Goods & Services Brought Into a Participating
A participating province is a province which charges
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
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
the consideration paid for the property, or
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
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.