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

PART 3.1Prince Edward Island General HST Transitional Rules

DIVISION 1Interpretation

Marginal note:Definitions

• 58.2 (1) The following definitions apply in this Part.

  reciprocal taxation agreement

  reciprocal taxation agreement means an agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements Act. (accord de réciprocité fiscale)

  retail sales tax

  retail sales tax means a general retail sales tax imposed under an Act of the legislature of Prince Edward Island at a percentage rate on property other than that which is specifically enumerated in that Act. (taxe de vente au détail)

• Marginal note:Conflict

  (2) This Part applies despite any provision of the Act.

DIVISION 2Application

Marginal note:Personal property and services

• 58.21 (1) Subject to Division 3, subsection 165(2) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property, intangible personal property or a service made in Prince Edward Island if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Imported goods — section 212.1 of Act

  (2) Subject to Division 3, section 212.1 of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that section apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is imported by a person resident in Prince Edward Island on or after April 1, 2013, and to such property that is imported by a person resident in Prince Edward Island before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Imported goods — subsection 220.07(1) of Act

  (3) Subject to Division 3, subsection 220.07(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into Prince Edward Island from a place outside Canada on or after April 1, 2013, and to such property that is brought into Prince Edward Island from a place outside Canada before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Tangible personal property brought into Prince Edward Island

  (4) Subject to Division 3, subsections 220.05(1) and 220.06(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into Prince Edward Island on or after April 1, 2013, and to such property that is brought into Prince Edward Island before that day by a carrier if the property is delivered in Prince Edward Island to a consignee on or after that day.

• Marginal note:Tangible personal property supplied outside Canada

  (5) Subject to Division 3, subsection 218.1(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Consumption, use or supply in Prince Edward Island

  (6) Subject to Division 3, subsections 218.1(1) and 220.08(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to any supply of intangible personal property or a service acquired for consumption, use or supply in Prince Edward Island if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that, if the supply is made to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, tax is not payable under those subsections (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

DIVISION 3Transition

Marginal note:Net tax

• 58.22 (1) If a person collects, before April 1, 2013, a particular amount as or on account of tax (other than tax under subsection 165(1) of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on April 1, 2013 and not to have been paid before that day, for the purpose of determining the net tax of the person under subsection 225(1) of the Act, the particular amount is deemed to have been collected by the person on April 1, 2013 and not to have been collected before that day.

• Marginal note:Input tax credits and rebates

  (2) If a person pays, before April 1, 2013, a particular amount as or on account of tax (other than tax under subsection 165(1) or section 218 of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on April 1, 2013 and not to have been paid before that day, for the purpose of determining an input tax credit or rebate of the person under Part IX of the Act, the particular amount is deemed to have been paid by the person on April 1, 2013 and not to have been paid before that day.

• Marginal note:Continuous supply

  (3) For the purposes of this Part, if property or a service is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility during a period that includes April 1, 2013 and for which the supplier issues an invoice and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property is delivered, or the service is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, during the period is deemed to have been delivered or provided, as the case may be, on each day of the period.

Marginal note:Transfer of tangible personal property before April 2013

• 58.23 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply by way of sale of tangible personal property made in Prince Edward Island to a person to the extent that

  • (a) the property is delivered to the person before April 1, 2013; or

  • (b) ownership of the property is transferred to the person before April 1, 2013.

• Marginal note:Imported taxable supply

  (2) No tax is payable under subsection 218.1(1) of the Act in respect of any consideration for an imported taxable supply (as defined in section 217 of the Act) of tangible personal property made to a person if

  • (a) the property is delivered or made available to the person in Prince Edward Island before April 1, 2013; or

  • (b) physical possession of the property is transferred to the person in Prince Edward Island before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (3) For the purpose of applying subsection 165(2) of the Act to a taxable supply by way of sale of tangible personal property made in Prince Edward Island, any consideration for the supply that becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, in respect of property that is not delivered to the recipient, and the ownership of which is not transferred to the recipient, before April 1, 2013, is deemed to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid after January 2013

  (4) For the purpose of applying subsection 218.1(1) of the Act to a taxable supply by way of sale of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, any consideration for the supply that becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, in respect of property that is not delivered or made available to the person, or the physical possession of which is not transferred to the person, as the case may be, before April 1, 2013, is deemed to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made in Prince Edward Island by a registrant to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and neither ownership nor possession of the tangible personal property is transferred to the person before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Consideration due or paid before February 2013

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made outside Canada to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and the tangible personal property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island to the person on or after April 1, 2013, for the purposes of applying subsection 218.1(1) of the Act to the supply, that amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply by way of sale of tangible personal property made to a person if

  • (a) the property 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 property, the total amount of tax under subsection 165(2) or 218.1(1) 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 — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (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 April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, 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, section 219 of the Act does not apply in respect of the tax and the person shall, before August 1, 2013, 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:Exception — subscriptions

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of any consideration paid before April 1, 2013 for a taxable supply made in Prince Edward Island of a subscription for newspapers, magazines or other publications published periodically.

• Marginal note:Exercise of option to purchase

  (10) No tax under subsection 165(2) of the Act is payable in respect of a taxable supply by way of sale of tangible personal property made in Prince Edward Island to a person if

  • (a) the person was the recipient of another supply of the tangible personal property by way of lease, licence or similar arrangement;

  • (b) the taxable supply is made as a consequence of the person exercising, after April 1, 2013, an option to purchase the tangible personal property provided for under the arrangement referred to in paragraph (a); and

  • (c) retail sales tax of Prince Edward Island in respect of the sale of the tangible personal property became payable before April 1, 2013 or would have become payable before that day if the tangible personal property or the person, as the case may be, were not exempt from that tax.

• Marginal note:Application

  (11) This section does not apply to a supply to which section 58.28 or 58.37 applies.

Marginal note:Lease or licence periods before April 2013

• 58.24 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island to the extent that the consideration is a rent, royalty or similar payment attributable to a period before April 1, 2013.

• Marginal note:Lease or licence periods before April 2013

  (2) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of property by way of lease, licence or similar arrangement made outside Prince Edward Island to the extent that the consideration is a rent, royalty or similar payment attributable to a period before April 1, 2013, if the supply is made to

  • (a) a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador; or

  • (b) a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island.

• Marginal note:Rent and royalties due or paid after January 2013

  (3) If a taxable supply of property by way of lease, licence or similar arrangement is made in Prince Edward Island and an amount of consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, that amount of consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid after January 2013

  (4) If a taxable supply of property by way of lease, licence or similar arrangement is made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, or to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, and an amount of consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, that amount of consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid before February 2013

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island by a registrant to a person that is not a consumer of the property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, 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 April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), 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:Rent and royalties due or paid before February 2013

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made outside Prince Edward Island to a person that is not a consumer of the property and that is resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, or to a person that is not a consumer of the property and to which the property is delivered or made available in Prince Edward Island or to which physical possession of the property is transferred in Prince Edward Island, becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply of property by way of lease, licence or similar arrangement made to a person if

  • (a) the property 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 property, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, 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 — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (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 April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, 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, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before August 1, 2013, 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:Lease or licence period ending before May 1, 2013

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before April 1, 2013 and ends before May 1, 2013.

• Marginal note:Lease or licence period ending before May 1, 2013

  (10) Despite subsections (4) and (6), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before April 1, 2013 and ends before May 1, 2013.

• Marginal note:Exception — subsections (9) and (10)

  (11) Subsections (9) and (10) do not apply in respect of consideration for a supply of property that is a rent, royalty or similar payment attributable to a period if the supplier supplies services in respect of that property for the same period and the consideration for the supply of the property and the consideration for the supply of the services is included in a single invoice.

• Marginal note:Application

  (12) Subsections (1) to (6), (9) and (10) do not apply in respect of an amount of consideration for a supply of intangible personal property if the amount of the consideration is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property.