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

Full Document:  

Act current to 2024-02-06 and last amended on 2024-01-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IIGoods and Services Tax (continued)

SUBDIVISION EElectronic Commerce

Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in this Subdivision.

    accommodation platform

    accommodation platform means a digital platform through which a person facilitates the making of supplies of short-term accommodation situated in Canada by another person that is not registered under Subdivision D of Division V. (plateforme de logements)

    accommodation platform operator

    accommodation platform operator, in respect of a supply of short-term accommodation made through an accommodation platform, means a person (other than the supplier or an excluded operator in respect of the supply) that

    • (a) controls or sets the essential elements of the transaction between the supplier and the recipient;

    • (b) if paragraph (a) does not apply to any person, is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply and transmitting all or part of the consideration to the supplier; or

    • (c) is a prescribed person. (exploitant de plateforme de logements)

    Canadian accommodation related supply

    Canadian accommodation related supply means a taxable supply of a service

    • (a) that is made to a person in connection with a supply of short-term accommodation situated in Canada made to the person; and

    • (b) the consideration for which represents a booking fee, administration fee or other similar charge. (fourniture liée à un logement au Canada)

    digital platform

    digital platform includes a website, an electronic portal, gateway, store or distribution platform or any other similar electronic interface but does not include

    • (a) an electronic interface that solely processes payments; or

    • (b) a prescribed platform or interface. (plateforme numérique)

    distribution platform operator

    distribution platform operator, in respect of a supply of property or a service made through a specified distribution platform, means a person (other than the supplier or an excluded operator in respect of the supply) that

    • (a) controls or sets the essential elements of the transaction between the supplier and the recipient;

    • (b) if paragraph (a) does not apply to any person, is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply and transmitting all or part of the consideration to the supplier; or

    • (c) is a prescribed person. (exploitant de plateforme de distribution)

    electronic filing

    electronic filing means using electronic media in a manner specified by the Minister. (transmission électronique)

    excluded operator

    excluded operator means a person that, in respect of a supply of property or a service,

    • (a) meets all of the following conditions:

      • (i) the person does not set, directly or indirectly, any of the terms and conditions under which the supply is made,

      • (ii) the person is not involved, directly or indirectly, in authorizing the charge to the recipient of the supply in respect of the payment of the consideration for the supply, and

      • (iii) the person is not involved, directly or indirectly, in the ordering or delivery of the property or in the ordering or rendering of the service;

    • (b) solely provides for the listing or advertising of the property or service or for the redirecting or transferring to a digital platform on which the property or service is offered;

    • (c) is solely a payment processor; or

    • (d) is a prescribed person. (exploitant exclu)

    false statement

    false statement includes a statement that is misleading because of an omission from the statement. (faux énoncé)

    qualifying tangible personal property supply

    qualifying tangible personal property supply means a supply made by way of sale of tangible personal property that is, under the agreement for the supply, to be delivered or made available to the recipient in Canada, other than

    • (a) an exempt or zero-rated supply;

    • (b) a supply of tangible personal property sent by mail or courier to the recipient at an address in Canada from an address outside Canada by the supplier or by another person acting on behalf of the supplier, if the supplier maintains evidence satisfactory to the Minister that the property was so sent;

    • (c) a supply that is deemed under subsection 180.1(2) to have been made outside Canada; and

    • (d) a prescribed supply. (fourniture admissible d’un bien meuble corporel)

    specified Canadian recipient

    specified Canadian recipient means a recipient of a supply in respect of which the following conditions are met:

    • (a) the recipient has not provided to the supplier, or to a distribution platform operator in respect of the supply, evidence satisfactory to the Minister that the recipient is registered under Subdivision D of Division V; and

    • (b) the usual place of residence of the recipient is situated in Canada. (acquéreur canadien déterminé)

    specified distribution platform

    specified distribution platform means a digital platform through which a person facilitates the making of specified supplies by another person that is a specified non-resident supplier or facilitates the making of qualifying tangible personal property supplies by another person that is not registered under Subdivision D of Division V. (plateforme de distribution déterminée)

    specified non-resident supplier

    specified non-resident supplier means a non-resident person that does not make supplies in the course of a business carried on in Canada and that is not registered under Subdivision D of Division V. (fournisseur non-résident déterminé)

    specified supply

    specified supply means a taxable supply of intangible personal property or a service other than

    • (a) a supply of intangible personal property that

      • (i) may not be used in Canada,

      • (ii) relates to real property situated outside Canada, or

      • (iii) relates to tangible personal property ordinarily situated outside Canada;

    • (b) a supply of a service that

      • (i) may only be consumed or used outside Canada,

      • (ii) is in relation to real property situated outside Canada, or

      • (iii) is rendered in connection with criminal, civil or administrative litigation (other than a service rendered before the commencement of such litigation) that is under the jurisdiction of a court or other tribunal established under the laws of a country other than Canada or that is in the nature of an appeal from a decision of a court or other tribunal established under the laws of a country other than Canada;

    • (c) a supply of a service that is deemed under subsection 180.1(2) to have been made outside Canada;

    • (d) a supply of a service

      • (i) that is made to a person in connection with a supply of short-term accommodation made to the person, and

      • (ii) the consideration for which represents a booking fee, administration fee or other similar charge; and

    • (e) a prescribed supply. (fourniture déterminée)

  • Marginal note:Registration

    (2) For greater certainty, in this Part (other than this Subdivision) and in Schedules V to X, a reference to registration does not include registration under this Subdivision.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107
Accommodations, Intangible Personal Property and Services

Marginal note:Residence indicators

  •  (1) For the purposes of this Subdivision, the following are indicators in respect of the usual place of residence of a recipient of a supply:

    • (a) the home address of the recipient;

    • (b) the business address of the recipient;

    • (c) the billing address of the recipient;

    • (d) the Internet Protocol address of the device used by the recipient or similar data obtained through a geolocation method;

    • (e) payment-related information in respect of the recipient or other information used by the payment system;

    • (f) the information from a subscriber identity module, or other similar module, used by the recipient;

    • (g) the place at which a landline communication service is supplied to the recipient; and

    • (h) any other relevant information that the Minister may specify.

  • Marginal note:Indicator — Canada and provinces

    (2) For the purposes of this section,

    • (a) a Canadian indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in Canada;

    • (b) a foreign indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated outside Canada;

    • (c) a participating province indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in a participating province; and

    • (d) a non-participating province indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in a non-participating province.

  • Marginal note:Usual place of residence — Canada

    (3) For the purposes of this Subdivision, the usual place of residence of the recipient of a supply is situated in Canada if a person that is the supplier or a distribution platform operator in respect of the supply,

    • (a) in the ordinary course of the person’s operations, has obtained two or more Canadian indicators in respect of the recipient and has not obtained more than one foreign indicator in respect of the recipient;

    • (b) in the ordinary course of the person’s operations, has obtained two or more Canadian indicators in respect of the recipient and two or more foreign indicators in respect of the recipient, but the Canadian indicators are, in the circumstances, reasonably considered to be more reliable in determining a place of residence; or

    • (c) if paragraphs (a) and (b) do not apply, has determined that the usual place of residence of the recipient is situated in Canada based on any method that the Minister may allow.

  • Marginal note:Usual place of residence — participating province address

    (4) For the purposes of this Subdivision, if the usual place of residence of the recipient of a supply is situated in Canada and if a person that is the supplier or a distribution platform operator in respect of the supply has obtained in the ordinary course of the person’s operations one or more addresses that are a home or business address of the recipient in a participating province and has not obtained in the ordinary course of the person’s operations the same number or a greater number of addresses that are a home or business address of the recipient in a non-participating province, the usual place of residence of the recipient is situated in the following participating province:

    • (a) if those addresses of the recipient that are in a participating province are all in the same participating province, that participating province; and

    • (b) if those addresses of the recipient that are in a participating province are in two or more participating provinces and if the tax rates for those participating provinces are the same, the participating province among those participating provinces that has the largest population.

  • Marginal note:Usual place of residence — participating province indicators

    (5) For the purposes of this Subdivision, if the usual place of residence of the recipient of a supply is situated in Canada but is not determined under subsection (4) to be in a participating province and if a person that is the supplier or a distribution platform operator in respect of the supply has obtained in the ordinary course of the person’s operations one or more participating province indicators in respect of the recipient and has not obtained in the ordinary course of the person’s operations the same number or a greater number of non-participating province indicators in respect of the recipient that could reasonably be considered to be as reliable in determining a place of residence as those participating province indicators, the usual place of residence of the recipient is situated in the following participating province:

    • (a) if those participating province indicators are in respect of the same participating province, that participating province;

    • (b) if those participating province indicators are in respect of two or more participating provinces and the participating province indicators in respect of one of those participating provinces are, in the circumstances, reasonably considered to be more reliable in determining a place of residence, that participating province;

    • (c) if the usual place of residence of the recipient is not determined under paragraph (a) or (b) and if the person has determined that the usual place of residence of the recipient is situated in one of the participating provinces based on any method that the Minister may allow, that participating province; or

    • (d) if the usual place of residence of the recipient is not determined under any of paragraphs (a) to (c) and if those participating province indicators are in respect of two or more participating provinces, the participating province among those participating provinces for which the tax rate is the lowest or, if the tax rates for those participating provinces are the same, the participating province among those participating provinces that has the largest population.

  • Marginal note:Usual place of residence — participating province

    (6) For the purposes of this Subdivision, if, in respect of a supply, the usual place of residence of the recipient is situated in Canada but is not determined under subsection (4) or (5) to be in a participating province and if a person that is the supplier or a distribution platform operator in respect of the supply has determined that the usual place of residence of the recipient is situated in a participating province based on any method that the Minister may allow, then the usual place of residence of the recipient is situated in that participating province.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107

Marginal note:Threshold amount

  •  (1) For the purposes of this section, the threshold amount of a particular person for a period is the total of all amounts each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a supply that is, or that could reasonably be expected to be,

    • (a) a specified supply made during that period by the particular person to a specified Canadian recipient (other than a zero-rated supply or a supply that is deemed to have been made by the particular person under paragraph 211.13(1)(a) or subparagraph 211.13(2)(a)(i));

    • (b) a Canadian accommodation related supply made during that period by the particular person to another person that is not registered under Subdivision D of Division V;

    • (c) if the particular person is a distribution platform operator in respect of a specified supply (other than a zero-rated supply) made during that period through a specified distribution platform by a specified non-resident supplier to a specified Canadian recipient, a specified supply (other than a zero-rated supply) that is made during that period through the specified distribution platform by a specified non-resident supplier to a specified Canadian recipient and in respect of which any person is a distribution platform operator; or

    • (d) if the particular person is an accommodation platform operator in respect of an accommodation supply — being a taxable supply of short-term accommodation situated in Canada made by any person that is not registered under Subdivision D of Division V to a recipient that is not registered under that Subdivision — that is made during that period through an accommodation platform, an accommodation supply that is made during that period through the accommodation platform and in respect of which any person is an accommodation platform operator.

  • Marginal note:Registration required

    (2) Every person (other than a registrant or a person that carries on a business in Canada) that is a specified non-resident supplier at any time, a distribution platform operator in respect of a supply made at any time or an accommodation platform operator in respect of a supply made at any time is required at that time to be registered under this Subdivision if the threshold amount of the person for any period of 12 months (other than a period that begins before July 2021) that includes that time exceeds $30,000.

  • Marginal note:Application

    (3) A person required under subsection (2) to be registered under this Subdivision shall apply to the Minister for registration. The application is to be made in prescribed form containing prescribed information and is to be filed with the Minister by way of electronic filing on or before the first day on which the person is required to be registered under this Subdivision.

  • Marginal note:Registration

    (4) The Minister may register any person that applies for registration under subsection (3) and, upon doing so, the Minister shall assign a registration number to the person and notify the person of the registration number and the effective date of the registration.

  • Marginal note:Notice of intent

    (5) If the Minister has reason to believe that a person that is not registered under this Subdivision is required to be registered under subsection (2) and has failed to apply for registration under subsection (3) as and when required, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the person that the Minister proposes to register the person under subsection (7).

  • Marginal note:Representations to Minister

    (6) Upon receipt of a notice of intent, a person shall apply for registration under subsection (3) or establish to the satisfaction of the Minister that the person is not required to be registered under subsection (2).

  • Marginal note:Registration by Minister

    (7) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied for registration under subsection (3) and the Minister is not satisfied that the person is not required to be registered under subsection (2), the Minister may register the person under this Subdivision and, upon doing so, shall assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration, which effective date is not to be earlier than 60 days after the particular day.

  • Marginal note:Cessation of registration

    (8) If a person is registered under this Subdivision and if the person becomes registered under Subdivision D of Division V on a particular day, the person ceases to be registered under this Subdivision effective on the particular day.

  • Marginal note:Cancellation on notice

    (9) The Minister may, after giving a person that is registered under this Subdivision reasonable written notice, cancel the registration of the person if the Minister is satisfied that the registration is not required under this Subdivision.

  • Marginal note:Cancellation on request

    (10) On request from a person, the Minister shall cancel the registration of the person under this Subdivision if the Minister is satisfied that the registration is not required under this Subdivision.

  • Marginal note:Cancellation — notification

    (11) If the Minister cancels the registration of a person under subsection (9) or (10), the Minister shall notify the person of the cancellation and its effective date.

  • Marginal note:Public disclosure

    (12) Despite section 295, the Minister may make available to the public, in any manner that the Minister considers appropriate, the names of persons registered under this Subdivision (including any trade name or other name used by those persons), the registration numbers assigned to those persons under this section, the effective date of the registration and, if a person ceases to be registered under this Subdivision, the date on which the person ceases to be registered.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2021, c. 23, s. 107
 

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