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

Regulations are current to 2019-06-20 and last amended on 2019-03-04. Previous Versions

PART 5Property and Services Brought into a Province (continued)

DIVISION 2Tax on Imported Taxable Supplies (continued)

Marginal note:Non-application — paragraph 218.1(1)(a) of Act

 Paragraph 218.1(1)(a) of the Act does not apply in respect of an amount of consideration for an imported taxable supply of intangible personal property or a service made to a person if

  • (a) the person is a provincial stratified investment plan at the time the amount of consideration becomes due or is paid without having become due; and

  • (b) the amount determined by the following formula, expressed as a percentage, is less than 10%:

    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 person for a participating 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 person for any province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations.
  • SOR/2013-71, s. 6
  • SOR/2019-59, s. 29

Marginal note:Adaptation — subsection 218.1(1.2) of Act

 If a person is a qualifying taxpayer, within the meaning of subsection 217.1(1) of the Act, for a specified year of the person, as defined in section 217 of the Act, and if the person is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the person that ends in the specified year, subsection 218.1(1.2) of the Act is adapted in respect of the specified year as follows:

  • (1.2) Subject to this Part, every qualifying taxpayer that is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the qualifying taxpayer that ends in a specified year of the qualifying taxpayer shall, for the specified year and for each particular participating province, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on

    • (a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula

      A + B

      where

      A
      is the total of all amounts, each of which is an amount in respect of an internal charge for the specified year that is greater than zero determined by the formula

      A1 × A2

      where

      A1
      is the internal charge, and
      A2
      is
      • (i) 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 internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

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

      • (iii) in the case of a provincial investment plan for a province other than the particular participating province, 0%, and

      B
      is the total of all amounts, each of which is an amount in respect of an external charge for the specified year that is greater than zero determined by the formula

      B1 × B2

      where

      B1
      is the external charge, and
      B2
      is
      • (i) 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 whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

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

      • (iii) in the case of a provincial investment plan for a province other than the particular participating province, 0%; and

    • (b) in any other case, the total of all amounts, each of which is an amount in respect of qualifying consideration for the specified year that is greater than zero determined by the formula

      C × D

      where

      C
      is the qualifying consideration, and
      D
      is
      • (i) 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 whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

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

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

  • SOR/2019-59, s. 29

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

Marginal note:Additional specified item

 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.

  • SOR/2011-56, s. 26

Marginal note:Specified provincial tax

 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

  • SOR/2011-56, s. 26

Marginal note:Specified provincial tax — Ontario

 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.

  • SOR/2012-191, s. 23

Marginal note:Specified provincial tax — Prince Edward Island

 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.

  • SOR/2013-44, s. 27

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

 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

A × B

where

A
is the percentage determined by the formula

C - D

where

C
is the tax rate for the participating province, and
D
is
  • (a) if the property is a specified item in respect of the other province, 0%, and

  • (b) in any other case, the provincial rate for the other province; and

B
is
  • (a) if the property 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 specified value in respect of the specified motor vehicle,

  • (b) if the property is not a specified motor vehicle referred to in paragraph (a) and consideration was paid or payable in respect of a supply of the property made by way of sale at any time to the person by another person with which the person dealt at arm’s length, the lesser of the value of that consideration and the fair market value of the property at the particular time, and

  • (c) in any other case, the fair market value of the property at the particular time.

 
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