Zero-rated supplies of goods and services the service relates to a zero-rated freight transportation service, other than interlining.the freight forwarder is acting as an agent for a non-resident person who is not registered for the GST/HST when the service is provided.Services provided by a freight forwarder are zero-rated when either: If a freight forwarder acts as an agent for a Canadian shipper by arranging for the transportation of goods, the freight forwarder has to charge the GST/HST on its commission, whether the destination of the goods is domestic or international.

However, a freight forwarder is providing a freight transportation service if the freight forwarder is a carrier and assumes responsibility for the transportation of goods. Forwarders generally assist shippers with the preparation and booking of a freight transportation service.Ī freight forwarder is not a carrier providing a freight transportation service when the freight forwarder acts as an agent for a shipper and does not assume responsibility for the transportation of the goods. Under certain conditions, the services described below may be considered freight transportation services.įreight forwarders usually act as agents for their clients. This amendment is deemed to have come into force on May 18, 2019, but also applies in respect of any supply made on or before that day if the supplier did not, before that day, charge, collect, or remit any amount as or on account of GST/HST in respect of that supply. A freight transportation service does not include the service provided by the supplier of a passenger transportation service of transporting an individual's baggage as part of the passenger transportation service.Īs a result of an amendment to the definition of 'freight transportation service', a service of driving an automotive vehicle, which is designed or adapted to be used on highways and streets, for the purpose of delivering the vehicle to a destination will be considered to be a freight transportation service. It also includes incidental property and services that are part of or incidental to a freight transportation service, such as warehouse, packing, and loading services, where they are supplied by the carrier who supplies the freight transportation service to the recipient of the freight transportation service, whether or not there is a separate charge. Freight transportation service means a service of transporting goods and includes mail delivery and courier services.

Trucking invoice sample