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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2024-02-06 and last amended on 2024-01-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IIGoods and Services Tax (continued)

SUBDIVISION EElectronic Commerce (continued)

Marginal note:Information return — accommodation platform operator

 A person (other than a prescribed person) that, at any time during a calendar year, is registered or required to be registered under this Subdivision or is a registrant and that is an accommodation platform operator in respect of a supply of short-term accommodation situated in Canada made in the calendar year shall file with the Minister an information return for the calendar year, in prescribed form containing prescribed information, before July of the following calendar year. The Minister may require that the information return be filed by way of electronic filing.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107
Tangible Personal Property

Marginal note:Definition of specified recipient

  •  (1) In this section, specified recipient, in respect of a supply of property, means a person (other than a non-resident person that is not a consumer of the property) that is the recipient of the supply and that is not registered under Subdivision D of Division V.

  • Marginal note:Registration required

    (2) Every person that is a non-resident person that does not at any time make supplies in the course of a business carried on in Canada or a distribution platform operator in respect of a supply made at any time is required at that time to be registered under Subdivision D of Division V if, for any period of 12 months (other than a period that begins before July 2021) that includes that time, the amount determined by the following formula is greater than $30,000:

    A + B

    where

    A
    is the total of all amounts, each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a taxable supply that is, or that could reasonably be expected to be, a qualifying tangible personal property supply made during that period by the person to a specified recipient (other than a supply deemed to have been made by the person under subparagraph 211.23(1)(a)(i)); and
    B
    is
    • (a) if the person is a distribution platform operator in respect of a qualifying tangible personal property supply made during that period through a specified distribution platform, the total of all amounts, each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a supply that is, or that could reasonably be expected to be, a qualifying tangible personal property supply made during that period through the specified distribution platform to a specified recipient and in respect of which any person is a distribution platform operator, and

    • (b) in any other case, zero.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107

Marginal note:Qualifying supply — operator

  •  (1) If a particular supply that is a qualifying tangible personal property supply is made through a specified distribution platform by a particular person that is not registered under Subdivision D of Division V and if another person that is registered under Subdivision D of Division V, or is carrying on a business in Canada, is a distribution platform operator in respect of the particular supply, the following rules apply:

    • (a) for the purposes of this Part (other than for the purposes of applying sections 148 and 249 in respect of the particular person and other than for the purposes of section 211.1, paragraph (a) of the description of B in subsection 211.22(2) and section 240)

      • (i) the particular supply is deemed to have been made by the other person and not by the particular person, and

      • (ii) the particular supply is deemed to be a taxable supply;

    • (b) for the purposes of this Part (other than sections 179 and 180), the other person is deemed not to have made a supply to the particular person of services relating to the particular supply; and

    • (c) if the other person is registered under Subdivision D of Division V, if the particular person has paid tax under Division III in respect of the importation of the tangible personal property, if no person is entitled to claim an input tax credit or a rebate under this Part in respect of the tax in respect of the importation, if no person is deemed under section 180 to have paid tax in respect of a supply of the tangible personal property that is equal to the tax in respect of the importation and if the particular person provides to the other person evidence satisfactory to the Minister that the tax in respect of the importation has been paid,

      • (i) for the purposes of determining an input tax credit of the other person, the other person is deemed

        • (A) to have paid, at the time the particular person paid the tax in respect of the importation, tax in respect of a supply made to the other person of the tangible personal property equal to the tax in respect of the importation, and

        • (B) to have acquired the tangible personal property for use exclusively in commercial activities of the other person, and

      • (ii) no portion of the tax in respect of the importation paid by the particular person shall be rebated, refunded or remitted to the particular person, or shall otherwise be recovered by the particular person, under this or any other Act of Parliament.

  • Marginal note:Joint and several, or solidary, liability

    (2) If a particular person that is deemed under subparagraph (1)(a)(i) not to have made a supply made a false statement to another person that is deemed under that subparagraph to have made the supply and if the false statement is relevant to the determination of whether the other person is required to collect tax in respect of the supply or the determination of the amount of tax that the other person is required to collect in respect of the supply, the following rules apply:

    • (a) the particular person and the other person are jointly and severally, or solidarily, liable for all obligations under this Part (in this subsection referred to as the “obligations in respect of the supply”) that arise upon or as a consequence of

      • (i) the tax in respect of the supply becoming collectible by the other person, and

      • (ii) a failure to account for or pay as and when required under this Part an amount of net tax of the other person, or an amount required under section 230.1 to be paid by the other person, that is reasonably attributable to the supply;

    • (b) the Minister may assess the particular person for any amount for which the particular person is liable under this subsection and sections 296 to 311 apply with any modifications that the circumstances require; and

    • (c) if the other person did not know and could not reasonably be expected to have known that the particular person made a false statement and if the other person relied in good faith on the false statement and, because of such reliance, did not charge, collect or remit all the tax in respect of the supply that the other person was required to charge, collect or remit, despite section 296, the Minister is not to assess the other person for any obligations in respect of the supply in excess of the obligations in respect of the supply that arise upon or as a consequence of the other person having charged, collected or remitted an amount of tax in respect of the supply.

  • Marginal note:Joint and several, or solidary, liability

    (3) If a particular person provides to another person evidence that tax in respect of an importation has been paid, if the particular person made a false statement to the other person, if the false statement is relevant to the determination of whether paragraph (1)(c) is applicable in respect of the importation and if the other person claimed an input tax credit (in this subsection referred to as the “non-allowable input tax credit”) to which the other person was not entitled but to which the other person would have been entitled if paragraph (1)(c) were applicable in respect of the importation, the following rules apply:

    • (a) the particular person and the other person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of the other person having claimed the non-allowable input tax credit;

    • (b) the Minister may assess the particular person for any amount for which the particular person is liable under this subsection and sections 296 to 311 apply with any modifications that the circumstances require; and

    • (c) if the other person did not know and could not reasonably be expected to have known that the particular person made a false statement and if the other person relied in good faith on the false statement and, because of such reliance, claimed the non-allowable input tax credit, despite section 296, the Minister is not to assess the other person for any obligations under this Part that arose upon or as a consequence of the other person having claimed the non-allowable input tax credit.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107

Marginal note:Notification and records — warehouse

 A particular person (other than a prescribed person) that in the course of a business makes one or more particular supplies of a service of storing in Canada tangible personal property (other than a service that is incidental to the supply by the particular person of a freight transportation service, as defined in section 1 of Part VII of Schedule VI) offered for sale by another person that is a non-resident person shall

  • (a) notify the Minister of this fact, in prescribed form containing prescribed information and filed with the Minister in prescribed manner, on or before

    • (i) the day that is

      • (A) if the particular person makes those particular supplies in the course of a business carried on as of July 1, 2021, January 1, 2022, and

      • (B) in any other case, six months after the day on which the particular person last began making those particular supplies in the course of a business, or

    • (ii) any later day that the Minister may allow; and

  • (b) in respect of those particular supplies, maintain records containing information specified by the Minister.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107

Marginal note:Information return — operator

 A person (other than a prescribed person) that is a registrant at any time during a calendar year and that is a distribution platform operator in respect of a qualifying tangible personal property supply made in the calendar year shall file with the Minister an information return for the calendar year, in prescribed form containing prescribed information, before July of the following calendar year. The Minister may require that the information return be filed by way of electronic filing.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107

DIVISION IIITax on Importation of Goods

Marginal note:Imposition of goods and services tax

 Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 5% on the value of the goods.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 77
  • 1997, c. 10, s. 198
  • 2006, c. 4, s. 19
  • 2007, c. 35, s. 186

Meaning of commercial goods

  •  (1) In this section, commercial goods means goods that are imported for sale or for any commercial, industrial, occupational, institutional or other like use.

  • Marginal note:Tax in participating province

    (2) Subject to this Part, every person that is liable under the Customs Act to pay duty on imported goods, or would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada, in addition to the tax imposed by section 212, a tax on the goods calculated at the tax rate for a participating province on the value of the goods if

    • (a) the goods are prescribed goods imported at a place in the participating province; or

    • (b) the goods are not prescribed for the purposes of paragraph (a) and the person is resident in the participating province.

  • Marginal note:Exception

    (3) Paragraph (2)(b) does not apply to goods that are accounted for as commercial goods under section 32 of the Customs Act, specified motor vehicles or a mobile home or a floating home that has been used or occupied in Canada by any individual.

  • Marginal note:Application in offshore areas

    (4) Paragraph (2)(b) does not apply to goods imported by or on behalf of a person that is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the goods are imported for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 198
  • 2012, c. 19, s. 21

Marginal note:Exception

 No tax under this Division is payable in respect of goods included in Schedule VII.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:Security

 For the purposes of this Division, the Minister may require a person mentioned in section 212 or 212.1 who imports goods to provide security, in an amount determined by the Minister and subject to such terms and conditions as the Minister may specify, for the payment of any amount that is or may become payable by the person under this Division, where provisions of the Customs Act, the Customs Tariff or any other laws relating to customs under which security may be required do not apply to the payment of that amount.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 78
  • 1997, c. 10, s. 199

Marginal note:Import certificate

  •  (1) The Minister may, on the request of a registrant who imports goods, issue to the registrant, subject to such conditions as the Minister may specify, a written authorization (in this section referred to as an “import certificate”) for the purpose of applying, on and after the effective date specified in the authorization, section 8.1 of Schedule VII in respect of goods of a particular class imported by the registrant, in which event the Minister shall assign to the registrant a number to be disclosed when the goods are accounted for under section 32 of the Customs Act.

  • Marginal note:Application

    (2) A request for an import certificate shall contain prescribed information and be filed with the Minister in prescribed manner.

  • Marginal note:Cancellation

    (3) The Minister may, after giving a person to whom an import certificate has been issued reasonable written notice, cancel the import certificate of the person if

    • (a) the person fails to comply with any condition attached to the certificate or any provision of this Division,

    • (b) the Minister determines that it is no longer required for the purposes for which it was issued, or generally for the purposes of this Division, or

    • (c) it can reasonably be expected that the person will no longer be importing goods of a class in respect of which the certificate was issued in circumstances in which the goods would be included in Schedule VII,

    and, where the Minister cancels the import certificate of a person, the Minister shall notify the person in writing of the cancellation and the effective date of the cancellation.

  • Marginal note:Application after cancellation

    (4) Where the Minister has cancelled the import certificate of a person in circumstances described in paragraph (3)(a), the Minister shall not issue a new certificate under subsection (1) before the day that is two years after the day on which the cancellation is effective.

  • Marginal note:Cessation

    (5) An import certificate issued under this section ceases to have effect on the earlier of

    • (a) the effective date of the cancellation of the certificate under subsection (3), and

    • (b) the day that is three years after the effective date of the certificate.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 78
  • 2001, c. 15, s. 5
 

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