TaxTips.ca
Canadian Tax and
Financial Information
GST/HST Self-Assessment

TaxTips.ca does not research or endorse any product   or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Business Directory.    

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Business Directory
Advertise With Us
Contact Us/About Us
Links & Resources

Sales Taxes ->GST/HST -> Place of Supply Rules -> Self-assessment of the provincial component of the HST

Goods & Services Brought Into a Participating Province

A participating province is a province which charges HST.

Under the current self-assessment rules, if you purchase goods or services in a non-participating province (one in which only GST is charged), but you use, consume or supply them within a participating province, you are required to self-assess the provincial portion of the HST.  This does not apply if you would be getting an input tax credit for the GST/HST.

Due to the fact that the provincial component of the HST varies between provinces, the self-assessment rules are being expanded.  Generally, the existing exemptions from the requirement to self-assess would continue under the new rules.

Under the new rules, if the amount of tax to be self-assessed is less than $25 in a calendar month, there is no requirement to self-assess.

 

Tangible Personal Property Brought Into a Participating Province

The expanded self-assessment rule also applies if goods are purchased in a participating province, and are then brought into another participating province where the provincial component of the HST is higher.  The amount of tax to be self-assessed would be calculated by taking the difference in the provincial components, and multiplying by the lesser of

bullet

the consideration paid for the property, or

bullet

the fair market value of the property at the time of bringing in.

Example:  An Ontario resident purchases a wedding dress in BC for $3,000, paying 12% HST, or $360.  Ontario's HST rate is 13%.  On return to Ontario, the Ontario resident would be required to self-assess tax on the $3,000 at the rate of 1% x $3,000, or $30.  If the wedding dress had been purchased in Alberta, which charges 5% GST and no provincial sales tax, the self-assessed tax amount would be 8% x $3,000, or $240.

Services and Intangible Personal Property (IPP)

The expanded self-assessment rule for services and intangible personal property (IPP) would also apply when IPP or a service is acquired in a province for consumption, use or supply "significantly" (generally, 10% or more) in participating provinces for which the provincial component of the HST is higher than in the province of acquisition.

Other Resources

For more detail on this subject, see the Department of Finance News Release 2010-014 Self-Assessment of the Provincial Component of the HST.

The old rules on self-assessment can be found in the Canada Revenue Agency GST/HST Technical Information Bulletin B-079, Self-Assessment of the HST on Supplies Brought Into a Participating Province.  When a bulletin is available with the new rules, we will add a link here.

 

Revised: December 23, 2010

 

Copyright © 2002 - 2014 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook | Twitter | Google + | Monthly Newsletter Sign-up | What’s New E-mail Notification | RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. See our Business Directory for tax, accounting and finance-related firms in your area.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.