Archived [2013-04-01] - Summary of Reciprocal Taxation Agreements with Provinces and Territories
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1. Purpose of this summary
This summary (dated April 2010) is designed to help managers and staff make informed decisions on the administration and management of the provisions of the Federal-Provincial Reciprocal Taxation Agreements concluded with the provinces and territories.
2. Content related to the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees
This summary replaces Appendix C of the Policy on the Collection and Remittance of Provincial Sales Taxes (Application of Reciprocal Taxation Agreements and Comprehensive Integrated Tax Coordination Agreements). It is a functional tool providing departmental managers with quick reference to concise information on the Reciprocal Taxation Agreements (RTA) between the federal government and provinces and territories. Note that all federal government departments and managers are bound by these RTAs. This summary should be read in conjunction with the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees. It does not provide new requirements but does elaborate on the RTAs.
3. Department as a vendor
Under the Directive on the Payment, Collection and Remittance of Provincial Taxes and Fees, federal departments that sell taxable goods and services are required to register with provincial taxation authorities and to collect and remit provincial taxes and fees in all provinces. The collection of provincial taxes and fees is required under all RTAs. Moreover, it is the federal government's policy to collect and remit provincial taxes and fees even in provinces without an RTA. For details concerning registration, collection and remittance of provincial sales taxes, consult the Directive on Payment, Collection and Remittance of Provincial Taxes and Fees.
4. Exemption from payment of provincial sales taxes
Generally, departments claim an exemption from the payment of provincial sales taxes (PST) on the purchase of taxable goods and services in all provinces and territories. However, PST is payable when a taxable good or service is not acquired under the name of the department but rather under the name of a third party, such as under the name of an employee.
A common example of a third-party purchase where PST is payable is when an employee of a department purchases taxable goods or services in the course of employment-related travel. The taxable goods or services could include supplies, transportation, meals, accommodation, taxi services and incidental travel-related expenses, as well as purchases reimbursed out of petty cash.
Note that PST exemption requirements vary from province to province. When necessary, departments provide an exemption certificate or number as proof of exemption status. The exemption certificate is usually worded as follows:
5. Definitions
- Provincial sales tax (PST)( taxe de vente provinciale)
Is the general sales tax levied under a provincial retail sales tax statute (or its equivalent) that is payable by the purchaser on the value of taxable goods and services acquired.
- Provincial tax or fee (PTF)( taxe de ou droit provincial)
Is any tax or fee other than PST, described as follows in the Federal-Provincial Fiscal Arrangements Act:
- any tax of general application payable on a value, price or quantity basis by the purchaser, lessee, user or consumer of tangible personal property or services subject to the tax in respect of the sale, rental, consumption or use of the property or services, except to the extent that the tax is payable in respect of property or services acquired for resale, lease or sub-lease,
- any fee of general application payable by the owner, user or lessee of any vehicle or item of mobile equipment drawn, propelled or driven by any kind of power in respect of the registration of the vehicle or item or the licensing or certification thereof or in respect of the transfer or renewal of any registration permit, licence or certificate issued for the use of the vehicle or item, and
- any tax of a like nature to a tax described in paragraph (a) or any fee of a like nature to a fee described in paragraph (b) that is from time to time prescribed.
- Taxable goods and services( produits et services taxables)
Goods and services that are purchased, sold or supplied and are subject to PST or a PTF.
6. Payment of provincial taxes and fees under the reciprocal taxation agreements (or other arrangements)
The federal government has bilateral RTAs with 8 provinces and 3 territories. Alberta and New Brunswick are not party to an RTA with the federal government. New Brunswick continues to follow the terms of an administrative arrangement concluded with the federal government in March 1991. Note that departments and managers are bound by these agreements and arrangements.
The following section summarizes each province and territory's RTA requirements.
Newfoundland and Labrador
Agreement
There is an RTA in place, effective July 1, 2005.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Parts III and IX of the Revenue Administration Act, SNL2009R-15.01 (for tax on gasoline and tobacco)
- Highway Traffic Act, RSNL 1990, c. H-3 (for vehicle registration fees)
- Motorized Snow Vehicles and All-Terrain Vehicles Act, RSNL 1990, c. M-20 and Retail Sales Tax Act, RSNL 1990, c. R-15
Department as a vendor
Account number: Not applicable.
Contact office
Taxation and Fiscal Policy Branch
Department of Finance
3rd Floor, East Block, Confederation Building
Province of Newfoundland and Labrador
PO Box 8700
St. John's NL A1B 4J6
Telephone: 709-729-6297 or 1-877-729-6376
Facsimile: 709-729-2856
Email:
taxadmin@mail.gov.nl.ca
Additional information
For information on the HST, please refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Taxes, Programs and Incentives pageof the Government of Newfoundland and Labrador website.
Prince Edward Island
Agreement
There is an RTA in place, effective July 1, 2005.
Department as a purchaser
Provincial Sales Tax (PST)
There is PST in this province, which is imposed under the Revenue Tax ActR.S.P.E.I. 1988.
Departments are generally exempt from paying PST on the purchase or acquisition of taxable goods or services in this province but are required to pay PST on third-party purchases.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Gasoline Tax Act, R.S.P.E.I. 1988, c. G-3 (when the fuel purchased is for use in Canada*)
- Health Tax Act, R.S.P.E.I.1988, c. H-3
- Highway Traffic Act, R.S.P.E.I. 1988, c. H-5
*Departments do not pay the provincial tax levied under the Gasoline Tax Actwhen the fuel purchased is for international travel.
Department as a vendor
Account number: Not applicable.
Contact office
General Information
Department of Provincial Treasury
Taxation and Property Records Division
PO Box 1330
Charlottetown PE C1A 7N1
Telephone: 902-368-4070
Email:
taxandland@gov.pe.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Tax and Land Information Website.
Nova Scotia
Agreement
There is an RTA in place, effective July 1, 2006.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Revenue Act, S.N.S. 1995-1996, c.17, except Parts II and IIA
- 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
Department as a vendor
Account number: Not applicable.
Contact office
Nova Scotia Department of Finance
Provincial Building, 6th Floor
PO Box 187
Halifax NS B3J 2N3
Telephone: 902-424-2412
Facsimile: 902-424-0590
Email: pangxi@gov.ns.ca
Additional information
For information on the HST, please refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about taxes imposed or levied by this province can be found on the Taxation pageof the Government of Nova Scotia Department of Finance website.
New Brunswick
Agreement
There is no RTA in place, but the federal-provincial administrative arrangement concluded in March 1991 remains in effect.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but not necessarily limited to, the following:
- 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
- Admission and Amusement Act, R.S.N.B., 1988, c. A-2.1
- Motorized Snow Vehicles Act, R.S.N.B., 1973, c. M-18
- Motor Carrier Act, R.S.N.B., 1973, c. M-16
Department as a vendor
Account number: Not applicable
Contact office
Tax Information and Programs
Department of Finance
PO Box 6000
Fredericton NB E3B 5H1
Telephone: 506-453-2404
Email:
http://www.gnb.ca/0024/email-e.asp
Additional information
For information on the HST, please refer to the Directive on the Application of the Goods and Services Tax/Harmonized Sales Tax.
Information about tax imposed or levied by this province can be found on the Taxes pageof Government of New Brunswick Department of Finance website.
Quebec
Agreement
There is an RTA in place, effective July 1, 2005.
Department as a purchaser
Provincial Sales Tax (PST)
There is PST in this province. In Quebec, the provincial sales tax is usually called the Quebec sales tax (QST), which is imposed under An Act Respecting the Québec Sales Tax, R.S.Q., c. T-0.1.
Departments are generally exempt from paying QST on the purchase or acquisition of taxable goods or services but are required to pay QST on third-party purchases.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessary limited to, the following:
- Highway Safety Code, R.S.Q., c. C-24.2
- Tobacco Tax Act, R.S.Q., c. I-2
- Fuel Tax Act, R.S.Q., c. T-1
- Title II of An Act Respecting the Québec Sales Tax, R.S.Q., c. T-0.1 (for tax on alcoholic beverages)
- Title III of An Act Respecting the Québec Sales Tax, R.S.Q., c. T-0.1 (for tax on insurance premiums)
- Title IV.2 of An Act Respecting the Québec Sales Tax, R.S.Q., c. T-0.1 (for tax on lodging)
- Title IV.5 of An Act Respecting the Québec Sales Tax, R.S.Q., c. T-0.1 (for a specific duty on new tires)
Department as a vendor
An exemption certificate must be used to be exempt from paying the QST in Quebec.
Contact office
Direction principale des services à la clientèle des entreprises
Revenu Québec
3800, rue de Marly
Québec (Québec) G1X 4A5
Telephone: 418-659-4692
Toll free: 800-567-4692
More contact information is available on the Contact Us pageof the Revenu Québec website.
Additional information
Information about taxes imposed or levied by this province can be found on the Consumption Taxes pageof the Revenu Québec website.
Ontario
Agreement
There is an RTA in place, effective July 1, 2006.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST). However, there is still Ontario Retail Sales Tax (RST) on certain insurance premiums.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Part V.I of the Electricity Act, 1998, S.O. 1998, c.15, Sched. A
- Fuel Tax Act, R.S.O. 1990, c. F.35
- Gasoline Tax Act, R.S.O. 1990, c. G.5
- Highway Traffic Act, R.S.O. 1990, c. H.8
- Motorized Snow Vehicles Act, R.S.O. 1990, c. M.44
- Public Vehicles Act, R.S.O. 1990, c. P.54
- Tobacco Tax Act, R.S.O. 1990, c. T.10
Department as a vendor
Account number: Not applicable.
Contact office
Ontario Ministry of Finance
Tax Advisory Services Branch
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5
Telephone: 905-433-6000
Toll free: 800-263-7965
Facsimile: 905-433-6777
Additional information
Information about taxes imposed or levied by this province can be found on the Taxes and Charges pageof the Government of Ontario Ministry of Revenue website.
Manitoba
Agreement
There is an RTA in place, effective July 1, 2005.
Department as a purchaser
Provincial Sales Tax (PST)
There is PST in this province, which is imposed under The Retail Sales Tax Act, C.C.S.M., c. R130.
Departments are generally exempt from paying PST on the purchase or acquisition of taxable goods or services in this province but are required to pay PST on third-party purchases.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- The Gasoline Tax Act, C.C.S.M., c. G40
- The Highway Traffic Act, C.C.S.M., c. H60
- The Motive Fuel Tax Act, C.C.S.M., c. M220
- The Off-Road Vehicles Act, C.C.S.M., c. O31
- The Tobacco Tax Act, C.C.S.M., c. T80
Department as a vendor
Account number: 390-516-0
Contact office
Manitoba Finance
Taxation Division
101–404 York Avenue
Winnipeg MB R3C 0P8
Telephone: 204-945-5603
Toll free in Manitoba: 800-564-9789
Facsimile: 204-945-0896
Email:
MBTax@gov.mb.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Taxation Division pageof the Government of Manitoba Department of Finance website.
Saskatchewan
Agreement
There is an RTA in place, effective October 1, 2007.
Department as a Purchaser
Provincial Sales Tax (PST)
There is PST in this province, which is imposed under The Provincial Sales Tax Act, 2000, c. 41, s. 4.
Departments are generally exempt from paying PST on the purchase or acquisition of taxable goods or services in this province but are required to pay PST on third-party purchases.
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- The Fuel Tax Act, 2000, S.S. 2000, c. F-23.21
- The Traffic Safety Act, S.S. 2000, c. T-18.1
- The Liquor Consumption Tax Act, S.S. 1979, c. L-19.1
- The Tobacco Tax Act, 1998, S.S. 1998, c. T-15.001
Department as a vendor
An exemption certificate must be used in this province.
Contact office
Saskatchewan Finance
Revenue Division, Tax Information Services
2350 Albert Street
Regina SK S4P 4A6
Telephone: 306-787-6645
Toll free: 800-667-6102
Facsimile: 306-787-9644
Email:
sask.tax.info@finance.gov.sk.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Information for Businesses pageof the Government of Saskatchewan Ministry of Finance website.
Alberta
Agreement
There is no RTA in place in this province.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province.
Other Provincial Tax or Fee (PTF)
This province has PTFs, which departments are generally not required to pay.
The Alberta fuel tax does not apply when departments pay for fuel directly; however, when government employees pay for fuel, it is subject to fuel tax. For additional information, refer to Information Circular FT-1, Alberta Fuel Tax Act Information Circular: Overview of Fuel Tax.
The Alberta tourism levy does not apply when departments pay for accommodations directly and provide an exemption certificate to the hotel operator; however, when government employees pay for accommodations, they are subject to the tourism levy. For additional information, refer to Information Circular TL-1R3, Alberta Tourism Levy Act Information Circular: Overview of Tourism Levy Act.
Department as a vendor
Account number: Not applicable.
Contact office
Tax and Revenue Administration
Alberta Finance
9811 – 109 Street
Edmonton AB T5K 2L5
Telephone: 780-427-3044
Toll free in Alberta: call 310-0000, then enter 780-427-3044
Facsimile: 780-427-0348
Email:
tra.revenue@gov.ab.ca
Web:
www.finance.gov.ab.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Tax and Revenue Administration page of the Government of Alberta Finance and Enterprisewebsite.
British Columbia
Agreement
There is an RTA in place, effective November 1, 2005.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this province. The PST was replaced by the harmonized sales tax (HST).
Other Provincial Tax or Fee (PTF)
This province has PTFs that departments are required to pay. The provincial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Motor Fuel Tax Act, RSBC 1996, c. 317
- Commercial Transport Act, RSBC 1996, c. 58
- Passenger Transportation Act, SBC 2004, c. 39
- Motor Vehicle Act, RSBC 1996, c. 318
- Motor Vehicle (All Terrain) Act, RSBC 1996, c. 319
- Tobacco Tax Act, RSBC 1996, c. 452
- Hotel Room Tax Act, RSBC 1996, c. 207
- Carbon Tax Act, SBC 2008, c. 40
Department as a vendor
Account number: Not applicable.
Contact office
Customer Taxation Branch
PO Box 9442 STN PROV GOVT
Victoria BC V8W 9V4
Telephone: 1-604-660-4524
Toll free: 1-877-388-4440
Facsimile: 1-250-387-3000
Email:
CTBTaxQuestions@gov.bc.ca
Additional information
Information about taxes imposed or levied by this province can be found on the Tax Professionals pageof the Government of British Columbia Ministry of Finance website.
Yukon
Agreement
There is an RTA in place, effective July 1, 2000.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Fuel Oil Tax Act, O.I.C. 1985/156
- Tobacco Tax Act, R.S.Y. 1986, c. 166
Fuel taxes do not apply when departments purchase fuel directly; however, when government employees purchase fuel in the course of employment-related travel, fuel taxes are payable.
When a travel card issued in an employee's name is used, for example, to buy gasoline for a rental car, fuel taxes are payable on the purchase. When a vehicle service card issued in the name of a department and assigned to a vehicle in the department's fleet is used to buy gasoline, fuel taxes do not apply to the purchase.
Departments are required to pay licence plate fees and other user fees.
Department as a vendor
Account number: Not applicable
Contact office
Finance – Revenue Services
Government of Yukon
Box 2703
Whitehorse YK Y1A 2C6
Telephone: 867-667-5343
Facsimile: 867-393-6217
Web:
fininfo@gov.yk.ca
Additional information
Information about taxes imposed or levied by this territory can be found on the Taxation pageof the Government of Yukon Department of Finance website.
Northwest Territories
Agreement
There is an RTA in place, effective September 1, 2009.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Petroleum Products Tax Act, R.S.N.W.T. 1988, c. P-5
- Tobacco Tax Act, R.S.N.W.T. 1988, c. T-5
- Motor Vehicles Act, R.S.N.W.T. 1988, c. M-16
Department as a vendor
Account number: Not applicable
Contact office
Treasury, Department of Finance
Government of Northwest Territories
PO Box 1320
Yellowknife NT X1A 2L9
Telephone: 867-920-3470
Toll free: 800-661-0820
Facsimile: 867-873-0325
Web:
http://www.fin.gov.nt.ca/
Additional information
Information about taxes imposed or levied by this territory can be found on the Legislation pageof the Government of Northwest Territories Department of Finance website.
Nunavut
Agreement
There is an RTA in place, effective January1, 2007.
Department as a purchaser
Provincial Sales Tax (PST)
There is no PST in this territory.
Other Provincial Tax or Fee (PTF)
This territory has PTFs that departments are required to pay. The territorial statutes under which PTFs are levied or imposed include, but are not necessarily limited to, the following:
- Petroleum Products Tax Act, R.S.N.W.T. 1988, c. P-5
- Tobacco Tax Act, R.S.N.W.T. 1988, c. T-5
- Motor Vehicles Act, R.S.N.W.T. 1988, c. M-16
Department as a vendor
Account number: Not applicable
Contact office
Department of Finance
Government of Nunavut
PO Box 1000 STN 330
Iqaluit NU X0A 0H0
Telephone: 867-975-5803
Facsimile: 867-975-5805
Toll free: 800-316-3324 (Taxation and Risk Management)
Toll free: 888-975-5867 (Revenue and Collections)
Additional information
Information about taxes imposed or levied by this territory can be found on the Taxation pageof the Government of Nunavut Department of Finance website.
Appendix — Tax status summary
| NL | PE | NS | NB | QC | ON | MB | SK | AB | BC | YK | NT | NU | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Legend T = Tax payable by federal departments
| |||||||||||||
| Government of Canada Purchases | |||||||||||||
| Harmonized sales tax (HST) | T | N/A | T | T | N/A | T | N/A | N/A | N/A | T | N/A | N/A | N/A |
| Provincial sales tax (PST) | N/A | E | N/A | N/A | E | N/A | E | E | N/A | N/A | N/A | N/A | N/A |
| Provincial tax or fee (PTF): | |||||||||||||
| Tobacco | T | T | T | T | T | T | T | T | E | T | T | T | T |
| Gasoline | T | T | T | T | T | T | T | T | E | T | T | T | T |
| Vehicle registration
fees | T | T | T | T | T | T | T | T | E | T | T | T | T |
| Amusement/admission | N/A | N/A | T | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Broadcast advertising | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Insurance premiums | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Room tax | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A |
| Alcoholic beverages | N/A | N/A | N/A | N/A | T | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Reimbursement of third-party purchases | |||||||||||||
| HST | T | N/A | T | T | N/A | T | N/A | N/A | N/A | T | N/A | N/A | N/A |
| PST | N/A | T | N/A | N/A | T | N/A | T | T | N/A | N/A | N/A | N/A | N/A |
| HST/PST/PTF on
meals | T | T | T | T | T | T | T | T | N/A | T | N/A | N/A | N/A |
| HST/PST/PTF on
temporary accommodation | T | T | T | T | T | T | T | T | T | T | N/A | N/A | N/A |
| HST/PST/PTF on
gasoline | T | T | T | T | T | T | T | T | T | T | T | T | T |
| HST/PST/PTF on vehicle maintenance costs incurred on behalf of the Crown by a fleet management service provider
(e.g. fleet card) | T | E | T | T | E | T | E | E | E | T | E | N/A | N/A |