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

 [Repealed, SOR/2019-59, s. 34]

Marginal note:Non-taxable property and services — restriction

 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.

  • SOR/2011-56, s. 28

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

 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.

  • SOR/2011-56, s. 29(F)
  • SOR/2013-71, s. 9
  • SOR/2019-59, s. 35

DIVISION 4Rebates in Respect of Property and Services Removed from a Participating Province

Marginal note:Conditions for rebate — subsection 261.1(1)

 For the purpose of determining if a rebate is payable under subsection 261.1(1) of the Act to a person that is the recipient of a supply of property made in a participating province that removes the property from the participating province to another province, the following conditions are prescribed:

  • (a) the property is acquired for consumption, use or supply exclusively outside the participating province;

  • (b) if the person is a consumer of the property and the property is not a specified motor vehicle, the person is resident in the other province; and

  • (c) the person pays all provincial levies, if any, that are payable by the person in respect of the property and that are prescribed for the purposes of section 154 of the Act.

Marginal note:Calculation of rebate — subsection 261.1(1)

 For the purposes of subsection 261.1(1) of the Act, the amount of a rebate payable under that subsection to a person that is a recipient of a supply of property made in a participating province that removes the property from the participating province to another province is determined by the formula

A - B

where

A
is the amount of tax that became payable, and was paid, under subsection 165(2) of the Act by the person in respect of the supply; and
B
is
  • (a) if the property is a specified item in respect of the other province, zero, and

  • (b) in any other case, the amount of tax that would have become payable under subsection 165(2) of the Act by the person in respect of the supply if that tax were calculated at the provincial rate for the other province.

Marginal note:Conditions for rebate — section 261.2

 For the purposes of section 261.2 of the Act, a prescribed condition is payment by the person of all provincial levies, if any, that are payable by the person in respect of the property and that are prescribed for the purposes of section 154 of the Act.

Marginal note:Calculation of rebate — section 261.2

 For the purposes of section 261.2 of the Act, the amount of a rebate payable under that section to the person that imports property for consumption or use exclusively in a province is determined by the formula

A - B

where

A
is the amount of tax paid under subsection 212.1(2) of the Act by the person in respect of the property; and
B
is
  • (a) if the property is a specified item in respect of the province, zero, and

  • (b) in any other case, the amount of tax that would have become payable under subsection 212.1(2) of the Act by the person in respect of the property if that tax were calculated at the provincial rate for the province.

Marginal note:Conditions for rebate — subsection 261.3(1)

 For the purposes of subsection 261.3(1) of the Act, a rebate is only payable to a person under that subsection in respect of a supply of intangible personal property or a service made in a participating province if

  • (a) an amount of tax becomes payable, at a particular time, under subsection 165(2) of the Act by the person in respect of the supply calculated on an amount of consideration for the supply; and

  • (b) the extent to which the person acquired the property or service for consumption, use or supply elsewhere than in participating provinces that, at the particular time, have a tax rate that is greater than, or equal to, the tax rate for the participating province is 10% or more.

Marginal note:Calculation of rebate — subsection 261.3(1)

 For the purposes of subsection 261.3(1) of the Act, the amount of a rebate payable under that subsection to a person that is the recipient of a supply made in a particular participating province of intangible personal property or a service is determined by the formula

A - B

where

A
is the amount of tax referred to in paragraph 20(a) in respect of the supply; and
B
is the total of all amounts, each of which is determined for a participating province by the formula

C × D

where

C
is
  • (a) if the property or service is a specified item in respect of the participating province, zero, and

  • (b) in any other case, the amount of tax that, at the particular time referred to in paragraph 20(a), would have become payable under subsection 165(2) of the Act by the person in respect of the supply if that tax were calculated on the amount of consideration referred to in that paragraph for the supply,

    • (i) if the tax rate for the participating province is lower than the tax rate for the particular participating province, at the tax rate for the participating province, and

    • (ii) in any other case, at the tax rate for the particular participating province, and

D
is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province.

Marginal note:Prescribed person — subsection 261.31(2) of Act

  •  (1) For the purposes of subsection 261.31(2) of the Act, a selected listed financial institution that is a provincial stratified investment plan is a prescribed person.

  • Marginal note:Prescribed amount — subsection 261.31(2) of Act

    (2) For the purposes of subsection 261.31(2) of the Act, the amount of a rebate payable under that subsection to a person where tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act becomes payable by the person at a particular time is equal to

    • (a) if the person is a provincial stratified investment plan,

      • (i) if the tax is payable under subsection 165(2) of the Act in respect of a supply of property or a service, the total of all amounts, each of which is determined for a provincial series of the person by the formula

        (A – B) × C

        where

        A
        is the amount of that tax,
        B
        is
        • (A) if the provincial series is for a participating province, the amount of tax that would have become payable under subsection 165(2) of the Act in respect of the supply at the particular time if that tax were calculated at the tax rate for that province, and

        • (B) in any other case, zero, and

        C
        is the extent (expressed as a percentage) to which the property or service was acquired for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
      • (ii) if the tax is payable under section 212.1 or 218.1 or subsection 220.06(1) of the Act in respect of tangible personal property, the total of all amounts, each of which is determined for a provincial series of the person by the formula

        (D – E) × F

        where

        D
        is the amount of that tax,
        E
        is
        • (A) if the provincial series is for a participating province, the amount of tax that would have become payable under that section or subsection in respect of the property at the particular time if that tax were calculated at the tax rate for that province, and

        • (B) in any other case, zero, and

        F
        is the extent (expressed as a percentage) to which the tangible personal property was acquired or imported for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
      • (iii) if the tax is payable under subsection 220.05(1) or 220.07(1) of the Act in respect of bringing tangible personal property into a particular participating province, the total of all amounts, each of which is determined for a provincial series of the person by the formula

        (G – H) × I

        where

        G
        is the amount of that tax,
        H
        is
        • (A) if the provincial series is for the particular participating province, the amount of that tax,

        • (B) if the provincial series is for a participating province other than the particular participating province, the amount of tax that would have become payable under that subsection in respect of the bringing in of the property if the property were brought into the other participating province, and

        • (C) in any other case, zero, and

        I
        is the extent (expressed as a percentage) to which the property was brought into the particular participating province for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, and
      • (iv) in any other case, zero;

    • (b) if the person is a provincial investment plan,

      • (i) if the tax is payable under subsection 165(2) of the Act in respect of a supply of property or a service, the amount determined by the formula

        A – B

        where

        A
        is the amount of that tax, and
        B
        is
        • (A) if the person is a provincial investment plan for a participating province, the amount of tax that would have become payable under subsection 165(2) of the Act in respect of the supply at the particular time if that tax were calculated at the tax rate for that province, and

        • (B) in any other case, zero,

      • (ii) if the tax is payable under section 212.1 or 218.1 or subsection 220.06(1) of the Act in respect of tangible personal property, the amount determined by the formula

        C – D

        where

        C
        is the amount of that tax, and
        D
        is
        • (A) if the person is a provincial investment plan for a participating province, the amount of tax that would have become payable under that section or subsection in respect of the property at the particular time if that tax were calculated at the tax rate for that province, and

        • (B) in any other case, zero,

      • (iii) if the tax is payable under subsection 220.05(1) or 220.07(1) of the Act in respect of bringing tangible personal property into a particular participating province, the amount determined by the formula

        E – F

        where

        E
        is the amount of that tax, and
        F
        is
        • (A) if the person is a provincial investment plan for the particular participating province, the amount of that tax,

        • (B) if the person is a provincial investment plan for a participating province other than the particular participating province, the amount of tax that would have become payable under that subsection in respect of the bringing in of the property if the property were brought into the other participating province, and

        • (C) in any other case, zero, and

      • (iv) in any other case, zero; and

    • (c) in any other case,

      • (i) if the tax is payable under subsection 165(2) of the Act in respect of a supply of property or a service, the amount determined by the formula

        A – B

        where

        A
        is the amount of that tax, and
        B
        is the total of all amounts, each of which is determined for a participating province by the formula

        C × D

        where

        C
        is the amount of tax that would have become payable under subsection 165(2) of the Act in respect of the supply at the particular time if that tax were calculated at the tax rate for the participating province, and
        D
        is the extent (expressed as a percentage) to which the person may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province,
      • (ii) if the tax is payable under section 212.1 or 218.1 or subsection 220.06(1) of the Act in respect of tangible personal property, the amount determined by the formula

        E – F

        where

        E
        is the amount of that tax, and
        F
        is the total of all amounts, each of which is determined for a participating province by the formula

        G × H

        where

        G
        is the amount of tax that would have become payable under that section or subsection in respect of the property at the particular time if that tax were calculated at the tax rate for the participating province, and
        H
        is the extent (expressed as a percentage) to which the person may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province,
      • (iii) where the tax is payable under section 218.1 or subsection 220.08(1) of the Act in respect of a supply of intangible personal property or a service on an amount of consideration for the supply, the amount determined by the formula

        I – J

        where

        I
        is the amount of that tax, and
        J
        is the total of all amounts, each of which is determined for a participating province by the formula

        K × L

        where

        K
        is the amount of tax that would have become payable under that section or subsection in respect of the supply at the particular time if the supply were acquired by the person for consumption, use or supply exclusively in the participating province, and
        L
        is the extent (expressed as a percentage) to which the person may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province, and
      • (iv) if the tax is payable under subsection 220.05(1) or 220.07(1) of the Act in respect of bringing tangible personal property into a particular participating province, the amount determined by the formula

        M – N

        where

        M
        is the amount of that tax, and
        N
        is the total of all amounts, each of which is determined for a participating province by the formula

        O × P

        where

        O
        is the amount of tax that would have become payable under that subsection in respect of the bringing in of the property if the property were brought into the participating province, and
        P
        is the extent (expressed as a percentage) to which the person may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province.
  • Marginal note:Prescribed amount — subsection 263.01(4) of Act

    (3) For the purposes of subsection 263.01(4) of the Act, an amount of tax that becomes payable by a person referred to in subsection (1), or that is paid by the person without having become payable, in respect of a supply that is acquired in whole or in part for consumption, use or supply in the course of activities related to a provincial series of the person is a prescribed amount of tax.

  • SOR/2013-71, s. 10
  • SOR/2019-59, s. 36
 
Date modified: