Sales of Services to Non-Residents or Outside Canada

The sale in Canada of services rendered to non-residents of Canada is, as a rule, zero-rated for GST purposes. Likewise, the sale in Québec of services rendered to non-residents of Québec is generally zero-rated for QST purposes. However, such transactions are subject to 5% GST and 9.975% QST in the following situations:

  • where the sale is made to an individual who is not resident in Canada or in Québec but is in Canada when he or she contacts the supplier about the service
  • where the service is provided to an individual during his or her stay in Canada or in Québec

The sale of services (other than transportation services) provided with respect to tangible personal property ordinarily situated outside Canada is zero-rated, provided the property is imported solely for the purpose of rendering the services and is exported as soon as possible after the services have been rendered. Any tangible personal property supplied with these services is also zero-rated.

Example
A person imports property ordinarily situated outside Canada for the sole purpose of making repairs. The property is exported as soon as possible once the repairs have been made. Accordingly, the repair service is zero-rated.

Other zero-rated services include

  • certain professional or consulting services provided to a non-resident
  • advisory, consulting or research services that are intended to assist a person that is not a resident of Canada in taking up residence or establishing a business in Canada
  • advertising services provided in Canada to a non-resident that is not registered for the GST
  • services provided in Canada to a non-resident that is not a registrant, in respect of property under warranty
  • services that consist in providing, to non-resident individuals, courses and examinations leading to a certificate, diploma, licence or similar document (or to a class or rating in respect of a licence) attesting to the non-resident individual's competence in a trade or vocation. The services must be sold to a non-resident (other than an individual) that is not a registrant

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