News and Insights

CRA GST/HST Technical Information Bulletin B-103 Revised

Tax Development Jun 03, 2010

The Canada Revenue Agency has revised this bulletin to reflect the changes to the HST place of supply rules for services and intangibles that were reflected in the draft regulations recently released by the federal Department of Finance.  This version supersedes the version dated February 2010.

Further clarification has been provided in determining the place of supply in respect of services and intangibles where the place of supply cannot be determined to be in a single participating province, in the case where the tax rates for the two or more participating provinces related to the supply are the same.  In this case, the place of supply will be the participating province where the supplier is located, provided the supplier is located in one of the specified provinces.  If the supplier is not located in one of the specified provinces, the place of supply will be the participating province that is closest in proximity to the business address of the supplier that is most closely connected with the supply.  

In addition, the revised bulletin provides clarification on the types of addresses that may be used to determine the place of supply for services and intangibles.  In the case where a supplier has obtained multiple business or home addresses of the recipient, the place of supply will be determined based on the province in which the home or business address that is most closely connected with the supply is located.  

In situations where a contract for a supply is made, the business address of the recipient identified in the agreement with the supplier will generally be the considered the address that will determine the place of supply.  In these cases, the place of supply can be determined at the time the supply is first made, where the contracting address is identified in the agreement for the supply.  If the contracting business address is not obtained, the place of supply would be the business address that the supplier has the most contact with and most used by the supplier, in connection with the supply.  

For further information on the draft regulations, please see the link below:  

CRA B-103 revised
Draft Regulations Place of Supply