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

Marginal note:General rule

• 168 (1) Tax under this Division in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due.

• Marginal note:Partial consideration

  (2) Notwithstanding subsection (1), where consideration for a taxable supply is paid or becomes due on more than one day,

  • (a) tax under this Division in respect of the supply is payable on each day that is the earlier of the day a part of the consideration is paid and the day that part becomes due; and

  • (b) the tax that is payable on each such day shall be calculated on the value of the part of the consideration that is paid or becomes due, as the case may be, on that day.

• Marginal note:Supply completed

  (3) Notwithstanding subsections (1) and (2), where all or any part of the consideration for a taxable supply has not been paid or become due on or before the last day of the calendar month immediately following the first calendar month in which

  • (a) where the supply is of tangible personal property by way of sale, other than a supply described in paragraph (b) or (c), the ownership or possession of the property is transferred to the recipient,

  • (b) where the supply is of tangible personal property by way of sale under which the supplier delivers the property to the recipient on approval, consignment, sale-or-return basis or other similar terms, the recipient acquires ownership of the property or makes a supply of it to any person, other than the supplier, or

  • (c) where the supply is under an agreement in writing for the construction, renovation or alteration of, or repair to,

    • (i) any real property, or

    • (ii) any ship or other marine vessel, and it may reasonably be expected that the construction, renovation, alteration or repair will require more than three months to complete,

    the construction, renovation, alteration or repair is substantially completed,

  tax under this Division in respect of the supply, calculated on the value of that consideration or part, as the case may be, is payable on that day.

• Marginal note:Continuous supplies

  (4) Subsection (3) does not apply in respect of a supply of water, electricity, natural gas, steam or any other property where the property is delivered or made available to the recipient on a continuous basis by means of a wire, pipeline or other conduit and the supplier invoices the recipient in respect of that supply on a regular or periodic basis.

• Marginal note:Sale of real property

  (5) Notwithstanding subsections (1) and (2), tax under this Division in respect of a taxable supply of real property by way of sale is payable

  • (a) in the case of a supply of a residential condominium unit where possession of the unit is transferred, after 1990 and before the condominium complex in which the unit is situated is registered as a condominium, to the recipient under the agreement for the supply, on the earlier of the day ownership of the unit is transferred to the recipient and the day that is sixty days after the day the condominium complex is registered as a condominium; and

  • (b) in any other case, on the earlier of the day ownership of the property is transferred to the recipient and the day possession of the property is transferred to the recipient under the agreement for the supply.

• Marginal note:Value not ascertainable

  (6) Where under subsection (3) or (5) tax is payable on a day and the value of the consideration, or any part thereof, for the taxable supply is not ascertainable on that day,

  • (a) tax calculated on the value of the consideration or part, as the case may be, that is ascertainable on that day is payable on that day; and

  • (b) tax calculated on the value of the consideration or part, as the case may be, that is not ascertainable on that day is payable on the day the value becomes ascertainable.

• Marginal note:Retention of consideration

  (7) Notwithstanding subsections (1), (2), (3), (5) and (6), where the recipient of a taxable supply retains, pursuant to

  • (a) an Act of Parliament or of the legislature of a province, or

  • (b) an agreement in writing for the construction, renovation or alteration of, or repair to, any real property or any ship or other marine vessel,

  a part of the consideration for the supply pending full and satisfactory performance of the supply, or any part thereof, tax under this Division, calculated on the value of that part of the consideration, is payable on the earlier of the day that part is paid and the day it becomes payable.

• Marginal note:Combined supply

  (8) For the purposes of this section, where a supply of any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is made and the consideration for each element is not separately identified,

  • (a) where the value of a particular element can reasonably be regarded as exceeding the value of each of the other elements, the supply of all of the elements shall be deemed to be a supply only of the particular element; and

  • (b) in any other case, the supply of all of the elements shall be deemed

    • (i) where one of the elements is real property, to be a supply only of real property, and

    • (ii) in any other case, to be a supply only of a service.

• Marginal note:Deposits

  (9) For the purposes of this section, a deposit (other than a deposit in respect of a covering or container in respect of which section 137 applies), whether refundable or not, given in respect of a supply shall not be considered as consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.