Services and Intangible Property Acquired Outside Canada

Generally, you are not required to pay GST on services rendered outside Canada (or outside Québec, for QST purposes) or on intangible personal property you purchased from a non-resident that does not operate a business in Canada (or in Québec, for QST purposes) and is not required to register for the GST or QST, provided the property or services are acquired for use exclusively (90% or more) in your commercial activities.

Example

You hire a computer consultant from the United States to design a computer system exclusively (90% or more) for your business's commercial activities. The consultant does not carry on a business in Canada and is not registered for the GST or QST. You do not have to pay GST or QST on the consultant's services.

Taxable services and taxable intangible personal property (excluding zero-rated services and property) that are not acquired exclusively (90% or more) for commercial activities are subject to GST and QST. The taxes are generally calculated on the amount charged for the services or property. The sale must have been made outside Canada.

Accordingly, if you are a Québec resident and you purchase services or intangible personal property from a non-resident that is not a registrant and does not operate a business in Canada, you are responsible for remitting to Revenu Québec the GST and QST payable on the services or property.

If the non-resident vendor is registered and the sale is deemed to have been made in Québec (that is, in Canada), you must remit the taxes to the vendor.

If you are a registrant and you acquired services or intangible personal property for use in your commercial activities, you may claim an input tax credit (ITC) and an input tax refund (ITR).

Last Updated: