Excise Tax Act

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) in respect of property where

  • (a) the supplier of the property has paid tax under section 220.05 in respect of the property;

  • (b) tax under section 220.07 has been paid in respect of the property; or

  • (c) the property 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 the property is included in Part I of Schedule X.

• 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.