New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Reduction in consideration — subsection 220.08(1)

44 If a particular amount of consideration for a taxable supply made in a specified province to a person resident in Nova Scotia, New Brunswick or Newfoundland and Labrador becomes due, or is paid without having become due, at a particular time that is on or after May 1, 2010 and, as a consequence of this Part, tax under subsection 165(2) of the Act is only payable in respect of a portion of the particular amount, for the purpose of determining an amount of tax payable by the person under subsection 220.08(1) of the Act, the value of the consideration for the supply that becomes due, or is paid, at the particular time is deemed to be equal to the particular amount less that portion.

Marginal note:Continuous supplies

• 45 (1) If a supply of property or a service that is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility is made in a specified province to a person, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply to the extent that the consideration is attributable to

  • (a) property that is delivered or made available to the person before July 1, 2010; or

  • (b) any part of the service that is performed or made available before July 1, 2010.

• Marginal note:Application

  (2) This section does not apply to a supply to which section 46 applies.

Marginal note:Budget arrangements

• 46 (1) If a registrant makes a supply of property or a service in a specified province under a budget payment arrangement relating to a particular period that begins before July 1, 2010 and ends on or after that day, the budget payment arrangement provides for a reconciliation of the payments of consideration for the supply that are made during the particular period and the reconciliation is to take place at or after the end of the period and before July 1, 2011, the registrant shall, at the time the registrant issues an invoice for the reconciliation, calculate the positive or negative amount determined by the formula

  A - B

  where

  A

  is the tax that would be payable under subsection 165(2) of the Act by the recipient in respect of the property, service or part thereof delivered, performed or made available on or after July 1, 2010 if the consideration for the supply of that property, service or part had become due and had been paid on or after July 1, 2010; and

  B

  is the total tax that was payable under subsection 165(2) of the Act by the recipient in respect of the supply of the property or service delivered, performed or made available during the particular period.

• Marginal note:Collection of tax

  (2) If the amount calculated by a registrant under subsection (1) is a positive amount,

  • (a) the amount is deemed to be tax payable under subsection 165(2) of the Act by the recipient in respect of the supply; and

  • (b) the registrant is deemed to have collected the amount on the day on which the invoice for the reconciliation is issued.

• Marginal note:Refund of excess

  (3) If the amount calculated by a registrant under subsection (1) is a negative amount,

  • (a) the registrant shall refund or credit the amount to the recipient;

  • (b) the registrant shall issue a credit note for the amount of the refund or credit; and

  • (c) section 232 of the Act applies as if the credit note were issued under that section.

Definition of funeral services

• 47 (1) In this section, funeral services has the same meaning as in subsection 344(1) of the Act.

• Marginal note:Funeral arrangements — trustee

  (2) No tax is payable by a trustee under subsection 165(2) of the Act in respect of a supply made in a specified province of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in the specified province, if

  • (a) the arrangement is entered into in writing before July 1, 2010;

  • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by the trustee and the trustee is responsible for acquiring funeral services in respect of the individual; and

  • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death.

• Marginal note:Funeral arrangements — other

  (3) No tax is payable under subsection 165(2) of the Act in respect of a supply made in a specified province of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in the specified province, if

  • (a) the arrangement is entered into in writing at any time before July 1, 2010; and

  • (b) at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death.

Definition of interment property

• 47.1 (1) In this section, interment property means real property that is for the interment, entombment or inurnment of human remains.

• Marginal note:Interment property

  (2) No tax is payable under subsection 165(2) of the Act in respect of a supply of interment property made by way of lease, licence or similar arrangement in a specified province under an agreement for the supply of interment property if the agreement is entered into in writing before July 1, 2010.

Marginal note:Memberships and admissions — application

• 48 (1) This section does not apply to a supply of a right to acquire a membership in a club, an organization or an association.

• Marginal note:Period of membership or admission before July 2010

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in a specified province of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or a taxable supply made in a specified province of an admission in respect of a place of amusement, a seminar, an activity or an event to the extent that the consideration relates to any part of the period of membership or admission that is before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (3) If a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event is made in a specified province and any consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the consideration relates to any part of the period of membership or admission that is on or after July 1, 2010, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid before May 2010

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in a specified province by a registrant to a person that is not a consumer of the membership or admission becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is for a part of the period of membership or admission that was not before July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception — subsection (4)

  (5) Subsection (4) does not apply in respect of a supply of a membership or an admission made to a person if

  • (a) the membership or admission is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the membership or admission, the total amount of tax under subsection 165(2) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) 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.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before November 1, 2010, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

• Marginal note:Period of membership or admission substantially all before July 2010

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in a specified province if all or substantially all of the period of membership or admission was before July 1, 2010.

• Marginal note:Lifetime memberships

  (8) For the purpose of applying subsection 165(2) of the Act to a taxable supply of a membership for the lifetime of an individual made in a specified province, if the total of all amounts that were paid after October 14, 2009 and before July 1, 2010 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

• Marginal note:Lifetime memberships

  (9) For the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to a supply of a membership for the lifetime of an individual made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, if the total of all amounts that were paid after October 14, 2009 and before July 1, 2010 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

Definition of validity period

• 49 (1) In this section, validity period of a passenger transportation pass means

  • (a) the period throughout which the passenger transportation pass entitles an individual to transportation services; or

  • (b) if the period described in paragraph (a) is not ascertainable at the time when the passenger transportation pass is supplied to a person, the period beginning on the day the passenger transportation pass is delivered or made available to the recipient of the supply and ending on the day on which the passenger transportation pass expires or, in the absence of an expiration date, ending on July 1, 2012.

• Marginal note:Validity period before July 2010

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a passenger transportation pass made in a specified province to the extent that the consideration is attributable to any part of the validity period of the passenger transportation pass that is before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (3) If a taxable supply of a passenger transportation pass is made in a specified province and any consideration for the passenger transportation pass becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that any consideration is attributable to any part of the validity period of the passenger transportation pass that is after June 30, 2010, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

• Marginal note:Consideration due or paid before May 2010

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a passenger transportation pass made in a specified province by a registrant to a person that is not a consumer of the passenger transportation pass becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is attributable to a part of the validity period of the passenger transportation pass that is after June 30, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception

  (5) Subsection (4) does not apply in respect of a supply of a passenger transportation pass made to a person if

  • (a) the passenger transportation pass is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the passenger transportation pass, the total amount of tax under subsection 165(2) of the Act that would be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) 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.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before November 1, 2010, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

• Marginal note:Validity period ending before August 2010

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply made in a specified province of a passenger transportation pass in respect of which the validity period begins before July 1, 2010 and ends before August 1, 2010.

Marginal note:Tangible personal property returned after June 2010

50 Where a person purchased tangible personal property in a specified province from a supplier before July 1, 2010 and paid retail sales tax in respect of the tangible personal property and, on or after July 1, 2010 and before November 1, 2010, the person returns the tangible personal property in exchange for other tangible personal property that the supplier supplies to the person in the specified province,

• (a) if the consideration for the supply of the other property exceeds the consideration for the returned property, tax under subsection 165(2) of the Act in respect of the other property applies only on the excess amount; and

• (b) if the consideration for the supply of the other property is less than or equal to the consideration for the returned property, no tax under subsection 165(2) of the Act is payable in respect of the supply of the other property.