News and Insights

CRA Issues Memorandum on Conversion of Foreign Currency

Tax Development Sep 10, 2018

The Canada Revenue Agency recently issued GST/HST Memorandum 3.7, “Conversion of Foreign Currency” as a replacement for GST Memorandum 300-7-10, “Foreign Currency” as well as GST/HST Policy  Statement P-222, “Acceptable Exchange Rate Sources for Converting the Value of Consideration Expressed in Foreign Currency to a Value in Canadian Currency for Purposes of Section 159 of the Excise Tax Act.”

This memorandum provides details on the calculations required to determine the value of consideration for a supply in Canadian currency for GST/HST purposes when the consideration is expressed in a foreign currency. In addition, this memorandum includes information on the various dates that may be used to convert foreign currency and the acceptable sources of exchange rates for the conversion calculation.