Streamlined Accounting (GST/HST) Regulations (SOR/91-51)

Prescribed Registrant

• 20 (1) A registrant (other than a listed financial institution and a prescribed registrant for the purposes of subsection 188(5) of the Act) that is, on the first day of a reporting period of the registrant, a specified facility operator, a qualifying non-profit organization, a charity that is designated under section 178.7 of the Act or a selected public service body is a registrant who may file an election, to take effect on that day, to determine the net tax of the registrant in accordance with this Part if an election by the registrant did not cease to have effect in the 365-day period ending immediately before that day because of a revocation of the election.

• (2) A registrant that is a non-profit organization (other than a selected public service body and a specified facility operator) that has filed an election to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax immediately before the beginning of any fiscal year of the registrant in which the registrant is not a qualifying non-profit organization

  • (a) at the end of the year where that year is a reporting period of the registrant; or

  • (b) at the beginning of the year in any other case.

Calculation of Net Tax

• 21 (1) Subject to subsections (2) and 21.3(1), if an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula

  A + B - C

  where

  A

  is the total of all amounts each of which is determined, in respect of all the particular supplies to which the same special quick-method rate applies, by the formula

  D × (E - F)

  where

  D

  is the special quick-method rate of the registrant for the particular reporting period that applies to the particular supplies,

  E

  is the total of

  • (a) all consideration that became due, or was paid without becoming due, to the registrant in the particular reporting period for the particular supplies that are taxable supplies (other than designated supplies, supplies of financial services, specified supplies and supplies deemed under section 181.1 or subsection 200(2) of the Act to have been made) made in Canada by the registrant, and

  • (b) all amounts that became collectible, and all other amounts collected, by the registrant in the particular reporting period as or on account of tax under Division II in respect of the particular supplies that are taxable supplies (other than specified supplies and supplies deemed under section 181.1 or subsection 200(2) of the Act to have been made) made by the registrant, and

  F

  is the total of all amounts each of which is an amount that the registrant has, in the particular reporting period, paid or credited to a person as or on account of

  • (a) a reduction in, or a rebate or refund of, all or part of the consideration for a particular supply (other than a designated supply or a specified supply) made in Canada by the registrant, or

  • (b) a refund of, or a credit for, tax under Division II charged to or collected from the person in respect of a particular supply (other than a specified supply);

  B

  is the total of

  • (a) all amounts each of which is an amount that became collectible, or was collected, by the registrant in the particular reporting period as or on account of tax under Division II in respect of

    • (i) specified supplies made by the registrant, or

    • (ii) supplies made on behalf of another person for whom the registrant acts as agent and in respect of which the registrant has made an election under subsection 177(1.1) of the Act,

  • (b) all amounts in respect of specified supplies that are required under Division V to be added in determining the net tax for the particular reporting period,

  • (b.1) the amount required under subsection 238.1(4) of the Act to be added in determining the net tax for the particular reporting period,

  • (c) all amounts each of which is an amount of tax that is deemed under subsection 200(2) of the Act to have been collected by the registrant in the particular reporting period or a preceding reporting period of the registrant in respect of a supply (other than a specified supply), to the extent that the registrant applies for a rebate of the amount in an application filed under section 259 of the Act for the particular reporting period, and

  • (d) all amounts each of which is an amount of tax

    • (i) that the registrant is deemed, under subsection 199(3) of the Act, to have paid in the particular reporting period or a preceding reporting period of the registrant in respect of a supply of property, and

    • (ii) in respect of which the registrant applies for a rebate in an application filed under section 259 of the Act for the particular reporting period,

    to the extent that the registrant was previously deemed, under subsection 200(2) of the Act, to have collected tax in respect of a supply of the property and that supply was not a specified supply; and

  C

  is the total of

  • (a) all amounts each of which is an input tax credit of the registrant

    • (i) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of real property acquired by way of purchase by the registrant or an improvement to the property,

    • (ii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of a supply by way of sale to, importation by, or bringing into a participating province by, the registrant of personal property that is acquired, imported or brought into the participating province by the registrant for use as a capital asset of the registrant and that has a fair market value at the time of the supply or bringing into the province, or a value as determined under section 215 of the Act at the time of the importation, of at least $10,000,

    • (iii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of an improvement to a capital asset (other than real property) of the registrant, if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

    • (iv) for a reporting period of the registrant ending before the election became effective,

    • (v) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property (other than property referred to in subparagraph (ii)) that is acquired, imported or brought into a participating province for supply by way of sale and is deemed under subsection 177(1.2) of the Act to have been supplied by an auctioneer acting as agent for the registrant or is supplied by a person acting as agent for the registrant in circumstances in which subsection 177(1.1) applies, or

    • (vi) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property that is deemed under paragraph 180(e) of the Act to have been acquired by the registrant and under subsection 177(1) or (1.2) of the Act to have been supplied by the registrant,

    and is claimed in the return under Division V filed by the registrant for the particular reporting period,

  • (b) all amounts in respect of specified supplies that may be deducted under Division V in determining the net tax for the particular reporting period and that are claimed in the return under Division V filed by the registrant for the particular reporting period, and

  • (c) an amount that may be deducted under paragraph 346(1)(a) of the Act in determining the net tax for the particular reporting period.

• (2) Subject to subsection 21.3(1), if a registrant carries on the business of supplying telephone services, electricity or natural gas in a separate division or department of the registrant and an election by the registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula

  A + B

  where

  A

  is the amount that would be the net tax of the registrant for the particular reporting period determined under subsection (1) if the registrant did not carry on the business and all property and services acquired, imported or brought into a participating province by the registrant otherwise than primarily for consumption, use or supply in the course of carrying on the business were the only property and services acquired, imported or brought by the registrant; and

  B

  is the amount that would be the net tax of the registrant for the particular reporting period determined in accordance with section 225 of the Act if the business were the only activity engaged in by the registrant and the property and services acquired, imported or brought into a participating province by the registrant primarily for consumption, use or supply in the course of the business were the only property and services acquired, imported or brought by the registrant.

• (3) If an election by a registrant that is a university or public college to determine the net tax for reporting periods of the registrant in accordance with this Part becomes effective in the particular fiscal year of the registrant that is the first fiscal year of the registrant in which the registrant carries on the business of making taxable supplies through a retail establishment (other than a restaurant, cafeteria, pub or similar establishment) and those supplies are primarily supplies of tangible personal property, the special quick-method rate for a particular supply made by the registrant in the course of an activity that the registrant engages in acting in the registrant’s capacity as a university or public college and for reporting periods of the registrant ending in the particular fiscal year is, if it is reasonable to expect that the special quick-method rate for such a supply and for reporting periods of the registrant ending in the fiscal year of the registrant immediately following the particular fiscal year will be a particular percentage set out in subparagraph 19(3)(c)(i), that particular percentage.

PART V.1Streamlined Input Tax Credit Method

Interpretation

• 21.1 (1) For the purposes of this Part, the threshold amount for a fiscal year of a registrant is equal to the total of

  • (a) the amount determined by the formula

    A × 365/B

    where

    A

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the registrant, and

    B

    is the number of days in the base year, and

  • (b) the total of all amounts each of which is an amount, in respect of a person (in this paragraph referred to as the “associate”) who was associated with the registrant at the end of the particular fiscal year of the associate that is the last fiscal year of the associate ending in the base year, determined by the formula

    C × 365/D

    where

    C

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year, and

    D

    is the number of days in the particular fiscal year.

• (2) For the purposes of this Part, the threshold amount for a particular fiscal quarter in a particular fiscal year of a registrant is equal to the total of

  • (a) the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the preceding fiscal quarters in the particular fiscal year, and

  • (b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the registrant at the beginning of the particular fiscal quarter equal to the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the fiscal quarters of the associate that end in the particular fiscal year of the registrant before the beginning of the particular fiscal quarter of the registrant.

• (3) For the purposes of this Part, the purchase threshold for a fiscal year of a registrant is equal to the total of all amounts each of which

  • (a) is an amount that became due, or was paid without having become due, by the registrant in the immediately preceding fiscal year for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the registrant or was acquired outside Canada by the registrant and imported by the registrant; and

  • (b) is either

    • (i) included in determining the cost to the registrant of the property or service for the purposes of the Income Tax Act, or

    • (ii) tax payable by the registrant in respect of the acquisition or importation of the property or service.

• (4) For the purposes of this Part, the purchase threshold of a registrant for a particular day is equal to the total of all amounts each of which

  • (a) is an amount that, on or before the particular day and in the fiscal year of the registrant that includes the particular day, became due, or was paid without having become due, by the registrant for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the registrant or was acquired outside Canada by the registrant and imported by the registrant; and

  • (b) is either

    • (i) included in determining the cost to the registrant of the property or service for the purposes of the Income Tax Act, or

    • (ii) tax payable by the registrant in respect of the acquisition or importation of the property or service.

• (5) For the purposes of this Part, if any consideration for a supply of property or a service is deemed by section 152 of the Act to become due on any day and an amount of a tax, duty or fee that is

  • (a) prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations,

  • (b) imposed in respect of the property or service, and

  • (c) calculated on that consideration,

  has not become due on or before that day, that amount of the tax, duty or fee is deemed to have become due on that day.

Prescribed Registrants

• 21.2 (1) A registrant is a prescribed registrant who may make an election, to take effect on the first day of a reporting period of the registrant, to determine the net tax of the registrant in accordance with this Part if

  • (a) the threshold amount for the fiscal year of the registrant that includes the reporting period does not exceed $1,000,000;

  • (b) if the fiscal quarter of the registrant that includes the reporting period is not the first fiscal quarter in the fiscal year, the threshold amount for the fiscal quarter does not exceed $1,000,000;

  • (c) the purchase threshold for the fiscal year does not exceed $4,000,000;

  • (d) if the registrant is a public service body, it is reasonable to expect at the beginning of the reporting period that the purchase threshold for the registrant’s next fiscal year will not exceed $4,000,000; and

  • (e) the registrant is not a person described in paragraph 149(1)(a) of the Act at the beginning of the reporting period.

• (2) A registrant who has elected to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax at the earliest of

  • (a) if the threshold amount for the second or third fiscal quarter in a fiscal year of the registrant exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year for which the threshold amount exceeds $1,000,000,

  • (b) if the threshold amount for a fiscal year of the registrant exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year,

  • (c) if the registrant is not a public service body and the purchase threshold of the registrant for a particular day exceeds $4,000,000, the end of the immediately preceding day,

  • (d) if the registrant is a public service body and the purchase threshold for a fiscal year of the registrant exceeds $4,000,000, the end of the first fiscal quarter in that fiscal year, and

  • (e) if the registrant becomes a person described in paragraph 149(1)(a) of the Act during a fiscal quarter of the registrant, the end of that fiscal quarter.