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Streamlined Accounting (GST/HST) Regulations (SOR/91-51)

Regulations are current to 2020-12-28 and last amended on 2019-06-21. Previous Versions

Streamlined Accounting (GST/HST) Regulations

SOR/91-51

EXCISE TAX ACT

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.

 [Repealed, SOR/2006-162, s. 6]

Interpretation

  •  (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    basic groceries[Repealed, SOR/99-368, s. 2]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    eligible capital property[Repealed, 2016, c. 12, s. 96]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    improvement[Repealed, SOR/99-368, s. 2]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)]
  •  (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
 
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