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

Marginal note:Canadian rights primarily in participating provinces

• 6 (1) A supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can only be used primarily in participating provinces is made in a participating province if an equal or greater proportion of those Canadian rights cannot be used in another participating province.

• Marginal note:Canadian rights primarily in participating provinces

  (2) Subject to subsection (1), a supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can only be used primarily in participating provinces is made in a particular participating province if,

  • (a) in the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in the particular participating province and in the presence of an individual who is, or who acts on behalf of, the recipient, the intangible personal property can be used in the particular participating province;

  • (b) in the case of a supply that is not determined under paragraph (a) to be made in a participating province, the following conditions are satisfied:

    • (i) in the ordinary course of business of the supplier, the supplier obtains an address (in this paragraph referred to as the “particular address”) that is

      • (A) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address in Canada obtained by the supplier,

      • (B) if the supplier obtains more than one address described in clause (A), the address described in that clause that is most closely connected with the supply, or

      • (C) in any other case, the address in Canada of the recipient that is most closely connected with the supply,

    • (ii) the particular address is in the particular participating province, and

    • (iii) the intangible personal property can be used in the particular participating province; and

  • (c) in the case of a supply that is not determined under paragraph (a) or (b) to be made in a participating province, the tax rate for the particular participating province is the highest among the tax rates for the participating provinces in which the intangible personal property can be used.