The Canada Revenue Agency released GST/HST Notice No. 266, Draft GST/HST Technical Information Bulletin, “Harmonized Sales Tax – Self-Assessment of the Provincial Part of the HST in Respect of Property and Services Brought into a Participating Province” on September 9, 2011. Generally, this publication explains the requirement to self-assess the provincial component of the HST, or part thereof, on property or services brought into a participating province for consumption, use or supply in that province. However, there are three major exceptions to this requirement:
- where the property or service is brought into a participating province by a registrant for consumption, use or supply exclusively (i.e., 90% or more) in the course of commercial activities;
- where the provincial part of the HST paid or payable on the property or service brought into the participating province was equal to or higher than the provincial component rate of the destination province; and
- where the property or service is brought into a participating province by a selected listed financial institution.
No provincial part of the HST is required to be self-assessed by the person in the above three scenarios. Note that the provincial part of the HST in a non-participating province is 0%.
The notice covers four general situations where self-assessment is required:
- tangible property brought into a participating province;
- tangible property supplied by unregistered non-resident suppliers;
- imported specified motor vehicles and commercial goods; and
- intangible property and services acquired by a resident customer of a participating province for consumption, use or supply in a participating province.
This publication also includes 60 examples and appendices from A to L. Appendices E, H and L contain decision trees that are particularly useful.
Where an amount is required to be self-assessed by a GST/HST registrant, the tax must be remitted by the due date of the return for the period that the tax became payable. For non-registrants, it must be remitted by the last day of the following calendar month in which the tax became payable using Form GST489, “Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST)”.