Provisions of Services
As a rule, a service is considered to be performed in Québec if, in the ordinary course of the supplier's business, the supplier obtains an address of the purchaser that is in Québec and is:
- the home address or the business address of the purchaser in Canada, if the supplier obtains only one address;
- the address most closely connected with the service, if the supplier obtains multiple home addresses of the purchaser and the business address of the purchaser in Canada; or
- the address of the purchaser in Canada that is most closely connected with the service, if the supplier obtains neither the home address nor the business address of the purchaser in Canada.
If the supplier does not obtain the purchaser's address in Canada, the service is also considered to be performed in Québec if the part of the service performed in Canada is performed primarily (more than 50%) in Québec.
A service is not considered to be performed in Québec if it is performed entirely outside Canada, even if the purchaser has one or more home or business addresses in Québec.
- A registrant whose business is situated in Ontario is hired to design the website of a business in Québec. The service is performed entirely in Ontario. In the ordinary course of its business, the supplier obtains only one address of the purchaser, and the address is in Québec. Since the supplier obtained only one address of the purchaser (an address in Québec), the place of supply is in Québec and GST and QST therefore apply to the supply of the website design service.
- A registrant whose business is situated in Québec provides translation services online. She receives documents from her clients and sends them the translations by email. The supplier does not obtain the addresses of her customers. Since the service is performed primarily in Québec (more than 50%), the place of supply is in Québec and GST and QST apply to her sales of translation services.
Special rules apply to transportation services, telecommunications services, postal services and any services relating to real property or personal property. For more information, refer to GST/HST technical information bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province, on the Government of Canada website.