GST/HST Memorandum 3-3-6-1, Place of Supply in a Province – Personal Services, Services in Relation to Property and Telecommunication Services, April 2026

Principles for determining if a service is in relation to TPP

35. It must first be determined whether the service is designed, developed, or undertaken to fulfill or serve a particular need or requirement arising from or relating to the property. …

36. Once the purpose or objective of the service has been determined, one should consider whether the relationship between the purpose or objective of the service and the property is direct rather than merely indirect. If something else comes between the service and the property, the connection will not be considered to be direct.

37. A service and property are generally regarded as being in relation to each other pursuant to the above guidelines if the purpose of the service is one of the following:

• physically count the property
• appraise or value the property
• physically protect or secure the property
• enhance the value of the property

38. Similarly, if the service is aimed at effecting or dealing with the transfer of ownership of, claims on or rights to the property, or determining title to the property, the service will generally be regarded as being in relation to the property.

39. Finally, in order for a service to be considered a service in relation to particular tangible personal property that is situated at a particular location, and in order to apply the place of supply rules for this type of service, the service must relate to specific property that can be determined to be situated at a particular location at a particular time.

Principles for determining if a service is in relation to TPP/ allocation of real estate

49. Before applying the specific place of supply rules, one must ensure that what is being supplied is in fact a service in relation to real property. The factors used for making this determination are the same as those in respect of determining whether a service is in relation to tangible personal property. For more information, refer to paragraphs 33 to 39 of this memorandum [see under s. 15].

50. In addition, the application of these place of supply rules requires determining the relevant proportion of real property that is situated in a province. Such a determination is based on the physical size of the entire real property (for example, based on square footage, square yards, or acres) pursuant to its legal description. The value of the real property or the number of properties (unless they are of equal size) is not relevant to this determination. In cases where it is not possible for a supplier to make such a determination, the supply of the service is generally subject to the general place of supply rules for services, as discussed in GST/HST Memorandum 3-3-6.

Proration of cross-border real estate

51. Under section 142, a supply of a service that relates to real property is deemed to be made in Canada if the real property is situated in Canada and is deemed to be made outside Canada if the real property is situated outside Canada. Where the real property is situated both in and outside Canada, the proportion of the service that relates to the real property that is situated in Canada is therefore considered to be made in Canada and the proportion of the service that relates to the real property that is situated outside Canada is considered to be made outside Canada.

Single legal service re sale of TPP in BC and real estate in Newfoundland is not in relation to either but is governed by the general address rule

Example 17

• A law firm in B.C. is hired by a company in Newfoundland and Labrador to draft an agreement for the sale of some tangible personal property (TPP) situated in B.C. and real property situated in Newfoundland.
• As the law firm is making a single supply of a general service, integral elements of which are services relating to both TPP and real property, the place of supply of the service is not determined by the specific place of supply rules for services in relation to TPP or real property, and instead is determined by the Newfoundland address obtained from the company.

Feasibility study before site selection not in relation to real property

Example 26

• A municipality in B.C. hires an engineering company in Ontario to carry out a feasibility study in respect of implementing a new utility distribution infrastructure within the municipality, which entails considering the viability, costs, and suitable site locations for the infrastructure.
• Such engineering services are not considered to be in relation to real property because they do not relate to particular or identifiable property. Rather, the study includes identifying potential suitable site locations. Accordingly, the place of supply is determined by the B.C. address obtained from the municipality.

Service in relation to realty split between Canada and US apportioned accordingly

Example 34

• A New Brunswick company hires another N.B. company to conduct a geological survey on its cross-border tract of land that is 20% in N.B. and 80% in the U.S.
• The 20% of the service in respect of the property situated in a participating province (N.B.) is subject to HST at 15%, whereas the proportion of the supply of the service that relates to the real property situated outside Canada (80%) is deemed by s. 142 to be made outside Canada and is not subject to GST/HST.

Service in relation to realty held in disparate locations sited under the s. 18 rule

Example 36

• A Newfoundland and Labrador company hires a New Brunswick company to inspect real property, which is situated as to 1/3 in each of N.B., Newfoundland, and Ontario.
• As both N.B. and Newfoundland have the highest tax rate, the supply is deemed by s. 18 to be made where the business address of the supplier that is most closely connected with the supply is located, i.e., N.B.

• CRA states, presumably based on Club Intrawest, that where a supply of a service relates to real property that is situated both in Canada and outside Canada, the portion of the service relating to the real estate situated outside Canada will not be subject to GST/HST.
• It provides the example (Example 34) of a New Brunswick company hired by another New Brunswick company to conduct a geological survey on a cross-border tract of land that is 20% in New Brunswick and 80% in the United States. CRA indicates that only 20% of the service is subject to HST at the New Brunswick rate of 15%, while the balance is not subject to GST/HST.

Meaning of advisory or consulting service

19. An advisory service is not defined in the ETA but generally means a service of giving an opinion, or counsel, or of recommending a plan or course of action.

20. A consulting service is not defined in the ETA but generally means a service of providing information, instruction or expert advice. A consultant generally provides services relating to a field of specialized knowledge or training.

Meaning of professional service

23. A professional service refers to a service provided by an individual whose vocation or occupation requires special, usually advanced, education and skills. The individual providing the service may be a member of a professional association, a professional corporation or a similar body, which is recognized by a statute in at least one province or territory or by one federal body, and which enforces standards of professional practice as well as a code of ethics. However, a professional service will be considered to include the services provided by articling or other students and support staff, to the extent that their services are intended to assist the professional in the provision of the professional's service and are undertaken under the supervision of the professional.

Vehicle was in a participating province only 40% of the time when the testing service was performed there

Example 20

An Ontario company is hired by a Manitoba company to conduct tests on a vehicle. Of the total service performed, 60% is performed in Manitoba and 40% in Ontario. The vehicle is situated in Manitoba when the Manitoba portion of the service is performed and is situated in Ontario when the Ontario portion of the service is performed. The vehicle is moved from Manitoba to Ontario after the Manitoba portion of the service is performed. …

The vehicle does not remain in the same province while the Canadian element of the service is performed. Additionally, although the vehicle is situated primarily in the participating provinces when the Ontario portion of the service is performed, the Canadian element of the service is not performed primarily in the participating provinces.

As a result, the supply of the service is made in a non-participating province and is subject to the GST at a rate of 5%.

Distinguishing character of supply of telecommunication service

62. A supply is generally considered to be a supply of a telecommunication service where its predominant purpose is one of the following:

• to provide for the emission, transmission or reception of signs, signals, etc., such as voice or data, through a telecommunications network or similar technical system
• to make available a telecommunications facility for the emission, transmission or reception of signs, signals, etc. through a telecommunications network or similar technical system
• to provide a means through which other services or intangible personal property, such as content in a digitized format, are delivered, rather than to provide the services or intangible personal property

63. A supply is not generally a supply of a telecommunication service in any of the following circumstances:

• a telecommunication service is used or consumed by the supplier in making a supply of a service or property (other than a telecommunication service)
• it includes the provision of a telecommunication service, but only as a means of delivering another service or property
• it is incidental to the supply of another service or property

64. In addition, the fact that a supply may be characterized as a telecommunication service does not mean that the supply is subject to the place of supply rules for telecommunication services.