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.
Which province’s rate applies? Four steps.
- Is the supply made in Canada at all? A non-resident supplier that is not registered for GST/HST and not carrying on business in Canada is generally treated as supplying outside Canada — the supplier does not collect GST/HST on that supply, though tax on imports may still apply.
- Classify the supply: goods, a service, real property or an intangible right. Each type has its own location test.
- Apply the rule for that type. Goods: the province of delivery, including goods shipped, mailed or couriered to an address there. Services: the recipient’s Canadian home or business address, obtained in the ordinary course of business. Real property: where the property is located.
- Apply that province’s GST or HST rate.
Example — service: a $1,000 web-design fee billed to a client’s Ontario business address carries $130 HST at 13%. Example — goods: a BC seller ships a $500 taxable mattress to a customer in Ontario; delivery is deemed to occur in Ontario, so the $500 mattress carries $65 HST at 13%.
Is the supply made in Canada at all?
Place-of-supply rules also determine whether a supply is made in or outside Canada; the provincial rate rules apply only after the supply is determined to be made in Canada. A supply made or deemed made outside Canada is not subject to tax under Division II and the supplier is not liable to collect it, although imported goods or taxable supplies may still be taxed under Division III or IV. That is a different question from zero-rating. For a sale of goods, CRA treats the supply as made in Canada if the goods are delivered or made available here — but a sale that would otherwise be made in Canada is generally still deemed made outside Canada where the supplier is a non-resident that is not registered for GST/HST and is not carrying on business in Canada, subject to exceptions, including qualifying tangible personal property supplies for which the supplier is required to register under section 211.22 of the Excise Tax Act and certain event admissions. A non-resident weighing whether it has to register should start with GST registration for non-residents.
Place of supply rules for 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.
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; where shares are equal, apply CRA’s specific tie-breaking rule rather than guessing which province wins. 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. |
Delivery can be deemed, not just physical. A supplier that ships, mails or couriers goods to an address in a province, or hands them to a carrier it retained on the buyer’s behalf, is deemed to deliver them there. If the buyer independently arranged its own carrier and the supplier merely makes the goods available for pickup, delivery generally occurs where the goods are handed over, such as the seller’s premises. See section 3 of Part II of Schedule IX to the Excise Tax Act and CRA Memorandum 3-3-3, Place of Supply in a Province – Tangible Personal Property.
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 GST/HST rates by province
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.
Registrants, and persons required to register, generally collect GST/HST at these rates; an unregistered small supplier is not required to collect it on most of its taxable supplies, but CRA lists exceptions. Registration generally starts once your worldwide taxable revenue exceeds the $30,000 small-supplier threshold. See the small-supplier threshold guide for the two timing tests.
Do we charge GST for services to overseas customers?
Sometimes: a service to a non-resident can be zero-rated if the applicable export provision’s conditions are met; a service directly connected with Canadian real property is excluded from the general export-service provisions, though some specific provisions can still zero-rate it, such as qualifying services supplied under a non-resident’s warranty. CRA: exports of services. See charge GST to US and foreign clients for the recipient-status test, the records to keep, and worked examples.
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.