Understanding GST/HST Implications in Canadian Interlining for Transportation and Logistics Industries

Interlining is common in Canada’s transportation and logistics industries for efficient freight transfer.
Understanding GST and HST implications is crucial for carriers and freight companies.
Interlining involves cooperation between two or more carriers under a single contract or bill of lading.
GST/HST rules apply to interlining, with zero-rating for continuous freight movement between carriers.
If the first carrier charges for the entire service, GST/HST is zero-rated; if billed separately, each carrier must charge the correct tax.
Zero-rated services allow for input tax credits, but proper documentation is necessary.
Incorrect tax application can lead to audits, denied credits, or penalties from the CRA.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.