Streamlined Accounting (GST/HST) Regulations
SOR/91-51
Registration 1990-12-18
Streamlined Accounting (GST/HST) Regulations
P.C. 1990-2748 1990-12-18
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)Footnote * of the Excise Tax Act, is pleased hereby to make the annexed Regulations prescribing streamlined accounting methods and other matters for the purposes of section 227 of the Excise Tax Act.
Return to footnote *S.C. 1990, c. 45, s. 12
1 [Repealed, SOR/2006-162, s. 6]
Interpretation
2 (1) In these Regulations,
- Act
Act means the Excise Tax Act; (Loi)
- basic groceries
basic groceries[Repealed, SOR/99-368, s. 2]
- capital asset
capital asset of a person means
(a) property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, and
(b) in respect of a supply that was made by the person at any time before January 1, 2017, property that was, or would have been if the person were a taxpayer under the Income Tax Act, eligible capital property of the person within the meaning of that Act as it read at that time; (bien immobilisé)
- consideration
consideration, in respect of a supply, includes all amounts credited to the recipient of the supply in respect of a trade-in (within the meaning of subsection 153(4) of the Act) accepted in full or partial consideration for the supply or, if the supplier and the recipient are not dealing with each other at arm’s length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership of it is transferred to the supplier, that fair market value; (contrepartie)
- Division II
Division II, Division III, Division IV, Division IV.1 and Division V means Division II, III, IV, IV.1 and V, respectively, of Part IX of the Act; (section II, section III, section IV, section IV.1 et section V)
- election
election means an election under subsection 227(1) of the Act. (choix)
- eligible capital property
eligible capital property[Repealed, 2016, c. 12, s. 96]
- improvement
improvement[Repealed, SOR/99-368, s. 2]
- medical device
medical device[Repealed, SOR/99-368, s. 2]
- prescription drug
prescription drug[Repealed, SOR/99-368, s. 2]
- retail establishment
retail establishment[Repealed, SOR/99-368, s. 2]
(2) For the purposes of these Regulations, the basic threshold amount for a reporting period of a registrant is equal to the amount determined by the formula
(A + B) × (365 / C)
where
- A
- is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period for taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant;
- B
- is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant; and
- C
- is the number of days in the threshold period.
(3) For the purposes of these Regulations, the total threshold amount for a reporting period of a registrant is equal to the total of
(a) the amount determined by the formula
(A + B) × (365 / C)
where
- A
- is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period,
- B
- is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and
- C
- is the number of days in the threshold period, and
(b) the total of all amounts, each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the registrant at the end of the particular fiscal year of the associate that is the last fiscal year of the associate ending in that threshold period, determined by the formula
(D + E) × (365 / F)
where
- D
- is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year,
- E
- is the total of all tax under Division II that became collectible in the particular fiscal year in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the associate) made by the associate, and
- F
- is the number of days in the particular fiscal year.
- SOR/99-368, s. 2
- 2016, c. 12, s. 96
PARTS I TO III[Repealed, SOR/99-368, s. 3]
PART IVStreamlined Accounting Quick Method
Interpretation
- SOR/93-242, s. 2(E)
15 (1) In this Part,
- basic groceries
basic groceries of a registrant means property acquired or imported by the registrant for the purpose of making a supply of the property that is included in Part III of Schedule VI to the Act; (produit alimentaire de base)
- cost
cost, to a registrant in a threshold period, of tangible personal property of a particular class or kind acquired by the registrant for a particular purpose, means the amount determined by the formula
(A + B + C) × (365 / D)
where
- A
- is the total of all consideration that became due, or was paid without becoming due, by the registrant in the threshold period for taxable supplies made in Canada to the registrant of tangible personal property of that class or kind acquired by the registrant for that purpose,
- B
- is the total value of all tangible personal property of that class or kind, determined in accordance with section 215 of the Act, imported by the registrant for that purpose,
- C
- is the total of all tax under any of Divisions II to IV.1 that became payable by the registrant in the threshold period in respect of tangible personal property of that class or kind acquired, imported or brought into a participating province by the registrant for that purpose, and
- D
- is the number of days in the threshold period; (coût)
- specified property
specified property, in respect of a person, means property of the person other than real property and capital assets of the person; (bien déterminé)
- specified registrant
specified registrant, at any time, means a registrant who
(a) throughout the four fiscal quarters of the registrant immediately preceding the fiscal quarter of the registrant that includes that time,
(i) was not a listed financial institution,
(ii) did not render a legal, accounting or actuarial service in the course of a professional practice of the registrant, and
(iii) did not render a book-keeping, financial consulting, tax consulting or tax return preparation service in the course of a commercial activity of the registrant,
(b) at that time, is not a charity or a selected public service body within the meaning of section 259 of the Act, or a public institution, and
(c) is not a qualifying non-profit organization, within the meaning of section 259 of the Act,
(i) at the beginning of the reporting period of the registrant that includes that time, where that reporting period is the fiscal month or fiscal quarter of the registrant, and
(ii) at the end of the reporting period of the registrant that includes that time, in any other case; (inscrit déterminé)
- specified supply
specified supply means a taxable supply other than
(a) a supply by way of sale of real property or capital assets of the supplier,
(b) a zero-rated supply,
(c) a supply that is deemed under section 172 or 175.1 of the Act to have been made or to which section 173 of the Act applies,
(d) a supply made outside Canada,
(e) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament unless, in the case of a supply to Her Majesty in right of a province, Her Majesty in right of that province has agreed, under an agreement with Her Majesty in right of Canada, to pay the tax under Part IX of the Act in respect of the supply,
(f) a supply to which subsection 177(1.1) of the Act applies, and
(g) a supply deemed under subsection 177(1) or (1.2) of the Act to have been made by a registrant acting as an agent for another person. (fourniture déterminée)
(2) For the purposes of this Part, if a registrant acquires, imports or brings into a participating province tangible personal property that is to be incorporated into or to form a constituent or component part of tangible personal property manufactured or produced in Canada by the registrant, the registrant is deemed to have acquired or imported the property, or brought it into a participating province, as the case may be, for the purpose of supply by way of sale.
(3) Subject to subsection (4), for the purposes of this Part, the threshold period for a particular reporting period of a registrant is
(a) where an election by the registrant to determine the net tax of the registrant in accordance with this Part becomes effective in the fiscal year of the registrant that includes the particular reporting period, any period that consists of four fiscal quarters of the registrant and ends in one of the last two fiscal quarters of the registrant immediately preceding the fiscal quarter of the registrant in which the election becomes effective; or
(b) where an election by the registrant to determine the net tax of the registrant in accordance with this Part became effective before, and is in effect at, the beginning of the particular fiscal year of the registrant that includes the particular reporting period, the fiscal year of the registrant immediately preceding the particular fiscal year.
(4) Where an election by a registrant to determine the net tax of the registrant in accordance with this Part becomes effective on January 1, 1991, the following rules apply:
(a) where the election is filed with the Minister after the end of any fiscal year of the registrant ending in 1990, the threshold period for all reporting periods of the registrant ending in the fiscal year of the registrant that includes January 1, 1991 is the last fiscal year of the registrant ending before the time that the election is so filed; and
(b) where the election is not filed with the Minister after the end of any fiscal year of the registrant ending in 1990 and the registrant elects to adopt the last fiscal year of the registrant ending before the time the election is filed with the Minister as the threshold period for all reporting periods of the registrant ending in the fiscal year of the registrant that includes January 1, 1991 for the purpose of determining under subsection (5) the quick-method rate of the registrant for those reporting periods, that last fiscal year is that threshold period for that purpose.
(5) The quick-method rate of a registrant for a particular reporting period that applies in respect of a supply made by the registrant is
(a) where the cost to the registrant, in the threshold period for the particular reporting period, of all tangible personal property (other than basic groceries of the registrant and property in respect of the acquisition of which the registrant was not required to pay tax) acquired by the registrant for the purpose of supply by way of sale by the registrant is equal to at least 40% of the basic threshold amount for the particular reporting period, determined without reference to supplies included in Part III of Schedule VI to the Act,
(i) if the registrant makes the supply through a permanent establishment of the registrant in Ontario,
(A) 4.4%, if the supply is made in Ontario,
(B) 6.1%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 0%, if the supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 4]
(ii) if the registrant makes the supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador,
(A) 3.3%, if the supply is made in Ontario,
(B) 5%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 0%, if the supply is made in a non-participating province, and
(C.1) and (D) [Repealed, SOR/2016-212, s. 4]
(iii) if the registrant makes the supply through a permanent establishment of the registrant in a non-participating province,
(A) 8.8%, if the supply is made in Ontario,
(B) 10.4%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.8%, if the supply is made in a non-participating province; and
(iii.1) and (iv) [Repealed, SOR/2016-212, s. 4]
(b) in any other case,
(i) if the registrant makes the supply through a permanent establishment of the registrant in Ontario,
(A) 8.8%, if the supply is made in Ontario,
(B) 10.4%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.8%, if the supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 4]
(ii) if the registrant makes the supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador,
(A) 8.4%, if the supply is made in Ontario,
(B) 10%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.4%, if the supply is made in a non-participating province, and
(C.1) and (D) [Repealed, SOR/2016-212, s. 4]
(iii) if the registrant makes the supply through a permanent establishment of the registrant in a non-participating province,
(A) 10.5%, if the supply is made in Ontario,
(B) 12%, if the supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 3.6%, if the supply is made in a non-participating province.
(iii.1) and (iv) [Repealed, SOR/2016-212, s. 4]
(5.01) For the purpose of determining under subsection (5) the quick-method rate applicable to a supply in respect of which the supplier is entitled to a deduction under subsection 234(3) of the Act, the supply is deemed to have been made in a non-participating province through a permanent establishment of the supplier in a non-participating province.
(5.02) For the purpose of determining under subsection (5) the quick-method rate of a registrant for a reporting period applicable to supplies made by the registrant through a permanent establishment of the registrant, the registrant may
(a) if substantially all of the specified supplies made by the registrant in the reporting period through that permanent establishment are made in a participating province, treat all of the specified supplies made by the registrant in the reporting period through that establishment as having been made in the participating province; and
(b) if substantially all of the specified supplies made by the registrant in the reporting period through that permanent establishment are made in non-participating provinces, treat all of the specified supplies made by the registrant in the reporting period through that establishment as having been made in a non-participating province.
(5.1) The net specified supplies of a registrant for a reporting period of the registrant is the amount determined by the formula
A – B
where
- A
- is the total of
(a) all consideration for specified supplies made by the registrant that became due, or was paid without having become due, to the registrant in the reporting period, and
(b) all amounts that became collectible, and all other amounts collected, by the registrant in the reporting period as or on account of tax under Division II in respect of specified supplies made by the registrant; and
- B
- is the total of all amounts each of which is an amount that the registrant has, in the reporting period, paid or credited to a person as or on account of
(a) a reduction in, or a rebate or refund of, all or part of the consideration for a specified supply made by the registrant to the person, or
(b) a refund of, or a credit for, tax under Division II charged to or collected from the person in respect of a specified supply made by the registrant.
(6) Where, at any time in the first fiscal quarter in a fiscal year of a registrant, the registrant ceases to be a registrant who may determine the net tax of the registrant in accordance with this Part or a revocation of an election by the registrant becomes effective, the quick-method rate for reporting periods of the registrant ending in that fiscal quarter is the quick-method rate for the reporting period of the registrant ending immediately before the beginning of that fiscal quarter.
(7) and (8) [Repealed, SOR/99-368, s. 4]
- SOR/99-368, s. 4
- SOR/2007-203, s. 1
- SOR/2011-56, s. 18
- SOR/2012-191, s. 13
- SOR/2013-44, s. 5
- 2016, c. 12, s. 97
- SOR/2016-119, s. 4
- SOR/2016-212, s. 4
Prescribed Registrants
16 (1) Where
(a) a person is, at any time in a reporting period of the person, a specified registrant,
(b) the total threshold amount for the reporting period does not exceed $400,000, and
(c) the registrant was engaged in commercial activities throughout the 365-day period ending immediately before the beginning of the reporting period and an election of the registrant did not cease to have effect in that 365-day period because of a revocation of the election,
the registrant is a registrant who may file an election, to take effect on the first day of the reporting period, to determine the net tax of the registrant in accordance with this Part.
(2) A registrant who has filed an election to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax at the end of the earliest of
(a) the first fiscal year of the registrant that is a reporting period of the registrant in which the registrant ceases to be a specified registrant,
(b) the fiscal year of the registrant immediately before the first fiscal year of the registrant that is a reporting period of the registrant for which the total threshold amount exceeds $400,000,
(c) the first fiscal quarter of the registrant that includes a reporting period of the registrant for which the total threshold amount exceeds $400,000, and
(d) the fiscal quarter of the registrant immediately before the first fiscal quarter of the registrant that includes a reporting period of the registrant in which the registrant ceases to be a specified registrant.
- SOR/99-368, s. 5
- SOR/2012-191, s. 14
Calculation of Net Tax
17 (1) Subject to subsection 21.3(1), if an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula
A + B - C - (1% × D)
where
- A
- is the total of all amounts each of which is determined, in respect of all the particular supplies to which the same quick-method rate applies, by the formula
E × F
where
- E
- is the quick-method rate of the registrant for the particular reporting period that applies to the particular supplies, and
- F
- is the portion of the net specified supplies of the registrant for the particular reporting period attributable to the particular supplies;
- B
- is the total of
(a) all amounts that became collectible and all other amounts collected by the registrant in the particular reporting period as or on account of tax under Division II in respect of
(i) supplies (other than specified supplies) made by the registrant, and
(ii) supplies made on behalf of another person for whom the registrant acts as agent and in respect of which the registrant has made an election under subsection 177(1.1) of the Act,
(b) all amounts in respect of supplies (other than specified supplies) that are required under Division V to be added in determining the net tax for the particular reporting period, and
(c) the amount that is required under subsection 238.1(4) of the Act to be added in determining the net tax for the particular reporting period;
- C
- is the total of all amounts each of which is
(a) an input tax credit
(i) for the particular reporting period or a preceding reporting period of the registrant in respect of property (other than specified property) acquired, imported or brought into a participating province by the registrant or an improvement to that property,
(ii) for a reporting period of the registrant ending before the election became effective in respect of specified property or services (other than an improvement to property that is not specified property) acquired, imported or brought into a participating province by the registrant,
(iii) for the particular reporting period or a preceding reporting period of the registrant in respect of tangible personal property that is specified property acquired, imported or brought into a participating province by the registrant for the purpose of supply by way of sale and is deemed under subsection 177(1.2) of the Act to have been supplied by an auctioneer acting as agent for the registrant or is supplied by a person acting as agent for the registrant in circumstances in which subsection 177(1.1) of the Act applies, or
(iv) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property that is deemed under paragraph 180(e) of the Act to have been acquired by the registrant and under subsection 177(1) or (1.2) of the Act to have been supplied by the registrant,
that is claimed in the return filed under Division V by the registrant for the particular reporting period,
(b) an amount in respect of a supply (other than a specified supply) that may be deducted by the registrant under Division V in determining the net tax for the particular reporting period and that is claimed in the return under Division V filed by the registrant for the particular reporting period,
(c) an amount equal to 2.8% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Ontario and to which the quick-method rate of 0% applies, or
(d) an amount equal to 4% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador and to which the quick-method rate of 0% applies; and
(e) [Repealed, SOR/2012-191, s. 15]
(f) [Repealed, SOR/2016-212, s. 5]
- D
- is
(a) where the election was not in effect,
(i) if the registrant became a registrant on a day in the registrant’s fiscal year that includes the particular reporting period, on that day, or
(ii) in any other case, on the first day of that fiscal year,
nil,
(b) if the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period is equal to or greater than $30,000, nil, and
(c) in any other case,
(i) if the particular reporting period is the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of the net specified supplies of the registrant for the particular reporting period and $30,000, and
(ii) if the particular reporting period is not the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of
(A) the net specified supplies of the registrant for the particular reporting period, and
(B) the amount by which $30,000 exceeds the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period.
(2) For the purposes of paragraphs (b) and (c) of the description of E in subsection (1), the first reporting period of a registrant beginning after 1993 in a fiscal year of the registrant beginning before 1994 is deemed to be the first reporting period of the registrant in that fiscal year.
- SOR/99-368, s. 6
- SOR/2007-203, s. 2
- SOR/2011-56, s. 19
- SOR/2012-191, s. 15
- SOR/2013-44, s. 6
- SOR/2016-119, s. 5
- SOR/2016-212, s. 5
Rules for New Registrants
- SOR/93-242, s. 2
- SOR/99-368, s. 7
18 (1) For the purposes of this Part, where, on the first day of a reporting period of a registrant, the registrant has not been engaged in commercial activities throughout the 365 day period ending immediately before that day and it is reasonable to expect that the registrant will be, at the beginning of the particular fiscal year that is the first fiscal year of the registrant beginning at least 365 days after the registrant began to engage in commercial activities, a registrant who may file an election to determine the net tax of the registrant in accordance with this Part,
(a) the registrant is a registrant who may file an election, to take effect on that day, to determine the net tax of the registrant in accordance with this Part; and
(b) the quick-method rate of the registrant for reporting periods of the registrant ending before the beginning of the particular fiscal year is the rate prescribed by subsection 15(5) that is reasonable in the circumstances.
(c) and (d) [Repealed, SOR/99-368, s. 8]
(2) to (4) [Repealed, SOR/99-368, s. 8]
- SOR/93-242, s. 2
- SOR/99-368, s. 8
PART VSpecial Quick Method for Public Service Bodies
Interpretation
19 (1) In this Part,
- designated supply
designated supply means
(a) a supply by way of sale of real property or capital assets of the supplier,
(b) a supply included in Part V of Schedule VI to the Act, and
(c) a supply made to Her Majesty in right of a province unless Her Majesty in right of that province has agreed, under an agreement with Her Majesty in right of Canada, to pay the tax under Part IX of the Act in respect of the supply; (fourniture désignée)
- retail establishment
retail establishment of a registrant means a shop or store of the registrant at which the registrant primarily carries on the business of making supplies of property or services to consumers attending at the shop or store; (établissement de détail)
- specified facility operator
specified facility operator means a non-profit organization that operates, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V to the Act; (exploitant d’établissement déterminé)
- specified property
specified property[Repealed, 2016, c. 12, s. 98]
- specified supply
specified supply, in respect of a registrant, means
(a) a supply by way of sale of real property,
(b) a supply by way of sale of a capital asset of the registrant that has a fair market value at the time of the supply of at least $10,000,
(c) a supply made by the registrant by way of sale of a capital asset of the registrant if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,
(d) a supply deemed under subsection 172(2), section 175.1 or subsection 183(5) or (6) of the Act to have been made by the registrant or a supply by the registrant to which subsection 173(1) of the Act applies,
(e) a zero-rated supply,
(f) a supply made outside Canada,
(g) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament unless, in the case of a supply to Her Majesty in right of a province, Her Majesty in right of that province has agreed, under an agreement with Her Majesty in right of Canada, to pay the tax under Part IX of the Act in respect of the supply,
(h) a supply to which subsection 177(1.1) of the Act applies, and
(i) a supply deemed under subsection 177(1) or (1.2) of the Act to have been made by a registrant acting as an agent for another person. (fourniture déterminée)
(2) For the purposes of this Part, the expressions external supplier, facility operator, municipality, qualifying non-profit organization and selected public service body have the meanings assigned by section 259 of the Act.
(3) Subject to this Part, the special quick-method rate of a registrant that applies, for a reporting period in a particular fiscal year of the registrant, in respect of a particular supply made by the registrant is
(a) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a specified facility operator, a qualifying non-profit organization, or a charity that is designated under section 178.7 of the Act, and not as a selected public service body,
(i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(A) 9.9%, if the particular supply is made in Ontario,
(B) 11.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 3%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador,
(A) 8.4%, if the particular supply is made in Ontario,
(B) 10%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.4%, if the particular supply is made in a non-participating province, and
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(iii) [Repealed, SOR/2023-161, s. 3]
(iv) if subparagraphs (i) and (ii) do not apply,
(A) 10.5%, if the particular supply is made in Ontario,
(B) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 3.6%, if the particular supply is made in a non-participating province;
(iv.1) and (v) [Repealed, SOR/2016-212, s. 6]
(b) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a school authority,
(i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(A) 11%, if the particular supply is made in Ontario,
(B) 12.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.2%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,
(A) 10.4%, if the particular supply is made in Ontario,
(B) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 3.6%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(ii.1) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick,
(A) 11.1%, if the particular supply is made in Ontario,
(B) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.4%, if the particular supply is made in a non-participating province,
(iii) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island or Newfoundland and Labrador,
(A) 8.8%, if the particular supply is made in Ontario,
(B) 10.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.9%, if the particular supply is made in a non-participating province, and
(C.1) [Repealed, SOR/2016-119, s. 6]
(D) [Repealed, SOR/2016-212, s. 6]
(iv) if subparagraphs (i) to (iii) do not apply,
(A) 11.1%, if the particular supply is made in Ontario,
(B) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.4%, if the particular supply is made in a non-participating province;
(iv.1) and (v) [Repealed, SOR/2016-212, s. 6]
(c) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant in the registrant’s capacity as a university or public college and otherwise than through a permanent establishment of the registrant in New Brunswick,
(i) if supplies made in the ordinary course of business through vending machines operated by the registrant and retail establishments of the registrant (other than a restaurant, cafeteria, pub or similar establishment) at which the registrant primarily makes supplies of tangible personal property account for at least 25% of the amount determined by the formula
(A + B) × (365 / C)
where
- A
- is the total of all consideration for taxable supplies (other than designated supplies) made in Canada by the registrant that became due, or was paid without becoming due, to the registrant in the fiscal year of the registrant immediately preceding the particular fiscal year,
- B
- is the total of all tax under Division II that became collectible in the fiscal year of the registrant immediately before the particular fiscal year in respect of taxable supplies (other than supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and
- C
- is the number of days in the fiscal year of the registrant immediately preceding the particular fiscal year, and
(A) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(I) 10.2%, if the particular supply is made in Ontario,
(II) 11.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 3.3%, if the particular supply is made in a non-participating province,
(III.1) and (IV) [Repealed, SOR/2016-212, s. 6]
(B) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,
(I) 9.6%, if the particular supply is made in Ontario,
(II) 11.2%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 2.7%, if the particular supply is made in a non-participating province,
(III.1) and (IV) [Repealed, SOR/2016-212, s. 6]
(C) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island or Newfoundland and Labrador,
(I) 7%, if the particular supply is made in Ontario,
(II) 8.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 0%, if the particular supply is made in a non-participating province, and
(III.1) [Repealed, SOR/2016-119, s. 6]
(IV) [Repealed, SOR/2016-212, s. 6]
(D) if clauses (A) to (C) do not apply,
(I) 10.9%, if the particular supply is made in Ontario,
(II) 12.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 4.1%, if the particular supply is made in a non-participating province, and
(D.1) and (E) [Repealed, SOR/2016-212, s. 6]
(ii) when subparagraph (i) does not apply,
(A) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(I) 10.7%, if the particular supply is made in Ontario,
(II) 12.3%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 3.9%, if the particular supply is made in a non-participating province,
(III.1) and (IV) [Repealed, SOR/2016-212, s. 6]
(B) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,
(I) 10.4%, if the particular supply is made in Ontario,
(II) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 3.6%, if the particular supply is made in a non-participating province,
(III.1) and (IV) [Repealed, SOR/2016-212, s. 6]
(C) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick, Prince Edward Island or Newfoundland and Labrador,
(I) 8.9%, if the particular supply is made in Ontario,
(II) 10.5%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 2%, if the particular supply is made in a non-participating province, and
(III.1) [Repealed, SOR/2016-119, s. 6]
(IV) [Repealed, SOR/2016-212, s. 6]
(D) if clauses (A) to (C) do not apply,
(I) 11.1%, if the particular supply is made in Ontario,
(II) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(III) 4.4%, if the particular supply is made in a non-participating province;
(D.1) and (E) [Repealed, SOR/2016-212, s. 6]
(c.1) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant in the registrant’s capacity as a university through a permanent establishment of the registrant in New Brunswick,
(i) if the condition described in the portion of subparagraph (c)(i) before clause (A) is satisfied in respect of the registrant,
(A) 7%, if the particular supply is made in Ontario,
(B) 8.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 0%, if the particular supply is made in a non-participating province, and
(ii) if subparagraph (i) does not apply,
(A) 8.9%, if the particular supply is made in Ontario,
(B) 10.5%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 2%, if the particular supply is made in a non-participating province;
(c.2) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant in the registrant’s capacity as a public college through a permanent establishment of the registrant in New Brunswick,
(i) if the condition described in the portion of subparagraph (c)(i) before clause (A) is satisfied in respect of the registrant,
(A) 10.9%, if the particular supply is made in Ontario,
(B) 12.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.1%, if the particular supply is made in a non-participating province, and
(ii) if subparagraph (i) does not apply,
(A) 11.1%, if the particular supply is made in Ontario,
(B) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.4%, if the particular supply is made in a non-participating province;
(d) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as an external supplier, a facility operator or a hospital authority and otherwise than through a permanent establishment of the registrant in New Brunswick,
(i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(A) 11%, if the particular supply is made in Ontario,
(B) 12.5%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.2%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,
(A) 10.8%, if the particular supply is made in Ontario,
(B) 12.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(iii) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island or Newfoundland and Labrador,
(A) 8.5%, if the particular supply is made in Ontario,
(B) 10.1%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 1.6%, if the particular supply is made in a non-participating province, and
(C.1) [Repealed, SOR/2016-119, s. 6]
(D) [Repealed, SOR/2016-212, s. 6]
(iv) if subparagraphs (i) to (iii) do not apply,
(A) 11.3%, if the particular supply is made in Ontario,
(B) 12.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.5%, if the particular supply is made in a non-participating province;
(iv.1) and (v) [Repealed, SOR/2016-212, s. 6]
(d.1) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as an external supplier or a facility operator through a permanent establishment of the registrant in New Brunswick,
(i) 8.5%, if the particular supply is made in Ontario,
(ii) 10.1%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(iii) 1.6%, if the particular supply is made in a non-participating province;
(d.2) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a hospital authority through a permanent establishment of the registrant in New Brunswick,
(i) 11.3%, if the particular supply is made in Ontario,
(ii) 12.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(iii) 4.5%, if the particular supply is made in a non-participating province; and
(e) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a municipality,
(i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,
(A) 11.1%, if the particular supply is made in Ontario,
(B) 12.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.3%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick or Newfoundland and Labrador,
(A) 10.5%, if the particular supply is made in Ontario,
(B) 12.1%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 3.7%, if the particular supply is made in a non-participating province,
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(iii) [Repealed, SOR/2016-119, s. 6]
(iii.1) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island,
(A) 9.2%, if the particular supply is made in Ontario,
(B) 10.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 2.3%, if the particular supply is made in a non-participating province, and
(D) [Repealed, SOR/2016-212, s. 6]
(iv) [Repealed, SOR/2016-212, s. 6]
(v) if subparagraphs (i) to (iii.1) do not apply,
(A) 11.5%, if the particular supply is made in Ontario,
(B) 13%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and
(C) 4.7%, if the particular supply is made in a non-participating province.
(C.1) and (D) [Repealed, SOR/2016-212, s. 6]
(4) For the purpose of determining under subsection (3) the special quick-method rate applicable to a supply in respect of which the supplier is entitled to a deduction under subsection 234(3) of the Act,
(a) the supply is deemed to have been made in a non-participating province; and
(b) the supplier is deemed to have made the supply through a permanent establishment of the supplier in a non-participating province.
(5) For the purpose of determining under subsection (3) the special quick-method rate of a registrant for a reporting period, the registrant may,
(a) if substantially all of the supplies (other than specified supplies) made in the reporting period by the registrant through a permanent establishment of the registrant are made in a participating province, treat all of the supplies made by the registrant in the reporting period through that establishment as having been made in the participating province; and
(b) if substantially all of the supplies (other than specified supplies) made in the reporting period by the registrant through a permanent establishment of the registrant are made in non-participating provinces, treat all of the supplies made by the registrant in the reporting period through that establishment as having been made in a non-participating province.
- SOR/99-368, s. 9
- SOR/2002-272, s. 1
- SOR/2007-203, s. 3
- SOR/2011-56, s. 20
- SOR/2012-191, s. 16
- SOR/2013-44, s. 7
- 2016, c. 12, s. 98
- SOR/2016-4, s. 3
- SOR/2016-119, s. 6
- SOR/2016-212, s. 6
- SOR/2023-161, s. 3
- SOR/2024-151, s. 3
Prescribed Registrant
20 (1) A registrant (other than a listed financial institution and a prescribed registrant for the purposes of subsection 188(5) of the Act) that is, on the first day of a reporting period of the registrant, a specified facility operator, a qualifying non-profit organization, a charity that is designated under section 178.7 of the Act or a selected public service body is a registrant who may file an election, to take effect on that day, to determine the net tax of the registrant in accordance with this Part if an election by the registrant did not cease to have effect in the 365-day period ending immediately before that day because of a revocation of the election.
(2) A registrant that is a non-profit organization (other than a selected public service body and a specified facility operator) that has filed an election to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax immediately before the beginning of any fiscal year of the registrant in which the registrant is not a qualifying non-profit organization
(a) at the end of the year where that year is a reporting period of the registrant; or
(b) at the beginning of the year in any other case.
- SOR/99-368, s. 10
- SOR/2002-272, s. 2
Calculation of Net Tax
21 (1) Subject to subsections (2) and 21.3(1), if an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula
A + B - C
where
- A
- is the total of all amounts each of which is determined, in respect of all the particular supplies to which the same special quick-method rate applies, by the formula
D × (E - F)
where
- D
- is the special quick-method rate of the registrant for the particular reporting period that applies to the particular supplies,
- E
- is the total of
(a) all consideration that became due, or was paid without becoming due, to the registrant in the particular reporting period for the particular supplies that are taxable supplies (other than designated supplies, supplies of financial services, specified supplies and supplies deemed under section 181.1 or subsection 200(2) of the Act to have been made) made in Canada by the registrant, and
(b) all amounts that became collectible, and all other amounts collected, by the registrant in the particular reporting period as or on account of tax under Division II in respect of the particular supplies that are taxable supplies (other than specified supplies and supplies deemed under section 181.1 or subsection 200(2) of the Act to have been made) made by the registrant, and
- F
- is the total of all amounts each of which is an amount that the registrant has, in the particular reporting period, paid or credited to a person as or on account of
(a) a reduction in, or a rebate or refund of, all or part of the consideration for a particular supply (other than a designated supply or a specified supply) made in Canada by the registrant, or
(b) a refund of, or a credit for, tax under Division II charged to or collected from the person in respect of a particular supply (other than a specified supply);
- B
- is the total of
(a) all amounts each of which is an amount that became collectible, or was collected, by the registrant in the particular reporting period as or on account of tax under Division II in respect of
(i) specified supplies made by the registrant, or
(ii) supplies made on behalf of another person for whom the registrant acts as agent and in respect of which the registrant has made an election under subsection 177(1.1) of the Act,
(b) all amounts in respect of specified supplies that are required under Division V to be added in determining the net tax for the particular reporting period,
(b.1) the amount required under subsection 238.1(4) of the Act to be added in determining the net tax for the particular reporting period,
(c) all amounts each of which is an amount of tax that is deemed under subsection 200(2) of the Act to have been collected by the registrant in the particular reporting period or a preceding reporting period of the registrant in respect of a supply (other than a specified supply), to the extent that the registrant applies for a rebate of the amount in an application filed under section 259 of the Act for the particular reporting period, and
(d) all amounts each of which is an amount of tax
(i) that the registrant is deemed, under subsection 199(3) of the Act, to have paid in the particular reporting period or a preceding reporting period of the registrant in respect of a supply of property, and
(ii) in respect of which the registrant applies for a rebate in an application filed under section 259 of the Act for the particular reporting period,
to the extent that the registrant was previously deemed, under subsection 200(2) of the Act, to have collected tax in respect of a supply of the property and that supply was not a specified supply; and
- C
- is the total of
(a) all amounts each of which is an input tax credit of the registrant
(i) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of real property acquired by way of purchase by the registrant or an improvement to the property,
(ii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of a supply by way of sale to, importation by, or bringing into a participating province by, the registrant of personal property that is acquired, imported or brought into the participating province by the registrant for use as a capital asset of the registrant and that has a fair market value at the time of the supply or bringing into the province, or a value as determined under section 215 of the Act at the time of the importation, of at least $10,000,
(iii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of an improvement to a capital asset (other than real property) of the registrant, if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,
(iv) for a reporting period of the registrant ending before the election became effective,
(v) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property (other than property referred to in subparagraph (ii)) that is acquired, imported or brought into a participating province for supply by way of sale and is deemed under subsection 177(1.2) of the Act to have been supplied by an auctioneer acting as agent for the registrant or is supplied by a person acting as agent for the registrant in circumstances in which subsection 177(1.1) applies, or
(vi) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property that is deemed under paragraph 180(e) of the Act to have been acquired by the registrant and under subsection 177(1) or (1.2) of the Act to have been supplied by the registrant,
and is claimed in the return under Division V filed by the registrant for the particular reporting period,
(b) all amounts in respect of specified supplies that may be deducted under Division V in determining the net tax for the particular reporting period and that are claimed in the return under Division V filed by the registrant for the particular reporting period, and
(c) an amount that may be deducted under paragraph 346(1)(a) of the Act in determining the net tax for the particular reporting period.
(2) Subject to subsection 21.3(1), if a registrant carries on the business of supplying telephone services, electricity or natural gas in a separate division or department of the registrant and an election by the registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula
A + B
where
- A
- is the amount that would be the net tax of the registrant for the particular reporting period determined under subsection (1) if the registrant did not carry on the business and all property and services acquired, imported or brought into a participating province by the registrant otherwise than primarily for consumption, use or supply in the course of carrying on the business were the only property and services acquired, imported or brought by the registrant; and
- B
- is the amount that would be the net tax of the registrant for the particular reporting period determined in accordance with section 225 of the Act if the business were the only activity engaged in by the registrant and the property and services acquired, imported or brought into a participating province by the registrant primarily for consumption, use or supply in the course of the business were the only property and services acquired, imported or brought by the registrant.
(3) If an election by a registrant that is a university or public college to determine the net tax for reporting periods of the registrant in accordance with this Part becomes effective in the particular fiscal year of the registrant that is the first fiscal year of the registrant in which the registrant carries on the business of making taxable supplies through a retail establishment (other than a restaurant, cafeteria, pub or similar establishment) and those supplies are primarily supplies of tangible personal property, the special quick-method rate for a particular supply made by the registrant in the course of an activity that the registrant engages in acting in the registrant’s capacity as a university or public college and for reporting periods of the registrant ending in the particular fiscal year is, if it is reasonable to expect that the special quick-method rate for such a supply and for reporting periods of the registrant ending in the fiscal year of the registrant immediately following the particular fiscal year will be a particular percentage set out in subparagraph 19(3)(c)(i), that particular percentage.
- SOR/99-368, s. 11
- SOR/2006-162, s. 7(E)
- SOR/2007-203, s. 4
- SOR/2011-56, s. 21
- 2016, c. 12, s. 99
PART V.1Streamlined Input Tax Credit Method
Interpretation
21.1 (1) For the purposes of this Part, the threshold amount for a fiscal year of a registrant is equal to the total of
(a) the amount determined by the formula
A × 365/B
where
- A
- is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the registrant, and
- B
- is the number of days in the base year, and
(b) the total of all amounts each of which is an amount, in respect of a person (in this paragraph referred to as the “associate”) who was associated with the registrant at the end of the particular fiscal year of the associate that is the last fiscal year of the associate ending in the base year, determined by the formula
C × 365/D
where
- C
- is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year, and
- D
- is the number of days in the particular fiscal year.
(2) For the purposes of this Part, the threshold amount for a particular fiscal quarter in a particular fiscal year of a registrant is equal to the total of
(a) the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the preceding fiscal quarters in the particular fiscal year, and
(b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the registrant at the beginning of the particular fiscal quarter equal to the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the fiscal quarters of the associate that end in the particular fiscal year of the registrant before the beginning of the particular fiscal quarter of the registrant.
(3) For the purposes of this Part, the purchase threshold for a fiscal year of a registrant is equal to the total of all amounts each of which
(a) is an amount that became due, or was paid without having become due, by the registrant in the immediately preceding fiscal year for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the registrant or was acquired outside Canada by the registrant and imported by the registrant; and
(b) is either
(i) included in determining the cost to the registrant of the property or service for the purposes of the Income Tax Act, or
(ii) tax payable by the registrant in respect of the acquisition or importation of the property or service.
(4) For the purposes of this Part, the purchase threshold of a registrant for a particular day is equal to the total of all amounts each of which
(a) is an amount that, on or before the particular day and in the fiscal year of the registrant that includes the particular day, became due, or was paid without having become due, by the registrant for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the registrant or was acquired outside Canada by the registrant and imported by the registrant; and
(b) is either
(i) included in determining the cost to the registrant of the property or service for the purposes of the Income Tax Act, or
(ii) tax payable by the registrant in respect of the acquisition or importation of the property or service.
(5) For the purposes of this Part, if any consideration for a supply of property or a service is deemed by section 152 of the Act to become due on any day and an amount of a tax, duty or fee that is
(a) prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations,
(b) imposed in respect of the property or service, and
(c) calculated on that consideration,
has not become due on or before that day, that amount of the tax, duty or fee is deemed to have become due on that day.
- SOR/99-368, s. 12
Prescribed Registrants
21.2 (1) A registrant is a prescribed registrant who may make an election, to take effect on the first day of a reporting period of the registrant, to determine the net tax of the registrant in accordance with this Part if
(a) the threshold amount for the fiscal year of the registrant that includes the reporting period does not exceed $1,000,000;
(b) if the fiscal quarter of the registrant that includes the reporting period is not the first fiscal quarter in the fiscal year, the threshold amount for the fiscal quarter does not exceed $1,000,000;
(c) the purchase threshold for the fiscal year does not exceed $4,000,000;
(d) if the registrant is a public service body, it is reasonable to expect at the beginning of the reporting period that the purchase threshold for the registrant’s next fiscal year will not exceed $4,000,000; and
(e) the registrant is not a person described in paragraph 149(1)(a) of the Act at the beginning of the reporting period.
(2) A registrant who has elected to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax at the earliest of
(a) if the threshold amount for the second or third fiscal quarter in a fiscal year of the registrant exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year for which the threshold amount exceeds $1,000,000,
(b) if the threshold amount for a fiscal year of the registrant exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year,
(c) if the registrant is not a public service body and the purchase threshold of the registrant for a particular day exceeds $4,000,000, the end of the immediately preceding day,
(d) if the registrant is a public service body and the purchase threshold for a fiscal year of the registrant exceeds $4,000,000, the end of the first fiscal quarter in that fiscal year, and
(e) if the registrant becomes a person described in paragraph 149(1)(a) of the Act during a fiscal quarter of the registrant, the end of that fiscal quarter.
- SOR/99-368, s. 12
- SOR/2012-191, s. 17
Calculation of Net Tax
21.3 (1) If an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a reporting period of the registrant, the net tax of the registrant for the reporting period is, subject to this Part, the positive or negative amount of net tax for the reporting period determined in accordance with
(a) if the registrant has filed an election to determine the net tax of the registrant in accordance with Part IV that is in effect during the reporting period, Part IV;
(b) if the registrant has filed an election to determine the net tax of the registrant in accordance with Part V that is in effect during the reporting period, Part V; and
(c) in any other case, subsection 225(1) of the Act.
(2) If personal property or a service is supplied in Canada to a registrant by another person, or tangible personal property is supplied outside Canada to a registrant by another person and imported by the registrant, and the registrant is entitled to claim an input tax credit in respect of the property or service for any reporting period of the registrant, for the purposes of determining
(a) an input tax credit of the registrant in respect of the property or service for a particular reporting period of the registrant, and
(b) an amount that is required by subsection 235(1) of the Act to be added in determining the net tax of the registrant for any reporting period,
for the purposes of this Part, the amount of tax under Division II or III, as the case may be, that became payable, or was paid without having become payable, by the registrant during the particular reporting period in respect of the supply or importation of the property or service is deemed to be equal to the amount determined by the formula
A × B
where
- A
- is the amount determined by the formula
C / D
where
- C
- is
(i) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the supply or importation, the total of the rate set out in subsection 165(1) of the Act and the tax rate of the participating province that applied in respect of the supply or importation, and
(ii) in any other case, the rate set out in subsection 165(1) of the Act, and
- D
- is the total of 100% and the percentage determined for C, and
- B
- is the total of all amounts each of which is
(a) the consideration that became due, or was paid without having become due, by the registrant during the period in respect of the supply of the property or service to the registrant,
(b) the tax under Division II or III that became payable, or was paid without having become payable, by the registrant during the period in respect of the supply or importation of the property or service,
(c) in the case of tangible personal property that was imported by the registrant, the amount of a tax or duty imposed in respect of the property under the Act (other than Part IX), the Customs Act, the Special Import Measures Act or any other law relating to customs, that became due, or was paid without having become due, by the registrant during the period,
(d) the amount of a tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that became due, or was paid without having become due, by the registrant during the period in respect of the property or service, other than tax imposed under an Act of a legislature of a province to the extent that the tax is recoverable by the registrant under that Act,
(e) a reasonable gratuity paid by the registrant during the period in connection with the supply, or
(f) interest, a penalty or other amount paid by the registrant during the period if the amount was charged to the registrant by the supplier because an amount of consideration, or an amount of a tax, duty or fee referred to in paragraph (c) or (d), that was payable in respect of the supply or importation was overdue.
(3) Subsection (2) does not apply to a passenger vehicle or aircraft acquired or imported by a registrant who is an individual or a partnership for use as capital property of the registrant otherwise than exclusively in commercial activities of the registrant.
(4) For the purposes of this Part, if any of paragraphs 13(7)(g) to (i) of the Income Tax Act deems an amount to be the capital cost to a registrant of a passenger vehicle for the purposes of section 13 of that Act, the amount, if any, by which
(a) the total of all amounts each of which is an amount of tax that is deemed by subsection (2) to have become payable, or to have been paid without having become payable, by the registrant in respect of the acquisition or importation of the vehicle or the acquisition or importation of an improvement to the vehicle,
exceeds
(b) the amount determined by the formula
A × B
where
- A
- is the amount determined by the formula
C / D
where
- C
- is
(i) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the acquisition or importation, the total of the rate set out in subsection 165(1) of the Act and the tax rate of the participating province that applied in respect of the acquisition or importation, and
(ii) in any other case, the rate set out in subsection 165(1) of the Act, and
- D
- is the total of 100% and the percentage determined for C, and
- B
- is the amount deemed by any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost to the registrant of the vehicle for the purposes of section 13 of that Act,
shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.
(5) For the purpose of determining, in accordance with this Part, an input tax credit of a partnership, an employer, a charity or a public institution that pays an amount as a reimbursement in respect of property or a service acquired or imported by a member of the partnership, an employee of the employer or a volunteer who has given services to the charity or public institution and in respect of which the member, employee or volunteer was liable to pay tax under Division II or III, the amount of that tax is deemed, for the purpose of applying section 175 of the Act, to be equal to the amount that would be determined under subsection (2) if that subsection applied to the acquisition or importation by the member, employee or volunteer.
- SOR/99-368, s. 12
- SOR/2007-203, s. 5
- 2019, c. 29, s. 80
21.4 (1) An amount shall not be included in determining the value of B in subsection 21.3(2) in respect of a reporting period of a registrant during which an election to determine the net tax of the registrant in accordance with this Part is in effect if the amount became payable, or was paid without having become payable, by the registrant while the election was not in effect.
(2) If an election to determine the net tax of a registrant in accordance with this Part ceases to have effect during a reporting period of the registrant and tax under Division II or III becomes payable or is paid without having become payable by the registrant, after the election ceases to have effect but during the period, in respect of a supply or importation of property or a service, for the purposes referred to in paragraphs 21.3(2)(a) or (b), the amount of tax that became payable or was paid without having become payable by the registrant during the period in respect of that supply or importation is, despite subsection 21.3(2), deemed to be equal to the total of
(a) the amount that would, but for this subsection, be determined under subsection 21.3(2) in respect of that supply or importation, and
(b) the tax under Division II or III that became payable or was paid without having become payable by the registrant, after the election ceased to have effect but during the period, in respect of that supply or importation.
- SOR/99-368, s. 12
Prescribed Part
21.5 This Part is a prescribed Part for the purposes of subsection 227(4.2) of the Act.
- SOR/99-368, s. 12
PART VIPrescribed Input Tax Credits
22 Where an election by a registrant to determine the net tax of the registrant in accordance with any Part of these Regulations ceases at any time to have effect, every input tax credit that the registrant would have been entitled to include in determining the net tax for a reporting period of the registrant ending at or before that time, but for the fact that the registrant did not claim the input tax credit in any return under Division V filed by the registrant for a reporting period of the registrant ending at or before that time, is a prescribed input tax credit for the purposes of subsection 227(5) of the Act that the registrant may claim in a return filed for a reporting period of the registrant ending after that time.
- SOR/93-242, s. 2(E)
PART VIIGeneral Rules
23 [Repealed, SOR/99-368, s. 13]
24 (1) Subsections 225(2) to (3.1) of the Act apply, with any modifications that the circumstances require, for the purpose of determining the net tax for a reporting period of a registrant in accordance with any Part of these Regulations.
(2) For the purposes of these Regulations, if, under subsection 168(3), (6) or (7) of the Act, tax under Division II in respect of a supply of property or a service becomes payable by a registrant on a particular day,
(a) the consideration on which that tax is calculated, and
(b) any tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that is payable by the registrant in respect of the property or service and has not become due on or before that day,
is deemed to have become due on that day.
(3) For the purposes of determining any amount in accordance with these Regulations, other than an amount of net tax that is required by these Regulations to be determined in accordance with subsection 225(1) of the Act, the following rules apply:
(a) where at any time a supplier, in full or partial consideration for a supply of property or a service, accepts a coupon, voucher or other device (other than a gift certificate) that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service, and the supplier is entitled to be paid by another person an amount for the redemption of the coupon, voucher or device, the coupon, voucher or device shall be deemed to be consideration for the supply and tax calculated on that consideration shall be deemed to have become collectible, and to have been collected, at that time;
(b) where the consideration for a supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice and that consideration is so reduced, the consideration for the supply shall be deemed to be equal to the reduced amount of consideration and the total tax collected or collectible in respect of the supply shall be deemed to be equal to the tax calculated on the reduced amount of consideration;
(c) if consideration, or a part of it, for a taxable supply (other than a supply by way of sale of real property) made by a supplier in the course of activities engaged in by the supplier in a branch or division of the supplier becomes due, or is paid without having become due, to the supplier at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), that consideration or part, as the case may be, is deemed not to be consideration for a taxable supply; and
(d) if property or a service is acquired by a person for consumption, use or supply in the course of activities engaged in by the person in a branch or division of the person and, at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), an amount becomes due, or is paid without having become due, by the person for the supply of the property or service to the person, the amount shall not be included in determining the purchase threshold under subsection 21.1(3) for any fiscal year of the person.
(4) For the purpose of determining any amount in accordance with Part IV of these Regulations, other than an amount of net tax that is required by these Regulations to be determined in accordance with subsection 225(1) of the Act, if at any time a registrant, who has filed an election that is in effect at that time, makes a taxable supply of property or a service to a person with whom the registrant is not dealing at arm’s length for no consideration or for consideration less than the fair market value of the property or service at that time, the supply is deemed to have been made for consideration, paid at that time, equal to that fair market value and tax calculated on that consideration is deemed to have become collectible, and to have been collected, at that time.
- SOR/99-368, s. 14
- SOR/2019-59, s. 12(F)
- Date modified: