New Harmonized Value-added Tax System Regulations, No. 2
Marginal note:Prescribed manner
34 For the purposes of subsection 236.01(3) of the Act, if a qualifying motor vehicle in respect of which a person added an amount under subsection 236.01(2) of the Act in determining its net tax and in respect of which paragraph 28(1)(a) applies is supplied by way of sale by the person to another person that is not related to the person, or is removed from a specified province and registered in another province by the person, the person may deduct from its net tax for the reporting period of the person that includes the time prescribed in section 33 the amount determined by the formula
A × (B/C)
where
- A
- is the total of all amounts added under subsection 236.01(2) of the Act in respect of the last acquisition or bringing in of the qualifying motor vehicle by the person;
- B
- is
(a) if the person supplies the qualifying motor vehicle and the recipient of the supply is not dealing at arm’s length with the person or if the person removes the motor vehicle from the specified province, the fair market value of the qualifying motor vehicle at that time, and
(b) in any other case, the consideration for the supply by way of sale of the qualifying motor vehicle; and
- C
- is the consideration in respect of the last acquisition, or the value in respect of the last bringing in, of the qualifying motor vehicle by the person in respect of which the amount determined under the description of A is attributable.
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