CRA Updates Memorandum on Freight Transportation Services

The CRA has completely rewritten GST/HST Memorandum 28-2 “Freight Transportation Services.”  Specifically, the memorandum was revised to add additional examples, clarify previous definitions, and provide further detail on specific areas, including new information on:

• shunting services;
• stevedoring;
• towing services;
• packing services;
• deadheading and empty mile charges;
• pilot car services; and
• driving services.  

In addition, the new memorandum outlines specific rules for zero-rated supplies of freight transportation services, such as interlining, and outbound freight movement.   

This memorandum also defines the different types of freight transportation services, which may be subject to GST/HST, as well as reiterates that international freight transportation services are generally zero-rated. 

Furthermore, the memorandum provides descriptions and examples of property or services which may be incidental to a freight transportation service, the relevant GST and HST place of supply rules, supplies to international carriers, as well as special issues, such as freight forwarders’ services, and loss or damage.