As anticipated, on February 25, 2010, the federal government released a preliminary document outlining comprehensive proposed changes to the place of supply rules for the Harmonized Sales Tax (HST). The place of supply rules determine whether suppliers are required to charge the provincial component of the HST on their supplies of taxable property and services in Canada and, if so, at what rate. The proposed changes to the place of supply rules will affect the supply of intangible personal property and services. Also included are proposed changes to related rules that may require selfassessment or allow rebates of the provincial component of the HST on property or services where the property or services are brought into a province or are acquired in a province for consumption, use or supply outside that province. The Department of Finance has invited interested parties to submit any comments on the proposed changes by March 31, 2010.
To view the Department of Finance document outlining the proposed changes, please click here.