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Blue J Tax: Collaboration with Aird & Berlis LLP on New Place of Supply Analysis

Jun 10, 2022

Blue J Tax offers a suite of predictive analytics tools for tax issues in North America. Today, over 7500 tax practitioners across North America rely on Blue J Tax for their research and analysis work. With Blue J Tax, tax practitioners are able to reduce hours of research time to minutes, validate their instincts with data-driven insights, and provide their clients the most accurate insights possible on a wide range of tax issues.  

Very recently, we expanded our existing coverage for our Canadian clients to include Place of Supply. This work was done in collaboration with the leading law firm, Aird & Berlis LLP, who lent their expertise and guidance on this work. Using Place of Supply, you can analyze your fact pattern to determine whether a supply is made in Canada, and if so, in which province or territory it is made for the purposes of determining a supplier’s GST/HST obligations. 

Canadian Blue J Tax clients are now able to generate insights on over 40 tax issues, including Place of Supply.

 

Cut Through the Complexity of Place of Supply with Blue J Tax

When a taxable supply of goods or services is made in Canada, a registered supplier is required to collect and remit sales tax (GST/HST) charged on the provision of goods and services. In order to comply with these requirements under the Excise Tax Act, registered suppliers, including many businesses and even non-profit organizations, must determine which obligations apply and the applicable tax rate to charge. The determination involves knowing what type of supply is being made and where the supply is made (i.e., the place of supply). 

The place of supply rules determine whether a supply of goods or services is made in Canada, and if so, the province or territory in which the goods or services are supplied. The rate at which a supply is taxed also depends on whether the supply is made in a province that has harmonized its provincial sales tax with the GST to implement the HST (i.e., a participating province).

These rules can become very complicated depending on the type of goods or services being supplied and whether the supply is subject to certain overriding deeming rules. The supply of goods or services can also involve parties or transactions in multiple provinces. Blue J’s Place of Supply Prediction assists users with this analysis by first confirming whether the deeming rules apply, the residency status of the supplier, and the basic nature or characterization of the supply before guiding the user into a further inquiry of the specific rules pertaining to the specific nature of the goods or services being supplied (i.e., real property, tangible personal property, intangible personal property, or services).

In short, tax practitioners can utilize the dynamic questionnaire in Blue J’s Place of Supply Prediction to confirm: 

  • whether the supply is subject to certain deeming rules,
  • whether the supplier is resident in Canada, 
  • and the basic nature or characterization of the supply as real property, tangible personal property, intangible personal property, or a service. 

The Prediction then guides the user to determine the place of supply pursuant to the rules set out in Part IX and Schedule IX of the Excise Tax Act (ETA) and the New Harmonized Value-added Tax System Regulations (the Regulations). This way a tax practitioner can validate their instincts or surface any blindspots they may have missed in their own analysis. 

 

Using Blue J Tax Predictions and Folios

So how can you get started with running your Place of Supply Prediction? Once set up with a Blue J Tax account, running predictions or accessing folios for tax issues is simple. 

Running Your Place of Supply Prediction in Blue J Tax

You can run your Place of Supply Prediction in just a few steps once you’re logged into Blue J. From the homepage, choose to start a new Prediction. 

Place of Supply Walkthrough 4

To find Place of Supply either scroll down the list of available tax issues or use keywords in the search bar to find it. Once you bring it up, click on it to get started. 

Place of Supply Walkthrough 2

Then you’ll be provided with context on the particular Prediction module. This helps you to understand what areas it covers and what considerations to keep in mind when you use it. Any firms that collaborated on the Prediction will also be noted at the bottom. When ready, click continue.

Place of Supply Walkthrough 1

Here you’ll be prompted to go through our dynamic questionnaire. It provides different sets of questions depending on your responses. Once enough relevant information has been collected, a Prediction is generated. 

Your Prediction will be accompanied with an explanation for the result.

Place of Supply Walkthrough 5

You will also be provided with a set of materials below to reference which support the Prediction. 

Place of Supply Walkthrough 3

You can then save your Prediction, download the Prediction report to share with colleagues or clients, or customize the information highlighted in the Prediction report before sharing it.  

 

Place of Supply: Blue J Tax Folios

Along with the Prediction, we also have two Blue J Tax Folios for Place of Supply: Place of Supply – Tangible Personal Property post Jul 1 2021 & Place of Supply – Tangible Personal Property pre Jul 1, 2021

Blue J Folios are workspaces that serve as focused starting points for your tax law research. Our tax experts have collected and annotated the relevant statutes, regulations, cases, and guidance from the IRS. Where applicable, they have also created diagrams illustrating the ownership structure or the transaction that is subject to the statute, regulation, case, or tax guidance, all providing you with a substantial head start. 

On the homepage, scroll down and select “Browse all Blue J Folios”.

Place of Supply Walkthrough 6

From here, search for the specific topic and you’ll find the corresponding folios for it. 

Place of Supply Walkthrough 7

Click into them and you’ll have access to the relevant statutes, regulations, cases, guidance from the IRS, and diagrams (where applicable), already annotated, ready for you to get started. From here you can start highlighting and annotating things for yourself, and leaving behind your notes.  

Interested in learning more about Blue J Tax and how it can elevate your tax practice? Get a demo today.