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

Marginal note:Disposition of personal property

• 141.1 (1) For the purposes of this Part,

  • (a) where a person makes a supply (other than an exempt supply) of personal property that

    • (i) was last acquired or imported by the person, or was brought into a participating province by the person after it was last acquired or imported by the person, for consumption or use in the course of commercial activities of the person or was consumed or used by the person in the course of a commercial activity of the person after it was last acquired or imported by the person, or

    • (ii) was manufactured or produced by the person in the course of a commercial activity of the person or for consumption or use in the course of a commercial activity of the person, or was manufactured or produced by the person and consumed or used in the course of a commercial activity of the person, and was not deemed under this Part to have been acquired by the person,

    the person shall be deemed to have made the supply in the course of the commercial activity; and

  • (b) where a person makes a supply (other than a supply made by way of lease, licence or similar arrangement in the course of a business of the person) of personal property that

    • (i) was last acquired or imported by the person exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person after it was last acquired or imported by the person and was not consumed or used by the person in the course of commercial activities of the person after it was last acquired or imported by the person, or

    • (ii) was manufactured or produced by the person in the course of activities of the person that are not commercial activities exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person and was not consumed or used in the course of a commercial activity of the person and was not deemed under this Part to have been acquired by the person,

    the person shall be deemed to have made the supply otherwise than in the course of commercial activities.

• Marginal note:Disposition of inventory, etc.

  (2) For the purposes of this Part,

  • (a) where a person makes a particular supply by way of sale of personal property or a service that was acquired, imported, brought into a participating province, manufactured or produced by the person exclusively for the purpose of making a supply of that property or service by way of sale in the course of a business of the person or in the course of an adventure or concern of the person in the nature of trade, except where

    • (i) the particular supply is an exempt supply,

    • (ii) paragraph (b) applies in respect of the particular supply, or

    • (iii) the person is an individual or a partnership, all of the members of which are individuals, who carries on the business or engages in the adventure or concern without a reasonable expectation of profit,

    the person shall be deemed to have made the particular supply in the course of commercial activities of the person; and

  • (b) where a person makes a supply by way of sale of personal property or a service that was acquired, imported, manufactured or produced by the person exclusively for the purpose of making an exempt supply of the property or service by way of sale, the person shall be deemed to have made the supply otherwise than in the course of commercial activities.

• Marginal note:Acquisition, etc., of activities

  (3) For the purposes of this Part,

  • (a) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of a commercial activity of the person, the person shall be deemed to have done that thing in the course of commercial activities of the person; and

  • (b) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of an activity of the person that is not a commercial activity, the person shall be deemed to have done that thing otherwise than in the course of commercial activities.

Marginal note:Sale of personal property of a municipality

• 141.2 (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.

• Marginal note:Sale of personal property of a designated municipality

  (2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.

Marginal note:General rule — in Canada

• 142 (1) For the purposes of this Part, subject to sections 143, 144 and 179, a supply shall be deemed to be made in Canada if

  • (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available in Canada to the recipient of the supply;

  • (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available in Canada to the recipient of the supply;

  • (c) in the case of a supply of intangible personal property,

    • (i) the property may be used in whole or in part in Canada, or

    • (ii) the property relates to real property situated in Canada, to tangible personal property ordinarily situated in Canada or to a service to be performed in Canada;

  • (d) in the case of a supply of real property or of a service in relation to real property, the real property is situated in Canada;

  • (e) [Repealed, 1997, c. 10, s. 6]

  • (f) the supply is a supply of a prescribed service; or

  • (g) in the case of a supply of any other service, the service is, or is to be, performed in whole or in part in Canada.

• Marginal note:General rule — outside Canada

  (2) For the purposes of this Part, a supply shall be deemed to be made outside Canada if

  • (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available outside Canada to the recipient of the supply;

  • (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available outside Canada to the recipient of the supply;

  • (c) in the case of a supply of intangible personal property,

    • (i) the property may not be used in Canada, or

    • (ii) the property relates to real property situated outside Canada, to tangible personal property ordinarily situated outside Canada or to a service to be performed wholly outside Canada;

  • (d) in the case of a supply of real property or a service in relation to real property, the real property is situated outside Canada;

  • (e) [Repealed, 1997, c. 10, s. 6]

  • (f) the supply is a supply of a prescribed service; or

  • (g) in the case of a supply of any other service, the service is, or is to be, performed wholly outside Canada.

• Marginal note:Mobile and floating homes

  (3) For the purposes of this section,

  • (a) a floating home, and

  • (b) a mobile home that is not affixed to land

  shall each be deemed to be tangible personal property and not real property.

Marginal note:Billing location

• 142.1 (1) For the purposes of this section, the billing location for a telecommunication service supplied to a recipient is in Canada if

  • (a) where the consideration payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to a telecommunications facility that is used or is available for use by the recipient to obtain telecommunication services, that telecommunications facility is ordinarily located in Canada; and

  • (b) in any other case, the telecommunications facility used to initiate the service is located in Canada.

• Marginal note:Place of supply of telecommunication service

  (2) Notwithstanding section 142 and subject to section 143, for the purposes of this Part, a supply of a telecommunication service is deemed to be made in Canada where

  • (a) in the case of a telecommunication service of making telecommunications facilities available, the facilities or any part thereof are located in Canada; and

  • (b) in any other case,

    • (i) the telecommunication is emitted and received in Canada, or

    • (ii) the telecommunication is emitted or received in Canada and the billing location for the service is in Canada.

Marginal note:Supply by non-resident

• 143 (1) For the purposes of this Part, a supply of personal property or a service made in Canada by a non-resident person shall be deemed to be made outside Canada, unless

  • (a) the supply is made in the course of a business carried on in Canada;

  • (b) at the time the supply is made, the person is registered under Subdivision D of Division V;

  • (b.1) the supply is a qualifying tangible personal property supply (as defined in subsection 211.1(1)) and the person is required under section 211.22 to be registered under Subdivision D of Division V at the time the supply is made; or

  • (c) the supply is the supply of an admission in respect of a place of amusement, a seminar, an activity or an event where the non-resident person did not acquire the admission from another person.

• (2) [Repealed, 1993, c. 27, s. 20]

Marginal note:Supply by mail or courier

143.1 Notwithstanding subsections 142(2) and 143(1), for the purposes of this Part, a supply of prescribed tangible personal property made by a person who is registered under Subdivision D of Division V shall be deemed to be made in Canada if the property is sent, by mail or courier, to the recipient of the supply at an address in Canada.

Marginal note:Supply before release

144 For the purposes of this Part, a supply of goods that have been imported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls or regulates the importation of goods, but have not been released before the goods are delivered or made available in Canada to the recipient of the supply, shall be deemed to be made outside Canada.

Marginal note:Property in transit

144.01 For the purposes of this Part (other than sections 4, 15.3 and 15.4 of Part V of Schedule VI), if a continuous transmission commodity is transported by means of a wire, pipeline or other conduit

• (a) outside Canada in the course of, and solely for the purpose of, being delivered by that means from a place in Canada to another place in Canada,

• (b) in Canada in the course of, and solely for the purpose of, being delivered by that means from a place outside Canada to another place outside Canada,

• (c) from a place in Canada to a place outside Canada where it is stored or taken up as surplus for a period until further transported by that means to a place in Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation, or

• (d) from a place outside Canada to a place in Canada where it is stored or taken up as surplus for a period until further transported by that means to a place outside Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation,

the commodity is deemed not to be exported or imported in the course of that transportation or further transportation.

Marginal note:Supply in a province

144.1 For the purposes of this Part, a supply is deemed to be made in a province if it is made in Canada and is, under the rules set out in Schedule IX, made in the province, but is deemed to be made outside the province in any other case and a supply made in Canada that is not made in any participating province is deemed to be made in a non-participating province.

145 [Repealed, 1997, c. 10, s. 8]

Marginal note:Supplies by governments and municipalities

146 For the purposes of this Part, the following supplies, when made for consideration by a government or municipality or a board, commission or other body established by a government or municipality, shall, for greater certainty, be deemed to be made in the course of a commercial activity, except where the supply is an exempt supply:

• (a) a supply of a service of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner;

• (b) a supply to a consumer of a right to hunt or fish;

• (c) a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, where the supply is made to

  • (i) a consumer, or

  • (ii) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals or peat to consumers;

• (d) a supply of a licence, permit, quota or similar right in respect of the importation of alcoholic beverages; and

• (e) a supply of a right to enter, to have access to or to use property of the government, municipality or other body.