Proposed HST Place of Supply Rules Are Game-Changers

(Lexology – Cyndee Todgham Cherniak, Lang Michener LLP)

On February 25, 2010 (88 days until harmonization implementation in Ontario and British Columbia), the Department of Finance released the proposed harmonized sales tax (HST) place of supply rules.

All GST/HST registrants are generally required to collect the provincial HST component (at the applicable rate) on supplies of property and/or services made in a participating province except where a supply is zero-rated or exempt.

The HST place of supply rules are important for businesses that operate in, or make supplies in, or to recipients located in, more than one Canadian province. The HST place of supply rules will be used by suppliers and recipients to determine whether a supply made in Canada is made in a participating province. Specific rules will apply depending on the nature of the supply. Read more here.