A. HST Provinces—British Columbia, New Brunswick, Newfoundland & Labrador, Ontario and Nova Scotia
In the provinces of Ontario, Nova Scotia, New Brunswick and Newfoundland & Labrador, the administration of GST and PST has been combined and the result referred to as Harmonized Sales Tax (“HST”). The allocation of provincial sales tax among these provinces are governed by “place of supply rules” contained in the federal legislation.
According to the place of supply rules, the province with jurisdiction is generally the one in which the supply occurs. For example:
- if the goods supplied are tangible personal property then the relevant province is generally the one in which the goods are delivered or made available to the recipient;
- if the supply is of real estate then the relevant province is generally the one in which that real estate is located;
- if the supply is of intangible personal property, jurisdiction will depend on a number of factors, including the place in which the property can be used and the location of the purchaser;
- different intangible properties are subject to different rules; and
- when services are supplied, the relevant province is generally determined according to the home or business address of the purchaser, although specific rules apply for certain types of services.
The place of supply rules are extensive and the above examples are general and for illustrative purposes only.
When property and services are brought into an HST province from another province (whether or not such other province is also an HST province) or from outside Canada for consumption, use or supply in that HST province, the supplier is required to self-assess since no actual purchase and sale occurs.
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