New Harmonized Value-added Tax System Regulations

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 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.