Accounting glossary

What is place of supply?

The CRA rules deciding WHICH province's tax applies to a sale — generally the destination for goods. Ship from Calgary to Toronto and the sale carries Ontario HST, not Alberta's GST-only treatment. Category exceptions keep it interesting.

Example

A BC business ships to an Ontario customer. Place-of-supply rules mean the sale carries Ontario's 13% HST, not BC's 5% GST plus 7% PST.

The rate follows the buyer, which is why one business can legitimately charge five different rates in a week and be correct every time.

In SeroBooks

A destination-tax matrix by category and region applies these rules per line, automatically. Place of supply rules

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