Department of Finance Canada Consulting on Draft Goods and Services Tax/Harmonized Sales Tax Legislation

News release

May 17, 2019 – Ottawa, Ontario – Department of Finance Canada

Ensuring that Canada's tax system is fair and efficient is an important part of building an economy that works for everyone.

In keeping with this commitment, the Department of Finance Canada today released for public consultation a set of draft legislative proposals relating to the Goods and Services Tax/Harmonized Sales Tax (GST/HST). These proposals would:

  • Expand the definition of a "freight transportation service" to include a driving service, so that the existing relief and other measures for international freight transportation services also apply to international driving services;
  • Extend the application of the drop-shipment rules, which allow non-residents to obtain tax relief on certain goods and services acquired in Canada, so that the existing relief and other measures under the drop-shipment rules also apply to commercially interchangeable or fungible goods;
  • Treat virtual currency (e.g., Bitcoin) as a financial instrument for GST/HST purposes, meaning that suppliers will not be required to charge and collect GST/HST on supplies of virtual currency; and
  • Extend the GST/HST holding corporation rules to holding partnerships and trusts, and modify the legislative proposals released on July 27, 2018 respecting these rules, to take into account consultations and deliberations since their release.

The Department of Finance Canada continually reviews tax matters and consults with Canadians to ensure that the existing system is as fair and current as possible. The draft proposals released today reflect ongoing consultations with stakeholders and developments in the Canadian economy.

Canadians are invited to provide comments on the draft legislative proposals accompanying this news release by June 17, 2019. Please send your comments to Comments can also be mailed to:

Tax Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario
K1A 0G5

References to "Announcement Date" in the draft legislative proposals and explanatory notes accompanying this release refer to today's date.

Associated links


Media may contact:

Media Relations
Department of Finance Canada

General Enquiries

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230

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