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

Regulations are current to 2019-07-01 and last amended on 2019-03-04. Previous Versions

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

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

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

 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.

  • SOR/2012-191, s. 24(F)
  • SOR/2019-59, s. 30

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

 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.

  • SOR/2012-191, s. 25(F)
  • SOR/2019-59, s. 31

Marginal note:Non-taxable property — restriction

 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.

  • SOR/2011-56, s. 27

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

 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.

  • SOR/2019-59, s. 32

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

 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.

  • SOR/2019-59, s. 32

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

 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

A × B × C

where

A
is the percentage determined by the formula

D - E

where

D
is the tax rate for the participating province, and
E
is
  • (a) if the property or service is a specified item in respect of the particular province, 0%, and

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

B
is the value of the consideration that is paid or becomes due at that time; and
C
is
  • (a) if the recipient is a stratified investment plan with one or more provincial series, the total of all amounts, each of which is the extent (expressed as a percentage) to which the recipient acquired the property or service for consumption, use or supply in the course of activities relating to a provincial series of the financial institution for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations;

  • (b) if the recipient is a provincial investment plan for the participating province, 100%;

  • (c) if the recipient is a provincial investment plan for a province other than the participating province, 0%; and

  • (d) in any other case, the extent (expressed as a percentage) to which the recipient acquired the property or service for consumption, use or supply in the participating province.

  • SOR/2013-71, s. 7
  • SOR/2019-59, s. 33
 
Date modified: