New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

DIVISION 3Tax on Property and Services Brought Into a Participating Province

Marginal note:Additional specified item

7.1 For the purposes of this Division, property or a service in respect of which a person has been paid or credited, or is entitled to be paid or credited, a qualifying amount (as defined in section 1 of the Credit for Provincial Relief (HST) Regulations) is a specified item in respect of Ontario.

Marginal note:Specified provincial tax

7.2 For the purposes of the new harmonized value-added tax system, paragraph (c) of the definition specified provincial tax in section 220.01 of the Act is adapted as follows:

• (c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under Part VIII of the Revenue Administration Act, S.N.L. 2009, c. R-15.01, as amended from time to time; and

Marginal note:Specified provincial tax — Ontario

8 For the purposes of paragraph (d) of the definition specified provincial tax in section 220.01 of the Act, in the case of a vehicle registered in the province of Ontario, a prescribed tax is the tax imposed under the Retail Sales Tax Act, R.S.O. 1990, c. R.31, as amended from time to time.

Marginal note:Specified provincial tax — Prince Edward Island

8.1 For the purposes of paragraph (d) of the definition specified provincial tax in section 220.01 of the Act, in the case of a vehicle registered in the province of Prince Edward Island, the prescribed tax is the tax imposed under the Retail Sales Tax Act, S.P.E.I. 2012, c. 22, as amended from time to time.

Marginal note:Calculation of tax — subsection 220.05(1)

9 For the purposes of subsection 220.05(1) of the Act, the amount of tax payable under that subsection by a person that brings, at a particular time, tangible personal property into a participating province from another province is determined by the formula

Marginal note:Non-taxable property — subsection 220.05(3)

10 For the purposes of paragraph 220.05(3)(b) of the Act, no tax is payable under subsection 220.05(1) of the Act in respect of property brought into a participating province by a person if

• (a) the property is supplied by the person to a recipient that paid tax under section 220.06 of the Act in respect of the supply and is delivered or made available to the recipient in the participating province or sent by mail or courier to an address in the participating province;

• (b) the total of all amounts, each of which is an amount of tax that would, in the absence of this paragraph and paragraphs 11(b) and 15(b), become payable under Division IV.1 of Part IX of the Act by the person and in respect of which subsection 220.09(3) of the Act would not apply if that tax became payable by the person, is $25 or less in the calendar month that includes

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

  • (ii) in any other case, the day on which the property is brought into the participating province; or

• (c) the property is not a specified motor vehicle that the person is required to register under the laws of the participating province relating to the registration of motor vehicles, the person is a provincial investment plan or a provincial stratified investment plan and, in the case of a provincial stratified investment plan, the person is acquiring the property for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the person.

Marginal note:Non-taxable property — subsection 220.06(3)

11 For the purposes of paragraph 220.06(3)(b) of the Act, no tax is payable under subsection 220.06(1) of the Act in respect of a supply of property made to a recipient that is delivered or made available to the recipient in a participating province, or is sent by mail or courier to an address in the participating province, if

• (a) the supply is made by a person that paid tax under section 220.05 or 220.07 of the Act in respect of bringing the property into the participating province;

• (b) the total of all amounts, each of which is an amount of tax that would, in the absence of this paragraph and paragraphs 10(b) and 15(b), become payable under Division IV.1 of Part IX of the Act by the recipient and in respect of which subsection 220.09(3) of the Act would not apply if that tax became payable by the recipient, is $25 or less in the calendar month that includes the day on which the property is delivered or made available to the recipient in the participating province; or

• (c) the recipient is a provincial investment plan or a provincial stratified investment plan and, in the case of a provincial stratified investment plan, the recipient is acquiring the property for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the recipient.

Marginal note:Non-taxable property — restriction

12 For the purposes of paragraphs 220.05(3)(a) and 220.06(3)(a) of the Act, property that is included in section 18, 20 or 21 of Part I of Schedule X to the Act is prescribed property, except if the property is included in another section (other than sections 18, 20 and 21) of that Part.

Marginal note:Adaptation — subsections 220.07(1) to (4) of Act

12.1 If a person imports goods, other than a specified motor vehicle, into Canada, if the person is a provincial investment plan or a provincial stratified investment plan at the time the goods are released and if, in the case of a provincial stratified investment plan, the goods are imported for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the person, subsections 220.07(1) to (4) of the Act are adapted in respect of the importation as follows:

• 220.07 (1) Subject to this Part, every person that imports goods, other than a specified motor vehicle, that are accounted for as commercial goods (as defined in subsection 212.1(1)) under section 32 of the Customs Act, that is a provincial investment plan or provincial stratified investment plan at the time the goods are released and that is liable under that Act to pay duties on the goods, or would be so liable if they were subject to duty, shall pay, in addition to the tax imposed under section 212, tax to Her Majesty in Right of Canada equal to the total of all amounts, each of which is determined for a participating province by the formula

  A × B × C

  where

  A

  is the value of the goods,

  B

  is the tax rate for the participating province, and

  C

  is

  • (a) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the person acquired the goods for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

  • (b) in the case of a provincial investment plan for the participating province, 100%, and

  • (c) in the case of a provincial investment plan for a province other than the participating province, 0%.

• (2) Tax under subsection (1) does not apply to goods included in Schedule VII.

• (3) For the purposes of this section, the value of goods is equal to the value of the goods determined in accordance with section 215.

• (4) Tax under subsection (1) on goods imported by a person becomes payable by that person on the day on which the goods are released.

Marginal note:Adaptation — subsection 220.08(1) of Act

12.2 If a person is the recipient of a taxable supply made in a particular province of property or a service, if the person is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due and if, in the case of a provincial stratified investment plan, the person is acquiring the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person, subsection 220.08(1) of the Act is adapted in respect of the amount of consideration for the supply as follows:

• 220.08 (1) Subject to this Part, every person that is the recipient of a taxable supply made in a particular province of property or a service and that is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due must pay to Her Majesty in right of Canada, in respect of the amount of consideration, tax equal to the amount determined in accordance with section 13 of the New Harmonized Value-added Tax System Regulations, No. 2.

Marginal note:Calculation of tax — subsection 220.08(1) of Act

13 For the purposes of subsection 220.08(1) of the Act, the amount of tax payable under that subsection by a recipient of a taxable supply made in a particular province of property or a service in respect of an amount of consideration for the supply that becomes due, or is paid without having become due, at any time is the total of all amounts, each of which is determined for a participating province by the formula

13.1 [Repealed, SOR/2019-59, s. 34]

Marginal note:Non-taxable property and services — restriction

14 For the purposes of paragraph 220.08(3)(a) of the Act, a supply that is included in section 4 of Part II of Schedule X to the Act is a prescribed supply, except if the supply is included in another section of that Part.

Marginal note:Non-taxable property and services — subsection 220.08(3)

15 For the purposes of paragraph 220.08(3)(b) of the Act, no tax is payable under subsection 220.08(1) of the Act in respect of an amount of consideration for a supply of property or a service made in a particular province to a person that becomes due, or is paid without having become due, at a particular time if

• (a) the person is neither a provincial stratified investment plan that acquired the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person nor a provincial investment plan and the extent to which the person acquired the property or service for consumption, use or supply in participating provinces that, at the particular time, have a tax rate that is greater than the provincial rate for the particular province is less than 10%;

• (a.1) the person is a provincial stratified investment plan that acquired the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person and the extent to which the person acquired the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person for participating provinces having a tax rate that is greater than the provincial rate for the particular province is less than 10%, where that extent (expressed as a percentage) is determined by the formula

  A/B

  where

  A

  is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan for a participating province having a tax rate that is greater than the provincial rate for the particular province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, and

  B

  is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan for any province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations; or

• (b) the total of all amounts, each of which is an amount of tax that would, in the absence of this paragraph and paragraphs 10(b) and 11(b), become payable under Division IV.1 of Part IX of the Act by the person and in respect of which subsection 220.09(3) of the Act would not apply if that tax became payable by the person, is $25 or less in the calendar month that includes the particular time.