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 person is neither a stratified investment plan with one or more provincial series 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 stratified investment plan with one or more provincial series 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 investment plan 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.