How to determine the GST/HST rate for inter-provincial sales of goods

In order to determine the relevant rate of GST or HST to charge on a particular supply, you must first determine the province in which the supply is made. The rules that are used to determine the province in which the supply is made are referred to as place of supply rules.

It is easier to understand the rules by looking at a few examples.

Example 1: A supplier in Ontario sells goods to a purchaser in Nova Scotia.

Based on the terms of the contract, legal delivery of the goods will occur in Nova Scotia. Because legal delivery of the goods will occur in Nova Scotia, the supply of the goods is therefore considered to be made in Nova Scotia, and is subject to HST at a rate of 15%.

More examples ....

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For more complicated business transactions, please refer to CRA Technical Interpretation Bulletin B-103.

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Additional information