New Harmonized Value-added Tax System Regulations, No. 2

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 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%; 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.