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

DIVISION IV.1Tax on Property and Services Brought Into a Participating Province

Marginal note:Definitions

220.01 The following definitions apply in this Division.

provincial authority

provincial authority means any department or agency of a province that is empowered under the laws of that province to collect, at the time when a specified motor vehicle is registered in the province, any specified provincial tax imposed in respect of the specified motor vehicle. (autorité provinciale)

specified provincial tax

specified provincial tax means

• (a) in the case of a vehicle registered in the province of Nova Scotia, the tax imposed under Part IIA of the Revenue Act, S.N.S. 1995-96, c. 17, as amended from time to time;

• (b) in the case of a vehicle registered in the province of New Brunswick, the tax imposed under Part V of the Harmonized Sales Tax Act, S.N.B. 1997, c. H-1.01, as amended from time to time;

• (c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under the Retail Sales Tax Act, R.S.N.L. 1990, c. R-15, as amended from time to time; and

• (d) in the case of a vehicle registered in any other participating province, a prescribed tax. (taxe provinciale déterminée)

specified value

specified value, in respect of a specified motor vehicle that a person is required to register under the laws of a participating province relating to the registration of motor vehicles, means the value that would be attributed to the specified motor vehicle by the provincial authority for that province for the purpose of calculating the specified provincial tax payable if, at the time of registration, that tax were payable in respect of the specified motor vehicle. (valeur déterminée)

tangible personal property

tangible personal property includes a mobile home that is not affixed to land and a floating home. (bien meuble corporel)

Marginal note:Carriers

220.02 Where a particular person brings property into a province on behalf of another person, for the purposes of this Division, the other person and not the particular person is deemed to have brought the property into the province.

Marginal note:In transit

220.03 Where at any time a person brings tangible personal property into a province in the course of transporting property from a place outside the province to another place outside the province, and the property is not stored in the province for purposes that are not incidental to the transportation, the person is deemed for the purposes of this Division not to have brought the property into the province at that time.

Marginal note:Selected listed financial institutions

220.04 If tax under this Division would, in the absence of this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is a prescribed amount of tax.

SUBDIVISION ATax on Tangible Personal Property

Marginal note:Tax in participating province

• 220.05 (1) Subject to this Part, if at a particular time a person brings tangible personal property into a participating province from another province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined in prescribed manner.

• Marginal note:When tax payable

  (2) Tax under subsection (1) on property brought into a participating province by a person becomes payable

  • (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and

  • (b) in any other case, on the day the property is brought into the province.

• Marginal note:Non-taxable property

  (3) No tax is payable under subsection (1)

  • (a) in respect of property that is included in Part I of Schedule X and is not prescribed property; or

  • (b) in prescribed circumstances.

• Marginal note:Pension entities

  (3.1) No tax is payable under subsection (1) in respect of property if a person that is a pension entity of a pension plan is the recipient of a particular supply of the property made by a participating employer of the pension plan and

  • (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero;

  • (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero;

  • (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or

  • (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to property brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the property is brought into the area for consumption, use or supply in the course of an offshore activity.

Marginal note:Supply by unregistered non-resident

• 220.06 (1) Subject to this Part, where a person is the recipient of a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property that is, at a particular time, delivered or made available to the person in a participating province, or sent by mail or courier to an address in the participating province, by a non-resident supplier who is not registered under Subdivision D of Division V, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula

  A × B

  where

  A

  is the tax rate for the participating province; and

  B

  is

  • (a) where the supply of the property was made to the person by way of sale by a non-resident person with whom the person dealt at arm’s length, the lesser of the value of the consideration paid or payable in respect of the supply and the fair market value of the property at the particular time,

  • (b) notwithstanding paragraph (a), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed manner, and

  • (c) in any other case, the fair market value of the property at the particular time.

• Marginal note:When tax payable

  (2) Tax under subsection (1) in respect of property supplied to a person in a participating province becomes payable on the day the property is delivered or made available to the person in the province.

• Marginal note:Non-taxable property

  (3) No tax is payable under subsection (1)

  • (a) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or

  • (b) in prescribed circumstances.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to a supply of property that is delivered or made available to the recipient in the Nova Scotia offshore area or the Newfoundland offshore area, or that is sent to the recipient at an address 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:Imported commercial goods

• 220.07 (1) Subject to this Part, every person who brings into a participating province from a place outside Canada

  • (a) a specified motor vehicle, or

  • (b) goods that are accounted for as commercial goods (within the meaning assigned by subsection 212.1(1)) under section 32 of the Customs Act

  and who is liable under that Act to pay duties on the vehicle or goods, or would be so liable if they were subject to duty, shall pay, in addition to the tax imposed under section 212, tax calculated at the tax rate for that participating province on the value of the vehicle or goods.

• Marginal note:Exception

  (2) Tax under subsection (1) does not apply to

  • (a) goods, other than a specified motor vehicle, brought into a participating province from a place outside Canada by a registrant (other than a registrant whose net tax is determined under section 225.1 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;

  • (b) a mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals; or

  • (c) goods included in Schedule VII.

• Marginal note:Value of goods

  (3) For the purposes of this section, the value of goods brought into a province is equal to

  • (a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registration of motor vehicles, the specified value;

  • (b) in the case of prescribed property brought into a province in prescribed circumstances, the value determined in prescribed manner; and

  • (c) in any other case, the value of the goods determined in accordance with section 215.

• Marginal note:When tax payable

  (4) Tax under subsection (1) on goods brought into a participating province by a person becomes payable by that person

  • (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and

  • (b) in any other case, on the day on which the goods are brought into the province.

• Marginal note:Use in offshore areas

  (5) Subsection (1) does not apply to goods brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the goods are brought into the area for consumption, use or supply in the course of an offshore activity.

SUBDIVISION BTax on Intangible Property and Services

Marginal note:Tax in participating province

• 220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province must 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 in prescribed manner.

• 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)

  • (a) in respect of a supply of intangible personal property or a service that is included in Part II of Schedule X and is not a prescribed supply; or

  • (b) in prescribed circumstances.

• Marginal note:Pension entities

  (3.1) No tax is payable under subsection (1) in respect of a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan if

  • (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero;

  • (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero;

  • (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or

  • (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

• 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.