Excise Tax Act (R.S.C., 1985, c. E-15)

Act current to 2017-11-20 and last amended on 2017-07-01. Previous Versions

Marginal note:Budget arrangements
  •  (1) Where a supply of property or a service (other than a subscription for newspapers, magazines or other publications published periodically) is made in a participating province and the consideration for the supply of the property or service delivered, performed or made available during any period beginning before the implementation date for that province and ending on or after that implementation date is paid by the recipient under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before the day that is one year after that implementation date, at the time the supplier issues an invoice for the reconciliation of the payments, the supplier shall determine the positive or negative amount determined by the formula

    A - B

    where

    A
    is the tax that would be payable under subsection 165(2) by the recipient for the part of the property or service supplied during the period that was delivered, performed or made available on or after that implementation date if the consideration therefor had become due and been paid on or after that implementation date; and
    B
    is the total tax payable under subsection 165(2) by the recipient in respect of the supply of the property or service delivered, performed or made available during the period.
  • Marginal note:Collection of tax

    (2) Where the amount determined under subsection (1) in respect of a supply of property or a service is a positive amount and the supplier is a registrant, the supplier shall collect, and is deemed to have collected on the day the invoice for the reconciliation of payments is issued, that amount from the recipient as tax under subsection 165(2).

  • Marginal note:Refund of excess

    (3) Where the amount determined under subsection (1) in respect of a supply of property or a service is a negative amount and the supplier is a registrant, the supplier shall refund or credit that amount to the recipient and issue a credit note for that amount in accordance with section 232.

  • Marginal note:Continuous supply

    (4) Where a supply of property or a service, during any period for which the supplier issues an invoice for the supply, is made in a participating province on a continuous basis by means of a wire, pipeline or other conduit and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or a part thereof is delivered, or the time at which the service or a part thereof is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, in the period is deemed, for the purposes of this section, to have been delivered or provided, as the case may be, on each day of the period.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 241.
Marginal note:Prepayments of rent and royalties after specified pre-implementation date
  •  (1) Subject to subsection (4), where

    • (a) a taxable supply of property by way of lease, licence or similar arrangement is made

      • (i) in a participating province by a registrant to a person, or

      • (ii) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and

    • (b) consideration for the supply that is rent, royalty or a similar payment attributable to a period on or after the implementation date for that participating province became due on or after the specified pre-implementation date for that participating province and before the implementation date for that province or was paid on or after that specified pre-implementation date and before that implementation date without having become due,

    that consideration is deemed, for the purpose of applying subsection 165(2), 218.1(1) or 220.08(1) to the supply, as the case may require, to have become due on that implementation date and not to have been paid before that implementation date.

  • Marginal note:Prepayments of rent and royalties before specified pre-implementation date

    (2) Subject to subsection (4), where

    • (a) a taxable supply of property by way of lease, licence or similar arrangement is made

      • (i) in a participating province by a registrant to a person who is not a consumer, or

      • (ii) outside the participating provinces to a person who is not a consumer and to whom either the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and

    • (b) consideration for the supply that is a rent, royalty or similar payment attributable to a period on or after the implementation date for that participating province became due after the announcement date for that participating province and before the specified pre-implementation date for that province or was paid after that announcement date and before that specified pre-implementation date without having become due,

    the following rules apply:

    • (c) tax under subsection 165(2), 218.1(1) or 220.08(1), as the case may require, is, notwithstanding subsection 218.1(2) and section 220.04, payable in respect of that consideration if, but for subsection 218.1(2) and section 220.04, it would have been payable if the consideration had become due and been paid on the implementation date for the province and, in the case of tax under subsection 220.08(1), if section 1 of Part II of Schedule X did not apply, unless, in the case of tax under subsection 165(2) or 220.08(1),

      • (i) the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations, and

      • (ii) the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person,

    • (d) where the person is a registrant whose return under section 238 for the reporting period that includes the implementation date for the province is required to be filed on a particular day before the day that is four months after that implementation date, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return, and

    • (e) where paragraph (d) does not apply, section 219 and subsection 220.09(1) do not apply in respect of that tax and the person shall, before the day that is four months after that implementation date, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

  • Marginal note:Periods before implementation

    (3) Where a taxable supply of property by way of lease, licence or similar arrangement is made

    • (a) in a participating province to a person, or

    • (b) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province,

    no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of the consideration for the supply that becomes due before the particular day that is four months after the implementation date for that participating province, or is paid before the particular day without having become due, to the extent that the consideration is rent, royalty or a similar payment attributable to a period before that implementation date.

  • Marginal note:Period including implementation date

    (4) Where a taxable supply of property by way of lease, licence or similar arrangement is made

    • (a) in a participating province to a person, or

    • (b) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province,

    no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of consideration for the supply that is rent, royalty or a similar payment attributable to a period that begins before the implementation date for that participating province and ends before the day that is one month after the day immediately before that implementation date.

  • Marginal note:Exception

    (4.1) Subsection (4) does not apply in respect of consideration for a supply of property that is rent, royalty or a similar payment attributable to a period if the supplier supplies services in respect of that property for the same period and the consideration for the supply of the property and the consideration for the supply of the services is included in a single invoice.

  • Marginal note:Application

    (5) Subsections (1) to (4) do not apply in respect of payments of consideration for the use of, or the right to use, intangible personal property where the amount of the payment is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 241;
  • 2000, c. 30, s. 103;
  • 2007, c. 18, s. 63.
Marginal note:Specified motor vehicle leases

 If

  • (a) a supply of a specified motor vehicle is made by way of lease, licence or similar arrangement for a lease interval (within the meaning of subsection 136.1(1)) under an agreement entered into before the implementation date for a participating province,

  • (b) used tangible personal property, or a leasehold interest in such property, (in this section referred to as the “trade-in”) is accepted by the supplier as full or partial consideration for the supply,

  • (c) the retail sales tax of the province would have been payable by the recipient in respect of that lease interval had the trade-in not been accepted and that tax not been suspended or repealed concurrent with the application to that supply of subsection 165(2) or 218.1(1), as the case may be, and

  • (d) the value of the consideration for the supply as otherwise determined under this Part exceeds the amount (in this section referred to as the “adjusted value”) that is the value, excluding the amount of any tax under this Part in respect of the supply, on which that retail sales tax in respect of that lease interval would have been calculated but for the suspension or repeal of that tax,

for the purposes of subsection 165(2) or 218.1(1), as the case may be, the value of the consideration for the supply is deemed to be equal to the adjusted value.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2000, c. 30, s. 104.
 
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