Rescinded [2010-07-01] - Policy on the Collection and Remittance of Provincial Sales Taxes (Application of Reciprocal Taxation Agreements and Comprehensive Integrated Tax Coordination Agreements)

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1. Effective date

  1. The present document contains the policy concerning the application of the reciprocal taxation agreements (RTA) with the provincial and territorial governments for a five year term starting January 1, 1994 and the Comprehensive Integrated Tax Coordination Agreements (CITCA) of October 1996 with the provinces of Newfoundland, Nova Scotia and New Brunswick.
  2. This policy is effective April 1, 1997.

2. Preface

  1. The requirement for federal departments and agencies to charge, collect and remit provincial sales tax was initiated by a Cabinet decision of September 7, 1961 [X-0325-61RD(01)] which directed all government departments and agencies selling goods to register with provincial authorities in provinces which levy provincial sales tax and to collect and remit this tax to the appropriate province.
  2. Subsequent to the 1961 Cabinet decision, Part VII of the Federal-Provincial Fiscal Arrangements and Federal-Provincial Post-Secondary Education and Health Contribution Act (1985 Revised Statutes) provided that RTA between Canada and the government of any participating province and territory shall contain provisions for the collection and remittance of PST, and the payment of sales taxes or other similar taxes levied by the other level of government. In this policy, "province" and "provincial" are used to designate both provincial and territorial governments.
  3. On October 23, 1996, a harmonized sales tax (HST) was announced. An amendment to the Excise Tax Act to give effect to the HST was given royal assent on March 20, 1997. Three provinces, Newfoundland, Nova Scotia and New Brunswick, have signed CITCA with the federal government. Canada and the CITCA provinces have agreed to pay the HST in respect of supplies acquired by their governments, agents and entities. In these three provinces, the HST replaces the federal Goods and Services Tax (GST) and the provincial general sales taxes (PST) that would otherwise be charged.
  4. The RTA and CITCA are complementary and both types of agreements may run concurrently.
  5. This chapter includes all the information that may be required by departments and agencies to comply with the RTA and CITCA. Departments should also refer to the Policy on the Application of the Goods and Services Tax and Harmonized Sales Tax in the Departments and Agencies of the Government of Canada, Comptrollership, Treasury Board Secretariat publication, for details regarding the accounting for HST.

3. Definitions

Non-partaking province (province ne prenant pas part) - means a province or territory which is not a party to a Reciprocal Taxation Agreement.

Non-participating province (province non participante) - means a province or territory which is not a party to a Comprehensive Integrated Tax Coordination Agreement.

Partaking province (province prenant part) - means a province or territory which is a party to a Reciprocal Taxation Agreement.

Participating provinces (provinces participantes) - means the provinces of Newfoundland, Nova Scotia, and New Brunswick, and such other provinces as may join in the Comprehensive Integrated Tax Coordination Agreement from time to time.

Third party purchases (achats de tiers) - are purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

4. Policy objective

To ensure that the provisions of the Federal-Provincial RTA and CITCA concluded with provincial governments in respect of the payment of certain provincial taxes and the collection and remittance of general PST and HST are adhered to and implemented by all federal government departments and agencies.

5. Policy statement

The policy of the federal government is to fully comply with the terms of the RTA and the CITCA concluded with the provinces and territories and to pay and to collect and remit all the applicable taxes.

6. Application

This policy applies to all organizations considered to be departments within the meaning of section 2 of the Financial Administration Act.

7. Policy requirements

  1. Departments must ensure that adequate policies and procedures are issued to comply with the reciprocal taxation agreements and comprehensive integrated tax coordination agreements and must establish and maintain the procedures for the administration of the PST and HST, including provisions for the timely adjustment of tax collection procedures when the tax of goods or services changes.
  2. All federal departments which sell taxable goods and services in non-participating provinces shall register with provincial authorities in the provinces which levy a sales tax and submit the appropriate PST returns required by the provinces.
  3. For HST purposes, federal departments which sell taxable goods and services in participating provinces need not register as vendors with these provinces as the Business Number used for federal HST registration is sufficient for the collection of HST. Provinces may require registration for other related purposes.
  4. All federal departments which sell taxable goods and services in participating provinces shall register as vendors with Revenue Canada and submit the appropriate HST returns required by Revenue Canada. Departments which are GST registrants are automatically registered for HST and therefore do not require a separate registration.
  5. Unless the purchaser is exempted from payment of the PST and/or HST by legislation or is the holder of an exemption license, departments and agencies registered as vendors are required to collect and remit PST and/or HST on all taxable sales.
  1. Departments will claim exemption from paying provincial general retail sales taxes in all non - participating provinces and territories on purchases of goods and services in the name of Canada. This includes purchases made with Government of Canada acquisition cards.
  2. Departments will claim exemption from paying provincial general sales tax in non-participating provinces where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from PST at point of purchase in all provinces except Alberta, the NWT and Yukon.
  3. PST is payable on purchases by third parties while on government business (e.g. petty cash or employee travel-related expenses). Government departments and agencies are to reimburse third parties for PST paid in respect of goods and services acquired by or on behalf of a department which are either acquired by federal employees in the course of employment-related travel (including transportation, meals, accommodation, taxi services) or purchased from petty cash.
  4. Departments shall not apply for any refund, rebate or remission of any PST paid or PST reimbursed to third parties from the respective provinces.
  1. Departments will pay the HST on purchases of goods and services in the name of Canada where the goods or services are received in any participating province.
  2. Departments will NOT claim exemption from paying HST in participating provinces on purchases of goods and services in the name of Canada except where the goods or services are received in a non-participating province.
  3. Departments receiving goods or services in a non-participating province from a participating province do not pay HST.

Departments will pay the ancillary taxes required by the Reciprocal Taxation Agreements with all provinces and territories as described in Appendices B and C for each province.

8. Procedural requirements

In those provinces which offer commissions to individual vendors, and when cost-effective, registered federal vendors must claim the amount of compensation provided for under the respective provincial statutes on an individual basis.

9. Monitoring

  1. The Treasury Board Secretariat will monitor the effectiveness of this policy by reviewing departmental audit and performance monitoring reports.
  2. The collection and reporting of the provincial sales tax will be subject to audit by provincial revenue departments in the same manner as any other vendor.
  3. The collection and reporting of the HST will be subject to audit by Revenue Canada in the same manner as any other vendor.
  4. Departments are responsible for the effective and efficient application of the RTA and CITCA to their operations.
  5. Departments should undertake periodic reviews and audits which focus on the accuracy and completeness of amounts of PST and/or HST collected and paid in accordance with this policy and the RTA and CITCA.
  6. Performance indicators should relate primarily to the efficiency of documentation (policies, procedures and training material) and systems used to determine the amount of PST and/or HST charged and for the remittance of the PST to provincial tax departments.

10. References

  1. Part VII of the Federal - Provincial Fiscal Arrangements and Federal - Provincial Post - Secondary Education and Health Contribution Act (1985 Revised Statutes).
  2. Part IX of the Excise Tax Act.
  3. Policy on the Application of the Goods and Services Tax and Harmonized Sales Tax in the Departments and Agencies of the Government of Canada, Comptrollership, Treasury Board Secretariat publication.

Note: Treasury Board Secretariat publications are available in electronic format only. They can be accessed through the TBS Web site on the Government Enterprise Network (GENet), the federal government internal network, at the following address:

http://publiservice.tbs-sct.gc.ca/

and on the TBS Web site on the Internet at:

http://www.tbs-sct.gc.ca/

11. Enquiries

  1. Enquiries about this policy should be directed to your departmental headquarters.
  2. Enquiries from departmental headquarters about this policy and about disputes resulting from tax adjustments or provincial audit findings should be directed to:
    Financial, Contract and Asset Management Sector
    Deputy Comptroller General Branch
    Treasury Board Secretariat
    Ottawa, Ontario
    K1A 0R5

    Telephone: (613) 957-7233
    Facsimile: (613) 952-9613

    Email:
    Internet: DCG-SCGInformation@tbs-sct.gc.ca

    X400: c=ca; a=govmt.canada; p=gc+TBS.SCT; s=DCG-SCGInformation
  3. Enquiries about provincial tax legislation should be directed to the provincial tax office - see Appendix C for addresses and telephone numbers.
  4. Enquiries about reciprocal taxation agreements, CITCA and HST legislation should be directed to:
    Project Director
    Federal-Provincial Taxation Group
    Tax Policy Branch
    Department of Finance
    Ottawa, Ontario
    K1A 0G5

    Telephone: (613) 943-1936
    Facsimile: (613) 996-2690

Appendix A - Reciprocal Taxation Agreements, Comprehensive Integrated Tax Coordination Agreements and Types of Provincial Taxes

The RTA and CITCA are complementary and both types of agreements may run concurrently. As a result departments continue to be required to pay ancillary taxes in participating provinces (see 3.2 below).

1.1 Participating Provinces

Canada has CITCA with the provinces of Newfoundland, Nova Scotia and New Brunswick. See the Policy on the Application of the Goods and Services Tax and Harmonized Sales Tax in the Departments and Agencies of the Government of Canada, Comptrollership, Treasury Board Secretariat publication, for the appropriate accounting and other information related to the HST.

1.2 Collection of HST

Federal departments in all provinces which sell taxable goods and services to a recipient in a participating province are required to collect and file appropriate returns for the HST.

1.3 Payment of HST

Federal departments in all provinces must pay suppliers the HST for taxable goods and services it receives in participating provinces.

2.1 Partaking provinces

  1. Canada has Reciprocal Taxation Agreements (RTA) with all provinces and territories except Alberta and New Brunswick. The RTA were renewed January 1, 1994 for a five year term.
  2. Canada is presently negotiating the renewal of reciprocal taxation administrative arrangements with New Brunswick. Until the arrangements are renewed, both governments will continue to follow the terms of the agreements concluded in March 1991.

2.2 Collection of provincial sales taxes

Federal departments which sell taxable goods are required to collect and remit provincial sales taxes in all provinces. The collection of provincial taxes is required by all RTA except the one with Yukon and the administrative arrangements with New Brunswick. However, even in provinces without an agreement covering the collection of taxes, it is the federal government policy to collect and remit general sales and ancillary taxes. Note, however, that the participating provinces do not charge PST.

2.3 Payment of PST

Federal departments are exempt from paying general PST in all provinces.

2.4 Other

  1. Federal departments are required to pay ancillary taxes in ALL provinces except the NWT and Yukon. In Saskatchewan, federal departments are exempt from fuel taxes. In Alberta, federal departments do not pay ancillary taxes as there is no RTA.
  2. The RTA require federal departments to pay PST on third party purchases in all provinces except Alberta (no RTA), the NWT and Yukon (neither have general sales taxes, but the NWT's RTA requires federal departments to pay, should the NWT levy one in the future).

Provincial sales taxes include all taxes and fees levied by the appropriate provincial and territorial governments and are classified as follows.

3.1 General sales taxes

A general sales tax is considered to be a tax of general application payable by the purchaser on the value of goods, property or services acquired, and is levied under a provincial retail sales tax statute or its equivalent. The HST is not considered to be a provincial general sales tax.

3.2 Ancillary taxes

  1. An ancillary tax is a tax or fee generally levied under a provincial statute other than the provincial retail sales tax legislation or its equivalent.
  2. Purchases made in the NWT, Yukon and Alberta, and gasoline purchased in Saskatchewan will be exempt from this type of provincial sales tax upon presentation of the exemption certificate.
  3. Ancillary taxes include fuel taxes, tobacco taxes, admission/amusement tax (Nova Scotia), broadcast advertising tax (Quebec), hotel room taxes (where these taxes are not levied under the provincial retail sales tax legislation), as well as general sales taxes applicable to insurance premiums in Quebec and environmental levies on batteries and tires in British Columbia.

Appendix B - Reciprocal Taxation Agreements - Requirements

The tax rate to be applied is based on the province where the goods are to be delivered.

No general sales taxes are paid and the provincial sales tax license number applicable to the particular provinces must appear on all purchase documents at the time of the purchase made directly on behalf of a department or agency.

  1. Ancillary taxes are payable in those provinces where they are applicable.
  2. Departments and agencies are responsible for paying applicable ancillary taxes directly to suppliers. License numbers should not be quoted unless the invoices include purchases which are subject to PST. These payments are to be charged to departmental appropriations.
  3. Payment of motor vehicle registration fees is required for vehicles held by federal departments and agencies. Motor vehicle registration fees are to be paid directly from departmental appropriations.
  1. Federal departments and agencies which sell goods and services to external parties (such as, employees, Crown corporations or the public) are considered vendors by provincial legislation and are required to apply for a vendor registration certificate from the appropriate provincial authorities in non-participating provinces.
  2. The department or agency shall contact the designated provincial representatives for any non-participating province in which the goods are expected to be delivered and provide information on the nature of the sales (including the goods and services being sold, potential clients) and the estimated volume of sales in dollars. The province will determine whether the department or agency is required to register as a vendor. If registration is necessary, the province will issue a vendor registration certificate and provide applicable instructions, including tax information and due dates for returns.
  1. PST collected will be deposited in the Consolidated Revenue Fund and credited to a PST liability account in the Accounts of Canada at the time of receipt. A debit entry is to be made to the PST liability account when the tax is remitted to the appropriate province. Departments which have sales that are taxable in provinces but which do not have a PST liability account should request one from the Receiver General.
  2. Note that PST are normally remitted on an accrual basis. However, in the case of credit sales, PST may have to be remitted to the appropriate province before payments are received. Therefore, the department PST liability account may have a temporary debit balance.
  1. (a) As a form of compensation for the services of collecting and remitting provincial sales taxes, most provinces offer vendors a commission.
  2. When commissions are claimed by individual federal vendors, the commission will be deducted from the remittance made to the province. The amount of the commission will be debited from the PST liability account and credited as non-tax revenue, source object 4550, "Proceeds from Sales - Other".
  3. Where a department has parliamentary authority to net vote, the commission may be credited to source object 3550, "Proceeds from Sales - Other".
  1. Departments and agencies are responsible for maintaining proper records on the taxability of their sales, and on the taxes collected, remitted and owing, to permit verification by the partaking provinces. These records may include sales invoices, sales journals, cash register tapes, general ledgers, daily sales reports, and records of goods acquired for sale.
  2. During a provincial audit, federal vendors are required to provide provincial officials with access to their records and to explain the procedures relating to their sales activities.
  3. Provincial audit will take place periodically as considered necessary by the partaking provinces.

When a provincial audit indicates that a department or agency did not comply with provisions of the provincial tax legislation, the province may recommend changes, where warranted, to correct procedures in areas of non-compliance.

  1. Where a provincial audit finds that a federal vendor has failed to collect or to remit tax, the province may request payment of an adjustment. This adjustment represents the amount of the tax which should have been collected and remitted by the vendor, including interest where applicable.
  2. The department will review the documentation provided by the province supporting the tax adjustment. Within ninety days of receipt and upon agreement, payment will be made by the department to the province.
  3. Tax adjustments are to be paid from departmental appropriations and charged to object of expenditure 3259.
  1. When a provincial audit finds that certain provincial taxes have been collected but not remitted, the province will send the federal vendor a "Request for Payment of Tax Adjustments".
  2. Departments will review the documentation furnished in support of the tax adjustment and, if in agreement, will pay the tax adjustment to the province. This adjustment will be paid out of the PST Liability Account where the tax receipt is held.
  1. In cases where a federal vendor disagrees with the findings of the provincial audit or with the resulting tax adjustment, the matter will be referred to the Financial and Contract Management Sector of the Deputy Comptroller General Branch of the Treasury Board. Discussion will then take place between officials of the Treasury Board and the province concerned to resolve the difference administratively.
  2. If the dispute is not settled at this level, the matter may be referred for decision by a Board of Commissioners in accordance with the terms of the Federal-Provincial Reciprocal Taxation Agreements.

Appendix C - Details of the Reciprocal Taxation Agreements and CITCA by Province and Territory

1.1 Participation

CITCA participating province and RTA partaking province.

1.2 Contact office

Manager
Tax Information and Rulings
Tax Administration Branch
Department of Finance - Newfoundland
P.O. Box 8720
St. John's, Newfoundland
A1B 4K1

(709) 729-3831

1.3 Account number

32243-0-09

1.4 Harmonized sales tax

Federal departments are required to pay HST in Newfoundland. Federal departments are also required to pay HST on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

1.5 Ancillary taxes and other fees

Canada will pay ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal - Provincial Fiscal Arrangements and Federal Post - Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • The Gasoline Tax, R.S.N., c. G-1, 1990
  • The Highway Traffic Act, R.S.N., c. H-3, 1990
  • The Tobacco Act, R.S.N., c. T-5, 1990
  • The Motorized Snow Vehicles and All - Terrain Vehicles Act, R.S.N., c. M-20, 1990.

2.1 Participation

RTA partaking province.

2.2 Contact office

Chief Tax Administrator
Department of Provincial Treasury
Provincial Revenue
Province of Prince Edward Island
P.O. Box 1330
Charlottetown, PEI
C1A 7N1

(902) 368-4146

2.3 Account number

OP-10000-250

2.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in Prince Edward Island. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

2.5 Ancillary taxes and other fees

Canada will pay the taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal - Provincial Fiscal Arrangements and Federal Post - Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Health Tax Act, R.S. P.E.I., 1988, c. H-3
  • Gasoline and Diesel Oil Tax Act, R.S. P.E.I., 1988, c. G-3
  • Motor Carrier Act, R.S. P.E.I., 1988, c. M-10
  • Highway Traffic Act, R.S. P.E.I., 1988, c. H-5

2.6 Additional information

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

3.1 Participation

CITCA participating province and RTA partaking province.

3.2 Contact Office

Manager
Tax Information and Vendor Services
Provincial Tax Commission
P.O. Box 755
Halifax, Nova Scotia
B3J 2V4

(902) 424-6317

3.3 Account number

U84-00-03172-3

3.4 Harmonized sales tax

Federal departments are required to pay HST in Nova Scotia. Federal departments are also required to pay HST on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

3.5 Ancillary taxes and other fees

Canada will pay the taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal - Provincial Fiscal Arrangements and Federal Post - Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Gasoline and Diesel Oil Tax Act, R.S. N.S., 1989, c. 183
  • Motor Carrier Act, R.S. N.S., 1989, c. 292
  • Motor Vehicle Act, R.S. N.S., 1989, c. 293
  • Off Highways Vehicles Act, R.S. N.S., 1989, c. 323
  • Theatres and Amusements Act, R.S. N.S., 1989, c. 466
  • Tobacco Tax Act, R.S. N.S., 1989, c. 470

4.1 Participation

CITCA participating province.

4.2 Contact office

Manager
Consumer Tax
Revenue Division
Department of Finance
P.O. Box 3000
Fredericton, New Brunswick
E3B 5G5
(506) 453-2404

4.3 Account number

An exemption certificate must be used.

4.4 Harmonized sales tax

Federal departments are required to pay HST in New Brunswick. Federal departments are also required to pay HST on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

4.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees levied or collected under the following legislation and as though such taxes and fees were applicable to Canada:

  • Gasoline and Motive Fuel Tax Act, R.S. N.B., 1973, c. G-3
  • Motor Vehicle Act, R.S. N.B., 1973, c. M-17
  • Tobacco Tax Act, R.S. N.B., 1973, c. T-7
  • The Admission and Amusement Act, R.S. N.B., 1988, c. A-2.1
  • The Motorized Snow Vehicles Act, R.S. N.B., 1973, c. M-18
  • The Motor Carrier Act, R.S. N.B., 1973, c. M-16

4.6 Additional information

Canada is presently negotiating the renewal of reciprocal taxation administrative arrangements with New Brunswick. Until the arrangements are renewed, both governments will continue to follow the terms of the agreements concluded in March 1991.

5.1 Participation

RTA partaking province.

5.2 Contact office

Directeur des taxes à la consommation
Direction générale de la législation
3800, rue Marly
Sainte-Foy, Québec
G1X 4A5
(418) 652-4632

5.3 Registration number

An exemption certificate must be used.

5.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in Quebec. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

5.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Tobacco Tax Act, R.S.Q., c. 1-2
  • Fuel Tax Act, R.S.Q., c. T-1
  • Highway Safety Code, R.S.Q., c. 24.1
  • Broadcast Advertising Tax Act, R.S.Q., c. T-2
  • Retail Sales Tax Act, R.S.Q., c. 1-1, except for Chapter II
  • Quebec Sales Tax Act, R.S.Q., c. T-0.1, except for the Title I and transitional provisions related thereto.

5.6 Exemption certificate

This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) are being purchased with Crown funds, and are therefore not subject to sales and consumption taxes of the Province of Quebec.

________________________________
Signature of Authorized Official

5.7 Additional information

5.7.1 Quebec Sales Tax (QST) on taxi and limousine services

  1. Since July 1, 1992, QST has applied to taxi and limousine services in Quebec. However, under the reciprocal taxation agreements, the Government of Canada is exempt from provincial sales taxes, including taxes on services received. QST therefore does not apply to taxi and limousine services, provided that:
    • a "voucher" or charge account system is used;
    • the taxi or limousine company bills the government directly;
    • the department or agency provides the taxi or limousine company with a tax exemption certificate.
  2. However, QST does apply to taxi and limousine services paid for in cash by employees traveling on official business. The department or agency is required to reimburse the employee for the price of the trip (including QST) and this cost is then charged to departmental or agency appropriations.
  3. Since it would be difficult for the taxi or limousine driver not to add QST to the prices shown on the meter, departments and agencies must ensure, in verifying their accounts, that QST does not appear on invoices sent to the government by taxi and limousine companies.

5.7.2 Quebec tax on insurance premiums

  1. Under the reciprocal taxation agreement with Quebec, the tax on insurance premiums is considered an ancillary tax. The federal government is therefore required to pay the sales tax on insurance premiums relating to life, health or physical integrity policies, since part of the policy is assigned to the assumption of risk in Quebec.
  2. The sales tax which applies to the employer's share of premiums for employee group insurance plans, such as disability insurance and the Public Service Medical Insurance Plan, is calculated and remitted directly to the Province of Quebec by the regional pay offices of Public Works and Government Services Canada (PWGSC).

5.7.3 Motor vehicle fleet management services

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

6.1 Participation

RTA partaking province.

6.2 Contact office

Senior Manager
Legislation
Ontario Ministry of Finance
Retail Sales Tax Branch
33 King Street West
Oshawa, Ontario
L1H 8H7
(905) 433-6322

6.3 Permit number

11708174G

6.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in Ontario. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

6.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Gasoline Tax Act, R.S.O., 1990, c. G.5
  • Fuel Tax Act, S.O., 1990, c. F.35
  • The Highway Traffic Act, R.S.O., 1990, c. H.8
  • Truck Transportation Act, R.S.O., 1990, c. T.22
  • Public Vehicles Act, R.S.O., 1990, c. P.54
  • Tobacco Tax Act, R.S.O., 1990, c. T.10
  • Motorized Snow Vehicles Act, R.S.O., 1990, c. M.44
  • Off-Road Vehicles Act, R.S.O., 1990, c. O.4

6.6 Federal vendor

This province considers all federal departments and agencies as a single vendor. As a result, federal vendors cannot claim commissions individually.

6.7 Additional information

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

7.1 Participation

RTA partaking province.

7.2 Contact office

Manager
Tax Information and Advisory Services
Retail Sales Tax Branch
Department of Finance
Room 101, Norquay Building
401 York Avenue
Winnipeg, Manitoba
R3C 0P8
(204) 945-6444

7.3 Registration number

390-516-0

7.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in Manitoba. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

7.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act (1985 Revised Statutes) and imposed or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • The Gasoline Tax Act, C.C.S.M., c. G40
  • The Motive Fuel Tax Act, C.C.S.M., c. M220
  • The Highway Traffic Act, C.C.S.M., c. H60
  • The Tobacco Tax Act, C.C.S.M., c. T80
  • The Off-Road Vehicles Act, C.C.S.M., c. O31

7.6 Additional information

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

8.1 Participation

RTA partaking province.

8.2 Contact office

Saskatchewan Finance
Revenue Division
2350 Albert Street
Regina, Saskatchewan
S4P 4A6
(306) 787-6645 (From Regina)
1-800-667-6102 (From elsewhere)

8.3 Account number

An exemption certificate must be used.

8.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in Saskatchewan. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

8.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act (1985 Revised Statutes) and imposed or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Liquor Consumption Tax, S.S., 1979, c. L-19.1
  • The Highway Traffic Act, S.S., 1986, c. H-3.1
  • The Tobacco Tax Act, R.S.S., 1978, c. T-15

Canada does not pay provincial tax or fee imposed under the Fuel Tax Act, 1987, S.S., 1986-87, c. F-32.2. An exemption certificate must be presented.

8.6 Exemption certificate

This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) are being purchased with Crown funds, and are therefore not subject to sales and consumption taxes of the Province of Saskatchewan.

________________________________
Signature of Authorized Official

8.7 Additional information

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

9.1 Participation

Non-partaking province.

9.2 Contact office

Province of Alberta - Treasury
Revenue Administration
9811 109th Street
Edmonton, Alberta
T5K 2L5
(780) 427-3044

9.3 Account number

Not applicable

9.4 Provincial general sales tax

Alberta has no provincial sales tax. However, if a provincial sales tax is introduced, the sales tax exemption certificate would have to appear on purchasing orders or other purchase documents.

9.5 Ancillary taxes and other fees

Not applicable

9.6 Exemption certificate

This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) are being purchased with Crown funds, and are therefore not subject to sales and consumption taxes of the Province of Alberta.

________________________________
Signature of Authorized Official

9.7 Additional information

  1. Canada does not pay ancillary taxes in Alberta. Nevertheless, taxes are to be paid on third party purchases for temporary accommodations (hotel tax) and gasoline in order to facilitate administration.
  2. The "Advance Disposal Surcharge" (sometimes referred to as the "Alberta Tire Tax") is not considered to be a tax and must therefore be paid.

10.1 Participation

RTA partaking province.

10.2 Contact office

Manager
Taxable Services
Ministry of Finance
Consumer Taxation Branch
500-605 Robson Street
Vancouver, British Columbia
V6B 5J3
(604) 660-4524

10.3 Account number

005521

10.4 Provincial general sales tax

Federal departments are exempt from paying provincial general sales tax in British Columbia. However, federal departments are required to pay general sales tax on third party purchases by employees in the course of employment related travel including supplies and transportation, meals, accommodation, taxi services and incidental travel related expenses, as well as purchases out of petty cash.

10.5 Ancillary taxes and other fees

Canada will pay the ancillary taxes and other fees imposed under the provincial sales tax legislation, as established for the purposes of Part VII of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act (1985 Revised Statutes) and levied or collected under the following legislation as though such taxes and fees were applicable to Canada:

  • Social Service Tax Act, R.S.B.C., 1979, c. 388 (Environmental tax only, not PST)
  • Motor Fuel Tax Act, S.B.C., 1985, c. 76
  • Motor Vehicle Act, S.B.C., 1979, c. 288
  • Commercial Transport Act, S.B.C., 1979, c. 55
  • Motor Carrier Act, S.B.C., 1979, c. 286
  • Tobacco Tax Act, S.B.C., 1979, c. 404
  • Hotel Room Tax Act, S.B.C., 1979, c. 183
  • Motor Vehicle (All Terrain) Act, S.B.C., 1979, c. 289

10.6 Federal vendor

This province considers all federal departments and agencies as a single vendor. As a result, federal vendors may not claim commissions individually.

10.7 Additional information

10.7.1 "Green" tax levied by British Columbia

  1. In British Columbia, a "green" tax applies to the purchase of lead batteries weighing more than 2 kg and to the purchase of new tires with a unit price in excess of $30.
  2. Departments and agencies shall continue to pay these fees at the rate of $5 per battery and $3 per tire directly to suppliers when purchasing these items, including the purchase of vehicles. These payments are to be charged to departmental appropriations.

10.7.2 Motor vehicle fleet management services

Federal departments are exempt from paying provincial general sales tax where they have entered into an agreement for motor fleet maintenance service for vehicles owned by Canada and where the contractor has accepted the liability for payment to third parties for goods and services to maintain the vehicles. Such payments to third parties are deemed to be made by Canada, and, as a result, are exempt from provincial sales tax at point of purchase.

11.1 Participation

RTA partaking territory.

11.2 Contact office

Director
Taxation
Department of Finance
Yellowknife, NWT
X1A 0L9
(403) 873-3470 (From Yellowknife)
1-800-661-0820 (From elsewhere)

11.3 Tax number

An exemption certificate must be used.

11.4 Provincial general sales tax

The NWT has no provincial sales tax. However, if a provincial sales tax is introduced, the sales tax exemption certificate would have to appear on purchasing orders or other purchase documents.

11.5 Ancillary taxes and other fees

Under the agreement with the Northwest Territories, the federal government is not required to pay ancillary taxes.

11.6 Exemption certificate

This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) are being purchased with Crown funds, and are therefore not subject to consumption taxes of the Northwest Territories.

________________________________
Signature of Authorized Official

12.1 Participation

RTA partaking territory.

12.2 Contact office

Commodity Tax Clerk
Department of Finance
P.O. Box 2703
Whitehorse, Yukon
Y1A 2C6
(403) 667-5345

12.3 Provincial general sales tax

The Yukon Territory has no provincial sales tax. However, if a provincial sales tax is introduced, the sales tax exemption certificate would have to appear on purchasing orders or other purchase documents.

12.4 Ancillary taxes and other fees

Under the agreement with the Yukon Territory, the federal government is not required to pay ancillary taxes.

12.5 Exemption certificate

This is to certify that the property and/or services ordered or purchased by (insert name of Department/Agency) are being purchased with Crown funds, and are therefore not subject to consumption taxes of the Yukon Territory.

________________________________
Signature of Authorized Official

  NFLD PEI NS NB QUE ONT MAN SASK ALTA BC NWT YUKON
Harmonized sales tax T - T T - - - - - - - -
General sales taxes (6) E (6) (6) E E E E N/A E N/A N/A
Ancillary Taxes                        
Tobacco T T T T T T T T E T E E
Gasoline T T T T T T T E E T E E
Vehicle registration fees T T T T T T T T E T E E
Other     (1) (1) (2)       (5) (3+4)    
Third Party Purchases                        
Harmonized sales tax T - T T - - - - - - - -
General sales taxes (6) T (6) (6) T T T T N/A T N/A N/A
Meals T T T T T T T T N/A T T T
Temporary accommodation T T T T T T T T T T T T
Gasoline T T T T T T T T T T T T
Motor Vehicle Fleet Management Services T E T T E E E E N/A E N/A N/A

Note:

T = Tax payable by federal departments

E = Exempt

N/A = Not applicable (goods and services exempt from tax under current provincial legislation)

(1) The Admission and Amusement Tax must be paid in Nova Scotia and New Brunswick

(2) The Broadcast Advertising and Insurance Tax must be paid in Quebec

(3) The Environmental Fees (batteries and tires) must be paid in British Columbia

(4) The Hotel Room Tax must be paid in British Columbia

(5) The "Advance Disposal Surcharge" (sometimes referred to as he "Alberta Tire Tax") is not considered to be a tax and must therefore be paid.

(6) Provincial general sales tax was removed concurrent with the introduction of the HST.

Date Modified: