Excise Tax Act

Marginal note:Tax in participating province

• 218.1 (1) Subject to this Part,

  • (a) every person who is resident in a particular participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply primarily in participating provinces,

  • (b) every registrant who is the recipient of a supply, included in paragraph (b) of the definition “imported taxable supply” in section 217, of property the physical possession of which is transferred to the registrant in a particular participating province,

  • (c) every person who is the recipient of a supply, included in any of paragraphs 217(b.1) to (b.3), of property that is delivered or made available to the person in a particular participating province and who is either resident in that province or is a registrant, and

  • (d) every person who is the recipient of a supply that is included in any of paragraphs 217(c.1), (d) or (e) and that is made in a particular participating province

  shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula

  A × B × C

  where

  A

  is the tax rate for the particular participating province,

  B

  is the value of that consideration that is paid or becomes due at that time, and

  C

  is

  • (a) in the case of an imported taxable supply of tangible personal property, 100%, and

  • (b) in any other case, the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the province.

• Marginal note:Delivery in a province

  (1.1) Section 3 of Part II of Schedule IX applies for the purpose of paragraph (1)(c).

• Marginal note:Selected listed financial institutions

  (2) If tax under subsection (1) would, but for this subsection, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that

  • (a) is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2); or

  • (b) is in respect of an imported taxable supply of property or a service acquired otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the person.

• Marginal note:Application in offshore areas

  (3) Subsection (1) does not apply to

  • (a) an imported taxable supply of intangible personal property or a service made to a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the property or service is acquired by the person 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; or

  • (b) an imported taxable supply of tangible personal property the physical possession of which is transferred, or that is delivered or made available, to the recipient of the supply in the Nova Scotia offshore area or the Newfoundland offshore area unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity.

• Marginal note:Use in offshore areas

  (4) For the purposes of subsection (1), a person that acquires property or a service for consumption, use or supply in the Nova Scotia offshore area or the Newfoundland offshore area is deemed to acquire the property or service for consumption, use or supply in that area only to the extent that it is acquired for consumption, use or supply in that area in the course of an offshore activity.