Place of Supply in a Province – General Rules for Services

GST/HST Memorandum 3-3-6
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 a 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 54 to 60 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 general place of supply rules for services are contained in this memorandum, while the place of supply rules for specific services are contained in GST/HST Memorandum 3-3-6-1, Place of Supply in a Province – Personal Services, Services in Relation to Property and Telecommunication Services, 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.

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

• Division 3 of Part 1 of the Regulations sets out the general place of supply rules for services, which are explained in this memorandum, along with specific place of supply rules for services in relation to real property, most services in relation to tangible personal property, and personal services, which are explained in GST/HST Memorandum 3-3-6-1. 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 GST/HST Memorandum 3-3-6-1.
• 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.

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

Deemed performance

13. Under section 3 of Part I of Schedule IX, where an agreement for a supply of a service is entered into but the service is never performed, the service is deemed to have been performed where the service was to be performed under the terms of the agreement.

Ongoing services

14. Pursuant to subsection 136.1(2), where a supply of a service is made for consideration that includes a payment that is attributable to a period (referred to as a billing period) that is the whole or a part of the period during which the service is or is to be rendered under the agreement for the supply, a separate supply of the service for separate consideration is deemed to be made by the supplier and received by the recipient for each billing period.

15. The supply for each billing period is deemed to be made on the earliest of the following:

• the first day of the billing period
• the day on which the payment attributable to that period becomes due
• the day that payment is made

16. As a result, the separate supplies of the services that are deemed to be made for each billing period may be subject to the GST or the HST at a different rate, to the extent that those supplies are deemed to be made in a different province based on the application of the place of supply rules for services.

Services – General Rules

17. Pursuant to sections 13 and 18 of the Regulations, three general place of supply rules apply to supplies of services. The first general rule applies where the supplier obtains an address in Canada of the recipient, while the second general rule applies where such an address is not obtained and is based on the location of the performance of the service. The third general rule applies where the second general rule does not result in a supply being made in a single participating province because the service is performed equally in two or more participating provinces having the same highest tax rate.

18. Although a supply of a service may be deemed to be made in a particular province based on the general place of supply rules, self-assessment of the provincial part of the HST by the recipient in respect of the service may still be required in some cases where it is established that the service is acquired for consumption, use, or supply in whole or in part in another province. The place of supply rules are not intended to replace the self-assessment provisions by requiring a supplier to determine the province or provinces in respect of which the recipient has acquired the service for consumption, use, or supply. Instead, the self-assessment rules complement the place of supply rules and account for different tax rates. For further information regarding self assessment, refer to GST/HST NOTICE266, Draft GST/HST Technical Information Bulletin, Harmonized Sales Tax – Self-assessment of the provincial part of the HST in respect of property and services brought into a participating province.

General Rule 1 – Address in Canada obtained

19. Subsection 13(1) of the Regulations determines the place of supply of a service based on a supplier obtaining an address in Canada of the recipient, as illustrated in the following flowchart:

20. Pursuant to subsection 13(1) of the Regulations, a supply of a service is made in a province if, in the ordinary course of business of the supplier, the supplier obtains one of the following addresses in the province that is:

• (a) the home or business address in Canada of the recipient, if the supplier obtains only one address that is a home or a business address in Canada of the recipient,
• (b) the home or business address in Canada of the recipient that is most closely connected with the supply, if the supplier obtains more than one such address, or
• (c) in any other case, the address in Canada of the recipient that is most closely connected with the supply.

Determining the relevant address of the recipient

21. The relevant address for purposes of General Rule 1 is generally the location of the recipient based on an address in Canada of the recipient that the supplier obtains in the ordinary course of its business. The type of address obtained must be an address of the recipient that represents an actual specific physical location that is situated in a province. For instance, an email address or an IP address obtained by a supplier that does not represent a specific physical location address of the recipient is not relevant.

22. Generally, a home address means the address at which the primary residence of an individual is located.

23. A business address is generally considered to be an address at which a business is located. A business address can therefore include, among other things, the address of an office, a branch, a factory, or a workshop of the recipient. A PO Box (a locked compartment within a Post Office) is not considered to be a business address. However, a PO Box address can be considered to be another address of the recipient where the supplier does not obtain a home or business address of the recipient in Canada, as explained at paragraphs 38 to 40 of this memorandum.

24. For purposes of paragraphs 13(1)(a) and (b) of the Regulations, which are based on a specific type of address, it must be reasonable for the supplier to be able to conclude that the type of address obtained is a business address of the recipient based on information that is available to the supplier. For example, if an online supplier asks its customers to provide what it identifies on its website as a business address for billing purposes and this is the only address of the recipient that the supplier obtains in the ordinary course of its business, the supplier is not required to verify whether the address provided by the recipient is actually a business address of the recipient.

25. This part of General Rule 1 also applies if the supplier obtains a business address that the supplier knows is a business address based on the supplier's knowledge of the recipient (for instance, based on interactions that the supplier has with the recipient).

26. The rule does not require a supplier to obtain an address of the recipient that the supplier does not already obtain in the ordinary course of its business. The determination of the relevant address in respect of a supply is based on the facts taking into account the ordinary business practice of each supplier with respect to each supply.

27. An address of the recipient obtained by a supplier is only relevant for purposes of General Rule 1 if it is obtained in the ordinary course of the supplier's business practices in connection with the supply. However, any address of the recipient obtained in the ordinary course of business of the supplier should be taken into consideration in applying the rule. The relevant address of the recipient also does not have to be an address obtained in respect of every supply made to the recipient for it to be considered a relevant address obtained in the ordinary course of business.

28. An address of the recipient obtained by a supplier in the ordinary course of business could therefore include any of the following:

• an address of the recipient from which the supplier is hired in connection with a supply pursuant to an agreement for the supply (the contracting address)
• an address of the recipient that the supplier deals with in connection with a supply
• a billing address of the recipient in connection with a supply

29. The address obtained by the supplier in the ordinary course of business must be an address of the recipient of the supply. The recipient is generally the person who is liable under the agreement for the supply to pay the consideration payable for the supply.

30. Under subsection 123(1), "a recipient of a supply of property or a service, means

• (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration,
• (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and
• (c) where no consideration is payable for the supply,
  • (i) in the case of a supply of property by way of sale, the person to whom the property is delivered or made available,
  • (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and
  • (iii) in the case of a supply of a service, the person to whom the service is rendered,

and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply".

31. The rule is straightforward where a supplier only obtains a single address of the recipient in the ordinary course of its business. However, where a supplier obtains several addresses of the recipient that are connected to the supply, a determination must be made with respect to which of these addresses is the address that is most closely connected to the supply.

Multiple addresses – determining the one most closely connected to the supply

32. A supplier can obtain multiple addresses of the recipient in the ordinary course of its business. To the extent that the obtained addresses of the recipient are not different from supply to supply, the relevant address of the recipient for purposes of the place of supply rule should also not vary. However, if the addresses of the recipient vary from supply to supply, the relevant address may also vary for purposes of the place of supply rule.

33. Since the home or business addresses obtained by each supplier can vary, the address that is most closely connected with the supply is not necessarily the same for all suppliers, or the same for all suppliers in a given industry, or even the same with respect to all supplies made by the same supplier. The determination of the relevant address obtained in respect of a supply under this place of supply rule is made according to the ordinary business practice of each supplier with respect to each supply.

34. The rule does not provide the option of selecting a particular address of the recipient among several addresses obtained in the ordinary course of business of the supplier. Rather, the rule requires a determination of the address of the recipient that is most closely connected with the supply where multiple addresses are obtained.

35. The address of the recipient from which the supplier is hired pursuant to the agreement for the supply (the contracting address) is generally the address that is most closely connected with the supply. This address will therefore determine the province in which the supply is made where it is in Canada and is obtained by the supplier in the ordinary course of its business.

36. The determination of the place of supply can therefore be made with certainty at the time the supply is first made where the contracting address is identified in the agreement for the supply or, if it is not identified in the agreement, it has otherwise been obtained by the supplier in the ordinary course of its business. Where the recipient is a corporation, the contracting address could be the corporation's head office.

37. If the contracting address of the recipient is not obtained, the address most closely connected with the supply would be the address of the recipient that the supplier has the most contact with and that the supplier mostly uses in connection with the supply.

Address in Canada other than a home or business address obtained

38. Paragraph 13(1)(c) of the Regulations further provides that if the supplier does not obtain a home or business address in Canada of the recipient in the ordinary course of its business, but in the ordinary course of its business the supplier obtains another address in Canada of the recipient, the supply is made in the province in which the address that is most closely connected with the supply is located.

39. For purposes of this part of General Rule 1, there is no requirement for the address of the recipient to be an address at which the recipient is located.

40. The types of addresses that could fall under this part of the rule could include an address of the recipient such as a billing address. The address must be obtained by the supplier for a legitimate underlying business reason. This address may correspond to an address that is in fact a home or business address of the recipient but that the supplier does not know is a home or business address because it is not the supplier's ordinary business practice to obtain this type of address. For instance, this could be the case where the supplier does not require recipients to identify the address as being a home or a business address.

General Rule 2 – No address in Canada obtained

41. Subsection 13(2) of the Regulations determines the place of supply of a service where a supplier does not obtain an address in Canada of a recipient in the supplier's ordinary course of business. The rules under the subsection are generally based on where the service is performed, as illustrated in the following flowchart:

42. Pursuant to subsection 13(2) of the Regulations, if a supplier does not obtain an address in Canada of the recipient in the supplier's ordinary course of business, "a supply of a service is made

• (a) in a participating province if the Canadian element of the service is performed primarily [more than 50%] in participating provinces and
  • (i) an equal or greater proportion of the Canadian element of the service is not performed in another participating province, or
  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and
• (b) in a non-participating province if the Canadian element of the service is not performed primarily in participating provinces".

43. The Canadian element of a service is defined in section 2 of the Regulations to mean "the portion of the service that is performed in Canada".

44. Although the word performed is not defined in the ETA, the place where a service is performed is traditionally the place where the person physically doing the work is situated at the time the work is being conducted. For example, if a supplier in a non-participating province sends a technician to a participating province to provide programming services, the service is considered to be performed in the participating province since the service is physically performed in that province.

45. Where all of the activities carried out by the supplier in performing a service are clearly undertaken in a province (that is, the employees performing the service are in the province, or the supplier's equipment used to provide the service is located in the province), the place of performance of the service is in the province.

46. Where part of the activities carried out by the supplier in performing a service are carried out in a province, the province where those activities are performed must be taken into consideration in determining the place where the service is primarily performed. For example, a supplier may prepare a report in a province in respect of programming services carried on outside the province. Where the report is a component of the services supplied, the place where the report is prepared must be considered when determining the place of supply.

47. Electronic commerce allows services to be provided remotely. A supplier can provide a service to a customer in another province without physically being in that other province. For example, a supplier can have a technician perform work from a province by electronically accessing a customer's computer located in another province, rather than sending the technician to the other province. Work is being performed both at the location of the service provider, as well as the location of the customer's property that is the object of the service. It is therefore necessary to take into account the location of the customer's property when determining the place of performance.

48. Whether a service is performed in whole or in part in a province is a question of fact. Each supply of a service must be examined on a case-by-case basis to determine whether that service is performed in whole or in part in a province. Any activity related to the performance of the service must be taken into account in determining the extent to which a service is performed in a particular province or provinces. However, a supply of a service is performed at least in part in a province if either:

• the service requires a person to perform a task (that is, the supplier acts through one or more of its employees), and the person performing or physically carrying out the task is situated in the province at the time the activity is done
• the service includes operations performed by a supplier's equipment (for example, computer equipment), and the equipment is located in the province
• the supply involves doing something to or with a recipient's equipment by accessing it from a remote location, and the recipient's equipment is located in the province (however, this does not apply to a service wholly performed outside the province, where the results are subsequently delivered electronically to a recipient's computers in another province, such as a programming service carried out at the supplier's location in a province and emailed to a recipient in another province)
• any activity related to the performance of the service is undertaken in the province

Rule 2A – Canadian element not performed primarily in participating provinces

49. Pursuant to paragraph 13(2)(b) of the Regulations, if Rule 1 does not deem the supply of the service to be made in a province 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 2B – Participating province of greatest proportion of performance

50. Pursuant to subparagraph 13(2)(a)(i) of the Regulations, if Rule 1 does not deem the supply of the service to be made in a province and the Canadian element of the service is performed primarily (more than 50%) in participating provinces, the supply is made in a participating province if an equal or greater proportion of the Canadian element of the service is not performed in another participating province.

Rule 2C – Highest tax rate where the service is performed equally in participating provinces

51. Pursuant to subparagraph 13(2)(a)(ii) of the Regulations, if Rule 2B does not deem the supply of a service to be made in a participating province because the service is performed equally in two or more participating provinces, the service is supplied in the participating province that has the highest tax rate among the participating provinces for which no greater proportion of the service is performed in another participating province.

General rule 3 – Participating provinces with the same highest tax rate

52. If a supply of a service cannot be determined under Rule 2C 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

53. This rule is illustrated in the following flowchart:

First Nations goods and services tax – place of supply

54. 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.

55. 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.

56. 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 GST/HST 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

57. 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

58. 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%.

59. 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

60. 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