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Tax Court Decision Overturned: Visa Does Supply GST/HST Exempt

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On January 22, 2021, the Federal Court of Appeal (the
“FCA”) overturned the Tax Court of Canada s
dismissal
1 of a Canadian bank s (the
“Bank”) appeal in connection with the Bank s
claim for GST/HST rebates for tax paid in error.
2 While the Tax Court
had originally found that the transaction processing services
provided by Visa Canada (“Visa”) for the credit cards
issued by the Bank constituted a taxable supply, the FCA was of the
view that such supply was an exempt “financial service”
that was not otherwise excluded pursuant to the specific ....

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