Place of Supply in a Province – Personal Services, Services in Relation to Property and Telecommunication Services

GST/HST Memorandum 3-3-6-1
April 2026

This memorandum cancels and replaces, Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA), and all references to the Regulations are to the New Harmonized Value-added Tax System Regulations. The information in this publication does not replace the law found in the ETA and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the ETA or relevant regulation, or call GST/HST Rulings at 1‑800‑959‑8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Requesting a GST/HST Ruling or Interpretation, explains how to obtain a ruling or an interpretation.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1‑800‑567‑4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1‑855‑666‑5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The GST/HST rates are those that were in effect at the time of publishing. For the list of all applicable GST/HST rates (current and historic), go to GST/HST calculator (and rates).

If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Memorandum 3-3-2, Place of Supply in a Province – Overview.

General

1. Taxable supplies of property or services that are made in Canada are generally subject to the GST (the federal part of the HST) under subsection 165(1) at the rate of 5%. In addition, taxable supplies that are made in a participating province are subject to the provincial part of the HST under subsection 165(2) at the provincial rate for that province, which results in the application of the HST at the relevant harmonized rate.

2. In the case of a taxable supply that is made in Canada, it is necessary to determine the province where the supply is made in order to apply the applicable tax and rate. Provincial place of supply rules exist for GST/HST purposes to determine the province in which a supply is deemed to be made.

3. Generally, the place of supply rules described in Chapter 3 of the GST/HST Memoranda Series are also used to determine if the First Nations goods and services tax (FNGST) applies to supplies where a First Nation or an Indigenous government has imposed the FNGST. For more information, refer to paragraphs 73 to 79 of this memorandum.

4. For further information regarding the legislative framework as well as the issues to consider before applying the provincial place of supply rules, refer to GST/HST Memorandum 3-3-2, Place of Supply in a Province – Overview. The place of supply rules for specific services are contained in this memorandum, in GST/HST Memorandum 3-3-6-2, Place of Supply in a Province – Specific Rules for Services – Special Cases, and in GST/HST Memorandum 3-3-7, Place of Supply in a Province – Transportation. For further information regarding the general rules for services, refer to GST/HST Memorandum 3-3-6, Place of Supply in a Province – General Rules for Services.

5. Unless otherwise indicated, all references to supplies are to taxable (other than zero-rated) supplies made in Canada.

6. References in this memorandum to terms, concepts, and examples are made in the context of the provincial place of supply rules for persons registered under Subdivision D of Division V of Part IX of the ETA (the regular GST/HST regime).

7. The rules explained in this memorandum do not apply to supplies of digital property or services made or facilitated by persons registered under the digital economy provisions of Subdivision E of Division II of Part IX of the ETA (simplified GST/HST registration). Subdivision E contains separate registration and place of supply rules for distribution platform operators and non-resident suppliers of digital property and services. For additional information on the digital economy provisions, go to GST/HST for digital economy businesses: Overview.

8. The Canada Revenue Agency (CRA) generally does not administer provincial taxes, duties, or fees imposed by provincial legislation, other than the QST for persons that are selected listed financial institutions (SLFIs) for GST/HST or QST purposes or both. To determine whether any provincial taxes, duties or fees are applicable in respect of a supply (for example, the QST in Quebec for persons that are not SLFIs), contact the appropriate provincial taxation authority.

Applying the place of supply rules for services

9. The general place of supply rules for supplies of services are subject to specific place of supply rules that may apply to certain supplies of services.

10. The specific place of supply rules for services are found in Schedule IX and the Regulations, as follows:

• Along with the general place of supply rules for services, Division 3 of Part 1 of the Regulations sets out specific place of supply rules for services in relation to real property, most services in relation to tangible personal property, and personal services, all of which are explained in this memorandum. However, section 12 of the Regulations provides that the rules under Division 3 do not apply if one of sections 4 to 5 of Part VI, or Part VII or VIII of Schedule IX instead apply to determine the place of supply.
• As explained in GST/HST Memorandum 3-3-7, sections 4 to 5 of Part VI of Schedule IX set out the place of supply rules for particular transportation services, while the place of supply for postage-related services is determined under Part VII of Schedule IX. Part VIII of Schedule IX contains the place of supply rules for telecommunication services, which are explained in this memorandum.
• Additional specific place of supply rules related to passenger transportation services are found under Division 4 of Part 1 of the Regulations, which are also explained in GST/HST Memorandum 3-3-7. Section 19 of the Regulations provides that the place of supply rules under Division 4 override the rules contained in Division 3.
• Finally, Division 5 of Part 1 of the Regulations provides specific place of supply rules that apply to particular supplies of services in special cases, which are explained in GST/HST Memorandum 3-3-6-2. Section 24 of the Regulations provides that the place of supply rules under Division 5 override the rules contained in Division 3.

11. As a result, if a supply of a service is made that does not meet the conditions of any specific place of supply rule under Schedule IX or Divisions 4 or 5 of Part 1 of the Regulations, it must then be determined whether the supply is subject to the specific place of supply rules for services under Division 3 of Part 1 of the Regulations. If the supply does not meet the conditions of any of the specific rules under Division 3, the general place of supply rules for services will apply, as discussed in GST/HST Memorandum 3-3-6.

12. The following flowchart illustrates how the specific place of supply rules for services apply:

Specific services – Division 3 of Part 1 of the Regulations

13. The specific place of supply rules for services under Division 3 of Part 1 of the Regulations apply to a broad range of supplies, but if the conditions are met in respect of the application of a specific place of supply rule under Division 4 or 5 of Part 1 of the Regulations, then the rule under Division 4 or 5 should be applied. The specific place of supply rules for services under Division 4 are discussed in GST/HST Memorandum 3-3-7, while GST/HST Memorandum 3-3-6-2 discusses the place of supply rules under Division 5.

14. As explained in GST/HST Memorandum 3-3-2, a number of factors should be considered before applying the place of supply rules to any supply. Such an analysis is particularly relevant when determining whether a supply of a service is subject to the general rules for services or one of the specific rules under Parts VI, VII or VIII of Schedule IX or Divisions 3, 4, or 5 of Part 1 of the Regulations. These factors, explained in more detail in GST/HST Memorandum 3-3-2, are:

• determining whether there is a single supply or multiple supplies being made
• characterizing the nature of the supply or supplies (service versus intangible personal property)
• determining if the supply or supplies are made inside or outside Canada
• determining the tax status of the supply or supplies

15. If, after considering the factors in paragraph 14 of this memorandum, it has been determined that a supply of a service has been made for which a specific place of supply rule could apply, but not all of the conditions in that rule have been met, then one should consider whether the supply would be subject to a different specific place of supply rule discussed further in this memorandum, GST/HST Memorandum 3-3-6-2 or GST/HST Memorandum 3-3-7, or if the general place of supply rules for services would apply, as discussed in GST/HST Memorandum 3-3-6.

16. In addition, several place of supply rules under Division 3 of the Regulations rely on the Canadian element of a service. The Canadian element is defined in section 2 of the Regulations to mean "the portion of the service that is performed in Canada".

Personal services

17. There are specific place of supply rules under sections 17 and, in certain circumstances, 18 of the Regulations that can apply to the supply of a personal service, which is generally a service that is all or substantially all (90% or more) performed in the presence of the individual to whom it is rendered. A personal service can include a service that is all or substantially all performed in the presence of a group of individuals to whom the service is rendered. Further information regarding when a service is considered to be performed may be found under the introductory paragraphs of "General Rule 2" of GST/HST Memorandum 3-3-6.

18. The specific place of supply rules for personal services do not apply to the supply of an advisory, consulting, or professional service, which is generally subject to the general place of supply rules for services, unless another specific rule applies to it. Whether a service is an advisory, consulting or professional service is a question of fact. For further information regarding the general place of supply rules for services, refer to GST/HST Memorandum 3-3-6.

19. An advisory service is not defined in the ETA but generally means a service of giving an opinion, or counsel, or of recommending a plan or course of action.

20. A consulting service is not defined in the ETA but generally means a service of providing information, instruction or expert advice. A consultant generally provides services relating to a field of specialized knowledge or training.

21. An advisory or consulting service may address business, management, marketing, data processing, public relations or other issues or problems faced by the client. An advisory or consulting service is not considered to include any work that might be undertaken or performed as a result of the plans or recommendations accepted by the client or the advice provided to the client.

22. A professional service is not defined in the ETA but is generally defined in terms of the individual providing the service. If the person making the supply of the service is other than an individual, for example, a partnership or company, the status of the individual professional or professionals assigned to provide the service will be considered in determining whether the service is a professional service.

23. A professional service refers to a service provided by an individual whose vocation or occupation requires special, usually advanced, education and skills. The individual providing the service may be a member of a professional association, a professional corporation or a similar body, which is recognized by a statute in at least one province or territory or by one federal body, and which enforces standards of professional practice as well as a code of ethics. However, a professional service will be considered to include the services provided by articling or other students and support staff, to the extent that their services are intended to assist the professional in the provision of the professional's service and are undertaken under the supervision of the professional.

24. In addition, the duties and labour performed in the provision of the professional service must be related to the vocation or occupation of the individual.

Rule 1 – Service performed in the presence of the individual, not performed primarily in participating provinces

25. Under paragraph 17(b) of the Regulations, if all or substantially all (90% or more) of a service is performed in the presence of the individual to whom it is rendered and the Canadian element of the service is not performed primarily (performed 50% or less) in participating provinces, the supply is made in a non-participating province.

Rule 2 – Service performed in the presence of the individual, performed primarily in the participating provinces

26. Pursuant to subparagraph 17(a)(i) of the Regulations, a supply of a service that is all or substantially all (90% or more) performed in the presence of the individual to whom it is rendered is made in a participating province if the Canadian element of the service is performed primarily (more than 50%) in participating provinces and an equal or greater proportion of the service is not performed in another participating province.

27. Generally, a supply of a service that is performed in the presence of the individual to whom it is rendered but that is not performed all or substantially all in the presence of the individual is subject to the general place of supply rules for services unless another specific rule applies.

Rule 3 – Highest tax rate where personal service performed equally in participating provinces

28. If a supply of a personal service cannot be determined under Rule 2 because the service is performed equally in two or more participating provinces, then pursuant to subparagraph 17(a)(ii) of the Regulations, the supply is made in the participating province among those provinces that has the highest tax rate for which no greater proportion of the service is performed in another participating province.

Rule 4 – Participating provinces with the same highest tax rate

29. If a supply of a personal service cannot be determined under Rule 3 to be made in a single participating province because the highest tax rates for two or more participating provinces (each of which is referred to as a specified province) are the same, section 18 of the Regulations provides that the supply is made in the specified province based on the business address of the supplier that is most closely connected with the supply. If that address is:

• located in a specified province, the supply is made in that province
• not located in a specified province, the supply is made in the specified province that is closest in proximity, determined in any reasonable manner, to that address

Services in relation to tangible personal property

30. Supplies of services in relation to tangible personal property are subject to specific place of supply rules under sections 15, 16 and 18 of the Regulations. These rules are generally based on whether the property remains in the same province while the service is performed.

31. Generally, in order to apply these place of supply rules, it is necessary to determine where the tangible personal property is situated when the service begins to be performed and while the service is performed. In cases where it is not possible for a supplier to make such a determination, the supply of the service is generally subject to the general place of supply rules for services, as discussed in GST/HST Memorandum 3-3-6.

32. In addition, supplies of services in relation to tangible personal property are subject to specific place of supply rules that apply in certain circumstances with respect to specific types of services including repair, maintenance and cleaning services. For more information, refer to that topic in GST/HST Memorandum 3-3-6-2.

Determining if services are in relation to tangible personal property

33. Before applying the specific place of supply rules, one must ensure that what is being supplied is in fact a service in relation to tangible personal property. The determination of whether a service is in relation to tangible personal property is based on the same guidelines outlined in GST/HST Policy Statement P-169R, Meaning of in Respect of Real Property Situated in Canada and in Respect of Tangible Personal Property that is Situated in Canada at Time the Service is Performed, for Purposes of Schedule VI, Part V, Sections 7 and 23 to the Excise Tax Act.

34. As discussed in GST/HST Policy Statement P-169R, whether a service is considered to be in relation to tangible personal property depends on whether there is a direct connection between the service and the property, taking into account the objective of the service and the particular circumstances of each case. There must be more than a mere indirect or incidental nexus or connection between the service and the underlying property.

35. It must first be determined whether the service is designed, developed, or undertaken to fulfill or serve a particular need or requirement arising from or relating to the property. This guideline involves determining the purpose or objective of the service. The purpose or objective of the service may often be determined by examining a written contractual agreement for the supply between the supplier and the recipient of the service. If there is no formal written agreement, other documentation, such as purchase orders, correspondence between the parties, or invoices, or receipts, may be useful in establishing the purpose or objective of the service.

36. Once the purpose or objective of the service has been determined, one should consider whether the relationship between the purpose or objective of the service and the property is direct rather than merely indirect. If something else comes between the service and the property, the connection will not be considered to be direct.

37. A service and property are generally regarded as being in relation to each other pursuant to the above guidelines if the purpose of the service is one of the following:

• physically count the property
• appraise or value the property
• physically protect or secure the property
• enhance the value of the property

38. Similarly, if the service is aimed at effecting or dealing with the transfer of ownership of, claims on or rights to the property, or determining title to the property, the service will generally be regarded as being in relation to the property.

39. Finally, in order for a service to be considered a service in relation to particular tangible personal property that is situated at a particular location, and in order to apply the place of supply rules for this type of service, the service must relate to specific property that can be determined to be situated at a particular location at a particular time. If the service does not relate to specific property, the service will generally be subject to the general place of supply rules for services, as discussed in GST/HST Memorandum 3-3-6, unless a different specific place of supply rule applies.

Tangible personal property remains in the same province while the service is performed

Rule 1 – Service in relation to tangible personal property not situated primarily in participating provinces

40. Pursuant to paragraph 15(b) of the Regulations, a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed, and at all times when the Canadian element of the service is performed, remains in the province in which it was situated at the particular time, is made in a non-participating province if, at the particular time, the tangible personal property is not situated primarily (situated 50% or less) in participating provinces.

Rule 2 – Service in relation to tangible personal property situated primarily in participating provinces

41. Under subparagraph 15(a)(i) of the Regulations, a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed, and that at all times when the Canadian element of the service is performed, remains in the province in which it was situated at the particular time, is made in a participating province if at the particular time each condition is met:

• the property is situated primarily (more than 50%) in participating provinces
• an equal or greater proportion of the property is not situated in another participating province

Rule 3 – Highest tax rate where tangible personal property is located in participating provinces

42. If Rule 2 does not result in the supply of a service being made in a participating province because the greatest proportions of the tangible personal property are equally situated in two or more participating provinces at the particular time, subparagraph 15(a)(ii) of the Regulations deems the service to be supplied in the participating province among those provinces that has the highest tax rate.

Rule 4 – Participating provinces with the same highest tax rate

43. If a supply of a service cannot be determined under Rule 3 to be made in a single participating province because the highest tax rates for two or more participating provinces (each of which is referred to as a specified province) are the same, section 18 of the Regulations provides that the supply is made in the specified province based on the business address of the supplier that is most closely connected with the supply. If that address is:

• located in a specified province, the supply is made in that province
• not located in a specified province, the supply is made in the specified province that is closest in proximity, determined in any reasonable manner, to that address

Tangible personal property does not remain in the same province while the service is performed

Rule 1 – Tangible personal property not situated primarily in participating provinces at all times when the service is performed, or service not performed primarily in participating provinces

44. Pursuant to paragraph 16(b) of the Regulations, a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed, and at any time during the period when the Canadian element of the service is performed the property does not remain in the province in which it was situated at the particular time, is made in a non-participating province if either:

• the property is not situated primarily (situated 50% or less) in participating provinces at all times when the service is performed
• the Canadian element of the service is not performed primarily (performed 50% or less) in participating provinces

Rule 2 – Tangible personal property situated primarily in participating provinces at any time when the service is performed, service performed primarily in participating provinces

45. Under subparagraph 16(a)(i) of the Regulations, a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed and, at any time during the period when the Canadian element of the service is performed, the property does not remain in the province in which it was situated at the particular time, is made in a participating province if all of the following conditions are met:

• the property is situated primarily (more than 50%) in participating provinces at any time when the service is performed
• the Canadian element of the service is performed primarily (more than 50%) in participating provinces
• an equal or greater proportion of the service is not performed in another participating province

Rule 3 – Highest tax rate where greatest proportion of service performed equally in two or more participating provinces

46. If Rule 2 does not result in the supply of a service in relation to tangible personal property being made in a participating province because the greatest proportions of the service are equally performed in two or more participating provinces, subparagraph 16(a)(ii) of the Regulations deems the service to be supplied in the participating province among those provinces that has the highest tax rate.

Rule 4 – Participating provinces with the same highest tax rate

47. If a supply of a service cannot be determined under Rule 3 to be made in a single participating province because the highest tax rates for two or more participating provinces (each of which is referred to as a specified province) are the same, section 18 of the Regulations provides that the supply is made in the specified province based on the business address of the supplier that is most closely connected with the supply. If that address is:

• located in a specified province, the supply is made in that province
• not located in a specified province, the supply is made in the specified province that is closest in proximity, determined in any reasonable manner, to that address

Services in relation to real property

48. Supplies of services in relation to real property are subject to specific place of supply rules under sections 14 and 18 of the Regulations.

49. Before applying the specific place of supply rules, one must ensure that what is being supplied is in fact a service in relation to real property. The factors used for making this determination are the same as those in respect of determining whether a service is in relation to tangible personal property. For more information, refer to paragraphs 33 to 39 of this memorandum.

50. In addition, the application of these place of supply rules requires determining the relevant proportion of real property that is situated in a province. Such a determination is based on the physical size of the entire real property (for example, based on square footage, square yards, or acres) pursuant to its legal description. The value of the real property or the number of properties (unless they are of equal size) is not relevant to this determination. In cases where it is not possible for a supplier to make such a determination, the supply of the service is generally subject to the general place of supply rules for services, as discussed in GST/HST Memorandum 3-3-6.

Services in relation to real property situated in Canada and outside Canada

51. Under section 142, a supply of a service that relates to real property is deemed to be made in Canada if the real property is situated in Canada and is deemed to be made outside Canada if the real property is situated outside Canada. Where the real property is situated both in and outside Canada, the proportion of the service that relates to the real property that is situated in Canada is therefore considered to be made in Canada and the proportion of the service that relates to the real property that is situated outside Canada is considered to be made outside Canada.

52. As a result, it is only the provision of the proportion of the service that relates to real property that is situated in Canada that may be deemed to be made in a participating province and subject to the HST.

Rule 1 – Service in relation to real property not situated primarily in participating provinces

53. Pursuant to paragraph 14(b) of the Regulations, a supply of a service in relation to real property that is situated in Canada and that is not situated primarily (situated 50% or less) in participating provinces is made in a non-participating province.

Rule 2 – Service in relation to real property situated primarily in participating provinces

54. Under subparagraph 14(a)(i) of the Regulations, a supply of a service in relation to real property is made in a participating province if the real property that is situated in Canada is situated primarily (more than 50%) in participating provinces and an equal or greater proportion of the real property is not situated in another participating province.

Rule 3 – Highest tax rate where real property is situated in participating provinces

55. If Rule 2 does not result in the supply of a service being made in a participating province because the greatest proportions of the real property are equally situated in two or more participating provinces, subparagraph 14(a)(ii) of the Regulations deems the service to be supplied in the participating province among those provinces that has the highest tax rate.

Rule 4 – Participating provinces with the same highest tax rate

56. If a supply of a service cannot be determined under Rule 3 to be made in a single participating province because the highest tax rates for two or more participating provinces (each of which is referred to as a specified province) are the same, section 18 of the Regulations provides that the supply is made in the specified province based on the business address of the supplier that is most closely connected with the supply. If that address is:

• located in a specified province, the supply is made in that province
• not located in a specified province, the supply is made in the specified province that is closest in proximity, determined in any reasonable manner, to that address

Telecommunication services

57. Pursuant to section 12 of the Regulations, a number of exclusions apply in respect of the application of the place of supply rules for services under Division 3 of Part 1 of the Regulations. One such exception relates to supplies that are subject to specific place of supply rules for telecommunication services under Part VIII of Schedule IX.

58. If a service does not meet the definition of a telecommunication service as explained in paragraphs 59 and 60 of this memorandum, the specific place of supply rules for telecommunication services do not apply. In addition, although telecommunication services may be used as an input to a supply, the predominant purpose of the supply may be such that the place of supply is determined by different place of supply rules, as explained in paragraphs 61 to 64 of this memorandum.

Defined terms

59. A telecommunication service is defined under subsection 123(1) to mean:

• (a) "the service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system, or
• (b) making available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred to in paragraph (a)".

60. A telecommunications facility is defined in subsection 123(1) to mean "any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications".

61. For GST/HST purposes, including the place of supply rules, it is important to distinguish between a supply that is a supply of a telecommunication service, and the use of telecommunications as a means by which other property and services are supplied. A supply of a service that merely uses telecommunication facilities as an input, such as a supply of a website hosting service, would not be considered to be a supply of a telecommunication service.

62. A supply is generally considered to be a supply of a telecommunication service where its predominant purpose is one of the following:

• to provide for the emission, transmission or reception of signs, signals, etc., such as voice or data, through a telecommunications network or similar technical system
• to make available a telecommunications facility for the emission, transmission or reception of signs, signals, etc. through a telecommunications network or similar technical system
• to provide a means through which other services or intangible personal property, such as content in a digitized format, are delivered, rather than to provide the services or intangible personal property

63. A supply is not generally a supply of a telecommunication service in any of the following circumstances:

• a telecommunication service is used or consumed by the supplier in making a supply of a service or property (other than a telecommunication service)
• it includes the provision of a telecommunication service, but only as a means of delivering another service or property
• it is incidental to the supply of another service or property

64. In addition, the fact that a supply may be characterized as a telecommunication service does not mean that the supply is subject to the place of supply rules for telecommunication services. For example, a supply of Internet access, the predominant purpose of which is to provide a connection allowing for the transmission and reception of data over the Internet, is a supply of a telecommunication service consisting of making available telecommunications facilities. However, the supply would be subject to the more specific place of supply rule that applies to supplies of Internet access as described under the topic of "Computer-related services and Internet access" in GST/HST Memorandum 3-3-6-2.

Telecommunication service

65. Under section 2 of Part VIII of Schedule IX, a supply of a telecommunication service of making telecommunications facilities available (other than a service of granting sole access to a telecommunications channel) is made in a province if either of the following applies:

• all of the facilities are ordinarily located in that province
• where not all of the facilities are ordinarily located in the province, the invoice for the supply is sent to an address in that province

66. For other types of supplies of telecommunication services (other than a service of granting sole access to a telecommunications channel), the supply is made in a province if any of the following applies:

• the telecommunication is both emitted and received in that province
• the telecommunication is either emitted or received in that province and the billing location for the service is located in that province
• the telecommunication is emitted in that province and received outside that province and the billing location for the service is not in a province where the telecommunication is emitted or received

Billing location

67. For purposes of the place of supply rules that determine the province in which a supply of a telecommunication service is made, section 1 of Part VIII of Schedule IX provides that the billing location for a telecommunication service is in a province:

• if the consideration paid or payable for the service is charged or applied to an account that the recipient has with the supplier of the service and the account relates to telecommunications facilities that are used or are available for use by the recipient to obtain telecommunication services, and all of those facilities are ordinarily located in that province
• in any other case, if the telecommunications facility used to initiate the service is located in that province

68. The ordinary location of telecommunications facilities at a particular time is deemed to be the location that the supplier and the recipient mutually agree is the ordinary location of the telecommunications facilities at that time and this location may change from time to time. For further information regarding ordinary location, refer to that topic in GST/HST Memorandum 3-3-3, Place of Supply in a Province – Tangible Personal Property.

Dedicated telecommunication channel

69. Under section 3 of Part VIII of Schedule IX, a supply of a telecommunication service of granting sole access to a telecommunications channel is made in a province if it is deemed to be made in that province based on the application of a specific place of supply rule under section 136.4 that deems there to be separate supplies of the service.

70. Subsection 136.4(1) defines a telecommunications channel to mean "a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication but does not include a satellite channel."

71. Specifically, a supply of a service of granting sole access to a telecommunications channel for transmitting telecommunications between two provinces is deemed to be a separate supply of the service made in each of those provinces as well as a separate supply in any province between them.

72. The consideration for the deemed supply in each province is calculated based on the part of the overall distance over which the telecommunication would be transmitted that would occur in the particular province if the telecommunication were transmitted solely by means of cable and related facilities located in Canada that connected, in a direct line, the transmitters for emitting and receiving the telecommunications.

First Nations goods and services tax – place of supply

73. The FNGST is a tax that may be imposed by a band council, other governing body of a First Nation or an Indigenous government on the lands that it governs. The FNGST at the rate of 5% applies to most supplies of property and services made on these lands.

74. Everyone has to pay the FNGST on the supply of property and services made on lands where the FNGST applies including Indians, Indian bands, or band-empowered entities. However, certain provincial and territorial governments do not pay the FNGST. The CRA uses the term Indian in this memorandum because it has legal meaning under the Indian Act.

75. For more information on the FNGST and the First Nations and Indigenous governments that impose the FNGST, go to First Nations Goods and Services Tax. You may also refer to Technical Information Bulletin B-102, First Nations Goods and Services Tax – Place of Supply.

Supply is deemed to be made on FNGST lands in a non-participating province

76. The FNGST replaces the GST where the provincial place of supply rules deem the supply to be made on the lands where an FNGST is imposed and where those lands are located in a non-participating province. The supply is subject to the FNGST at the rate of 5%.

Supply is deemed to be made on FNGST lands in a participating province

77. The FNGST replaces the federal part of the HST where the provincial place of supply rules deem the supply to be made on the lands where an FNGST is imposed and where those lands are located in a participating province. The supply is subject to the FNGST at the rate of 5%.

78. Provided the purchaser meets the criteria set out in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians, the provincial part of the HST would be relieved. Where the purchaser does not qualify for relief of the provincial part of the HST under Technical Information Bulletin B-039, registered vendors are required to collect the provincial part of the HST in participating provinces unless relief of that part is provided by some other legislation or policy.

Supply is deemed to be made in Canada, but not on FNGST lands

79. Where the provincial place of supply rules deem the supply to not have been made on FNGST lands, and the supply is made in Canada, then either the GST or the HST will apply depending on whether or not the supply is deemed to be made in a participating province.

Further infomation