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

Marginal note:Receipt of property from non-resident

180 For the purposes of determining an input tax credit of, or the amount of a rebate payable under section 259 or 260 to, a particular person, where a non-resident person who is not registered under Subdivision D of Division V

• (a) either

  • (i) makes a supply of tangible personal property to the particular person and delivers the property, or makes it available, in Canada to the particular person before the property is used in Canada by or on behalf of the non-resident person, or

  • (ii) if the particular person is a registrant, causes physical possession of tangible personal property (other than property of a person that is resident in Canada) to be transferred in Canada to the particular person in circumstances in which the particular person is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person,

• (b) has paid tax under Division III in respect of the importation of the property or has paid tax in respect of a supply of the property deemed under subsection 179(1) to have been made by a registrant, and

• (c) provides to the particular person evidence, satisfactory to the Minister, that the tax has been paid,

the particular person shall be deemed

• (d) to have paid, at the time the non-resident person paid that tax, tax in respect of a supply of the property to the particular person equal to that tax, and

• (e) in a case described in subparagraph (a)(ii), to have acquired the property for use exclusively in commercial activities of the particular person.

Marginal note:Restriction on recovery

180.01 If, under paragraph 180(d), a particular person is deemed to have paid tax equal to the tax paid by a non-resident person, the following rules apply:

• (a) subsection 232(3) does not apply in respect of the tax paid by the non-resident person; and

• (b) no portion of the tax paid by the non-resident person shall be rebated, refunded or remitted to the non-resident person, or shall otherwise be recovered by the non-resident person, under this or any other Act of Parliament.

International Travel

Marginal note:Definitions

• 180.1 (1) The definitions in this subsection apply in this section.

  international flight

  international flight means any flight (other than a flight originating and terminating in Canada) of an aircraft that is operated by a person in the course of a business of supplying passenger transportation services. (vol international)

  international voyage

  international voyage means any voyage (other than a voyage originating and terminating in Canada) of a vessel that is operated by a person in the course of a business of supplying passenger transportation services. (voyage international)

• Marginal note:Delivery while on international travel

  (2) For the purposes of this Part, where a supply of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board an aircraft on an international flight or a vessel on an international voyage and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the aircraft or vessel, the supply is deemed to have been made outside Canada.

Coupons and Rebates

Marginal note:Definitions

• 181 (1) The definitions in this subsection apply in this section.

  coupon

  coupon includes a voucher, receipt, ticket or other device but does not include a gift certificate or a barter unit (within the meaning of section 181.3). (bon)

  tax fraction

  tax fraction of a coupon value or of the discount or exchange value of a coupon means

  • (a) where the coupon is accepted in full or partial consideration for a supply made in a participating province, the fraction

    A/B

    where

    A

    is the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and

    B

    is the total of 100% and the percentage determined for A; and

  • (b) in any other case, the fraction

    C/D

    where

    C

    is the rate set out in subsection 165(1), and

    D

    is the total of 100% and the percentage determined for C. (fraction de taxe)

• Marginal note:Acceptance of reimbursable coupon

  (2) For the purposes of this Part, other than subsection 223(1), where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this subsection referred to as the “coupon value”) and the registrant can reasonably expect to be paid an amount for the redemption of the coupon by another person, the following rules apply:

  • (a) the tax collectible by the registrant in respect of the supply shall be deemed to be the tax that would be collectible if the coupon were not accepted;

  • (b) the registrant shall be deemed to have collected, at that time, a portion of the tax collectible equal to the tax fraction of the coupon value; and

  • (c) the tax payable by the recipient in respect of the supply shall be deemed to be the amount determined by the formula

    A - B

    where

    A

    is the tax collectible by the registrant in respect of the supply, and

    B

    is the tax fraction of the coupon value.

• Marginal note:Acceptance of non-reimbursable coupon

  (3) Where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon or a fixed percentage, specified in the coupon, of the price (the amount of which reduction is, in each case, referred to in this subsection as the “coupon value”) and the registrant can reasonably expect not to be paid an amount for the redemption of the coupon by another person,

  • (a) the registrant shall, for the purposes of this Part, treat the coupon as

    • (i) reducing the value of the consideration for the supply as provided for in subsection (4), or

    • (ii) a partial cash payment that does not reduce the value of the consideration for the supply; and

  • (b) where the registrant treats the coupon as a partial cash payment that does not reduce the value of the consideration for the supply, paragraphs (2)(a) to (c) apply in respect of the supply and the coupon and the registrant may claim an input tax credit for the registrant’s reporting period that includes that time equal to the tax fraction of the coupon value.

• Marginal note:Acceptance of other coupons

  (4) For the purposes of this Part, if a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon 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 paragraphs (2)(a) to (c) do not apply in respect of the coupon, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined for the purposes of this Part exceeds the discount or exchange value of the coupon.

• Marginal note:Redemption of coupon

  (5) For the purposes of this Part, where, in full or partial consideration for a taxable supply of property or a service, a supplier who is a registrant accepts a coupon 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 a particular person at any time pays, in the course of a commercial activity of the particular person, an amount to the supplier for the redemption of the coupon, the following rules apply:

  • (a) the amount shall be deemed not to be consideration for a supply;

  • (b) the payment and receipt of the amount shall be deemed not to be a financial service; and

  • (c) if the supply is not a zero-rated supply and the coupon entitled the recipient to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this paragraph referred to as the “coupon value”), the particular person, if a registrant (other than a registrant who is a prescribed registrant for the purposes of subsection 188(5)) at that time, may claim an input tax credit for the reporting period of the particular person that includes that time equal to the tax fraction of the coupon value, unless all or part of that coupon value is an amount of an adjustment, refund or credit to which subsection 232(3) applies.

Marginal note:Rebates

181.1 Where

• (a) a registrant makes a taxable supply in Canada of property or a service (other than a zero-rated supply),

• (b) a particular person acquires the property or service, either from the registrant or from another person,

• (c) the registrant pays, at any time, a rebate in respect of the property or service to the particular person and therewith provides written indication that a portion of the rebate is an amount on account of tax, and

• (d) subsection 232(3) does not apply to the rebate,

the following rules apply:

• (e) the registrant may claim an input tax credit for the reporting period of the registrant that includes that time equal to the product obtained when the amount of the rebate is multiplied by the fraction (in this section referred to as the “tax fraction in respect of the rebate”)

  A/B

  where

  A

  is

  • (i) if tax under subsection 165(2) was payable in respect of the supply of the property or service to the particular person, the total of the rate set out in subsection 165(1) and the tax rate of the participating province in which that supply was made, and

  • (ii) in any other case, the rate set out in subsection 165(1), and

  B

  is the total of 100% and the percentage determined for A, and

• (f) where the particular person is a registrant who was entitled to claim an input tax credit, or a rebate under Division VI, in respect of the acquisition of the property or service, the particular person shall be deemed, for the purposes of this Part, to have made a taxable supply and to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula

  A × (B/C) × D

  where

  A

  is the tax fraction in respect of the rebate,

  B

  is the input tax credit or rebate under Division VI that the particular person was entitled to claim in respect of the acquisition of the property or service,

  C

  is the tax payable by the particular person in respect of the acquisition of the property or service, and

  D

  is the amount of the rebate paid to the particular person by the registrant.

Marginal note:Gift certificates

181.2 For the purposes of this Part, the issuance or sale of a gift certificate for consideration shall be deemed not to be a supply and, when given as consideration for a supply of property or a service, the gift certificate shall be deemed to be money.

Marginal note:Definitions

• 181.3 (1) The definitions in this subsection apply in this section.

  administrator

  administrator of a barter exchange network means the person who is responsible for administering, maintaining or operating a system of accounts, to which barter units may be credited, of members of the network. (administrateur)

  barter exchange network

  barter exchange network means a group of persons each member of which has agreed in writing to accept as full or partial consideration for the supply of property or services by that particular member to any other member of that group one or more credits (in this section referred to as “barter units”) on an account of the particular member maintained or operated by a single administrator of all such accounts of the members, which credits can be used as full or partial consideration for supplies of property or services between members of that group. (réseau de troc)

• Marginal note:Application for designation

  (2) The administrator of a barter exchange network may make an application to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to have the network designated for the purposes of subsection (5).

• Marginal note:Designation of barter exchange network

  (3) On application by an administrator of a barter exchange network under subsection (2), the Minister may designate the barter exchange network for the purposes of subsection (5), in which case the Minister shall notify the administrator in writing of the designation and its effective date.

• Marginal note:Notification by administrator

  (4) On receipt of a notification by the Minister of a designation of a barter exchange network, the administrator of the network shall, within a reasonable time, notify each member of the network in writing of the designation and its effective date.

• Marginal note:Exchange of barter unit

  (5) If a member of a barter exchange network or the administrator of a barter exchange network gives, while a designation of the network under subsection (3) is in effect, property, a service or money in exchange for a barter unit, the value of that property, service or money as consideration for the barter unit is, for the purposes of this Part and despite section 155, deemed to be nil.

• Marginal note:Deemed non-financial services

  (6) For the purposes of this Part, each of the following is deemed not to be a financial service:

  • (a) the operation, maintenance or administration of a system of accounts, to which barter units can be credited, of members of a barter exchange network;

  • (b) the crediting of a barter unit to such an account;

  • (c) the supply, receipt or redemption of a barter unit; and

  • (d) the agreeing to provide, or the arranging for, anything referred to in any of paragraphs (a) to (c).