HST Resources and Policy Updates for
HST Webinar and Self-Paced Learning Participants
as of
• HST Training Resources
HST Self-Paced Learning Program click here (Airline Training Council)
(an audio-visual presentation
from our HST Webinar program)
HST and Place of Supply Rules Guide click here (Airline Training Council)
(an online reference guide
from our HST Webinar program)
• Canada Revenue Agency and Travel Industry HST Resources
BSP Canada HST Policy and Ticketing Procedures click here (BSP Memo 731)
CRA "Place of Supply" rules regarding "services" (Eff. 01MAY10) click here (short online text view)
CRA "Place of Supply" rules regarding "services" (Eff. 01MAY10) click here (document download)
• HST Updates, Reminders, and CRA Amendments
05 MAY 2010 - BSP Canada Memorandum 731 - Agency Service Charges and Commissions:
BSP Canada Memo 731 does not correctly reflect the place of supply rules applicable to taxes on agency service charges and commissions detailed in sections 6.2 and 7.1 of the memo. The memo (section 6.2) states that the place of supply for agency service charges will be the location of the client effective on 01 July 2010. This is not correct. The location of the client rules took effect on 01 May 2010. As of 01 May 2010, the actual date of the agency service charge levied will trigger the applicable service charge tax based on the prevailing tax in force at the location of the client on that date. Similarly, taxes on commissions based on the location of the airline have nothing to do with the date of ticketing and are not related to tickets issued on/after 01 July 2010, as is incorrectly stated in the memo (Section 7.1). Taxes on commissions for applicable transportation will be based on the location of the airline as well as the type of itinerary when such commissions are paid on/after 01 May 2010. |
30 APR 2010 - BSP Canada Memorandum 731 - Exchange Transactions:
BSP Canada issued Memo 731 today outlining its policies and ticketing procedures regarding the implementation of HST. Of particular importance is the ticketing procedure where a ticket issued prior to HST (GST applied) might be reissued due to a change initiated by the passenger. Depending on the date of change and date of travel, if the resulting transaction requires a refund of GST and a collection of HST, the plus/minus nature of the transaction will result in a full refund of the original ticket and the issuance of a new ticket (not an exchange transaction). Please refer to the review of this process in the BSP memo available at the link in the section above. |
30 APR 2010 - Full Prepayment:
Today (30 April 2010) is the last day a domestic passenger transportation service for travel originating in Ontario or BC, for travel on/after 01 July 2010, can be prepaid IN FULL so as to avoid HST at the time of actual ticket
issuance. Today is also the last day that a domestic passenger transportation service for travel originating in Nova Scotia, for travel on/after 01 July 2010, can be prepaid IN FULL so as to avoid the increased HST from 13% to 15% at the time of actual ticket issuance. |
29 APR 2010 - BC HST Approved:
The BC Legislative Assembly today approved the bill authorizing implementation of the HST in British Columbia. It was signed into law a short while later by BC Lieutenant-Governor Stephen Point. |
23 APR 2010 - CRA Delays Technical Update:
CRA was due to provide final direction today on a wide variety of travel-related matters including air carrier ancillary services. CRA has advised that their update will be delayed until the week of 26 April 2010 due to the overwhelming number of requests CRA has received from other industries seeking HST information and clarifications prior to the 01 May 2010 HST transition implementation date. |
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22 APR 2010 - Back-Office Systems:
ARTA Canada continues to have significant concerns regarding the readiness of back-office systems (BOS) to accommodate HST. These concerns are heightened with respect to the post-transaction handling of service charges, markups, and commissions. Of particular concern is any BOS which has hard-coded or pre-programmed tax rates for service charges and commissions. Travel agencies are encouraged to speak with their BOS provider as soon as possible. Please review our 21 April 2010 reminder below about service charges and the place of supply rules and HST collection dates. |
21 APR 2010 - Agency Service Charges:
Travel agencies are reminded that the new "place of supply" rules effective 01 May 2010 impact agency services charges as they are considered a separate supply from a passenger transportation service. Accordingly, while any related transportation will be governed by the transition rules for sales on or after 01 May 2010 for travel on or after 01 July 2010 for the collection of HST, the agency service charge itself will only be subject to HST for clients with BC and Ontario addresses when paid on or after 01 July 2010. For clients with addresses in Nova Scotia, the prevailing HST will be collected as of 01 May 2010 as this HST is in effect. The increased Nova Scotia HST (15%) will be collected as of 01 July 2010. For clients with addresses in New Brunswick, Newfoundland and Labrador, the prevailing HST will be collected as of 01 May 2010. Accordingly, the transition rules do not apply to the agency service charge as it is a separate supply from the passenger transportation itself and cannot be paid "in advance of consumption" per se. The exception to this, as explained during training, is in a transaction involving a transportation resupply (e.g., a consolidator ticket). |
07 APR 2010 - Airport Improvement Fees:
Stakeholders are reminded that Airport Improvement Fees (SQ) are subject to the tax regime of the province in which the airport is located and subject to the same transition rules effective with passenger transportation paid on or after 01 May 2010 for travel on or after 01 July 2010. Airport Improvement Fees are considered a lease of real property as explained during training. |
06 APR 2010 - Nova Scotia:
The Province of Nova Scotia will increase its existing HST, effective 01 July 2010, from 13% to 15%. The provincial component of the HST is being increased from 8% to 10%. |
