New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Definitions

• 58.25 (1) In this section, continuous freight movement, freight transportation service and shipper have the same meanings as in subsection 1(1) of Part VII of Schedule VI to the Act.

• Marginal note:Services partly performed before April 2013

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service made in Prince Edward Island to the extent that the consideration relates to any part of the service that is performed before April 1, 2013.

• Marginal note:Services partly performed before April 2013

  (3) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador to the extent that the consideration relates to any part of the service that is performed before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (4) If a taxable supply of a service is made in Prince Edward Island and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the service that is not performed before April 1, 2013, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid after January 2013

  (5) If a taxable supply of a service is made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the service that is not performed before April 1, 2013, that consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (6) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made in Prince Edward Island by a registrant to a person that is not a consumer of the service becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the service that is not performed before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (9), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Consideration due or paid before February 2013

  (7) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made outside Prince Edward Island to a person that is not a consumer of the service and that is resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the service that is not performed before April 1, 2013, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (9), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (6) and (7)

  (8) Subsections (6) and (7) do not apply in respect of a supply of a service made to a person if

  • (a) the service is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the service, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (6) and (7)

  (9) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (6) or (7),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before August 1, 2013, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

• Marginal note:Services substantially all performed before April 2013

  (10) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 58.27 applies) made in Prince Edward Island if all or substantially all of the service is performed before April 1, 2013.

• Marginal note:Services substantially all performed before April 2013

  (11) Despite subsections (5) and (7), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 58.27 applies) to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador if all or substantially all of the service is performed before April 1, 2013.

• Marginal note:Passenger transportation services commencing before April 2013

  (12) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in Prince Edward Island of a passenger transportation service, or of a service of transporting an individual’s baggage in connection with a passenger transportation service, if the passenger transportation service is part of a continuous journey that begins before April 1, 2013.

• Marginal note:Freight transportation services commencing before April 2013

  (13) Despite subsections (4) and (6), if one or more carriers make a taxable supply in Prince Edward Island of freight transportation services in respect of a continuous freight movement of tangible personal property and, before April 1, 2013, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply.

• Marginal note:Application

  (14) This section does not apply to a supply to which section 58.28 applies.

Marginal note:Reduction in consideration — subsection 220.08(1) of Act

58.26 If a particular amount of consideration for a taxable supply made in Prince Edward Island to a person resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador becomes due, or is paid without having become due, at a particular time that is on or after February 1, 2013 and, as a consequence of this Part, tax under subsection 165(2) of the Act is only payable in respect of a portion of the particular amount, for the purpose of determining an amount of tax payable by the person under subsection 220.08(1) of the Act, the value of the consideration for the supply that becomes due, or is paid, at the particular time is deemed to be equal to the particular amount less that portion.

Marginal note:Continuous supplies

• 58.27 (1) If a supply of property or a service that is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility is made in Prince Edward Island to a person, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply to the extent that the consideration is attributable to

  • (a) property that is delivered or made available to the person before April 1, 2013; or

  • (b) any part of the service that is performed or made available before April 1, 2013.

• Marginal note:Application

  (2) This section does not apply to a supply to which section 58.28 applies.

Marginal note:Budget arrangements

• 58.28 (1) If a registrant makes a supply of property or a service in Prince Edward Island under a budget payment arrangement relating to a particular period that begins before April 1, 2013 and ends on or after that day, the budget payment arrangement provides for a reconciliation of the payments of consideration for the supply that are made during the particular period and the reconciliation is to take place at or after the end of the period and before April 1, 2014, the registrant shall, at the time the registrant issues an invoice for the reconciliation, calculate the positive or negative amount determined by the formula

  A – B

  where

  A

  is the tax that would be payable under subsection 165(2) of the Act by the recipient in respect of the property, service or part thereof delivered, performed or made available on or after April 1, 2013 if the consideration for the supply of that property, service or part had become due and had been paid on or after April 1, 2013; and

  B

  is the total tax that was payable under subsection 165(2) of the Act by the recipient in respect of the supply of the property or service delivered, performed or made available during the particular period.

• Marginal note:Collection of tax

  (2) If the amount calculated by a registrant under subsection (1) is a positive amount,

  • (a) the amount is deemed to be tax payable under subsection 165(2) of the Act by the recipient in respect of the supply; and

  • (b) the registrant is deemed to have collected the amount on the day on which the invoice for the reconciliation is issued.

• Marginal note:Refund of excess

  (3) If the amount calculated by a registrant under subsection (1) is a negative amount,

  • (a) the registrant shall refund or credit the amount to the recipient;

  • (b) the registrant shall issue a credit note for the amount of the refund or credit; and

  • (c) section 232 of the Act applies as if the credit note were issued under that section.

Definition of funeral services

• 58.29 (1) In this section, funeral services has the same meaning as in subsection 344(1) of the Act.

• Marginal note:Funeral arrangements — trustee

  (2) No tax is payable by a trustee under subsection 165(2) of the Act in respect of a supply made in Prince Edward Island of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in Prince Edward Island, if

  • (a) the arrangement is entered into in writing before April 1, 2013;

  • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by the trustee and the trustee is responsible for acquiring funeral services in respect of the individual; and

  • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death.

• Marginal note:Funeral arrangements — other

  (3) No tax is payable under subsection 165(2) of the Act in respect of a supply made in Prince Edward Island of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in Prince Edward Island, if

  • (a) the arrangement is entered into in writing at any time before April 1, 2013; and

  • (b) at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death.

Definition of interment property

• 58.3 (1) In this section, interment property means real property that is for the interment, entombment or inurnment of human remains.

• Marginal note:Interment property

  (2) No tax is payable under subsection 165(2) of the Act in respect of a supply of interment property made by way of lease, licence or similar arrangement in Prince Edward Island under an agreement for the supply of interment property if the agreement is entered into in writing before April 1, 2013.

Marginal note:Memberships and admissions — application

• 58.31 (1) This section does not apply to a supply of a right to acquire a membership in a club, an organization or an association.

• Marginal note:Period of membership or admission before April 2013

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in Prince Edward Island of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or a taxable supply made in Prince Edward Island of an admission in respect of a place of amusement, a seminar, an activity or an event to the extent that the consideration relates to any part of the period of membership or admission that is before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (3) If a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event is made in Prince Edward Island and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the period of membership or admission that is on or after April 1, 2013, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in Prince Edward Island by a registrant to a person that is not a consumer of the membership or admission becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the period of membership or admission that was not before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception — subsection (4)

  (5) Subsection (4) does not apply in respect of a supply of a membership or an admission made to a person if

  • (a) the membership or admission is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the membership or admission, the total amount of tax under subsection 165(2) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before August 1, 2013, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

• Marginal note:Period of membership or admission substantially all before April 2013

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in Prince Edward Island if all or substantially all of the period of membership or admission was before April 1, 2013.

• Marginal note:Lifetime memberships

  (8) For the purpose of applying subsection 165(2) of the Act to a taxable supply of a membership for the lifetime of an individual made in Prince Edward Island, if the total of all amounts that were paid after November 8, 2012 and before April 1, 2013 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on April 1, 2013 and not to have been paid before April 1, 2013.

• Marginal note:Lifetime memberships

  (9) For the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to a supply of a membership for the lifetime of an individual made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, if the total of all amounts that were paid after November 8, 2012 and before April 1, 2013 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on April 1, 2013 and not to have been paid before April 1, 2013.