News & Insights

CRA Issues Updated Memorandum on Provincial Governments

Tax Development Feb 14, 2020

The Canada Revenue Agency issued an updated GST/HST Memorandum 18-2, “Provincial Governments” to provide guidance on the application of Part IX of the Excise Tax Act to taxable supplies made by or to provincial and territorial governments.

Highlights of the document include:

  • Definitions for terminology used in the memorandum;
  • Information on the application of GST/HST where a provincial government is either a supplier or a purchaser;
  • Summary of the two forms of relief from GST/HST available to provincial or territorial governments and their listed entities; and
  • Sample documentary evidence, which is to be retained when providing point-of-purchase relief to a government entity.