Taxidermy - Animal, Bird and Fish Mounts

GST/HST Info Sheet GI-047
June 2008

This info sheet explains how the goods and services tax/harmonized sales tax (GST/HST) applies to property and services provided by taxidermists.

In this info sheet, "taxable" means subject to GST/HST at the rate of 5% or 13%. "Zero-rated" means subject to GST/HST at 0%.

"Consumer" means an individual who purchases property or services for his/her own personal use or enjoyment, or for the personal use or enjoyment of another individual.

"Non-resident" means a person not resident in Canada and could be an individual, a business or an organization.

In this info sheet, "property" means tangible personal property.

Taxidermists use specialized skills, expertise, knowledge, and ability to provide a variety of products. Their products include life-size mounted animals in life-like poses, head and horn mounts, fish mounts or replicas, and rugs. Taxidermists also repair and restore these products.

Are taxidermists selling property or providing a service?

Sales of property and services are taxable when they are made in Canada. Sales to non-residents could be taxable or zero-rated depending, in part, on whether the taxidermist is providing a service or selling property. Therefore, before determining if what is being sold is taxable or zero-rated, taxidermists have to determine if they are providing a service or selling property.

Animal and bird mounts

Taxidermists usually process or work on property owned by someone else. If they mount an animal or a bird on a manikin using the animal's hide or bird's feathers, they are providing a taxidermy service. Materials such as a manikin, glass eyes, teeth, glue, paint, epoxy, bases, and habitat that the taxidermist uses while mounting the animal or bird are incidental to the taxidermy service.

Taxidermists are selling property if they sell mounts they own. This would be the case if, for example, they purchase an animal hide, mount it and sell the finished product. It would also be the case if they sell mounts they made for clients that forfeit their property because, for example, the client did not finish paying the taxidermist.

Fish replicas

When a taxidermist creates a replica from a picture of a fish using synthetic materials, the sale of the fish replica is a sale of property.

When a taxidermist uses very little of the fish, the final product is also considered to be a fish replica, and therefore the sale of the replica is a sale of property.

Fish mounts

When a taxidermist uses several parts of a fish, including the skin, to create a fish mount, the taxidermist is usually providing a service.

As is the case for animal mounts, taxidermists are selling property if they sell fish mounts they own.

Sales to non-residents

Taxidermy services provided to non-residents

Services provided to non-residents are taxable when they are in respect of property situated in Canada at the time the service is performed. Consequently, taxidermists' services are taxable even when their clients are non-residents.

Services on property temporarily imported into Canada

Services in respect of property can be zero-rated if both of the following conditions are met:

• property that is ordinarily situated outside Canada is temporarily imported into Canada for the sole purpose of having the service performed; and
• the property is exported as soon as possible after the service is performed.

Any parts or materials used in conjunction with the service are also zero-rated.

Sale of property to non-resident consumers

A sale of property to a non-resident consumer is zero-rated when a taxidermist:

• sends the property by mail or courier to an address outside Canada;
• ships the property outside Canada; or
• gives the property to a common carrier or a consignee that the consumer has hired to ship the property outside Canada. Trucking companies, railroads and airlines are examples of common carriers.

If the non-resident consumer takes delivery of the property in Canada, the sale is taxable.

Other export rules

The export rules described above explain the most common situations. If these rules differ from your particular situation, see the following publications for more information:

• GST/HST Memorandum 4.5.2, Exports – Tangible Personal Property; and
• GST/HST Memorandum 4.5.3, Exports – Services and Intellectual Property.

Input tax credits (ITC)

Taxidermists may claim an ITC to recover the GST/HST they pay on their business purchases such as manikins, habitats and accessories. They can claim ITCs even if the property they sell or the service they provide is zero-rated.