GST/HST Place-of-Supply Rules for Alberta Businesses
Why an Alberta business may need to charge HST, how place of supply differs for goods and services, and what records support the rate used.
Quick answer
What Calgary business owners should know
- An Alberta supplier does not automatically charge 5% GST on every Canadian sale; the place of supply determines the applicable provincial GST/HST rate.
- For many delivered goods, the destination controls the province; for many services, the recipient address obtained in the normal course of business is central.
- Specific rules override the general service rules for real property, events, transportation, telecommunications, customs brokerage, and other supplies.
- Invoices and customer records should preserve the address, delivery, contract, and supply details used to support the tax rate.
The supplier's office is not the whole answer
Place of supply identifies the province in which a supply is considered made for GST/HST purposes. A taxable supply in a non-participating province such as Alberta is generally subject to 5% GST. A taxable supply in a participating province can be subject to that province's HST rate. Zero-rated supplies remain taxed at 0%, while exempt supplies are not charged GST/HST.
A Calgary business therefore needs more than its own address to choose the rate. It must identify what is being supplied, who receives it, where goods are delivered or made available, which recipient address is obtained, and whether a specific rule applies. The invoice should use the result of that analysis rather than a default tax code applied to every customer.
| Supply | General starting point | Evidence to retain |
|---|---|---|
| Delivered goods | Province where the supplier delivers or makes the goods available under the applicable rule | Order, shipping address, delivery terms, proof of delivery |
| Many services | Recipient home or business address in Canada obtained in the normal course of business and most closely connected to the supply | Contract, customer master, service address, billing record |
| Real property | Province where the real property is located | Property address and agreement |
| Admission to an event | Specific rule based on where the event is held | Event location and ticket terms |
| Special-category supply | The specific statutory or CRA rule overrides the general rule | Technical analysis and source reference |
How the general service rule uses address
For many services, if the supplier obtains one Canadian home or business address of the recipient in the normal course of business, that address generally determines the province. If more than one such address is obtained, use the one most closely connected with the supply. If no Canadian home or business address is obtained, another Canadian recipient address most closely connected with the supply can become relevant.
The place where the work is physically performed does not always decide the rate. CRA gives an example of a supplier in Quebec designing a website for an Ontario company: the Ontario recipient address makes the service an Ontario supply under the general rule. This is why a Calgary consultant serving customers across Canada should validate customer-address data instead of charging 5% solely because the work was done in Alberta.
Practical checklist
- Classify the supply before selecting the rate.
- Capture a reliable recipient and delivery address during normal business processing.
- Identify whether a specific place-of-supply rule overrides the general rule.
- Configure tax codes by transaction facts, not only by the supplier's location.
- Retain evidence that connects the invoice rate to the place-of-supply conclusion.
Review mixed and unusual transactions
A single contract can include goods, installation, subscriptions, training, travel, or intellectual property. Determine whether there is one compound supply or multiple supplies before assigning a rate. Real property, short-term accommodation, passenger transportation, freight transportation, telecommunications, customs brokerage, repair services, and services in relation to tangible property can have special rules.
Also separate place of supply from whether the supply is taxable, zero-rated, exempt, or made outside Canada. A place-of-supply conclusion does not by itself establish registration, collection, or input-tax-credit entitlement. Cross-border digital services and non-resident transactions can require a separate analysis under the ordinary or simplified GST/HST regimes.
Correct tax codes before volume grows
Review a sample from each sales channel and province, compare invoice rates with delivery and customer-address data, and document any override. If an error is found, determine whether invoices, customer refunds, credit notes, or CRA return adjustments are required. Avoid silently changing the accounting code without repairing customer-facing documents and the filed return where necessary.
- Does a Calgary consultant always charge 5% GST to an Ontario client?
No. Under the general rule for many services, an Ontario recipient address obtained in the normal course of business can make the supply subject to Ontario HST. Confirm the specific service and any overriding rule before invoicing.
Review the broader Alberta GST/HST return guide
Official sources
This guide was prepared from the official sources below. Open them to verify the current rule and review exceptions relevant to your situation.
