Excise Tax Act

Marginal note:Tax in participating province

• 220.08 (1) Subject to this Part, every person who is resident in a particular participating province and is the recipient of a taxable supply made in a non-participating province of intangible personal property or a service that is acquired by the person for consumption, use or supply primarily in participating provinces 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, 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 the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in participating provinces.

• Marginal note:When tax payable

  (2) Tax under subsection (1) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.

• Marginal note:Non-taxable supplies

  (3) No tax is payable under subsection (1) in respect of a supply of intangible personal property or a service included in Part II of Schedule X.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to a supply of 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 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.

• Marginal note:Use in offshore areas

  (5) 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.