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

Marginal note:Collection of tax

• 221 (1) Every person who makes a taxable supply shall, as agent of Her Majesty in right of Canada, collect the tax under Division II payable by the recipient in respect of the supply.

• Marginal note:Exception

  (2) A supplier (other than a prescribed supplier) who makes a taxable supply of real property by way of sale is not required to collect tax under Division II payable by the recipient in respect of the supply where

  • (a) the supplier is a non-resident person or is resident in Canada by reason only of subsection 132(2);

  • (b) the recipient is registered under Subdivision D and, in the case of a recipient who is an individual, the property is neither a residential complex nor supplied as a cemetery plot or place of burial, entombment or deposit of human remains or ashes;

  • (b.1) the supplier and the recipient have made an election under section 2 of Part I of Schedule V in respect of the supply; or

  • (c) the recipient is a prescribed recipient.

• Marginal note:Exception — emission allowance

  (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply.

• Marginal note:Idem

  (3) Where a carrier who makes a particular taxable supply of a service of transporting tangible personal property

  • (a) is provided with a declaration referred to in section 7 of Part VII of Schedule VI by the shipper, and

  • (b) at or before the time the tax in respect of the particular supply becomes payable the carrier did not know and could not reasonably be expected to know that

    • (i) the property was not being shipped for export,

    • (ii) the transportation by the carrier was not part of a continuous outbound freight movement in respect of the property, and

    • (iii) there was or was to be any diversion of the property to a final destination in Canada,

  the carrier is not required to collect tax in respect of the particular supply or any supply that is incidental to the particular supply.

• (3.1) [Repealed, 2001, c. 15, s. 9]

• Marginal note:Definitions

  (4) In subsection (3), continuous outbound freight movement and shipper have the same meanings as in Part VII of Schedule VI.