determine that each passenger transportation service could not begin otherwise than in a non-participating province or would terminate outside Canada, the supply of the intangible personal property is made in a non-participating province.

Marginal note:Property or services supplied on board a conveyance

23 If a supply of property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and the property or service is delivered, performed or made available on board the conveyance during any leg of the journey that begins in any province and ends in any province, the supply is made in the province in which that leg of the journey begins.

DIVISION 5Special Cases

Marginal note:Application

24 This Division applies despite Divisions 2 and 3.

Marginal note:Customs brokerage services

• 25 (1) If a supply of a service is made in respect of the importation of goods and the service is the arranging for their release (as defined in subsection 2(1) of the Customs Act) or the fulfilling, in respect of the importation, of any requirement under that Act or the Customs Tariff to account for the goods, to report, to provide information or to remit any amount,

  • (a) if the goods are accounted for as commercial goods (as defined in subsection 212.1(1) of the Act) under section 32 of the Customs Act, the supply is made in the province in which the goods are situated at the time of their release;

  • (b) if paragraph (a) does not apply and tax, calculated at the tax rate for a participating province, is imposed under subsection 212.1(2) of the Act, or would be so imposed if subsections 212.1(3) and (4) and section 213 of the Act did not apply, in respect of the importation, the supply is made in that participating province; and

  • (c) in any other case, the supply is made in a non-participating province.

• Marginal note:Exception

  (2) Subsection (1) does not apply to the supply of any service provided in relation to an objection, appeal, redetermination, re-appraisal, review, refund, abatement, remission or drawback, or in relation to a request for any of the foregoing.

Marginal note:Railway rolling stock

• 26 (1) A supply of railway rolling stock otherwise than by way of sale is made in a particular province if the supplier delivers the rolling stock or makes it available to the recipient of the supply in that province.

• Marginal note:Place of supply for lease interval

  (2) If a supply of railway rolling stock is made in a particular province by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1) of the Act) in the period during which possession or use of the rolling stock is provided under the arrangement, the supply of the rolling stock for each of the other lease intervals in that period is, despite subsection (1), made in that province.

• Marginal note:Renewal of agreement

  (3) Subject to subsections (4) to (6), for the purposes of this section, if continuous possession or use of railway rolling stock is given by a supplier to a recipient throughout a period under two or more successive leases, licenses or similar arrangements entered into between the supplier and the recipient, the rolling stock is deemed to have been delivered or made available to the recipient under each of those arrangements at the location at which it is delivered or made available to the recipient under the first of those arrangements.

• Marginal note:Agreements entered into before April 1, 1997

  (4) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 1997 and, under the particular agreement, the rolling stock was delivered or made available to the recipient before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

• Marginal note:Agreements entered into before July 1, 2010

  (5) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on July 1, 2010 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Ontario or British Columbia before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

• Marginal note:Agreements entered into before April 1, 2013

  (6) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 2013 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Prince Edward Island before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

Marginal note:Services rendered in connection with litigation

27 A supply of a service rendered in connection with criminal, civil or administrative litigation (other than a service rendered before the commencement of such litigation) that is under the jurisdiction of a court or other tribunal established under the laws of a province, or in the nature of an appeal from a decision of a court or other tribunal established under the laws of a province, is made in that province.

Marginal note:Services in relation to a location-specific event

28 A supply of a service in relation to a performance, athletic or competitive event, festival, ceremony, conference or similar event is made in a province if the service is to be performed primarily at a location of the event in the province.

Marginal note:Photographic-related good, repair service, etc.

29 If a supplier receives particular tangible personal property of another person for the purpose of supplying a service of repairing, maintaining, cleaning, adjusting or altering the property or of producing a negative, transparency, photographic print or other photographic-related good, the supply of the service (and of any property supplied in connection with it) or of the photographic-related good is made in a particular province if the supplier delivers the particular tangible personal property or the photographic-related good, as the case may be, in that province to the recipient of the supply after the service or production of the photographic-related good is completed.

Marginal note:Service of trustee of RRSP, RRIF, RESP, RDSP or TFSA

30 A supply of a service in respect of a trust governed by an RRSP, an RRIF, an RESP, an RDSP or a TFSA provided by a trustee of the trust is made in a particular province if the mailing address of the annuitant of the RRSP or RRIF, of the subscriber of the RESP or of the holder of the RDSP or TFSA is in that province.

Marginal note:1-900 or 976 service

31 A supply of a service provided by telephone and accessed by calling a number beginning with the digits 1-900 or containing the local telephone prefix 976 is made in a particular province if the telephone call originates in that province.

Marginal note:Single final recipient of computer-related service or Internet access

• 32 (1) When a particular supplier makes a particular supply of a computer-related service or access to the Internet and there is to be only one final recipient of the service or access, as the case may be, that acquires it under an agreement either with the particular supplier or another supplier,

  • (a) if there is a single ordinary location at which the final recipient avails themselves of the service or access, that location is in a particular province and either the particular supplier maintains information sufficient to determine that location or it is the normal business practice of the particular supplier to obtain information sufficient to determine that location, the particular supply is made in that province; and

  • (b) in any other case, the particular supply is made in a particular province if the mailing address of the recipient of the particular supply is in that province.

• Marginal note:Multiple final recipients of computer-related service or Internet access

  (2) When a particular supplier makes a particular supply of a computer-related service or access to the Internet and there are to be multiple final recipients of the service or access, each of which acquires it under an agreement with the particular supplier or another supplier,

  • (a) if, in the case of each of those final recipients, there is a single ordinary location at which the final recipient avails themselves of the service or access and either the particular supplier maintains information sufficient to determine that location or it is the normal business practice of the particular supplier to obtain information sufficient to determine that location, the particular supply is made in the province, if any, that would be determined under Division 2 or 3 to be the province in which the particular supply is made if the service were performed, or the access were attainable, as the case may be, in each province in which, and to the same extent to which, the final recipients avail themselves of the service or access; and

  • (b) if a province in which the particular supply is made is not determined under paragraph (a), the particular supply is made in a particular province if the mailing address of the recipient of the particular supply is in that province.