Example 2: A supplier in Alberta sells goods to a purchaser in Ontario
Based on the terms of the agreement, legal delivery of the goods will occur in Alberta. However, the supplier agrees to have the goods shipped to the purchaser in Ontario. Although legal delivery of the goods will occur in Alberta, delivery of the goods is deemed to occur in Ontario because the supplier will ship the goods to Ontario. Therefore, the supply of goods is consider to be made in Ontario, and is subject to HST at a rate of 13%.
Example 3: A purchaser is visiting another province, buys something in that province, and the carries it home himself
Mary, from Yukon, participated in a trade show in Manitoba. She bought some samples in the trade show and brought them with her to Yukon. Since the goods were delivered to Mary in Manitoba, the supply of the goods is therefore considered to be made in Manitoba, and is subject to GST at a rate of 5%.
Example 4: A company mails goods to clients in multiple provinces
A online company located in Prince Edward Island sells pet food to customers across Canada. The company places the packages of pet food in the mail, for delivery to its customers in Quebec, Newfoundland and Labrador, Northwest Territories. The supply of the pet food mailed to Quebec is subject to GST at a rate of 5%, the supply of the pet food mailed to Newfoundland and Labrador is subject to HST at a rate of 13%, and the supply of the pet food mailed to Northwest Territories is subject to GST at a rate of 5%. In this situation, the province where the supplies are shipped determines the tax rate.