Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

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

PART V.1Streamlined Input Tax Credit Method

Interpretation

  •  (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

    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

  •  (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

  •  (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
 
Date modified: