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

PART I
Non-Taxable Property for Purposes of Subdivision A

(Subsections 220.05(3) and 220.06(3))

• 1 Property that is at any time brought into a participating province and that is described in heading No. 98.01, 98.10 or 98.12 of Schedule I to the Customs Tariff to the extent that the property would not be subject to customs duties under that Act.

• 2 Conveyances temporarily brought into a participating province, by a person who is resident in that province, to be employed in the international non-commercial transportation of that person and accompanying persons using the same conveyance.

• 3 Conveyances and baggage temporarily brought into a participating province by a non-resident person for use by that person in that province.

• 4 Arms, military stores and munitions of war brought into a participating province by the Government of Canada in replacement of or in anticipation or actual exchange for similar goods loaned to or exchanged or to be exchanged with the governments of a foreign country designated by the Governor in Council under heading No. 98.10 of Schedule I to the Customs Tariff, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.11 of that Act.

• 5 Property that is clothing or books brought into a participating province for charitable purposes, and photographs, not exceeding three, where they are brought into a participating province other than for the purpose of sale.

• 6 Property (other than advertising matter or excisable goods) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.

• 7 Property that is brought into a participating province for a period not exceeding six months for the purpose of display at a convention (within the meaning assigned by the Display Goods Temporary Importation Regulations made under the Customs Tariff) or a public exhibition at which the goods of various manufacturers or producers are displayed.

• 8 Property that is brought into a participating province on a temporary basis after having been removed from Mexico or the United States, where the property is

  • (a) intended for display or demonstration;

  • (b) commercial samples;

  • (c) advertising films; or

  • (d) conveyances or containers based in the United States or Mexico engaged in the international traffic of goods.

• 9 Property that is at any time brought into a participating province by an individual who

  • (a) was formerly resident in the participating province and is, at that time, returning to resume residence in the participating province after being resident in another province for a period of not less than one year,

  • (b) is a resident of the participating province who is, at that time, returning after being absent from the participating province for a period of not less than one year, or

  • (c) is, at that time, entering the province with the intention of establishing a residence for a period of not less than twelve months, (other than a person who enters Canada in order to reside in Canada for the purpose of employment for a temporary period not exceeding 36 months or for the purpose of studying at an institute of learning)

  where the property is for the individual’s personal or household use and was owned and in the individual’s possession before that time, provided that, where the property was owned and in the individual’s possession for less than 31 days prior to the time when it is brought into the participating province

  • (d) the individual has paid any retail sales tax applicable to the property in the province from which the property has been brought, and

  • (e) the individual is not entitled to claim a rebate or a refund of that retail sales tax.

• 10 Property that is brought into a participating province, where the property is

  • (a) personal and household effects of an individual who died outside the participating provinces and was, at the time of death, resident in a participating province, or

  • (b) personal and household effects received, by an individual who is resident in a participating province, as a result or in anticipation of the death of an individual who was not resident in a participating province,

  where the property is given as a gift or bequest to an individual who is resident in a participating province.

• 11 Medals, trophies and other prizes, not including usual merchantable goods, that are won outside the participating provinces in competitions, that are bestowed, received or accepted outside the participating provinces or that are donated by persons outside the participating provinces, for heroic deeds, valour or distinction.

• 12 Printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is brought into a participating province

  • (a) by or on the order of a foreign government or a government outside the participating province or by an agency or representative of such a government; or

  • (b) by a board of trade, chamber of commerce, municipal or automobile association or similar organization to which it was supplied for no consideration, other than shipping and handling charges.

• 13 Property that is brought into a participating province by a charity or a public institution and that has been donated to the charity or the institution.

• 14 Property that is brought into a participating province by a person if it is supplied to the person for no consideration, other than shipping and handling charges, as a replacement part or as replacement property under a warranty.

• 15 Property that is brought into a participating province, the supply of which is included in any of Parts I to IV and VIII of Schedule VI.

• 16 Containers that are brought into a participating province where, because of regulations made under Note 11(c) to Chapter 98 of Schedule I to the Customs Tariff, they would, if they were imported, be imported free of customs duties under that Act.

• 17 Money or certificates or other documents evidencing a right that is a financial instrument.

• 18 Property that is brought into a participating province by a person after having been supplied to the person by another person in circumstances in which tax was payable in respect of the property by the person under subsection 165(2) or section 218.1 of the Act.

• 19 Property that a person brings at any time into a participating province and that at that time is being supplied in a non-participating province to the person by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of more than three months and in circumstances in which tax under subsection 165(1) is payable by the person in respect of that supply.

• 20 Property that is brought into a participating province by a person after having been imported by the person in circumstances in which

  • (a) tax was not payable under section 212 of the Act in respect of the property because of section 213 of the Act; or

  • (b) tax was payable under section 212.1 of the Act and the person was not entitled to a rebate of that tax under section 261.2 of the Act.

• 21 Property that is brought into a participating province by a person after having been used in, and removed from, a participating province by the person and in respect of which the person was not entitled to claim a rebate under section 261.1.

• 22 Property (other than a specified motor vehicle) that is brought into a participating province by a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant.

• 23 Prescribed property brought into a participating province in prescribed circumstances, subject to such terms and conditions as may be prescribed.

• 24 A specified motor vehicle that is brought into a participating province by a person after having been supplied to the person by way of sale in a non-participating province in circumstances in which tax was not payable under subsection 165(1) of the Act in respect of the supply.

• 25 A mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals.

• 26 Property referred to in subsection 178.3(1) or 178.4(1) of the Act where it is brought into a participating province by an independent sales contractor (within the meaning of section 178.1 of the Act) who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with a direct seller is in effect.

• 27 In vitro embryos, as defined in section 3 of the Assisted Human Reproduction Act.

PART II
Non-Taxable Property and Services for Purposes of Subdivision B

(Subsection 220.08(3))

• 1 A supply of property or a service to a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the registrant.

• 2 A zero-rated supply.

• 3 A supply of a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of tangible personal property that is removed from the participating provinces as soon after the service is performed as is reasonable having regard to the circumstances surrounding the removal and is not consumed, used or supplied in the participating provinces after the service is performed and before the removal of the property.

• 4 A supply of a service rendered in connection with criminal, civil or administrative litigation outside the participating provinces, other than a service rendered before the commencement of such litigation.

• 5 A supply of a transportation service.

• 6 A supply of a telecommunication service.

• 7 A prescribed supply of property or a service where the property or service is acquired by the recipient of the supply in prescribed circumstances, subject to such terms and conditions as may be prescribed.