PART IV

REAL PROPERTY

1. A supply of real property is made in a province if the property is situated in the province.

2. A supply of a service in relation to real property is made in a province if

    (a) all or substantially all of the real property that is situated in Canada is situated in the province; or

    (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province.

3. Subject to section 2, where a supply of a service in relation to real property is made and the real property that is situated in Canada is situated primarily in participating provinces, the supply is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the property is situated in Canada.

PART V

SERVICES

1. In this Part, ``Canadian element'' of a service means the portion of the service that is performed in Canada.

2. Subject to Parts IV and VI to VIII, a supply of a service is made in a province if

    (a) all or substantially all of the Canadian element of the service is performed in the province; or

    (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the service is performed outside the province.

3. Subject to section 2, where the Canadian element of a service is performed primarily in the participating provinces, the supply of the service is made in the participating province in which the greatest proportion of the Canadian element is performed, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the service is performed in Canada.

PART VI

TRANSPORTATION SERVICES

1. The definitions in this section apply in this Part.

``continuous journey'' has the meaning assigned by section 1 of Part VII of Schedule VI.

``destination'' of a freight transportation service means the place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper.

``freight transportation service'' has the meaning assigned by section 1 of Part VII of Schedule VI.

``leg'' of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes.

``origin'' of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

``stopover'', in respect of a continuous journey, has the meaning assigned by section 1 of Part VII of Schedule VI except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.

``termination'' of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

2. A supply of a passenger transportation service that is part of a continuous journey is made in a province if,

    (a) where the ticket or voucher issued in respect of the passenger transportation service included in the continuous journey that is provided first specifies the origin of the continuous journey, the origin is a place in the province and the termination, and all stopovers, in respect of the continuous journey are in Canada; and

    (b) in any other case, the place of negotiation of the supply is in the province.

3. Where a supply by way of sale of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the conveyance during any leg of the journey that begins in any participating province and ends in any participating province, the supply is made in the participating province in which that leg of the journey begins.

4. A supply by a person of a service of transporting an individual's baggage in connection with a passenger transportation service supplied by the person to the individual is made in a province if the supply of the transportation service is made in the province.

5. Subject to Part VII , a supply of a freight transportation service is made in a province if the destination of the service is in the province.

PART VII

POSTAGE

1. The definitions in this section apply in this Part.

``postage stamp''
« timbre-
poste »

``postage stamp'' means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint or any ``business reply'' indicia or item bearing that indicia.

``permit imprint''
« marque de permis »

``permit imprint'' means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any "business reply" indicia or item bearing that indicia.

2. A supply of a postage stamp or a postage-paid card, package or similar item (other than an item bearing a ``business reply'' indicia) that is authorized by the Canada Post Corporation is made in a province if the supplier delivers the stamp or item in the province to the recipient of the supply and, where the stamp or item is used as evidence of the payment of postage for a mail delivery service, the supply of the service is made in that province, unless

    (a) the supply of the service is made pursuant to a bill of lading, or

    (b) the consideration for the supply of the service is $5 or more and the address to which the mail is sent is not in a participating province.

3. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation is evidenced by a postage meter impression printed by a meter, the supply of the service is made in a province if the ordinary location of the meter, as determined at the time the recipient of the supply pays an amount to the Corporation for the purpose of paying that postage, is in the province, unless the supply is made pursuant to a bill of lading.

4. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation otherwise than pursuant to a bill of lading is evidenced by a permit imprint, the supply of the service is made in the province in which the recipient of the supply deposits the mail with the Corporation in accordance with the agreement between the recipient and the Corporation authorizing the use of the permit imprint.

PART VIII

TELECOMMUNICATION SERVICES

1. For the purposes of this Part, the billing location for a telecommunication service supplied to a recipient is in a province if,

    (a) where the consideration paid or payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to telecommunications facilities that are used or are available for use by the recipient to obtain telecommunication services, all those telecommunications facilities are ordinarily located in the province; and

    (b) in any other case, the telecommunications facility used to initiate the service is located in the province.

2. A supply of a telecommunication service (other than a service referred to in section 3) is made in a province if,

    (a) in the case of a telecommunication service of making telecommunications facilities available,

      (i) all of those facilities are ordinarily located in the province, or

      (ii) where not all of those telecommunications facilities are ordinarily located in the province, the invoice for the supply of the service is sent to an address in the province; and

    (b) in any other case,

      (i) the telecommunication is emitted and received in the province,

      (ii) the telecommunication is emitted or received in the province and the billing location for the service is in the province, or

      (iii) the telecommunication is emitted in the province and is received outside the province and the billing location for the service is not in a province in which the telecommunication is emitted or received.

3. A supply of a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel, within the meaning assigned by section 136.4 of the Act, is made in a province if the supply is deemed under that section to be made in the province.

PART IX

DEEMED SUPPLIES AND PRESCRIBED SUPPLIES

1. Notwithstanding any other Part of this Schedule, a supply of property that is deemed under any of sections 129, 129.1, 171, 171.1 and 172, subsections 183 (1) and (4) and 184(1) and (3) and sections 196.1 and 268 of the Act to have been made or received at any time is made where the property is situated at that time.

2. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is deemed under Part IX of the Act or regulations made under that Part to be made in the province.

3. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is prescribed to be made in the province.

SCHEDULE X

NON-TAXABLE PROPERTY AND SERVICES FOR PURPOSES OF DIVISION IV.1 OF PART IX

PART I

NON-TAXABLE PROPERTY FOR PURPOSES OF SUBDIVISION A

(Subsections 220.05(3) and 220.06(3))

1. Property that is at any time brought into a participating province and that is described in heading No. 98.01, 98.10 or 98.12 of Schedule I to the Customs Tariff to the extent that the property would not be subject to customs duties under that Act.

2. Conveyances temporarily brought into a participating province, by a person who is resident in that province, to be employed in the international non-commercial transportation of that person and accompanying persons using the same conveyance.

3. Conveyances and baggage temporarily brought into a participating province by a non-resident person for use by that person in that province.

4. Arms, military stores and munitions of war brought into a participating province by the Government of Canada in replacement of or in anticipation or actual exchange for similar goods loaned to or exchanged or to be exchanged with the governments of a foreign country designated by the Governor in Council under heading No. 98.10 of Schedule I to the Customs Tariff, under such regulations as the Minister may make for purposes of heading No. 98.11 of that Act.

5. Property that is clothing or books brought into a participating province for charitable purposes, and photographs, not exceeding three, where they are brought into a participating province other than for the purpose of sale.

6. Property, (other than advertising matter, tobacco or an alcoholic beverage) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.

7. Property that is brought into a participating province for a period not exceeding six months for the purpose of display at a convention (within the meaning assigned by the Display Goods Temporary Importation Regulations made under the Customs Tariff) or a public exhibition at which the goods of various manufacturers or producers are displayed.

8. Property that is brought into a participating province on a temporary basis after having been removed from Mexico or the United States, where the property is

    (a) intended for display or demonstration;

    (b) commercial samples;

    (c) advertising films; or

    (d) conveyances or containers based in the United States or Mexico engaged in the international traffic of goods.

9. Property that is at any time brought into a participating province by an individual who

    (a) was formerly resident in the participating province and is, at that time, returning to resume residence in the participating province after being resident in another province for a period of not less than one year,

    (b) is a resident of the participating province who is, at that time, returning after being absent from the participating province for a period of not less than one year, or

    (c) is, at that time, entering the province with the intention of establishing a residence for a period of not less than twelve months, (other than a person who enters Canada in order to reside in Canada for the purpose of employment for a temporary period not exceeding 36 months or for the purpose of studying at an institute of learning)

where the property is for the individual's personal or household use and was owned and in the individual's possession before that time, provided that, where the property was owned and in the individual's possession for less than 31 days prior to the time when it is brought into the participating province

    (d) the individual has paid any retail sales tax applicable to the property in the province from which the property has been brought, and

    (e) the individual is not entitled to claim a rebate or a refund of that retail sales tax.

10. Property that is brought into a participating province, where the property is

    (a) personal and household effects of an individual who died outside the participating provinces and was, at the time of death, resident in a participating province, or

    (b) personal and household effects received, by an individual who is resident in a participating province, as a result or in anticipation of the death of an individual who was not resident in a participating province,

where the property is given as a gift or bequest to an individual who is resident in a participating province.

11. Medals, trophies and other prizes, not including usual merchantable goods, that are won outside the participating provinces in competitions, that are bestowed, received or accepted outside the participating provinces or that are donated by persons outside the participating provinces, for heroic deeds, valour or distinction.

12. Printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is brought into a participating province

    (a) by or on the order of a foreign government or a government outside the participating province or by an agency or representative of such a government; or