News and Insights

CRA GST/HST Memorandum 3.3.1, “Drop Shipments”

Tax Development Jul 07, 2008

The Canada Revenue Agency has recently issued the final version of this memorandum that had previously been released in draft format. This memorandum explains the “drop-shipment” rules that are available under the Excise Tax Act. These rules will apply to transactions involving the transfer of goods by a registrant in Canada to another person in Canada on behalf of an unregistered non-resident. Numerous examples are illustrated to assist the reader in the understanding of these often complicated rules. In addition, an updated version of the Drop-Shipment Certificate has been included.

CRA Memoranda 3.3.1