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NEW CRA GUIDANCE ON PROVINCE OF SUPPLY

CRA’S POLICIES ON PROVINCE OF SUPPLY RULES NOW FOUND IN NEW D-MEMO SERIES

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Determining the province in which a supply occurs is a fundamental requirement for GST/HST compliance, because it dictates the applicable tax rate: 5% GST, 13% GST/HST in Ontario, 14% GST/HST in Nova Scotia, or 15% GST/HST in the remaining Atlantic provinces.

The rules for determining the provincial place of supply have not changed, but the Canada Revenue Agency (“CRA”) recently updated its applicable published guidance on these rules, meaning there are now new sources to be consulted when dealing with these issues.

In this Indirect Tax Report, we identify the CRA’s new guidance and its implications for GST registrants and their advisors.

The Old Informational Bulletin

For over a decade, tax professionals, accountants, and businesses have leaned heavily on a single, comprehensive CRA resource to navigate these rules: 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 (“TIB B-103”).

Released in June 2012, this 200-page document served as the primary CRA guide to the place of supply rules – despite remaining in draft status for its entire existence.

As of April 2026, TIB B-103 has officially been cancelled and replaced.

The Transition to the New Memoranda Series

In August 2024, the CRA began a phased rollout of new GST/HST Memoranda intended to replace TIB B-103. That process is now complete, with the recent release of four new Memoranda, and the update of four others.

The updated suite of GST/HST Memoranda (the “Replacement Memoranda”) governing the place of supply in a province consists of:

• 3-3-2 – Place of Supply in a Province – Overview
• 3-3-3 – Tangible Personal Property
• 3-3-4 – Real Property
• 3-3-5 – General Rules for Intangible Personal Property
• 3-3-5-1 – Specific Rules for Intangible Personal Property
• 3-3-6 – General Rules for Services
• 3-3-6-1 – Personal Services, Services in Relation to Property and Telecommunication Services
• 3-3-6-2 – Specific Rules for Services – Special Cases
• 3-3-7 – Transportation

The new Replacement Memoranda are split into separate documents based on the nature of the supply. But note that some supplies (i.e., intangible personal property, services) may require consulting more than one Memoranda to find the applicable rule.

Compliance Implications

It is important to note that there has been no change to the underlying legislation or Regulations. However, while nothing substantive has changed, differences in examples and explanations might clarify the CRA’s position more than those in TIB B-103.

Takeaways

Businesses and tax practitioners should review and familiarize themselves with the Replacement Memoranda and always remember to review the underlying legislation or regulation.

Experienced Tax Counsel should also be consulted in appropriate scenarios to assist with navigating these and other complicated rules. 

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