Section 180

Table of Contents

Section 180 - Receipt of Property From Non-Resident
Cases(1)
Administrative Policy(2)

Cases

Encore Cellular Inc. v. The King, 2024 TCC 35

CRA was not satisfied that the goods had borne GST on import

The taxpayer claimed that it was entitled to input tax credits (ITCs) pursuant to s. 180 respecting cellphone and other goods which it had acquired, for resale in Canada by it, from non-registrant, non-resident suppliers.

Regarding the general purpose and scope of s. 178.8, MacPhee J stated (at paras. 58-60):

As described in the technical notes, the purpose of s.180 is to prevent GST from being paid twice due to a non-resident in the billing chain having paid tax without being able to claim ITCs.

Section 180 provides relief where legal delivery occurs in Canada, but the non-resident pays GST/HST on import.

One important difference between subsection 178.8(2) and section 180 is that section 180, unlike subsection 178.8(2), requires evidence satisfactory to the Minister that the tax has been paid.

In rejecting the taxpayer’s claim, MacPhee J stated (at para. 64):

I do not find that the Minister concluded that evidence that is satisfactory to the Minister that the tax has been paid exists. [emphasis in original]

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 178.8 - Subsection 178.8(2) a Canadian buyer could not generate ITCs under ETA s. 178.8 on goods bought from non-residents without showing they had borne GST 226

Administrative Policy

P-125 "Input Tax Credit Entitlement for Tax on Imported Goods" 1 June 2007

Example No. 13

A registered non-resident wholesaler agrees to purchase goods from a non-registrant non-resident manufacturer and then agrees to sell the goods to a registered resident retailer for sale by it in Canada, with delivery to occur at the premises of the retailer in Canada. Under its agreement with the retailer, the wholesaler must have the goods shipped from the premises of the manufacturer to those of the retailer. The manufacturer agrees to be the importer of record and to pay the tax on importation.

CRA stated:

[T]he wholesaler is the constructive importer of the goods. However…section 180 applies as a result of the manufacturer having paid the tax on the importation. Where the manufacturer provides the wholesaler with a copy of the import documentation…the wholesaler is entitled to an ITC for the tax on the importation of the goods.

16 August 1994 Headquarter Letter

In a situation where an unregistered non-resident was listed as the importer of record, and it supplied goods to a registrant who wishes to obtain an ITC under s. 180, CCRA indicated that "a copy of the B3 Customs Coding Form will be considered sufficient evidence for purposes of paragraph 169(4)(a) and subparagraph 180(a)(ii) of the Act ... . An agreement in writing between the supplier and the recipient of the commercial service, or other relevant documents which will provide sufficient evidence in determining the identity of the supplier and the recipient of the commercial service and verify that the non-resident caused the transfer of the physical possession of the goods to the resident will also constitute sufficient documentary evidence."

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