Place of Supply Rules for Services
The place of supply rules for services, shown below,
apply to services performed for clients in Canada. If you provide
services for non-residents of Canada, these services may be
zero-rated. See the Canada Revenue Agency (CRA) information on Exported
A participating province is a province which charges
HST, which includes a federal component (5%) and a provincial
component. A non-participating province charges 5% GST only, and no
provincial component. For rates by province/territory, see Sales
Tax Rates in Canadian Provinces and Territories.
Four general place of supply rules apply to all
supplies of services except those which are covered by other specific
Where the supplier obtains the address of the
recipient of the service, and that address is in Canada, GST or HST will
be charged based on the province of that address being the place of
Where the supplier obtains more than one address in
Canada of the recipient, the address that is most closely connected with
the supply will be used as the place of supply.
Where the supplier does not obtain an address in
Canada of the recipient, another Canadian address of the recipient that
is most closely connected with the supply will be used as the place of
Example: A supplier in Quebec designs a
web site for a company with an Ontario business address. Although
the services are entirely performed in Quebec, the supply of the
service is deemed to be made in Ontario, and HST would apply at a rate
This rule does not require a supplier to obtain an
address of the recipient, if the supplier does not already obtain the
address in the normal course of business.
See Canada Revenue Agency document B-103
HST - Place of supply rules for determining whether a supply is made in
a province (see link at bottom), regarding situations where the supplier has both a home
address and business address for the recipient, or the recipient has
If the address of the recipient of the
service is not obtained, and the Canadian element of the service
is performed primarily (more than 50%) in the participating
provinces (provinces charging HST), the supply is considered to
be made in the participating province in which the greatest
proportion of the Canadian element of the service is performed.
Example: A supplier in Ontario
provides document editing and translation services to clients
electronically over the internet, with documents e-mailed to the
supplier, edited, and e-mailed back to the client. No
addresses are obtained. The services are performed in
Ontario, therefore HST would apply at a rate of 13%.
Where Rule 2 would apply, but the service is performed equally
in two or more participating provinces, the place of supply is considered
to be the province with the highest HST rate. If two or more of the
participating provinces in this case have the same HST rate, that rate
will be used.
Where Rule 2 would apply, but the service is performed other than
primarily (50% or less) in participating provinces, i.e., it is performed
50% or more in non-participating provinces, then the supply is considered
to be made in a non-participating province, and GST would apply, not HST.
Supplies of Services Not Covered by General Rules
There are specific place of supply rules for the following
types of services: