Place-of-supply rules identify the province whose GST/HST rate applies to a taxable supply made in Canada. The rule depends on the type of supply: goods, services, real property and intangible rights are not all tested the same way. First classify the supply and check whether it is taxable, zero-rated or exempt; then use the appropriate location rule. CRA: place of supply.
Services: the general address rule
For a service made in Canada, CRA’s general rule normally uses a Canadian address of the recipient that the supplier obtained in the ordinary course of business. If there is one Canadian home or business address, use it; if there are several, use the one most closely connected with the supply. If no home or business address is obtained, another Canadian address most closely connected with the supply may apply. Specific service rules override the general rules. CRA: general rules for services.
Example: A Quebec website designer works entirely from Quebec for an Ontario company and obtains its Ontario business address. Assuming the general service rule applies, the place of supply is Ontario: a $1,000 taxable fee carries $130 HST at 13%. The designer’s office location alone does not set the rate. CRA gives the same address-based example in its guidance.
What if there is no Canadian recipient address?
The fallback examines where the Canadian part of the service is performed. If it is not primarily performed in participating provinces, the supply is in a non-participating province. If it is primarily performed in participating provinces, identify the participating province with the largest share; equal shares invoke CRA’s tie rules, including the highest applicable HST rate. This is not simply “always use the seller’s address.” See CRA’s general rule 2.
Goods, property and special services
| Supply | Starting point | Example |
|---|---|---|
| Sale of goods | Generally, where the goods are delivered or made available to the purchaser. | A BC seller delivers a taxable mattress to Ontario: the Ontario HST rate applies. |
| Real property | The province where the property is located. | A taxable sale of commercial real property in New Brunswick follows the New Brunswick rule even if the buyer is based elsewhere. |
| Service connected with real property | Use the specific real-property service rule; the property’s location matters. | Architectural work on a particular Ontario building needs the property-specific analysis, not just the billing address. |
| Intangible rights | Consider the rights, permitted use and applicable specific or general intangible-property rule. | A software licence cannot automatically be classified using the service-address test. |
See CRA’s place-of-supply guidance. A supply made outside Canada is a separate question from a supply made in Canada that qualifies for zero-rating.
Current federal rates
For ordinary taxable supplies, the current rates are 5% GST in Alberta, BC, Manitoba, Quebec, Saskatchewan and the territories; 13% HST in Ontario; 14% HST in Nova Scotia; and 15% HST in New Brunswick, Newfoundland and Labrador, and PEI. Nova Scotia’s 14% rate took effect April 1, 2025. Separate provincial tax obligations may apply in provinces with PST, RST or QST. CRA: rates.
Do we charge GST for services to overseas customers?
Sometimes. A service to a non-resident may be zero-rated if the applicable export rule and its conditions are met. For example, a qualifying consulting service can be zero-rated under the specific advisory-service provision; a service directly connected with Canadian real property is excluded from that provision and the general export-service provision. Establish the recipient’s status, the service and any property connection, then apply the right provision. CRA: exports of services.
Keep the client address obtained, agreement, delivery or service records and any evidence supporting export treatment. If the facts cross provinces or involve digital rights, consult the specific rule rather than treating this guide as a universal rate calculator.
Sources checked October 16, 2026: CRA place-of-supply, rate and export guidance linked above.