Ottawa, February 25, 2010

Archived - Government of Canada Announces Proposed Changes to Place of Supply Rules for the Harmonized Sales Tax (HST)

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The Department of Finance today announced proposed changes to the Harmonized Sales Tax (HST) place of supply rules in the regulations made pursuant to the Excise Tax Act. These rules specify whether, and at what rate, suppliers must charge the provincial component of the HST on their supplies of taxable property and services in Canada. There are also changes proposed to the related rules that, in certain circumstances, require self-assessment or provide for rebates of the provincial component of the HST on property or services where the property or services are brought into a province or are acquired in a province for consumption, use or supply outside that province. 

Many of the current HST place of supply rules for property and services rely on the location of the supplier to determine whether a sale is subject to the provincial component of the HST. It is proposed that the HST place of supply rules for intangible personal property and services be changed so that there is less reliance on the supplier’s location and greater reliance on where the consumer of the intangible personal property or service is located. These changes will help to accommodate variable rates of the provincial component of the HST under the Provincial Choice Tax Framework Act and will modernize the rules to address changing business models and technological advances.

The accompanying document provides further details on the proposed changes to the HST place of supply, self-assessment and rebate rules in the regulations made pursuant to the Excise Tax Act. References in this document to an “announcement date” should be read as referring to today’s date.

Comments on these proposals should be submitted by interested parties by March 31, 2010, as regulations implementing the proposed changes will be submitted to the Governor in Council for approval at the earliest opportunity.

Comments should be sent to or:

Tax Policy Branch
Department of Finance
140 O’Connor Street
Ottawa, Ontario
K1A 0G5

For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance

Jack Aubry
Media Relations
Department of Finance

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