The Government of British Columbia has published a 12 page document listing many items that are subject to harmonized sales tax (HST) after July 1, 2010 and what will not be subject to HST. I hope this helps friends in B.C.
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I received this from a friend via LinkedIn:
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Here is the catch 22 .. what happens if I do a Warehouse entry in Toronto via EDI to CBSA, but the actual goods are being dumped in Quebec in a bonded warehouse. Offically , there no release taken place, but a service has been rendered. Next, when the goods are taken out from that Bonded Warehouse, the broker then accounts to CBSA using a B3 in Toronto. But the goods are released in Quebec. So this means the Broker Does not charge HST on service ?
Note that all "services" can be done in Toronto electronically, but the goods can be release all over canada.
That is one portion of the pie. What about NRI's who have same scenario at their RDC/DC ?
I responded:
You have asked good questions and I think the honest answer is that the CRA is going to be confused at first. The word in the regulation is "the supply is made in the province in which the goods are situated at the time of their release". That has a particular customs meaning. I would think that if commercial goods are released from a bonded warehouse in Quebec, then the place of supply of the customs brokerage services is in Quebec. As a result, HST would not be applicable. In most cases, the recipient of the services would be engaged in commercial activities and would be entitled to recover any GST or HST paid in respect of the services.
I would need more facts to consider your second scenario for NRIs.