New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

Regulations are current to 2016-08-15 and last amended on 2016-07-01. Previous Versions

DIVISION 3Prescribed Property or Service

Marginal note:Specified property or service
  •  (1) For the purposes of the definition specified property or service in subsection 236.01(1) of the Act, the following property and services are prescribed:

    • (a) a qualifying motor vehicle that is acquired in, or brought into, a specified province;

    • (b) motive fuel, other than diesel fuel, that is acquired in, or brought into, a specified province for consumption or use in the engine of a qualifying motor vehicle;

    • (c) property (other than property for maintenance or repair) that is acquired in, or brought into, a specified province by a person in respect of a qualifying motor vehicle acquired in, or brought into, a specified province by the person if the acquisition or bringing in of the property occurs within 365 days of the acquisition or bringing in of the qualifying motor vehicle;

    • (d) a service (other than a service for maintenance or repair) that is acquired for consumption or use in a specified province in respect of a qualifying motor vehicle acquired in, or brought into, a specified province by a person if the acquisition of the service occurs within 365 days of the acquisition or bringing in of the qualifying motor vehicle;

    • (e) specified energy that is acquired in, or brought into, a specified province other than qualifying heating oil, as defined in section 1 of the Deduction for Provincial Rebate (GST/HST) Regulations, acquired in, or brought into Prince Edward Island;

    • (f) a service described in paragraph (a) of the definition telecommunication service in subsection 123(1) of the Act if the service is acquired for consumption or use in a specified province;

    • (g) access to a telecommunications circuit, line, frequency, channel or partial channel, or to other similar means of transmitting a telecommunication (but not including a satellite channel), for use in providing a service described in paragraph (a) of the definition telecommunication service in subsection 123(1) of the Act if the access is acquired for consumption or use in a specified province; and

    • (h) food, beverages or entertainment acquired in a specified province and in respect of which subsection 67.1(1) of the Income Tax Act applies or would apply if the person were a taxpayer under that Act.

  • Marginal note:Specified property or service — exclusion

    (2) Despite subsection (1), for the purposes of the definition specified property or service in subsection 236.01(1) of the Act, property or a service referred to in any of paragraphs (1)(a) to (h) is not a prescribed property or service if the property or service is

    • (a) specified energy acquired in, or brought into, a specified province for consumption or use exclusively in the heating of asphalt to be used directly in the construction or maintenance of an eligible roadway;

    • (b) property or a service described in any of paragraphs (1)(e) to (g) acquired in, or brought into, a specified province by the organizer or sponsor of a convention for consumption or use exclusively at the convention;

    • (c) a 1-800, 1-866, 1-877 or 1-888 telephone service or a similar toll free telephone service or a service described in paragraph (1)(f) or (g) that is related to a 1-800, 1-866, 1-877 or 1-888 telephone service or a similar toll free telephone service;

    • (d) access to the Internet;

    • (e) a web-hosting service;

    • (f) a taxi the operation and custody of which is entrusted to a person by the holder of a taxi permit for the taxi; or

    • (g) property or service acquired in, or brought into, a specified province exclusively for the purpose of

      • (i) being supplied by a person,

      • (ii) becoming a component of tangible personal property that is to be supplied by a person, or

      • (iii) in the case of property or a service described in paragraph (1)(f) or (g) acquired by a person operating a telecommunication service, being used directly and solely in the making of a taxable supply of a telecommunication service by the person.

  • SOR/2013-44, s. 29.

DIVISION 4Prescribed Amount, Conditions and Circumstances

Marginal note:Specified provincial input tax credit
  •  (1) For the purposes of paragraph (b) of the definition specified provincial input tax credit in subsection 236.01(1) of the Act, a prescribed amount in respect of an amount that would be an input tax credit of a person in respect of a specified property or service attributable to tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act is all of the amount that would be such an input tax credit if

    • (a) in the case where the specified property or service is acquired, or brought into a specified province, by the person for consumption, use or supply exclusively in the course of commercial activities and, as a result of the consumption, use or supply exclusively in the course of commercial activities, no tax under section 218.1 of the Act or Division IV.1 of Part IX of the Act is payable in respect of the acquisition or bringing in, tax under that section or that Division had been payable in respect of the acquisition or bringing in;

    • (b) in the case of a supply of the specified property or service deemed under subsection 143(1) of the Act to have been made outside Canada, the supply had not been deemed to have been made outside Canada;

    • (c) in the case of a supply of the specified property or service that is deemed under Part IX of the Act to have been made for nil consideration, the supply had not been deemed to have been made for nil consideration;

    • (d) in the case of a supply of the specified property or service that is deemed under paragraph 273(1)(c) of the Act not to be a supply, the supply had not been deemed not to be a supply;

    • (e) in the case where the specified property or service is supplied to the person in a specified province or brought into a specified province by the person and is an item included in the Schedule to the Deduction for Provincial Rebate (GST/HST) Regulations applicable to the specified province in respect of which an amount may be paid or credited under an Act of the legislature of the specified province, the specified property or service were not an item included in that Schedule;

    • (f) in the case of a supply of the specified property or service made between persons not dealing with each other at arm’s length for no consideration, the supply had been made for consideration, paid at the time the supply was made, of a value equal to the fair market value of the property or service at that time; and

    • (g) in the case of a supply of the specified property or service made between persons not dealing with each other at arm’s length for consideration less than the fair market value of the specified property or service at the time the supply is made, the value of the consideration were equal to the fair market value of the specified property or service at that time.

  • Marginal note:Specified provincial input tax credit

    (2) If, at any time, a person brings tangible personal property into a specified province from a participating province and, as a consequence of that bringing in, the tangible personal property becomes a specified property or service at that time, for the purposes of paragraph (b) of the definition specified provincial input tax credit in subsection 236.01(1) of the Act, a prescribed amount in respect of an amount that would be an input tax credit of the person in respect of the tangible personal property attributable to tax under subsection 165(2) of the Act is equal to the amount determined by the formula

    A - B

    where

    A 
    is the amount that would be such an input tax credit if
    • (a) a taxable supply (other than a zero rated supply) of the tangible personal property were made in the specified province to the person at that time,

    • (b) the consideration for the supply were equal to the value, determined under the description of B in section 9, in respect of the tangible personal property at that time,

    • (c) the tangible personal property were not an item included in the Schedule to the Deduction for Provincial Rebate (GST/HST) Regulations applicable to the specified province in respect of which an amount may be paid or credited under an Act of the legislature of the specified province, and

    • (d) tax in respect of the supply calculated on that consideration were paid by the person at that time; and

    B 
    is the amount, if any, that is a specified provincial input tax credit of the person attributable to tax under Division IV.1 of Part IX of the Act in respect of that bringing in.
  • SOR/2011-56, s. 31.

DIVISION 5Addition to Net Tax — Prescribed Time

Marginal note:Prescribed time
  •  (1) If a person acquires or imports a specified property or service or brings it into a specified province and tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply, importation or bringing in becomes payable by the person, is paid by the person without having become payable or would have become payable by the person if the rules described in paragraphs 29(1)(a) to (g) applied in respect of that supply, importation or bringing in or if subsection 29(2) applied in respect of that bringing in, for the purposes of subsection 236.01(2) of the Act, the prescribed time in respect of a specified provincial input tax credit of the person in respect of the specified property or service is

    • (a) if the specified property or service is a qualifying motor vehicle the supply of which is made under a lease and the person is required, in accordance with subsection 235(1) of the Act, to add an amount representing all or part of that tax in determining the net tax for a reporting period of the person, the last day of the appropriate reporting period determined under subsection 235(2) of the Act;

    • (b) if the specified property or service is food, beverages or entertainment and the person is required, in accordance with subsection 236(1) of the Act, to add an amount representing all or part of that tax in determining the net tax for a reporting period of the person, the last day of the appropriate reporting period determined under subsection 236(1.1) of the Act;

    • (c) in the case where that tax would have only become payable by the person if the rules described in paragraphs 29(1)(a) to (g) applied in respect of that supply, importation or bringing in or if subsection 29(2) applied in respect of that bringing in, the day that is

      • (i) the particular day on which that tax would have become payable by the person if

        • (A) the reporting period of the person is a fiscal year,

        • (B) the reporting period of the person is a fiscal quarter and either

          • (I) the particular day is in a fiscal month that is not the last fiscal month of the fiscal quarter, or

          • (II) the particular day is in the last fiscal month of the fiscal quarter and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, or

        • (C) the reporting period of the person is a fiscal month and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, and

      • (ii) otherwise, the first day of the reporting period following the reporting period that includes the day on which that tax would have become payable by the person; and

    • (d) in any other case, the earlier of

      • (i) the day that is

        • (A) the particular day on which that tax becomes payable by the person if

          • (I) an input tax credit in respect of that tax is claimed in the return under Division V of Part IX of the Act filed for the reporting period that includes the particular day,

          • (II) the reporting period of the person is a fiscal year,

          • (III) the reporting period of the person is a fiscal quarter and either

            1. the particular day is in a fiscal month that is not the last fiscal month of the fiscal quarter, or

            2. the particular day is in the last fiscal month of the fiscal quarter and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, or

          • (IV) the reporting period of the person is a fiscal month and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, and

        • (B) otherwise, the first day of the reporting period following the reporting period that includes the day on which that tax becomes payable by the person, and

      • (ii) the day that is the later of July 1, 2010 and

        • (A) the particular day on which that tax is paid by the person if

          • (I) an input tax credit in respect of that tax is claimed in the return under Division V of Part IX of the Act filed for the reporting period that includes the particular day,

          • (II) the reporting period of the person is a fiscal year,

          • (III) the reporting period of the person is a fiscal quarter and either

            1. the particular day is in a fiscal month that is not the last fiscal month of the fiscal quarter, or

            2. the particular day is in the last fiscal month of the fiscal quarter and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, or

          • (IV) the reporting period of the person is a fiscal month and the person has added an amount to its net tax in respect of the specified provincial input tax credit for the reporting period of the person that includes the particular day, and

        • (B) otherwise, the first day of the reporting period following the reporting period that includes the day on which that tax is paid by the person.

  • Marginal note:Prescribed time — Prince Edward Island

    (2) In applying subsection (1) in respect of a specified provincial input tax credit that is a Prince Edward Island recapture amount, the reference to “July 1, 2010” in subparagraph (1)(d)(ii) is to be read as a reference to “April 1, 2013”.

  • SOR/2012-191, s. 29;
  • SOR/2013-44, s. 30.
 
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