9 October 2008

Memorandum 3.3.1, Drop Shipments (GST/HST)

This memorandum explains the “drop-shipment” rules under the Excise Tax Act governing transactions involving the transfer of goods by a registrant in Canada to another person in Canada on behalf of an unregistered non-resident for purposes of the GST/HST. It also explains the mechanism of the flow-through of input tax credits for the tax paid by an unregistered non-resident on the importation of goods by the nonresident, and the non-resident rebate for installation services supplied in Canada to a non-resident.

This memorandum replaces the version dated February 2001.

This memorandum is available on the CRA website at:
http://www.cra-arc.gc.ca/E/pub/gm/3-3-1/README.html.