TransCanada has implemented
minor changes to its Goods & Services Tax (GST) practices
on the B.C. System.
Pursuant to the Excise
Tax Act all Canadian natural gas transporters are required to
invoice GST on all services. GST for transportation of gas that
is consumed in Canada is set at 7%. GST for transportation of
gas for that is contracted to an export point may qualify
for zero-rating (0% GST).
For export contracts,
Shippers can execute a Declaration which notifies TransCanada
that the Shipper's contract is intended to serve an export market
and should be charged 0% GST, including any potential Unutilized
Demand Charges (UDC).
TransCanada has provided
a Declaration to firm export contract Shippers with a schedule
listing of their contracts in effect November 1, 2005. TransCanada
requests that Shippers who wish to be charged 0% GST, including
UDC's, execute and return the Declaration by fax before
November 1, 2005. Our fax number is 403.920.2303.
If a contract listed on
the Declaration should be charged 7% GST, TransCanada requests
Shippers to strike and initial beside the contract and return
to us via fax.
If a Declaration is not
received by TransCanada before November 1, 2005,
the Shippers contracts will be charged 7% GST as of November 1,
2005 and all associated UDC's will also be charged 7% GST.
On an ongoing basis, Shippers
may replace their Declaration with a new Declaration to accommodate
new and existing export contracts. For existing contracts,
TransCanada will only effect changes at the beginning of the month.
For new contracts, the Shipper can zero-rate on the effective
date as long as the new Declaration is received by TransCanada
before its effective date. Each Declaration will supersede
and replace any prior Declaration and as a result, require a complete
list of export contracts to be zero-rated. TransCanada will
assist Shippers in determining their contract numbers. TransCanada
will only apply Declarations on a prospective basis.
A new Temporary Assignment
form has been posted to include the GST Declaration on TransCanada's
web site at http://www.transcanada.com/BC_System/customer_activities/contracts.html
.
For more information
about TransCanada's new GST Practices please see our bulletins
on www.nrgexpressway.com
or contact us:
General Questions - Pat
Blixt at 403.920.5547
Contracts – Sherry Hill
at 403.920.2619
Contracts - Billie Irving
at 403.920.5092
Nominations - The Pipe Line at 403.920.PIPE (7473)
Contract Fax - 403.920.2303