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

Act current to 2017-06-05 and last amended on 2017-03-22. Previous Versions

Marginal note:Imported commercial goods
  •  (1) Subject to this Part, every person who brings into a participating province from a place outside Canada

    • (a) a specified motor vehicle, or

    • (b) goods that are accounted for as commercial goods (within the meaning assigned by subsection 212.1(1)) under section 32 of the Customs Act

    and who is liable under that Act to pay duties on the vehicle or goods, or would be so liable if they were subject to duty, shall pay, in addition to the tax imposed under section 212, tax calculated at the tax rate for that participating province on the value of the vehicle or goods.

  • Marginal note:Exception

    (2) Tax under subsection (1) does not apply to

    • (a) goods, other than a specified motor vehicle, brought into a participating province from a place outside Canada by a registrant (other than a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant;

    • (b) a mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals; or

    • (c) goods included in Schedule VII.

  • Marginal note:Value of goods

    (3) For the purposes of this section, the value of goods brought into a province is equal to

    • (a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registration of motor vehicles, the specified value;

    • (b) in the case of prescribed property brought into a province in prescribed circumstances, the value determined in prescribed manner; and

    • (c) in any other case, the value of the goods determined in accordance with section 215.

  • Marginal note:When tax payable

    (4) Tax under subsection (1) on goods brought into a participating province by a person becomes payable by that person

    • (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and

    • (b) in any other case, on the day on which the goods are brought into the province.

  • Marginal note:Use in offshore areas

    (5) Subsection (1) does not apply to goods brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the goods are brought into the area for consumption, use or supply in the course of an offshore activity.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 204;
  • 2007, c. 18, ss. 23, 63.

SUBDIVISION BTax on Intangible Property and Services

Marginal note:Tax in participating province
  •  (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for a prescribed purpose in respect of the supply or, in the absence of a prescribed purpose in respect of the supply, for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner.

  • Marginal note:When tax payable

    (2) Tax under subsection (1) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.

  • Marginal note:Non-taxable supplies

    (3) No tax is payable under subsection (1)

    • (a) in respect of a supply of intangible personal property or a service that is included in Part II of Schedule X and is not a prescribed supply; or

    • (b) in prescribed circumstances.

  • Marginal note:Pension entities

    (3.1) No tax is payable under subsection (1) in respect of a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan if

    • (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero; or

    • (b) the amount determined for B in the formula in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

  • Marginal note:Application in offshore areas

    (4) Subsection (1) does not apply to a supply of property or a service made to a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the property or service is acquired for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area.

  • Marginal note:Use in offshore areas

    (5) For the purposes of subsection (1), a person that acquires property or a service for consumption, use or supply in the Nova Scotia offshore area or the Newfoundland offshore area is deemed to acquire the property or service for consumption, use or supply in that area only to the extent that it is acquired for consumption, use or supply in that area in the course of an offshore activity.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 204;
  • 2009, c. 32, s. 19;
  • 2010, c. 12, s. 69;
  • 2012, c. 31, s. 78.

SUBDIVISION CReturns and Payment of Tax

Marginal note:Returns and payment
  •  (1) Where tax under this Division becomes payable by a person,

    • (a) where the person is a registrant, the person shall, on or before the day on or before which the person’s return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and

    • (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, 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:Exception

    (2) Despite subsection (1), if the tax under section 220.05, 220.06 or 220.07 is payable to Her Majesty in right of Canada by a person in respect of a specified motor vehicle that the person is required to register under the laws of a participating province relating to the registration of motor vehicles, the person shall pay the tax to the provincial authority in its capacity as agent of Her Majesty in right of Canada at the earlier of the time at which the person registers the vehicle and the time at or before which the person is required to register it, and

    • (a) if the person is a registrant, the person is not required to report the tax in a return; and

    • (b) if the person is not a registrant, the person is not required to file a return in respect of the tax.

  • Marginal note:Deduction for prescribed amount

    (3) Where tax under this Division becomes payable by a person and all or any portion of that tax is an amount that is prescribed for the purpose of subsection 234(3), that amount shall be deducted from the tax payable in determining the amount required under subsection (1) to be paid.

  • Marginal note:No return required

    (4) Where the amount that a person is required to pay to the Receiver General under subsection (1) is nil, the person is not required to file a return under this Division.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 204;
  • 2007, c. 18, s. 24.

DIVISION VCollection and Remittance of Division II Tax

SUBDIVISION ACollection

Marginal note:Collection of tax
  •  (1) Every person who makes a taxable supply shall, as agent of Her Majesty in right of Canada, collect the tax under Division II payable by the recipient in respect of the supply.

  • Marginal note:Exception

    (2) A supplier (other than a prescribed supplier) who makes a taxable supply of real property by way of sale is not required to collect tax under Division II payable by the recipient in respect of the supply where

    • (a) the supplier is a non-resident person or is resident in Canada by reason only of subsection 132(2);

    • (b) the recipient is registered under Subdivision d and, in the case of a recipient who is an individual, the property is neither a residential complex nor supplied as a cemetery plot or place of burial, entombment or deposit of human remains or ashes;

    • (b.1) the supplier and the recipient have made an election under section 2 of Part I of Schedule V in respect of the supply; or

    • (c) the recipient is a prescribed recipient.

  • Marginal note:Idem

    (3) Where a carrier who makes a particular taxable supply of a service of transporting tangible personal property

    • (a) is provided with a declaration referred to in section 7 of Part VII of Schedule VI by the shipper, and

    • (b) at or before the time the tax in respect of the particular supply becomes payable the carrier did not know and could not reasonably be expected to know that

      • (i) the property was not being shipped for export,

      • (ii) the transportation by the carrier was not part of a continuous outbound freight movement in respect of the property, and

      • (iii) there was or was to be any diversion of the property to a final destination in Canada,

    the carrier is not required to collect tax in respect of the particular supply or any supply that is incidental to the particular supply.

  • (3.1) [Repealed, 2001, c. 15, s. 9]

  • Marginal note:Definitions

    (4) In subsection (3), continuous outbound freight movement and shipper have the same meanings as in Part VII of Schedule VI.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 85;
  • 1997, c. 10, s. 43.1;
  • 2000, c. 30, s. 48;
  • 2001, c. 15, s. 9.
 
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