Businesses that Sell Goods Must Charge HST Based on Delivery
I have been asked many times over the last few days questions about the HST place of supply rules for goods.
- Does a retailer in Alberta have to charge HST (Ontario rate) on goods sold to a Ontario resident?
Answer: Yes
- Does a wholesaler in Ontario have to charge HST (Ontario) on goods shipped to Quebec?
Answer: No
The HST place of supply rules for goods is: HST is applicable to tangible personal property (goods) if the goods are delivered by the supplier (seller) to the recipient (buyer) in an HST province.
For the purposes of the HST place of supply rules for goods, property (a good) is deemed to be delivered in a particular province (e.g., Ontario) by a supplier (seller) and is deemed not to be delivered in any other province by the supplier (seller) if the supplier (seller):
(a) ships the property to a destination in the particular province (e.g. Ontario) that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient (buyer) to ship the property to such destination; or
(b) sends the property (good) by mail or courier to an address in the particular province (e.g., Ontario).
This means that:
- If an individual comes into a retail store in Ontario and purchases a widget and the retailer gives the widget to the buyer in the store, GST/HST is payable at the combined rate of 13%.
- If an individual goes into a store in British Columbia and buys a coat and asks the retailer to ship the coat to Ontario, GST/HST is payable at the combined rate of 13%.
- If an individual goes into a store in British Columbia and buys a coat and takes the coat with him/her, GST/HST is payable at the combined rate of 12%.
- If an person buys a painting from an artist in Alberta and has the painter ship the painting to Nova Scotia, GST/HST is payable at the rate of 15%.
- If an Ontario based wholesales/distributor sells goods to a retailer in Quebec and ships the goods to Quebec, GST is payable at the rate of 5%.
- If an Ontario based wholesales/distributor sells goods to a retailer in Quebec and the retailer sends his own truck to pick up the goods, GST/HST is payable at the rate of 13% because the goods were delivered on Ontario and could be given to another person in Ontario.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
If a wholesaler sells merchandise (namely soap) to a retail store or to some other wholesaler, is HST (13%) applicable?
Cyndee's reply: If a wholesaler makes a taxable supply in Ontario, HST would be applicable. Wholesalers no longer get to rely on purchase exemption certifcates.
If we buy merchandise for resale from Quebec, we pay for the freight (trucking company) to bring the goods to our retail store in Ontario, do we pay 5% or 13% tax?
If we are a manufacturer based in Quebec (with another store in Ontario) and we sell a bus to a customer from Ontario that will use and license that bus in Ontario, can we charge that customer the Ontario HST tax rate in order for him to request is HST back even if he picks up the bus in Montreal, QC?
why do I pay hst taxe when I live in montreal.
my bill has GST,PST and hst why is this!
A company in Ontario ships goods to Alberta using a courier company that the customer in Alberta is paying for with their account with the courier. Is HST charge or just the 5% gst?
Also...a company in Ontario has it's customer head office in Ontario, but is purchasing for it's store in Alberta, AND sends it's own truck (which the company (seller) in Ontario arranges, is HST charged?
We manufacture products for US customers, but the product remains in Canada. It's used in Canada. Do we charge HST on this?
Can you tell me the tax implication?
Alberta branch of Ontario company buys medical supplies from Newfoundland company. Alberta branch ship supplies to Ontario company.
Alberta company buys medical supplies from Newfoundland company. Alberta company ship supplies to Ontario company (affiliated) at no charge.
If a Ontario company orders material from a Quebec wholesaler and has the material shipped to Ontario, by the buyers choice of courier, does the Quebec company charge Ontario HST or the Quebec taxes.