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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

PART V.1Streamlined Input Tax Credit Method (continued)

Calculation of Net Tax (continued)

  •  (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

 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

 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

 [Repealed, SOR/99-368, s. 13]

  •  (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)
 
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