Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Excise Tax Act. (Loi)

continuous journey

continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (voyage continu)

PART 1Place of Supply

DIVISION 1Interpretation

Marginal note:Definitions

2 The following definitions apply in this Part.

Canadian element

Canadian element of a service means the portion of the service that is performed in Canada. (élément canadien)

Canadian rights

Canadian rights, in respect of intangible personal property, means that part of the property that can be used in Canada. (droits canadiens)

computer-related service

computer-related service means

• (a) a technical support service that is provided by means of telecommunications and relates to the operation or use of computer hardware or software; or

• (b) a service involving the electronic storage of information and computer-to-computer transfer of information. (service informatique)

final recipient

final recipient, in respect of a computer-related service or access to the Internet, means a person that is the recipient of a supply of the service or access and that acquires it otherwise than for the purpose of supplying it to another person. (dernier acquéreur)

RDSP

RDSP means a registered disability savings plan as defined in subsection 248(1) of the Income Tax Act. (REEI)

RESP

RESP means a registered education savings plan as defined in subsection 248(1) of the Income Tax Act. (REEE)

RRIF

RRIF means a registered retirement income fund as defined in subsection 248(1) of the Income Tax Act. (FERR)

RRSP

RRSP means a registered retirement savings plan as defined in subsection 248(1) of the Income Tax Act. (REER)

specified location

specified location of a supplier means

• (a) a permanent establishment of the supplier; or

• (b) a vending machine. (emplacement déterminé)

TFSA

TFSA has the same meaning as in subsection 248(1) of the Income Tax Act. (CÉLI)

Marginal note:Deemed delivery

3 For the purposes of this Part, property is deemed to be delivered in a particular province by a supplier and is deemed not to be delivered in any other province by the supplier if the supplier

• (a) ships the property to a destination in the particular province that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient to ship the property to such a destination; or

• (b) sends the property by mail or courier to an address in the particular province.

Marginal note:Application

• 4 (1) This Part applies for the purposes of section 3 of Part IX of Schedule IX to the Act.

• Marginal note:Transition — Ontario and British Columbia

  (2) For the purposes of applying the provisions of Part 3 in relation to the application of this Part between February 25, 2010 and July 1, 2010, the following rules apply:

  • (a) Ontario and British Columbia are deemed to be participating provinces;

  • (b) the tax rate for Ontario is deemed to be 8%; and

  • (c) the tax rate for British Columbia is deemed to be 7%.

• Marginal note:Transition — Prince Edward Island

  (3) For the purposes of applying the provisions of Part 3.1 in relation to the application of this Part between November 8, 2012 and April 1, 2013, the following rules apply:

  • (a) Prince Edward Island is deemed to be a participating province; and

  • (b) the tax rate for Prince Edward Island is deemed to be 9%.

DIVISION 2Intangible Personal Property

Marginal note:Application

5 This Division does not apply to intangible personal property to which Part VII or VIII of Schedule IX to the Act applies.

Marginal note:Canadian rights primarily in participating provinces

• 6 (1) A supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can only be used primarily in participating provinces is made in a participating province if an equal or greater proportion of those Canadian rights cannot be used in another participating province.

• Marginal note:Canadian rights primarily in participating provinces

  (2) Subject to subsection (1), a supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can only be used primarily in participating provinces is made in a particular participating province if,

  • (a) in the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in the particular participating province and in the presence of an individual who is, or who acts on behalf of, the recipient, the intangible personal property can be used in the particular participating province;

  • (b) in the case of a supply that is not determined under paragraph (a) to be made in a participating province, the following conditions are satisfied:

    • (i) in the ordinary course of business of the supplier, the supplier obtains an address (in this paragraph referred to as the “particular address”) that is

      • (A) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address in Canada obtained by the supplier,

      • (B) if the supplier obtains more than one address described in clause (A), the address described in that clause that is most closely connected with the supply, or

      • (C) in any other case, the address in Canada of the recipient that is most closely connected with the supply,

    • (ii) the particular address is in the particular participating province, and

    • (iii) the intangible personal property can be used in the particular participating province; and

  • (c) in the case of a supply that is not determined under paragraph (a) or (b) to be made in a participating province, the tax rate for the particular participating province is the highest among the tax rates for the participating provinces in which the intangible personal property can be used.

Marginal note:Canadian rights primarily in non-participating provinces

7 A supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can only be used primarily in non-participating provinces is made in a non-participating province.

Marginal note:Canadian rights — no primary location of use

8 A supply of intangible personal property (other than intangible personal property that relates to real property or to tangible personal property) in respect of which the Canadian rights can be used otherwise than only primarily in participating provinces and otherwise than only primarily outside participating provinces is made in a particular province if,

• (a) in the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in the particular province and in the presence of an individual who is, or who acts on behalf of, the recipient, the intangible personal property can be used in the particular province;

• (b) in the case of a supply that is not determined under paragraph (a) to be made in a province, the following conditions are satisfied:

  • (i) in the ordinary course of business of the supplier, the supplier obtains an address (in this paragraph referred to as the “particular address”) that is

    • (A) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address in Canada obtained by the supplier,

    • (B) if the supplier obtains more than one address described in clause (A), the address described in that clause that is most closely connected with the supply, or

    • (C) in any other case, the address in Canada of the recipient that is most closely connected with the supply,

  • (ii) the particular address is in the particular province, and

  • (iii) the intangible personal property can be used in the particular province; and

• (c) in the case of a supply that is not determined under paragraph (a) or (b) to be made in a province, the tax rate for the particular province is the highest among the tax rates for the provinces in which the intangible personal property can be used.

Marginal note:Intangible personal property that relates to real property

9 A supply of intangible personal property that relates to real property is made

• (a) in a participating province if the real property that is situated in Canada is situated primarily in participating provinces and

  • (i) an equal or greater proportion of the real property is not situated in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the real property is situated in another participating province; and

• (b) in a non-participating province if the real property that is situated in Canada is not situated primarily in participating provinces.

Marginal note:Intangible personal property that relates to tangible personal property

10 A supply of intangible personal property that relates to tangible personal property is made

• (a) in a participating province if the tangible personal property that is ordinarily located in Canada is ordinarily located primarily in participating provinces and

  • (i) an equal or greater proportion of the tangible personal property is not ordinarily located in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the tangible personal property is ordinarily located in another participating province; and

• (b) in a non-participating province if the tangible personal property that is ordinarily located in Canada is not ordinarily located primarily in participating provinces.

Marginal note:Same highest rate

11 If a supply of intangible personal property cannot be determined under paragraph 6(2)(c) or 8(c) or subparagraph 9(a)(ii) or 10(a)(ii) to be made in a single participating province because the tax rates for two or more participating provinces (each of which is referred to in this section as a “specified province”) are the same, the supply is made in the specified province where the business address of the supplier that is most closely connected with the supply is located or, if the business address of the supplier that is most closely connected with the supply is not located in one of the specified provinces, in the specified province that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.

DIVISION 3Services

Marginal note:Application

12 This Division does not apply to a service to which any of sections 4 to 5 of Part VI or Part VII or VIII of Schedule IX to the Act applies.

Marginal note:General rule for services — address obtained

• 13 (1) Subject to sections 14 to 17, a supply of a service is made in a province if, in the ordinary course of business of the supplier, the supplier obtains an address in the province that is

  • (a) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address in Canada obtained by the supplier;

  • (b) if the supplier obtains more than one address described in paragraph (a), the address described in that paragraph that is most closely connected with the supply; or

  • (c) in any other case, the address in Canada of the recipient that is most closely connected with the supply.

• Marginal note:General rule for services — no address obtained

  (2) Subject to subsection (1) and sections 14 to 17, a supply of a service is made

  • (a) in a participating province if the Canadian element of the service is performed primarily in participating provinces and

    • (i) an equal or greater proportion of the Canadian element of the service is not performed in another participating province, or

    • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and

  • (b) in a non-participating province if the Canadian element of the service is not performed primarily in participating provinces.

Marginal note:Services in relation to real property

14 A supply of a service in relation to real property is made

• (a) in a participating province if the real property that is situated in Canada is situated primarily in participating provinces and

  • (i) an equal or greater proportion of the real property is not situated in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the real property is situated in another participating province; and

• (b) in a non-participating province if the real property that is situated in Canada is not situated primarily in participating provinces.

Marginal note:Services in relation to tangible personal property

15 If a person makes a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed and, at all times when the Canadian element of the service is performed, the tangible personal property remains in the province in which it was situated at the particular time, the supply is made

• (a) in a participating province if the tangible personal property is situated primarily in participating provinces at the particular time and

  • (i) an equal or greater proportion of the tangible personal property is not situated in another participating province at the particular time, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the tangible personal property is situated in another participating province at the particular time; and

• (b) in a non-participating province if the tangible personal property is not situated primarily in participating provinces at the particular time.

Marginal note:Services in relation to tangible personal property

16 If a person makes a supply of a service in relation to tangible personal property that is situated in one or more provinces at the particular time when the Canadian element of the service begins to be performed and, at any time during the period when the Canadian element of the service is performed, the tangible personal property does not remain in the province in which it was situated at the particular time, the supply is made

• (a) in a participating province if the tangible personal property is situated primarily in participating provinces at any time when the service is performed, the Canadian element of the service is performed primarily in participating provinces and

  • (i) an equal or greater proportion of the service is not performed in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and

• (b) in a non-participating province if the tangible personal property is not situated primarily in participating provinces at all times when the service is performed or the Canadian element of the service is not performed primarily in participating provinces.

Marginal note:Personal services

17 A supply of a service (other than an advisory, consulting or professional service) all or substantially all of which is performed in the presence of the individual to whom it is rendered is made

• (a) in a participating province if the Canadian element of the service is performed primarily in participating provinces and

  • (i) an equal or greater proportion of the service is not performed in another participating province, or

  • (ii) if subparagraph (i) does not apply, the tax rate for the participating province is the highest among the participating provinces for which no greater proportion of the service is performed in another participating province; and

• (b) in a non-participating province if the Canadian element of the service is not performed primarily in participating provinces.

Marginal note:Same highest rate

18 If a supply of a service cannot be determined under any of subparagraphs 13(2)(a)(ii), 14(a)(ii), 15(a)(ii), 16(a)(ii) and 17(a)(ii) to be made in a single participating province because the tax rates for two or more participating provinces (each of which is referred to in this section as a “specified province”) are the same, the supply is made in the specified province where the business address of the supplier that is most closely connected with the supply is located or, if the business address of the supplier that is most closely connected with the supply is not located in one of the specified provinces, in the specified province that is closest in proximity, determined in any reasonable manner, to the business address of the supplier that is most closely connected with the supply.

DIVISION 4Transportation Services

Marginal note:Application

19 This Division applies despite Divisions 2 and 3.

Marginal note:Definitions

20 The following definitions apply in this Division.

leg

leg of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes. (étape)

origin

origin of a continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (point d’origine)

stopover

stopover, in respect of a continuous journey, has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey. (escale)

termination

termination of a continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (destination finale)

Marginal note:Passenger transportation services

21 A supply of a passenger transportation service is made

• (a) in a participating province if the passenger transportation service

  • (i) is part of a continuous journey in respect of which there is a ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the origin is a place in the participating province, and

    • (B) the termination and all stopovers in respect of the continuous journey are in Canada,

  • (ii) is part of a continuous journey in respect of which there is no ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the passenger transportation service included in the continuous journey that is provided first cannot begin otherwise than in the participating province, and

    • (B) the termination and all stopovers in respect of the continuous journey are in Canada, or

  • (iii) is not part of a continuous journey and

    • (A) the passenger transportation service begins in the participating province, and

    • (B) the passenger transportation service ends in Canada; and

• (b) in a non-participating province if the passenger transportation service

  • (i) is part of a continuous journey in respect of which there is a ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the origin is a place outside the participating provinces, or

    • (B) the termination or a stopover in respect of the continuous journey is outside Canada,

  • (ii) is part of a continuous journey in respect of which there is no ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

    • (A) the passenger transportation service included in the continuous journey that is provided first cannot begin in a participating province, or

    • (B) the termination or a stopover in respect of the continuous journey is outside Canada, or

  • (iii) is not part of a continuous journey and

    • (A) the passenger transportation service begins outside the participating provinces, or

    • (B) the passenger transportation service ends outside Canada.

Marginal note:Passenger transportation pass — special case

• 22 (1) If, at the time when a supply of intangible personal property that is, or is similar to, a passenger transportation pass entitling an individual to one or more passenger transportation services is made, the supplier can determine that each passenger transportation service could not begin otherwise than in the same participating province and would terminate in Canada, the supply of the intangible personal property is made in that participating province.

• Marginal note:Passenger transportation pass — special case

  (2) If, at the time when a supply of intangible personal property that is, or is similar to, a passenger transportation pass entitling an individual to one or more passenger transportation services is made, the supplier can determine that each passenger transportation service could not begin otherwise than in a non-participating province or would terminate outside Canada, the supply of the intangible personal property is made in a non-participating province.

Marginal note:Property or services supplied on board a conveyance

23 If a supply of property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and the property or service is delivered, performed or made available on board the conveyance during any leg of the journey that begins in any province and ends in any province, the supply is made in the province in which that leg of the journey begins.

DIVISION 5Special Cases

Marginal note:Application

24 This Division applies despite Divisions 2 and 3.

Marginal note:Customs brokerage services

• 25 (1) If a supply of a service is made in respect of the importation of goods and the service is the arranging for their release (as defined in subsection 2(1) of the Customs Act) or the fulfilling, in respect of the importation, of any requirement under that Act or the Customs Tariff to account for the goods, to report, to provide information or to remit any amount,

  • (a) if the goods are accounted for as commercial goods (as defined in subsection 212.1(1) of the Act) under section 32 of the Customs Act, the supply is made in the province in which the goods are situated at the time of their release;

  • (b) if paragraph (a) does not apply and tax, calculated at the tax rate for a participating province, is imposed under subsection 212.1(2) of the Act, or would be so imposed if subsections 212.1(3) and (4) and section 213 of the Act did not apply, in respect of the importation, the supply is made in that participating province; and

  • (c) in any other case, the supply is made in a non-participating province.

• Marginal note:Exception

  (2) Subsection (1) does not apply to the supply of any service provided in relation to an objection, appeal, redetermination, re-appraisal, review, refund, abatement, remission or drawback, or in relation to a request for any of the foregoing.

Marginal note:Railway rolling stock

• 26 (1) A supply of railway rolling stock otherwise than by way of sale is made in a particular province if the supplier delivers the rolling stock or makes it available to the recipient of the supply in that province.

• Marginal note:Place of supply for lease interval

  (2) If a supply of railway rolling stock is made in a particular province by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1) of the Act) in the period during which possession or use of the rolling stock is provided under the arrangement, the supply of the rolling stock for each of the other lease intervals in that period is, despite subsection (1), made in that province.

• Marginal note:Renewal of agreement

  (3) Subject to subsections (4) to (6), for the purposes of this section, if continuous possession or use of railway rolling stock is given by a supplier to a recipient throughout a period under two or more successive leases, licenses or similar arrangements entered into between the supplier and the recipient, the rolling stock is deemed to have been delivered or made available to the recipient under each of those arrangements at the location at which it is delivered or made available to the recipient under the first of those arrangements.

• Marginal note:Agreements entered into before April 1, 1997

  (4) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 1997 and, under the particular agreement, the rolling stock was delivered or made available to the recipient before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

• Marginal note:Agreements entered into before July 1, 2010

  (5) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on July 1, 2010 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Ontario or British Columbia before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

• Marginal note:Agreements entered into before April 1, 2013

  (6) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 2013 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Prince Edward Island before that day,

  • (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and

  • (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock.

Marginal note:Services rendered in connection with litigation

27 A supply of a service 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 province, or in the nature of an appeal from a decision of a court or other tribunal established under the laws of a province, is made in that province.

Marginal note:Services in relation to a location-specific event

28 A supply of a service in relation to a performance, athletic or competitive event, festival, ceremony, conference or similar event is made in a province if the service is to be performed primarily at a location of the event in the province.

Marginal note:Photographic-related good, repair service, etc.

29 If a supplier receives particular tangible personal property of another person for the purpose of supplying a service of repairing, maintaining, cleaning, adjusting or altering the property or of producing a negative, transparency, photographic print or other photographic-related good, the supply of the service (and of any property supplied in connection with it) or of the photographic-related good is made in a particular province if the supplier delivers the particular tangible personal property or the photographic-related good, as the case may be, in that province to the recipient of the supply after the service or production of the photographic-related good is completed.

Marginal note:Service of trustee of RRSP, RRIF, RESP, RDSP or TFSA

30 A supply of a service in respect of a trust governed by an RRSP, an RRIF, an RESP, an RDSP or a TFSA provided by a trustee of the trust is made in a particular province if the mailing address of the annuitant of the RRSP or RRIF, of the subscriber of the RESP or of the holder of the RDSP or TFSA is in that province.

Marginal note:1-900 or 976 service

31 A supply of a service provided by telephone and accessed by calling a number beginning with the digits 1-900 or containing the local telephone prefix 976 is made in a particular province if the telephone call originates in that province.

Marginal note:Single final recipient of computer-related service or Internet access

• 32 (1) When a particular supplier makes a particular supply of a computer-related service or access to the Internet and there is to be only one final recipient of the service or access, as the case may be, that acquires it under an agreement either with the particular supplier or another supplier,

  • (a) if there is a single ordinary location at which the final recipient avails themselves of the service or access, that location is in a particular province and either the particular supplier maintains information sufficient to determine that location or it is the normal business practice of the particular supplier to obtain information sufficient to determine that location, the particular supply is made in that province; and

  • (b) in any other case, the particular supply is made in a particular province if the mailing address of the recipient of the particular supply is in that province.

• Marginal note:Multiple final recipients of computer-related service or Internet access

  (2) When a particular supplier makes a particular supply of a computer-related service or access to the Internet and there are to be multiple final recipients of the service or access, each of which acquires it under an agreement with the particular supplier or another supplier,

  • (a) if, in the case of each of those final recipients, there is a single ordinary location at which the final recipient avails themselves of the service or access and either the particular supplier maintains information sufficient to determine that location or it is the normal business practice of the particular supplier to obtain information sufficient to determine that location, the particular supply is made in the province, if any, that would be determined under Division 2 or 3 to be the province in which the particular supply is made if the service were performed, or the access were attainable, as the case may be, in each province in which, and to the same extent to which, the final recipients avail themselves of the service or access; and

  • (b) if a province in which the particular supply is made is not determined under paragraph (a), the particular supply is made in a particular province if the mailing address of the recipient of the particular supply is in that province.

Definition of leg

• 33 (1) In this section, leg means a part of a flight of an aircraft that begins where passengers embark or disembark the aircraft, where freight is loaded on the aircraft or unloaded from it or where the aircraft is stopped to allow for its servicing or refuelling, and that ends where it is next stopped for any of those purposes.

• Marginal note:Air navigation services

  (2) A supply of air navigation services (as defined in subsection 2(1) of the Civil Air Navigation Services Commercialization Act) is made in a particular province if the leg of the flight in respect of which the services are performed originates in the province.

Marginal note:Specified motor vehicle

33.1 If a supply by way of sale of a specified motor vehicle is made and the supplier maintains evidence satisfactory to the Minister that, on or before the day that is seven days after the day on which the vehicle was delivered or made available in a participating province to the recipient of the supply, the vehicle was registered, otherwise than temporarily, under the laws of another province relating to the registration of motor vehicles by or on behalf of the recipient, the supply is made in that other province.

Marginal note:Screening services

33.2 A supply of a service of screening made by a screening contractor to the Authority (as those terms are defined in section 2 of the Canadian Air Transport Security Authority Act) is made in a province if all or substantially all of the service is performed at an airport situated in the province.

PART 1.1Participating Provinces and Applicable Tax Rates

Marginal note:Prince Edward Island — harmonization date

• 33.3 (1) For the purposes of paragraph (c) of the definition harmonization date in subsection 123(1) of the Act, the prescribed date in the case of Prince Edward Island is April 1, 2013.

• Marginal note:Prince Edward Island — participating province

  (2) For the purposes of paragraph (b) of the definition participating province in subsection 123(1) of the Act, Prince Edward Island is a prescribed province.

• Marginal note:Prince Edward Island — tax rate

  (3) For the purposes of paragraph (a) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for Prince Edward Island is 10%.

Marginal note:New Brunswick — tax rate

33.4 For the purposes of paragraph (a) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for New Brunswick is 10%.

Marginal note:Newfoundland and Labrador — tax rate

• 33.5 (1) For the purposes of paragraph (a) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for Newfoundland and Labrador is 10%.

• Marginal note:Newfoundland offshore area — tax rate

  (2) For the purposes of paragraph (b) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for the Newfoundland offshore area is 10%.

PART 2Anti-Avoidance Rules Relating to Harmonization

Marginal note:Application

34 This Part applies despite any provision of the Act.

Marginal note:Variation of agreement — new harmonized province

35 If

• (a) at any time before the harmonization date for a participating province, a supplier and a recipient enter into an agreement for a taxable supply of property or a service,

• (b) the supplier and the recipient at a later time either directly or indirectly

  • (i) vary or alter the agreement for the supply, or

  • (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a),

• (c) the supplier, the recipient and, if applicable, the other persons are not dealing with each other at arm’s length at the time the agreement referred to in paragraph (a) is entered into or at the later time,

• (d) tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply referred to in paragraph (a) would have been, in the absence of the variation, alteration or termination of the agreement, calculated at the tax rate for the participating province on all or part of the value of the consideration for the supply attributable to the property or service,

• (e) tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply made under the varied or altered agreement or made under any of the new agreements, in the absence of this section, would not apply to, or would be calculated at a rate that is less than the tax rate for the participating province on, any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply referred to in paragraph (a) would have been, in the absence of the variation, alteration or termination of the agreement, calculated at the tax rate for the participating province, and

• (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, reduce, avoid or defer tax or any other amount payable under Part IX of the Act or benefit in any manner from the participating province becoming a participating province,

tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate at which tax would have been calculated under paragraph (d) on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service.

Marginal note:Variation of agreement — change in tax rate

36 If

• (a) at any time before the particular date on which a change in the tax rate for a participating province applies in respect of a taxable supply of property or a service, a supplier and a recipient enter into an agreement for a taxable supply of the property or service,

• (b) the supplier and the recipient at a later time either directly or indirectly

  • (i) vary or alter the agreement for the supply, or

  • (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a),

• (c) the supplier, the recipient and, if applicable, the other persons are not dealing with each other at arm’s length at the time the agreement referred to in paragraph (a) is entered into or at the later time,

• (d) tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply referred to in paragraph (a) would have been, in the absence of the variation, alteration or termination of the agreement, calculated on all or part of the value of the consideration for the supply attributable to the property or service at the tax rate (in this section referred to as the “higher rate”) for the participating province that is the greater of

  • (i) the tax rate for the participating province that applies immediately before the particular date in respect of a taxable supply of the property or service, and

  • (ii) the tax rate for the participating province that applies on the particular date in respect of a taxable supply of the property or service,

• (e) tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply made under the varied or altered agreement or made under any of the new agreements, in the absence of this section, would not apply to, or would be calculated at a rate that is less than the higher rate on, any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply referred to in paragraph (a) would have been, in the absence of the variation, alteration or termination of the agreement, calculated at the higher rate, and

• (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, reduce, avoid or defer tax or any other amount payable under Part IX of the Act or benefit in any manner from the rate change,

tax under subsection 165(2) or section 218.1 of the Act or Division IV.1 of Part IX of the Act in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate at which tax would have been calculated under paragraph (d) on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service.

Marginal note:Definitions

• 37 (1) The following definitions apply in this section.

  harmonization event

  harmonization event means the transition by a province to the new harmonized value-added tax system or any change referred to in paragraph 277.1(3)(a) of the Act as “provincial tax policy flexibility”. (opération d’harmonisation)

  person

  person does not include a consumer. (personne)

  tax benefit

  tax benefit means a reduction, an avoidance or a deferral of tax or other amount payable under Part IX of the Act or an increase in a refund or rebate of tax or other amount under that Part. (avantage fiscal)

  transaction

  transaction has the same meaning as in subsection 274(1) of the Act. (opération)

• Marginal note:Harmonization event — transactions

  (2) If

  • (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made,

  • (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a tax benefit to one or more of the persons involved in the transaction or series of transactions, and

  • (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit, arising from a harmonization event, for one or more of the persons involved in the transaction or series of transactions,

  the amount of tax, net tax, input tax credit, rebate or other amount payable by, or refundable to, any of those persons under Part IX of the Act, or any other amount that is relevant for the purposes of computing that amount, shall be determined as is reasonable in the circumstances in order to deny the tax benefit to any of those persons.

• Marginal note:Denying tax benefit on transactions

  (3) A tax benefit shall only be denied under subsection (2) through an assessment, reassessment or additional assessment under Part IX of the Act.

• Marginal note:Request for adjustments

  (4) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day on which the notice was sent, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction.

• Marginal note:Duties of Minister

  (5) On receipt of a request by a person under subsection (4), the Minister shall, with all due dispatch, consider the request and, despite subsections 298(1) and (2) of the Act, assess, reassess or make an additional assessment under Part IX of the Act with respect to the person, except that the assessment, reassessment or additional assessment may be made only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (4).

PART 3Ontario and British Columbia General HST Transitional Rules

DIVISION 1Interpretation

Marginal note:Definitions

• 38 (1) The following definitions apply in this Part.

  harmonized provinces

  harmonized provinces means the participating provinces and includes Ontario and British Columbia. (provinces harmonisées)

  reciprocal taxation agreement

  reciprocal taxation agreement means an agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements Act. (accord de réciprocité fiscale)

  retail sales tax

  retail sales tax means a general retail sales tax imposed under an Act of the legislature of a specified province at a percentage rate on property other than that which is specifically enumerated in that Act. (taxe de vente au détail)

  specified province

  specified province means Ontario or British Columbia. (province déterminée)

• Marginal note:Conflict

  (2) This Part applies despite any provision of the Act.

DIVISION 2Application

Marginal note:Personal property and services

• 39 (1) Subject to Division 3, subsection 165(2) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property, intangible personal property or a service made in a specified province if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after July 1, 2010 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Imported goods — section 212.1

  (2) Subject to Division 3, section 212.1 of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that section apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is imported by a person resident in a specified province on or after July 1, 2010, and to such property that is imported by a person resident in a specified province before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Imported goods — subsection 220.07(1)

  (3) Subject to Division 3, subsection 220.07(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into a specified province from a place outside Canada on or after July 1, 2010, and to such property that is brought into a specified province from a place outside Canada before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Tangible personal property brought into a specified province

  (4) Subject to Division 3, subsections 220.05(1) and 220.06(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into a specified province on or after July 1, 2010, and to such property that is brought into a specified province before that day by a carrier if the property is delivered in the specified province to a consignee on or after that day.

• Marginal note:Tangible personal property supplied outside Canada

  (5) Subject to Division 3, subsection 218.1(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after July 1, 2010 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Consumption, use or supply in a specified province

  (6) Subject to Division 3, subsections 218.1(1) and 220.08(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to any supply of intangible personal property or a service acquired for consumption, use or supply in a specified province if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after July 1, 2010 and is not deemed to have become due or to have been paid before that day, except that, if the supply is made to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, tax is not payable under those subsections (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

DIVISION 3Transition

Marginal note:Net tax

• 40 (1) If a person collects, before July 1, 2010, a particular amount as or on account of tax (other than tax under subsection 165(1) of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on July 1, 2010 and not to have been paid before that day, for the purpose of determining the net tax of the person under subsection 225(1) of the Act, the particular amount is deemed to have been collected by the person on July 1, 2010 and not to have been collected before that day.

• Marginal note:Input tax credits and rebates

  (2) If a person pays, before July 1, 2010, a particular amount as or on account of tax (other than tax under subsection 165(1) or section 218 of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on July 1, 2010 and not to have been paid before that day, for the purpose of determining an input tax credit or rebate of the person under Part IX of the Act, the particular amount is deemed to have been paid by the person on July 1, 2010 and not to have been paid before that day.

• Marginal note:Continuous supply

  (3) For the purposes of this Part, if property or a service is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility during a period that includes July 1, 2010 and for which the supplier issues an invoice and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property is delivered, or the service is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, during the period is deemed to have been delivered or provided, as the case may be, on each day of the period.

Marginal note:Transfer of tangible personal property before July 2010

• 41 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply by way of sale of tangible personal property made in a specified province to a person to the extent that

  • (a) the property is delivered to the person before July 1, 2010; or

  • (b) ownership of the property is transferred to the person before July 1, 2010.

• Marginal note:Imported taxable supply

  (2) No tax is payable under subsection 218.1(1) of the Act in respect of any consideration for an imported taxable supply (as defined in section 217 of the Act) of tangible personal property made to a person if

  • (a) the property is delivered or made available to the person in a specified province before July 1, 2010; or

  • (b) physical possession of the property is transferred to the person in a specified province before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (3) For the purpose of applying subsection 165(2) of the Act to a taxable supply by way of sale of tangible personal property made in a specified province, any consideration for the supply that becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, in respect of property that is not delivered to the recipient, and the ownership of which is not transferred to the recipient, before July 1, 2010, is deemed to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid after April 2010

  (4) For the purpose of applying subsection 218.1(1) of the Act to a taxable supply by way of sale of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, any consideration for the supply that becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, in respect of property that is not delivered or made available to the person, or the physical possession of which is not transferred to the person, as the case may be, before July 1, 2010, is deemed to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid before May 2010

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made in a specified province by a registrant to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and neither ownership nor possession of the tangible personal property is transferred to the person before July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Consideration due or paid before May 2010

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made outside Canada to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and the tangible personal property is delivered or made available, or physical possession of the property is transferred, in a specified province to the person on or after July 1, 2010, for the purposes of applying subsection 218.1(1) of the Act to the supply, that amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required, despite subsection 218.1(2) of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply by way of sale of tangible personal property made to a person if

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

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2) or 218.1(1) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 of the Act does not apply in respect of the tax and the person shall, before November 1, 2010, 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 — subscriptions

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of any consideration paid before July 1, 2010 for a taxable supply made in a specified province of a subscription for newspapers, magazines or other publications published periodically.

• Marginal note:Exercise of option to purchase

  (10) No tax under subsection 165(2) of the Act is payable in respect of a taxable supply by way of sale of tangible personal property made in a specified province to a person if

  • (a) the person was the recipient of another supply of the tangible personal property by way of lease, licence or similar arrangement;

  • (b) the taxable supply is made as a consequence of the person exercising, after July 1, 2010, an option to purchase the tangible personal property provided for under the arrangement referred to in paragraph (a); and

  • (c) retail sales tax of the specified province in respect of the sale of the tangible personal property became payable before July 1, 2010 or would have become payable before that day if the tangible personal property or the person, as the case may be, were not exempt from that tax.

• Marginal note:Application

  (11) This section does not apply to a supply to which section 46 or 54 applies.

Marginal note:Lease or licence periods before July 2010

• 42 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of property by way of lease, licence or similar arrangement made in a specified province to the extent that the consideration is a rent, royalty or similar payment attributable to a period before July 1, 2010.

• Marginal note:Lease or licence periods before July 2010

  (2) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of property by way of lease, licence or similar arrangement made outside the harmonized provinces to the extent that the consideration is a rent, royalty or similar payment attributable to a period before July 1, 2010, if the supply is made to

  • (a) a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador; or

  • (b) a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province.

• Marginal note:Rent and royalties due or paid after April 2010

  (3) If a taxable supply of property by way of lease, licence or similar arrangement is made in a specified province and an amount of consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, that amount of consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid after April 2010

  (4) If a taxable supply of property by way of lease, licence or similar arrangement is made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, or to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, and an amount of consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, that amount of consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid before May 2010

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made in a specified province by a registrant to a person that is not a consumer of the property becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Rent and royalties due or paid before May 2010

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made outside the harmonized provinces to a person that is not a consumer of the property and that is resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, or to a person that is not a consumer of the property and to which the property is delivered or made available in a specified province or to which physical possession of the property is transferred in a specified province, becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply of property by way of lease, licence or similar arrangement made to a person if

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

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before November 1, 2010, 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:Lease or licence period ending before July 31, 2010

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made in a specified province if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before July 1, 2010 and ends before July 31, 2010.

• Marginal note:Lease or licence period ending before July 31, 2010

  (10) Despite subsections (4) and (6), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before July 1, 2010 and ends before July 31, 2010.

• Marginal note:Exception — subsections (9) and (10)

  (11) Subsections (9) and (10) do not apply in respect of consideration for a supply of property that is a rent, royalty or 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

  (12) Subsections (1) to (6), (9) and (10) do not apply in respect of an amount of consideration for a supply of intangible personal property if the amount of the consideration 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.

Marginal note:Definitions

• 43 (1) In this section, continuous freight movement, freight transportation service and shipper have the same meanings as in subsection 1(1) of Part VII of Schedule VI to the Act.

• Marginal note:Services partly performed before July 2010

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service made in a specified province to the extent that the consideration relates to any part of the service that is performed before July 1, 2010.

• Marginal note:Services partly performed before July 2010

  (3) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador to the extent that the consideration relates to any part of the service that is performed before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (4) If a taxable supply of a service is made in a specified province and any consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the consideration relates to any part of the service that is not performed before July 1, 2010, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid after April 2010

  (5) If a taxable supply of a service is made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, and any consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the consideration relates to any part of the service that is not performed before July 1, 2010, that consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid before May 2010

  (6) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made in a specified province by a registrant to a person that is not a consumer of the service becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is for a part of the service that is not performed before July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (9), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Consideration due or paid before May 2010

  (7) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made outside the harmonized provinces to a person that is not a consumer of the service and that is resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is for a part of the service that is not performed before July 1, 2010, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (9), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (6) and (7)

  (8) Subsections (6) and (7) do not apply in respect of a supply of a service made to a person if

  • (a) the service is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the service, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (6) and (7)

  (9) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (6) or (7),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before November 1, 2010, 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:Services substantially all performed before July 2010

  (10) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 45 applies) made in a specified province if all or substantially all of the service is performed before July 1, 2010.

• Marginal note:Services substantially all performed before July 2010

  (11) Despite subsections (5) and (7), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 45 applies) to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador if all or substantially all of the service is performed before July 1, 2010.

• Marginal note:Passenger transportation services commencing before July 2010

  (12) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in a specified province of a passenger transportation service, or of a service of transporting an individual’s baggage in connection with a passenger transportation service, if the passenger transportation service is part of a continuous journey that begins before July 1, 2010.

• Marginal note:Freight transportation services commencing before July 2010

  (13) Despite subsections (4) and (6), if one or more carriers make a taxable supply in a specified province of freight transportation services in respect of a continuous freight movement of tangible personal property and, before July 1, 2010, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply.

• Marginal note:Application

  (14) This section does not apply to a supply to which section 46 applies.

Marginal note:Reduction in consideration — subsection 220.08(1)

44 If a particular amount of consideration for a taxable supply made in a specified province to a person resident in Nova Scotia, New Brunswick or Newfoundland and Labrador becomes due, or is paid without having become due, at a particular time that is on or after May 1, 2010 and, as a consequence of this Part, tax under subsection 165(2) of the Act is only payable in respect of a portion of the particular amount, for the purpose of determining an amount of tax payable by the person under subsection 220.08(1) of the Act, the value of the consideration for the supply that becomes due, or is paid, at the particular time is deemed to be equal to the particular amount less that portion.

Marginal note:Continuous supplies

• 45 (1) If a supply of property or a service that is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility is made in a specified province to a person, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply to the extent that the consideration is attributable to

  • (a) property that is delivered or made available to the person before July 1, 2010; or

  • (b) any part of the service that is performed or made available before July 1, 2010.

• Marginal note:Application

  (2) This section does not apply to a supply to which section 46 applies.

Marginal note:Budget arrangements

• 46 (1) If a registrant makes a supply of property or a service in a specified province under a budget payment arrangement relating to a particular period that begins before July 1, 2010 and ends on or after that day, the budget payment arrangement provides for a reconciliation of the payments of consideration for the supply that are made during the particular period and the reconciliation is to take place at or after the end of the period and before July 1, 2011, the registrant shall, at the time the registrant issues an invoice for the reconciliation, calculate the positive or negative amount determined by the formula

  A - B

  where

  A

  is the tax that would be payable under subsection 165(2) of the Act by the recipient in respect of the property, service or part thereof delivered, performed or made available on or after July 1, 2010 if the consideration for the supply of that property, service or part had become due and had been paid on or after July 1, 2010; and

  B

  is the total tax that was payable under subsection 165(2) of the Act by the recipient in respect of the supply of the property or service delivered, performed or made available during the particular period.

• Marginal note:Collection of tax

  (2) If the amount calculated by a registrant under subsection (1) is a positive amount,

  • (a) the amount is deemed to be tax payable under subsection 165(2) of the Act by the recipient in respect of the supply; and

  • (b) the registrant is deemed to have collected the amount on the day on which the invoice for the reconciliation is issued.

• Marginal note:Refund of excess

  (3) If the amount calculated by a registrant under subsection (1) is a negative amount,

  • (a) the registrant shall refund or credit the amount to the recipient;

  • (b) the registrant shall issue a credit note for the amount of the refund or credit; and

  • (c) section 232 of the Act applies as if the credit note were issued under that section.

Definition of funeral services

• 47 (1) In this section, funeral services has the same meaning as in subsection 344(1) of the Act.

• Marginal note:Funeral arrangements — trustee

  (2) No tax is payable by a trustee under subsection 165(2) of the Act in respect of a supply made in a specified province of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in the specified province, if

  • (a) the arrangement is entered into in writing before July 1, 2010;

  • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by the trustee and the trustee is responsible for acquiring funeral services in respect of the individual; and

  • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death.

• Marginal note:Funeral arrangements — other

  (3) No tax is payable under subsection 165(2) of the Act in respect of a supply made in a specified province of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in the specified province, if

  • (a) the arrangement is entered into in writing at any time before July 1, 2010; and

  • (b) at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death.

Definition of interment property

• 47.1 (1) In this section, interment property means real property that is for the interment, entombment or inurnment of human remains.

• Marginal note:Interment property

  (2) No tax is payable under subsection 165(2) of the Act in respect of a supply of interment property made by way of lease, licence or similar arrangement in a specified province under an agreement for the supply of interment property if the agreement is entered into in writing before July 1, 2010.

Marginal note:Memberships and admissions — application

• 48 (1) This section does not apply to a supply of a right to acquire a membership in a club, an organization or an association.

• Marginal note:Period of membership or admission before July 2010

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in a specified province of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or a taxable supply made in a specified province of an admission in respect of a place of amusement, a seminar, an activity or an event to the extent that the consideration relates to any part of the period of membership or admission that is before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (3) If a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event is made in a specified province and any consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the consideration relates to any part of the period of membership or admission that is on or after July 1, 2010, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day.

• Marginal note:Consideration due or paid before May 2010

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in a specified province by a registrant to a person that is not a consumer of the membership or admission becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is for a part of the period of membership or admission that was not before July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception — subsection (4)

  (5) Subsection (4) does not apply in respect of a supply of a membership or an admission made to a person if

  • (a) the membership or admission is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the membership or admission, the total amount of tax under subsection 165(2) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before November 1, 2010, 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:Period of membership or admission substantially all before July 2010

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in a specified province if all or substantially all of the period of membership or admission was before July 1, 2010.

• Marginal note:Lifetime memberships

  (8) For the purpose of applying subsection 165(2) of the Act to a taxable supply of a membership for the lifetime of an individual made in a specified province, if the total of all amounts that were paid after October 14, 2009 and before July 1, 2010 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

• Marginal note:Lifetime memberships

  (9) For the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to a supply of a membership for the lifetime of an individual made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, if the total of all amounts that were paid after October 14, 2009 and before July 1, 2010 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

Definition of validity period

• 49 (1) In this section, validity period of a passenger transportation pass means

  • (a) the period throughout which the passenger transportation pass entitles an individual to transportation services; or

  • (b) if the period described in paragraph (a) is not ascertainable at the time when the passenger transportation pass is supplied to a person, the period beginning on the day the passenger transportation pass is delivered or made available to the recipient of the supply and ending on the day on which the passenger transportation pass expires or, in the absence of an expiration date, ending on July 1, 2012.

• Marginal note:Validity period before July 2010

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a passenger transportation pass made in a specified province to the extent that the consideration is attributable to any part of the validity period of the passenger transportation pass that is before July 1, 2010.

• Marginal note:Consideration due or paid after April 2010

  (3) If a taxable supply of a passenger transportation pass is made in a specified province and any consideration for the passenger transportation pass becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that any consideration is attributable to any part of the validity period of the passenger transportation pass that is after June 30, 2010, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before July 1, 2010.

• Marginal note:Consideration due or paid before May 2010

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a passenger transportation pass made in a specified province by a registrant to a person that is not a consumer of the passenger transportation pass becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is attributable to a part of the validity period of the passenger transportation pass that is after June 30, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception

  (5) Subsection (4) does not apply in respect of a supply of a passenger transportation pass made to a person if

  • (a) the passenger transportation pass is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the passenger transportation pass, the total amount of tax under subsection 165(2) of the Act that would be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before November 1, 2010, 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:Validity period ending before August 2010

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply made in a specified province of a passenger transportation pass in respect of which the validity period begins before July 1, 2010 and ends before August 1, 2010.

Marginal note:Tangible personal property returned after June 2010

50 Where a person purchased tangible personal property in a specified province from a supplier before July 1, 2010 and paid retail sales tax in respect of the tangible personal property and, on or after July 1, 2010 and before November 1, 2010, the person returns the tangible personal property in exchange for other tangible personal property that the supplier supplies to the person in the specified province,

• (a) if the consideration for the supply of the other property exceeds the consideration for the returned property, tax under subsection 165(2) of the Act in respect of the other property applies only on the excess amount; and

• (b) if the consideration for the supply of the other property is less than or equal to the consideration for the returned property, no tax under subsection 165(2) of the Act is payable in respect of the supply of the other property.

Marginal note:Progress payments

51 Despite any other provision of this Part, if a taxable supply is made in a specified province under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel,

• (a) any consideration for the supply that becomes due, or is paid without having become due, after October 14, 2009 and before July 1, 2010 as a progress payment that is required under the contract, or as a holdback from such a progress payment, is deemed, for the purpose of applying subsection 165(2) of the Act, to have become due on July 1, 2010 and not to have been paid before that day;

• (b) no tax is payable under subsection 165(2) of the Act in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before July 1, 2010; and

• (c) where paragraph 168(3)(c) of the Act applies in respect of the supply, tax under subsection 165(2) of the Act is payable in respect of the supply and the construction, renovation, alteration or repair is substantially completed before June 2010, for the purpose of applying subsection 165(2) of the Act, the construction, renovation, alteration or repair is deemed to have been substantially completed on June 1, 2010 and not before that day.

Marginal note:Combined supply

52 Where a particular supply that includes a combination of personal property, real property or a service (each of which in this section is referred to as an “element”) is made in a specified province, the consideration for each element is not separately identified and no tax would, if a particular element that is property the ownership or possession of which is transferred to the recipient before July 1, 2010 were supplied separately, be payable under subsection 165(2) of the Act in respect of that particular element, for the purpose of applying tax under that subsection in respect of the supply, the particular element is deemed to have been supplied separately from all of the other elements.

Marginal note:Adjustments

• 53 (1) If a person pays tax as a consequence of the application of subsection 41(5) or (6), 42(5) or (6), 43(6) or (7), 48(4) or 49(4) calculated on the whole or part of the consideration for a taxable supply and that whole or part is subsequently reduced, to the extent that the person did not claim, and would not be, in the absence of this section, entitled to claim, an input tax credit or a rebate in respect of the portion of the tax payable under subsection 165(2), 218.1(1) or 220.08(1) of the Act that was calculated on the amount by which the whole or part was reduced, that portion is deemed, for the purpose of determining a rebate under section 261 of the Act, to be an amount that was not payable or remittable by the person.

• Marginal note:Application

  (2) Subsection (1) does not apply in circumstances in which section 161 of the Act applies.

Marginal note:Definitions

• 54 (1) In this section, direct seller, distributor, exclusive product and independent sales contractor have the same meanings as in section 178.1 of the Act.

• Marginal note:Exclusive products held on July 1, 2010

  (2) If before July 1, 2010, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a specified province, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act.

• Marginal note:Prepayments for exclusive products not delivered by July 1, 2010

  (3) If before July 1, 2010, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect,

  • (a) the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect,

  • (b) consideration for the supply becomes due, or is paid without having become due, after October 14, 2009 and before July 1, 2010,

  • (c) the exclusive product is not delivered to the independent sales contractor before July 1, 2010, and

  • (d) the exclusive product is to be held by the independent sales contractor for sale in a specified province,

  for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act.

• Marginal note:Exclusive products held on July 1, 2010

  (4) If before July 1, 2010, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a specified province, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the distributor is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1) of the Act.

• Marginal note:Prepayments for exclusive products not delivered by July 1, 2010

  (5) If before July 1, 2010, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect,

  • (a) the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect,

  • (b) consideration for the supply becomes due, or is paid without having become due, after October 14, 2009 and before July 1, 2010,

  • (c) the exclusive product is not delivered to the independent sales contractor before July 1, 2010, and

  • (d) the exclusive product is to be held by the independent sales contractor for sale in a specified province,

  for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the distributor is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1) of the Act.

Marginal note:Reciprocal taxation agreements

55 Subsections 41(3) to (6), 42(3) to (6), 43(4) to (7), 48(3), (4), (8) and (9) and 49(3) and (4) do not apply in respect of any consideration for a supply made to a person listed in

• (a) Part II of Schedule A of the reciprocal taxation agreement entered into between the Government of Canada and the Government of Ontario that is in force between July 1, 2006 and June 30, 2010; or

• (b) Schedule A of the reciprocal taxation agreement entered into between the Government of Canada and the Government of British Columbia that is in force between November 1, 2005 and June 30, 2010.

DIVISION 4Special Cases

Marginal note:Employee and shareholder benefits — Ontario

• 56 (1) In respect of the 2010 taxation year, if

  • (a) a benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Ontario, or

  • (b) a benefit amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Ontario at the end of the year

  the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

  8%, and

• Marginal note:Employee and shareholder benefits — British Columbia

  (2) In respect of the 2010 taxation year, if

  • (a) a benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in British Columbia, or

  • (b) a benefit amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in British Columbia at the end of the year

  the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

  7.5%, and

Marginal note:Election for shorter reporting period

57 Any person that, immediately before July 1, 2010, is resident in a specified province and registered under Subdivision d of Division V of Part IX of the Act may, subject to section 250 of the Act,

• (a) if the reporting period of the person immediately before July 1, 2010 is a fiscal quarter, make an election under section 246 of the Act to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a) of the Act, on the first day of any fiscal quarter of the person that begins before July 1, 2011; and

• (b) if the reporting period of the person immediately before July 1, 2010 is a fiscal year,

  • (i) make an election under section 246 of the Act to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a) of the Act, on the first day of any fiscal month of the person that begins before July 1, 2011, or

  • (ii) make an election under section 247 of the Act to have reporting periods that are fiscal quarters of the person to take effect, despite paragraph 247(1)(a) of the Act, on the first day of any fiscal quarter of the person that begins before July 1, 2011.

Marginal note:Revocation of election for streamlined accounting

• 58 (1) If a registrant that has made an election under subsection 227(1) of the Act that is in effect on July 1, 2010 is resident in a specified province immediately before July 1, 2010 or has made supplies in a specified province in the one-year period ending immediately before July 1, 2010, the registrant may, despite paragraph 227(4.1)(a) of the Act but subject to paragraph 227(4.1)(b) of the Act, revoke that election under subsection 227(4) of the Act with effect from

  • (a) if the reporting period of the registrant that includes July 1, 2010 is a fiscal year of the registrant, the first day of any fiscal month of the registrant that begins before July 1, 2011; and

  • (b) in any other case, the first day of any reporting period of the registrant that begins before July 1, 2011.

• Marginal note:New reporting period if election

  (2) If a registrant whose reporting period is a fiscal year revokes an election under subsection 227(4) of the Act in accordance with subsection (1) with effect from the first day of a particular fiscal month in a fiscal year of the registrant and that month is not the first fiscal month in that fiscal year,

  • (a) for the purposes of Part IX of the Act, the period beginning on the first day of that fiscal year and ending immediately before the first day of the particular fiscal month and the period beginning on the first day of the particular fiscal month and ending on the last day of that fiscal year are each deemed to be a separate reporting period of the registrant; and

  • (b) for the purposes of subsections 237(1) and (2) of the Act, each of those separate reporting periods is deemed to be a reporting period determined under subsection 248(3) of the Act.

Marginal note:Instalment base following harmonization

• 58.1 (1) Despite subsection 237(2) of the Act, if a registrant (other than a selected listed financial institution) to which subsection 237(1) of the Act applies is resident in a specified province and is not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador and a reporting period of the registrant begins in 2010, for the purpose of determining the amount of instalment payments under subsection 237(1) of the Act, if any, that become payable after the first fiscal quarter of the registrant beginning on or after July 1, 2010, the registrant’s instalment base for the reporting period is equal to the lesser of

  • (a) the amount determined under paragraph 237(2)(a) of the Act, and

  • (b) 240% of the amount determined under paragraph 237(2)(b) of the Act.

• Marginal note:Instalment base following harmonization

  (2) Despite subsection 237(2) of the Act, if a registrant (other than a selected listed financial institution) to which subsection 237(1) of the Act applies is resident in a specified province and in Nova Scotia, New Brunswick or Newfoundland and Labrador and a reporting period of the registrant begins in 2010, for the purpose of determining the amount of instalment payments under subsection 237(1) of the Act, if any, that become payable after the first fiscal quarter of the registrant beginning on or after July 1, 2010, the registrant’s instalment base for the reporting period is equal to the amount determined under paragraph 237(2)(a) of the Act.

• Marginal note:Selected listed financial institutions — instalments in transitional year

  (3) Despite subsection 237(1) of the Act, if a particular reporting period of a selected listed financial institution (other than an investment plan, as defined in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) ends in a particular fiscal year ending in a taxation year of the financial institution and the particular fiscal year begins before July 1, 2010 and ends on or after that day, the instalment to be paid under that subsection within one month after the end of each fiscal quarter ending on or after that day in the particular reporting period is the amount determined under whichever of the following paragraphs the financial institution has elected in prescribed form to determine the instalments for those fiscal quarters under:

  • (a) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a) of the Act, and

    • (ii) the amount determined by the formula

      A + (B/4)

      where

      A

      is the total of all amounts, each of which is determined, for a harmonized province, by the formula

      [C × D × (E/F) × (G/365)]/H

      where

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act,

      D

      is the lesser of the financial institution’s percentage for the harmonized province and for the taxation year and the financial institution’s percentage for the harmonized province and for the preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      E

      is the tax rate for the harmonized province,

      F

      is 5%,

      G

      is the number of days in the particular reporting period after June 2010, and

      H

      is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period, and

      B

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act;

  • (b) the amount determined by the formula

    A + (B/4)

    where

    A

    is the total of all amounts, each of which is determined, for a harmonized province, by the formula

    [C × D × (E/F) × (G/365)]/H

    where

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act,

    D

    is the financial institution’s percentage for the harmonized province and for the preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    E

    is the tax rate for the harmonized province,

    F

    is 5%,

    G

    is the number of days in the particular reporting period after June 2010, and

    H

    is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period, and

    B

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act;

  • (c) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a) of the Act, and

    • (ii) the amount determined by the formula

      A + B + (C/4)

      where

      A

      is the total of all amounts, each of which is determined, for a harmonized province, by the formula

      [[(D – E) × F × (G/H) × (I/365)] – J]/K

      where

      D

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable,

      • (B) all amounts each of which is tax under subsection 165(1) of the Act in respect of a supply (other than a supply to which clause (C) applies) made to the financial institution that would, but for an election made under section 150 of the Act, have become payable by the financial institution during the particular reporting period, and

      • (C) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Act,

      E

      is the total of

      • (A) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V of Part IX of the Act filed by the financial institution for the particular reporting period, and

      • (B) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under clause (B) or (C) of the description of D in respect of the supply,

      F

      is the lesser of the financial institution’s percentage for the harmonized province and for the taxation year and the financial institution’s percentage for the harmonized province and for the preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      G

      is the tax rate for the harmonized province,

      H

      is 5%,

      I

      is the number of days in the particular reporting period after June 2010,

      J

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) under subsection 165(2) of the Act in respect of supplies made in the harmonized province to the financial institution or under section 212.1 of the Act in respect of goods imported by the financial institution for use in the harmonized province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

      • (B) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 or 218.1 or Division IV.1 of Part IX of the Act that is included in the cost to the other person of supplying the property or service to the financial institution, and

      K

      is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period,

      B

      is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2) of the Act, and

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act; or

  • (d) the amount determined by the formula

    A + B + (C/4)

    where

    A

    is the total of all amounts, each of which is determined, for a harmonized province, by the formula

    [[(D – E) × F × (G/H) × (I/365)] – J]/K

    where

    D

    is the total of

    • (i) all tax (other than an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act by the financial institution during a reporting period (in this paragraph referred to as the “earlier reporting period”) of the financial institution ending in the 12-month period preceding the particular reporting period or that was paid by the financial institution during the earlier reporting period without having become payable,

    • (ii) all amounts each of which is tax under subsection 165(1) of the Act in respect of a supply (other than a supply to which subparagraph (iii) applies) made to the financial institution that would, but for an election made under section 150 of the Act, have become payable by the financial institution during the earlier reporting period, and

    • (iii) all amounts each of which is an amount, in respect of a supply made during the earlier reporting period of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Act,

    E

    is the total of

    • (i) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) of the financial institution for the earlier reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V of Part IX of the Act filed by the financial institution for the earlier reporting period, and

    • (ii) all amounts each of which would be an input tax credit of the financial institution for the earlier reporting period of the financial institution in respect of property or a service if tax became payable during the earlier reporting period in respect of the supply of the property or service equal to the amount included for the earlier reporting period under subparagraph (ii) or (iii) of the description of D in respect of the supply,

    F

    is the financial institution’s percentage for the harmonized province and for the preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    G

    is the tax rate for the harmonized province,

    H

    is 5%,

    I

    is the number of days in the particular reporting period after June 2010,

    J

    is the total of

    • (i) all tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a), and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) under subsection 165(2) of the Act in respect of supplies made in the harmonized province to the financial institution or under section 212.1 of the Act in respect of goods imported by the financial institution for use in the harmonized province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

    • (ii) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 or 218.1 or Division IV.1 of Part IX of the Act that is included in the cost to the other person of supplying the property or service to the financial institution, and

    K

    is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period,

    B

    is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2) of the Act, and

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act.

• Marginal note:Information requirements

  (4) For the purposes of this section, subsections 169(4) and (5) and 223(2) of the Act apply with respect to any amount that is included in the description of J in paragraphs (3)(c) and (d) as if that amount were an input tax credit.

• Marginal note:Exclusions

  (5) No amount of tax paid or payable by a selected listed financial institution in respect of property or services acquired, imported or brought into a harmonized province otherwise than for consumption, use or supply in the course of an endeavour, as defined in subsection 141.01(1) of the Act, of the financial institution is to be included in determining the instalment to be paid by the financial institution under subsection (3).

PART 3.1Prince Edward Island General HST Transitional Rules

DIVISION 1Interpretation

Marginal note:Definitions

• 58.2 (1) The following definitions apply in this Part.

  reciprocal taxation agreement

  reciprocal taxation agreement means an agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements Act. (accord de réciprocité fiscale)

  retail sales tax

  retail sales tax means a general retail sales tax imposed under an Act of the legislature of Prince Edward Island at a percentage rate on property other than that which is specifically enumerated in that Act. (taxe de vente au détail)

• Marginal note:Conflict

  (2) This Part applies despite any provision of the Act.

DIVISION 2Application

Marginal note:Personal property and services

• 58.21 (1) Subject to Division 3, subsection 165(2) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property, intangible personal property or a service made in Prince Edward Island if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Imported goods — section 212.1 of Act

  (2) Subject to Division 3, section 212.1 of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that section apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is imported by a person resident in Prince Edward Island on or after April 1, 2013, and to such property that is imported by a person resident in Prince Edward Island before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Imported goods — subsection 220.07(1) of Act

  (3) Subject to Division 3, subsection 220.07(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into Prince Edward Island from a place outside Canada on or after April 1, 2013, and to such property that is brought into Prince Edward Island from a place outside Canada before that day and that is, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act.

• Marginal note:Tangible personal property brought into Prince Edward Island

  (4) Subject to Division 3, subsections 220.05(1) and 220.06(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to tangible personal property, a mobile home that is not affixed to land and a floating home, any of which is brought into Prince Edward Island on or after April 1, 2013, and to such property that is brought into Prince Edward Island before that day by a carrier if the property is delivered in Prince Edward Island to a consignee on or after that day.

• Marginal note:Tangible personal property supplied outside Canada

  (5) Subject to Division 3, subsection 218.1(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under that subsection apply to any supply of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that tax is not payable under that subsection (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Consumption, use or supply in Prince Edward Island

  (6) Subject to Division 3, subsections 218.1(1) and 220.08(1) of the Act and the other provisions of Part IX of the Act (other than Divisions IX and X of that Part) relating to tax under those subsections apply to any supply of intangible personal property or a service acquired for consumption, use or supply in Prince Edward Island if all or part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after April 1, 2013 and is not deemed to have become due or to have been paid before that day, except that, if the supply is made to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, tax is not payable under those subsections (otherwise than because of Division 3) in respect of any part of the consideration for the supply that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

DIVISION 3Transition

Marginal note:Net tax

• 58.22 (1) If a person collects, before April 1, 2013, a particular amount as or on account of tax (other than tax under subsection 165(1) of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on April 1, 2013 and not to have been paid before that day, for the purpose of determining the net tax of the person under subsection 225(1) of the Act, the particular amount is deemed to have been collected by the person on April 1, 2013 and not to have been collected before that day.

• Marginal note:Input tax credits and rebates

  (2) If a person pays, before April 1, 2013, a particular amount as or on account of tax (other than tax under subsection 165(1) or section 218 of the Act) in respect of a supply, calculated on an amount of consideration for the supply that is deemed, under this Part, to have become due on April 1, 2013 and not to have been paid before that day, for the purpose of determining an input tax credit or rebate of the person under Part IX of the Act, the particular amount is deemed to have been paid by the person on April 1, 2013 and not to have been paid before that day.

• Marginal note:Continuous supply

  (3) For the purposes of this Part, if property or a service is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility during a period that includes April 1, 2013 and for which the supplier issues an invoice and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property is delivered, or the service is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, during the period is deemed to have been delivered or provided, as the case may be, on each day of the period.

Marginal note:Transfer of tangible personal property before April 2013

• 58.23 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply by way of sale of tangible personal property made in Prince Edward Island to a person to the extent that

  • (a) the property is delivered to the person before April 1, 2013; or

  • (b) ownership of the property is transferred to the person before April 1, 2013.

• Marginal note:Imported taxable supply

  (2) No tax is payable under subsection 218.1(1) of the Act in respect of any consideration for an imported taxable supply (as defined in section 217 of the Act) of tangible personal property made to a person if

  • (a) the property is delivered or made available to the person in Prince Edward Island before April 1, 2013; or

  • (b) physical possession of the property is transferred to the person in Prince Edward Island before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (3) For the purpose of applying subsection 165(2) of the Act to a taxable supply by way of sale of tangible personal property made in Prince Edward Island, any consideration for the supply that becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, in respect of property that is not delivered to the recipient, and the ownership of which is not transferred to the recipient, before April 1, 2013, is deemed to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid after January 2013

  (4) For the purpose of applying subsection 218.1(1) of the Act to a taxable supply by way of sale of tangible personal property made outside Canada to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, any consideration for the supply that becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, in respect of property that is not delivered or made available to the person, or the physical possession of which is not transferred to the person, as the case may be, before April 1, 2013, is deemed to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made in Prince Edward Island by a registrant to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and neither ownership nor possession of the tangible personal property is transferred to the person before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Consideration due or paid before February 2013

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply by way of sale of tangible personal property made outside Canada to a person that is not a consumer of the tangible personal property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and the tangible personal property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island to the person on or after April 1, 2013, for the purposes of applying subsection 218.1(1) of the Act to the supply, that amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) of the Act payable in respect of the supply on that amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply by way of sale of tangible personal property made to a person if

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

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2) or 218.1(1) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 of the Act does not apply in respect of the tax and the person shall, before August 1, 2013, 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 — subscriptions

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of any consideration paid before April 1, 2013 for a taxable supply made in Prince Edward Island of a subscription for newspapers, magazines or other publications published periodically.

• Marginal note:Exercise of option to purchase

  (10) No tax under subsection 165(2) of the Act is payable in respect of a taxable supply by way of sale of tangible personal property made in Prince Edward Island to a person if

  • (a) the person was the recipient of another supply of the tangible personal property by way of lease, licence or similar arrangement;

  • (b) the taxable supply is made as a consequence of the person exercising, after April 1, 2013, an option to purchase the tangible personal property provided for under the arrangement referred to in paragraph (a); and

  • (c) retail sales tax of Prince Edward Island in respect of the sale of the tangible personal property became payable before April 1, 2013 or would have become payable before that day if the tangible personal property or the person, as the case may be, were not exempt from that tax.

• Marginal note:Application

  (11) This section does not apply to a supply to which section 58.28 or 58.37 applies.

Marginal note:Lease or licence periods before April 2013

• 58.24 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island to the extent that the consideration is a rent, royalty or similar payment attributable to a period before April 1, 2013.

• Marginal note:Lease or licence periods before April 2013

  (2) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of property by way of lease, licence or similar arrangement made outside Prince Edward Island to the extent that the consideration is a rent, royalty or similar payment attributable to a period before April 1, 2013, if the supply is made to

  • (a) a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador; or

  • (b) a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island.

• Marginal note:Rent and royalties due or paid after January 2013

  (3) If a taxable supply of property by way of lease, licence or similar arrangement is made in Prince Edward Island and an amount of consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, that amount of consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid after January 2013

  (4) If a taxable supply of property by way of lease, licence or similar arrangement is made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, or to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, and an amount of consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, that amount of consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Rent and royalties due or paid before February 2013

  (5) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island by a registrant to a person that is not a consumer of the property becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Rent and royalties due or paid before February 2013

  (6) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made outside Prince Edward Island to a person that is not a consumer of the property and that is resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, or to a person that is not a consumer of the property and to which the property is delivered or made available in Prince Edward Island or to which physical possession of the property is transferred in Prince Edward Island, becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after April 1, 2013, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (5) and (6)

  (7) Subsections (5) and (6) do not apply in respect of a supply of property by way of lease, licence or similar arrangement made to a person if

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

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (5) and (6)

  (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before August 1, 2013, 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:Lease or licence period ending before May 1, 2013

  (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made in Prince Edward Island if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before April 1, 2013 and ends before May 1, 2013.

• Marginal note:Lease or licence period ending before May 1, 2013

  (10) Despite subsections (4) and (6), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made to a person to which the property is delivered or made available, or physical possession of the property is transferred, in Prince Edward Island, if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before April 1, 2013 and ends before May 1, 2013.

• Marginal note:Exception — subsections (9) and (10)

  (11) Subsections (9) and (10) do not apply in respect of consideration for a supply of property that is a rent, royalty or 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

  (12) Subsections (1) to (6), (9) and (10) do not apply in respect of an amount of consideration for a supply of intangible personal property if the amount of the consideration 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.

Marginal note:Definitions

• 58.25 (1) In this section, continuous freight movement, freight transportation service and shipper have the same meanings as in subsection 1(1) of Part VII of Schedule VI to the Act.

• Marginal note:Services partly performed before April 2013

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service made in Prince Edward Island to the extent that the consideration relates to any part of the service that is performed before April 1, 2013.

• Marginal note:Services partly performed before April 2013

  (3) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador to the extent that the consideration relates to any part of the service that is performed before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (4) If a taxable supply of a service is made in Prince Edward Island and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the service that is not performed before April 1, 2013, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid after January 2013

  (5) If a taxable supply of a service is made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the service that is not performed before April 1, 2013, that consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (6) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made in Prince Edward Island by a registrant to a person that is not a consumer of the service becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the service that is not performed before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (9), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Consideration due or paid before February 2013

  (7) Subject to subsection (8), if an amount of consideration for a taxable supply of a service made outside Prince Edward Island to a person that is not a consumer of the service and that is resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the service that is not performed before April 1, 2013, for the purposes of applying subsection 218.1(1) or 220.08(1) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (9), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration.

• Marginal note:Exception — subsections (6) and (7)

  (8) Subsections (6) and (7) do not apply in respect of a supply of a service made to a person if

  • (a) the service is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the service, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsections (6) and (7)

  (9) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (6) or (7),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before August 1, 2013, 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:Services substantially all performed before April 2013

  (10) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 58.27 applies) made in Prince Edward Island if all or substantially all of the service is performed before April 1, 2013.

• Marginal note:Services substantially all performed before April 2013

  (11) Despite subsections (5) and (7), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of a service (other than a freight transportation service, a passenger transportation service or a service to which section 58.27 applies) to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador if all or substantially all of the service is performed before April 1, 2013.

• Marginal note:Passenger transportation services commencing before April 2013

  (12) Despite subsections (4) and (6), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in Prince Edward Island of a passenger transportation service, or of a service of transporting an individual’s baggage in connection with a passenger transportation service, if the passenger transportation service is part of a continuous journey that begins before April 1, 2013.

• Marginal note:Freight transportation services commencing before April 2013

  (13) Despite subsections (4) and (6), if one or more carriers make a taxable supply in Prince Edward Island of freight transportation services in respect of a continuous freight movement of tangible personal property and, before April 1, 2013, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply.

• Marginal note:Application

  (14) This section does not apply to a supply to which section 58.28 applies.

Marginal note:Reduction in consideration — subsection 220.08(1) of Act

58.26 If a particular amount of consideration for a taxable supply made in Prince Edward Island to a person resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador becomes due, or is paid without having become due, at a particular time that is on or after February 1, 2013 and, as a consequence of this Part, tax under subsection 165(2) of the Act is only payable in respect of a portion of the particular amount, for the purpose of determining an amount of tax payable by the person under subsection 220.08(1) of the Act, the value of the consideration for the supply that becomes due, or is paid, at the particular time is deemed to be equal to the particular amount less that portion.

Marginal note:Continuous supplies

• 58.27 (1) If a supply of property or a service that is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility is made in Prince Edward Island to a person, no tax is payable under subsection 165(2) of the Act in respect of any consideration for the supply to the extent that the consideration is attributable to

  • (a) property that is delivered or made available to the person before April 1, 2013; or

  • (b) any part of the service that is performed or made available before April 1, 2013.

• Marginal note:Application

  (2) This section does not apply to a supply to which section 58.28 applies.

Marginal note:Budget arrangements

• 58.28 (1) If a registrant makes a supply of property or a service in Prince Edward Island under a budget payment arrangement relating to a particular period that begins before April 1, 2013 and ends on or after that day, the budget payment arrangement provides for a reconciliation of the payments of consideration for the supply that are made during the particular period and the reconciliation is to take place at or after the end of the period and before April 1, 2014, the registrant shall, at the time the registrant issues an invoice for the reconciliation, calculate the positive or negative amount determined by the formula

  A – B

  where

  A

  is the tax that would be payable under subsection 165(2) of the Act by the recipient in respect of the property, service or part thereof delivered, performed or made available on or after April 1, 2013 if the consideration for the supply of that property, service or part had become due and had been paid on or after April 1, 2013; and

  B

  is the total tax that was payable under subsection 165(2) of the Act by the recipient in respect of the supply of the property or service delivered, performed or made available during the particular period.

• Marginal note:Collection of tax

  (2) If the amount calculated by a registrant under subsection (1) is a positive amount,

  • (a) the amount is deemed to be tax payable under subsection 165(2) of the Act by the recipient in respect of the supply; and

  • (b) the registrant is deemed to have collected the amount on the day on which the invoice for the reconciliation is issued.

• Marginal note:Refund of excess

  (3) If the amount calculated by a registrant under subsection (1) is a negative amount,

  • (a) the registrant shall refund or credit the amount to the recipient;

  • (b) the registrant shall issue a credit note for the amount of the refund or credit; and

  • (c) section 232 of the Act applies as if the credit note were issued under that section.

Definition of funeral services

• 58.29 (1) In this section, funeral services has the same meaning as in subsection 344(1) of the Act.

• Marginal note:Funeral arrangements — trustee

  (2) No tax is payable by a trustee under subsection 165(2) of the Act in respect of a supply made in Prince Edward Island of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in Prince Edward Island, if

  • (a) the arrangement is entered into in writing before April 1, 2013;

  • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by the trustee and the trustee is responsible for acquiring funeral services in respect of the individual; and

  • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death.

• Marginal note:Funeral arrangements — other

  (3) No tax is payable under subsection 165(2) of the Act in respect of a supply made in Prince Edward Island of funeral services under an arrangement to supply funeral services in respect of an individual, or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) of the Act in respect of funeral services supplied under the arrangement for consumption or use in Prince Edward Island, if

  • (a) the arrangement is entered into in writing at any time before April 1, 2013; and

  • (b) at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death.

Definition of interment property

• 58.3 (1) In this section, interment property means real property that is for the interment, entombment or inurnment of human remains.

• Marginal note:Interment property

  (2) No tax is payable under subsection 165(2) of the Act in respect of a supply of interment property made by way of lease, licence or similar arrangement in Prince Edward Island under an agreement for the supply of interment property if the agreement is entered into in writing before April 1, 2013.

Marginal note:Memberships and admissions — application

• 58.31 (1) This section does not apply to a supply of a right to acquire a membership in a club, an organization or an association.

• Marginal note:Period of membership or admission before April 2013

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply made in Prince Edward Island of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or a taxable supply made in Prince Edward Island of an admission in respect of a place of amusement, a seminar, an activity or an event to the extent that the consideration relates to any part of the period of membership or admission that is before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (3) If a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event is made in Prince Edward Island and any consideration for the supply becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that the consideration relates to any part of the period of membership or admission that is on or after April 1, 2013, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before that day.

• Marginal note:Consideration due or paid before February 2013

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in Prince Edward Island by a registrant to a person that is not a consumer of the membership or admission becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is for a part of the period of membership or admission that was not before April 1, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception — subsection (4)

  (5) Subsection (4) does not apply in respect of a supply of a membership or an admission made to a person if

  • (a) the membership or admission is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the membership or admission, the total amount of tax under subsection 165(2) of the Act that would otherwise be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before August 1, 2013, 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:Period of membership or admission substantially all before April 2013

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a membership (other than a membership for the lifetime of an individual) in a club, an organization or an association or an admission in respect of a place of amusement, a seminar, an activity or an event made in Prince Edward Island if all or substantially all of the period of membership or admission was before April 1, 2013.

• Marginal note:Lifetime memberships

  (8) For the purpose of applying subsection 165(2) of the Act to a taxable supply of a membership for the lifetime of an individual made in Prince Edward Island, if the total of all amounts that were paid after November 8, 2012 and before April 1, 2013 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on April 1, 2013 and not to have been paid before April 1, 2013.

• Marginal note:Lifetime memberships

  (9) For the purpose of applying subsection 218.1(1) or 220.08(1) of the Act to a supply of a membership for the lifetime of an individual made outside Prince Edward Island to a person resident in Prince Edward Island and not resident in Ontario, Nova Scotia, New Brunswick, British Columbia or Newfoundland and Labrador, if the total of all amounts that were paid after November 8, 2012 and before April 1, 2013 as consideration for the supply exceeds 25% of the total consideration for the supply, the excess amount is deemed to have become due on April 1, 2013 and not to have been paid before April 1, 2013.

Definition of validity period

• 58.32 (1) In this section, validity period of a passenger transportation pass means

  • (a) the period throughout which the passenger transportation pass entitles an individual to transportation services; or

  • (b) if the period described in paragraph (a) is not ascertainable at the time when the passenger transportation pass is supplied to a person, the period beginning on the day the passenger transportation pass is delivered or made available to the recipient of the supply and ending on the day on which the passenger transportation pass expires or, in the absence of an expiration date, ending on April 1, 2015.

• Marginal note:Validity period before April 2013

  (2) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of a passenger transportation pass made in Prince Edward Island to the extent that the consideration is attributable to any part of the validity period of the passenger transportation pass that is before April 1, 2013.

• Marginal note:Consideration due or paid after January 2013

  (3) If a taxable supply of a passenger transportation pass is made in Prince Edward Island and any consideration for the passenger transportation pass becomes due, or is paid without having become due, on or after February 1, 2013 and before April 1, 2013, to the extent that any consideration is attributable to any part of the validity period of the passenger transportation pass that is after March 31, 2013, that consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on April 1, 2013 and not to have been paid before April 1, 2013.

• Marginal note:Consideration due or paid before February 2013

  (4) Subject to subsection (5), if an amount of consideration for a taxable supply of a passenger transportation pass made in Prince Edward Island by a registrant to a person that is not a consumer of the passenger transportation pass becomes due, or is paid without having become due, after November 8, 2012 and before February 1, 2013 and any part of the amount of consideration is attributable to a part of the validity period of the passenger transportation pass that is after March 31, 2013, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on April 1, 2013 and not to have been paid before that day and the person is required to pay, in accordance with subsection (6), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration.

• Marginal note:Exception

  (5) Subsection (4) does not apply in respect of a supply of a passenger transportation pass made to a person if

  • (a) the passenger transportation pass is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

  • (b) the person

    • (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the passenger transportation pass, the total amount of tax under subsection 165(2) of the Act that would be payable by the person in respect of the supply, and

    • (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and

  • (c) the person is neither

    • (i) a registrant that is a selected listed financial institution, nor

    • (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

• Marginal note:Payment of tax — subsection (4)

  (6) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (4),

  • (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes April 1, 2013 is required to be filed on or before a particular day that is before August 1, 2013, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and

  • (b) in any other case, the person shall, before August 1, 2013, 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:Validity period ending before May 2013

  (7) Despite subsections (3) and (4), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply made in Prince Edward Island of a passenger transportation pass in respect of which the validity period begins before April 1, 2013 and ends before May 1, 2013.

Marginal note:Tangible personal property returned after March 2013

58.33 Where a person purchased tangible personal property in Prince Edward Island from a supplier before April 1, 2013 and paid retail sales tax in respect of the tangible personal property and, on or after April 1, 2013 and before August 1, 2013, the person returns the tangible personal property in exchange for other tangible personal property that the supplier supplies to the person in Prince Edward Island,

• (a) if the consideration for the supply of the other property exceeds the consideration for the returned property, tax under subsection 165(2) of the Act in respect of the other property applies only on the excess amount; and

• (b) if the consideration for the supply of the other property is less than or equal to the consideration for the returned property, no tax under subsection 165(2) of the Act is payable in respect of the supply of the other property.

Marginal note:Progress payments

58.34 Despite any other provision of this Part, if a taxable supply is made in Prince Edward Island under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel,

• (a) any consideration for the supply that becomes due, or is paid without having become due, after November 8, 2012 and before April 1, 2013 as a progress payment that is required under the contract, or as a holdback from such a progress payment, is deemed, for the purpose of applying subsection 165(2) of the Act, to have become due on April 1, 2013 and not to have been paid before that day;

• (b) no tax is payable under subsection 165(2) of the Act in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before April 1, 2013; and

• (c) where paragraph 168(3)(c) of the Act applies in respect of the supply, tax under subsection 165(2) of the Act is payable in respect of the supply and the construction, renovation, alteration or repair is substantially completed before March 2013, for the purpose of applying subsection 165(2) of the Act, the construction, renovation, alteration or repair is deemed to have been substantially completed on March 1, 2013 and not before that day.

Marginal note:Combined supply

58.35 Where a particular supply that includes a combination of personal property, real property or a service (each of which in this section is referred to as an “element”) is made in Prince Edward Island, the consideration for each element is not separately identified and no tax would, if a particular element that is property the ownership or possession of which is transferred to the recipient before April 1, 2013 were supplied separately, be payable under subsection 165(2) of the Act in respect of that particular element, for the purpose of applying tax under that subsection in respect of the supply, the particular element is deemed to have been supplied separately from all of the other elements.

Marginal note:Adjustments

• 58.36 (1) If a person pays tax as a consequence of the application of subsection 58.23(5) or (6), 58.24(5) or (6), 58.25(6) or (7), 58.31(4) or 58.32(4) calculated on the whole or part of the consideration for a taxable supply and that whole or part is subsequently reduced, to the extent that the person did not claim, and would not be, in the absence of this section, entitled to claim, an input tax credit or a rebate in respect of the portion of the tax payable under subsection 165(2), 218.1(1) or 220.08(1) of the Act that was calculated on the amount by which the whole or part was reduced, that portion is deemed, for the purpose of determining a rebate under section 261 of the Act, to be an amount that was not payable or remittable by the person.

• Marginal note:Application

  (2) Subsection (1) does not apply in circumstances in which section 161 of the Act applies.

Marginal note:Definitions

• 58.37 (1) In this section, direct seller, distributor, exclusive product and independent sales contractor have the same meanings as in section 178.1 of the Act.

• Marginal note:Exclusive products held on April 1, 2013

  (2) If before April 1, 2013, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in Prince Edward Island, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on April 1, 2013 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act.

• Marginal note:Prepayments for exclusive products not delivered by April 1, 2013

  (3) If before April 1, 2013, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect,

  • (a) the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect,

  • (b) consideration for the supply becomes due, or is paid without having become due, after November 8, 2012 and before April 1, 2013,

  • (c) the exclusive product is not delivered to the independent sales contractor before April 1, 2013, and

  • (d) the exclusive product is to be held by the independent sales contractor for sale in Prince Edward Island,

  for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on April 1, 2013 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act.

• Marginal note:Adaptation — subparagraph 178.3(1)(a)(i) of Act

  (4) In applying subsection 178.3(1) of the Act in respect of a deemed supply under subsection (2) or (3), subparagraph 178.3(1)(a)(i) is adapted as follows:

  • (i) that becomes due, and is paid, at a particular time that is at the beginning of April 1, 2013, and

• Marginal note:Exclusive products held on April 1, 2013

  (5) If before April 1, 2013, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in Prince Edward Island, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the distributor is deemed to have made, and the independent sales contractor is deemed to have received, on April 1, 2013 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1) of the Act.

• Marginal note:Prepayments for exclusive products not delivered by April 1, 2013

  (6) If before April 1, 2013, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect,

  • (a) the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect,

  • (b) consideration for the supply becomes due, or is paid without having become due, after November 8, 2012 and before April 1, 2013,

  • (c) the exclusive product is not delivered to the independent sales contractor before April 1, 2013, and

  • (d) the exclusive product is to be held by the independent sales contractor for sale in Prince Edward Island,

  for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the distributor is deemed to have made, and the independent sales contractor is deemed to have received, on April 1, 2013 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1) of the Act.

• Marginal note:Adaptation — subparagraph 178.4(1)(a)(i) of Act

  (7) In applying subsection 178.4(1) of the Act in respect of a deemed supply under subsection (5) or (6), subparagraph 178.4(1)(a)(i) of the Act is adapted as follows:

  • (i) that becomes due, and is paid, at a particular time that is at the beginning of April 1, 2013, and

Marginal note:Reciprocal taxation agreements

58.38 Subsections 58.23(3) to (6), 58.24(3) to (6), 58.25(4) to (7), 58.31(3), (4), (8) and (9) and 58.32(3) and (4) do not apply in respect of any consideration for a supply made to a person listed in Schedule A of the reciprocal taxation agreement entered into between the Government of Canada and the Government of Prince Edward Island that is applicable on March 31, 2013.

DIVISION 4Special Cases

Marginal note:Employee and shareholder benefits

• 58.39 (1) In respect of the 2013 taxation year, if

  • (a) a benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Prince Edward Island, or

  • (b) a benefit amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Prince Edward Island at the end of the year

  the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

  10.75%, and

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a supply if section 37 of the New Harmonized Value-added Tax System Regulations, No. 2 applies for the purpose of determining an amount of tax under subparagraph 173(1)(d)(vi) of the Act in respect of an amount that includes the benefit amount referred to in subsection (1) in respect of the supply.

Marginal note:Election for shorter reporting period

58.4 Any person that, immediately before April 1, 2013, is resident in Prince Edward Island and registered under Subdivision d of Division V of Part IX of the Act may, subject to section 250 of the Act,

• (a) if the reporting period of the person immediately before April 1, 2013 is a fiscal quarter, make an election under section 246 of the Act to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a) of the Act, on the first day of any fiscal quarter of the person that begins before April 1, 2014; and

• (b) if the reporting period of the person immediately before April 1, 2013 is a fiscal year,

  • (i) make an election under section 246 of the Act to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a) of the Act, on the first day of any fiscal month of the person that begins before April 1, 2014, or

  • (ii) make an election under section 247 of the Act to have reporting periods that are fiscal quarters of the person to take effect, despite paragraph 247(1)(a) of the Act, on the first day of any fiscal quarter of the person that begins before April 1, 2014.

Marginal note:Revocation of election for streamlined accounting

• 58.41 (1) If a registrant that has made an election under subsection 227(1) of the Act that is in effect on April 1, 2013 is resident in Prince Edward Island immediately before April 1, 2013 or has made supplies in Prince Edward Island in the one-year period ending immediately before April 1, 2013, the registrant may, despite paragraph 227(4.1)(a) of the Act but subject to paragraph 227(4.1)(b) of the Act, revoke that election under subsection 227(4) of the Act with effect from

  • (a) if the reporting period of the registrant that includes April 1, 2013 is a fiscal year of the registrant, the first day of any fiscal month of the registrant that begins before April 1, 2014; and

  • (b) in any other case, the first day of any reporting period of the registrant that begins before April 1, 2014.

• Marginal note:New reporting period if election

  (2) If a registrant whose reporting period is a fiscal year revokes an election under subsection 227(4) of the Act in accordance with subsection (1) with effect from the first day of a particular fiscal month in a fiscal year of the registrant and that month is not the first fiscal month in that fiscal year,

  • (a) for the purposes of Part IX of the Act, the period beginning on the first day of that fiscal year and ending immediately before the first day of the particular fiscal month and the period beginning on the first day of the particular fiscal month and ending on the last day of that fiscal year are each deemed to be a separate reporting period of the registrant; and

  • (b) for the purposes of subsections 237(1) and (2) of the Act, each of those separate reporting periods is deemed to be a reporting period determined under subsection 248(3) of the Act.

Marginal note:Adaptation — paragraph 172.1(5)(a) of Act

58.42 If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after March 2013, for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(5)(c) of the Act for Prince Edward Island in respect of a taxable supply of all or part of the property or service that is deemed to have been made under paragraph 172.1(5)(a) of the Act, the description of F in the third formula in paragraph 172.1(5)(c) of the Act is adapted to be read as “is 0; and”.

Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

58.43 In respect of a fiscal year of a person that includes April 1, 2013, for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(6)(c) of the Act for Prince Edward Island and for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(7)(c) of the Act for Prince Edward Island, the third formula in paragraph 172.1(6)(c) of the Act and the descriptions in that formula and the third formula in paragraph 172.1(7)(c) of the Act and the descriptions in that formula are adapted as follows:

(E × F) × (G/H)

where

E

is the amount determined for C,

F

is the provincial factor in respect of the pension plan and Prince Edward Island for the particular fiscal year,

G

is the number of days in the particular fiscal year after March 2013, and

H

is the number of days in the particular fiscal year; and

Marginal note:Subsection 218.1(1.2) of Act

58.44 The tax payable by a person under subsection 218.1(1.2) of the Act for the specified year (as defined in section 217 of the Act) of the person that includes April 1, 2013 and for Prince Edward Island is equal to the amount determined by the formula

Marginal note:Rebate for pension entities

58.45 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes April 1, 2013, the description of C in the formula in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is Prince Edward Island:

C

is the percentage determined by the formula

9% × (C₁/C₂)

where

C₁

is the number of days in the claim period after March 2013, and

C₂

is the number of days in the claim period, and

Marginal note:Exception — election to use production proxy

58.46 Despite subsection 31(9) of the New Harmonized Value-added Tax System Regulations, No. 2, if a person produces tangible personal property for sale and if the production of tangible personal property carried on by the person in Canada during the last fiscal year of the person that is before April 1, 2013 is carried on primarily in Prince Edward Island, an election made by the person under subsection 31(8) of those Regulations that sets out July 1, 2012 as the day on which the election is to become effective shall be filed with the Minister on or before September 1, 2014.

PART 3.2Newfoundland and Labrador — Rebate for Municipalities

Marginal note:Definitions

• 58.47 (1) The following definitions apply in this section.

  initial supply

  initial supply of a property by a person means

  • (a) if any supply by way of sale of the property was made by the person after July 15, 2015 but before 2016, the last supply by way of sale of the property made by the person before 2016; and

  • (b) in any other case, the first supply by way of sale of the property made by the person after 2015. (fourniture initiale)

  rebate entitlement

  rebate entitlement means the amount of a rebate that a person is entitled to claim under section 259 of the Act in respect of an acquisition of property or that the person would have been so entitled to claim if the property had been acquired for use exclusively in activities that are not commercial activities. (remboursement admissible)

  specified portion of the basic tax content

  specified portion of the basic tax content, at any time, of property of a person means the amount that would be the basic tax content of the property at that time if only amounts of tax under subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act were included in determining that basic tax content. (fraction déterminée de teneur en taxe)

  specified tax

  specified tax means an amount of tax payable under subsection 165(2), section 212.1 or 218.1 or Division IV.1 of Part IX of the Act. (taxe déterminée)

• Marginal note:Limitation — Newfoundland and Labrador municipalities

  (2) For the purposes of determining the rebate entitlement of a person for a claim period, as defined in subsection 259(1) of the Act, of the person that ends after 2015 in respect of all amounts of specified tax that are payable in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale and that are included in the provincial qualifying amount, as defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations, in respect of the property for the claim period of the person, or would have been so included if the property had been acquired for use exclusively in activities that are not commercial activities, that rebate entitlement (in this section referred to as the “specified rebate entitlement”) is to be adjusted, as applicable, in accordance with the rules set out in subsection (3) if

  • (a) the property is property of the person at any time before 2017;

  • (b) the person makes a particular taxable supply by way of sale of the property after July 15, 2015;

  • (c) the person is the recipient of another taxable supply of the property (in this section referred to as the “reacquisition”) after the time at which the particular taxable supply was made and an amount of specified tax in respect of the reacquisition becomes payable, or is paid without having become payable, on a particular day that is after 2015;

  • (d) on the last day of the claim period of the person that includes the particular day, or on the last day of the person’s fiscal year that includes that claim period,

    • (i) the person is a municipality, or

    • (ii) the person is a person that is designated to be a municipality for the purposes of section 259 of the Act and the property is designated municipal property of the person; and

  • (e) the particular taxable supply and the reacquisition of the property are part of a transaction or series of transactions that may not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, benefit in any manner from a change made to the specified provincial percentage, as defined in subsection 259(1) of the Act, applicable to the person in relation to Newfoundland and Labrador as a result of the Regulations Amending Various GST/HST Regulations, No. 7 (Newfoundland and Labrador — Rebate for Municipalities) being made.

• Marginal note:Amount of reduction

  (3) For the purposes of subsection (2), the adjustment rules are the following:

  • (a) if the reacquisition is a supply by way of sale, the specified rebate entitlement is reduced by the amount determined by the formula

    A − B

    where

    A

    is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, and

    B

    is the amount that would be, if no improvements had been made by the person to the property since the last acquisition of the property by the person and in the absence of this paragraph, the specified portion of the basic tax content of the property at the end of the claim period; and

  • (b) if the reacquisition is a supply made otherwise than by way of sale,

    • (i) if the total (in this paragraph referred to as the “total tax”) of all amounts, each of which is an amount of specified tax in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale that becomes payable, or is paid without having become payable, during the claim period, is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is nil, or

    • (ii) if subparagraph (i) does not apply and the total tax minus the amount that would be the specified rebate entitlement in the absence of this subparagraph is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is the amount determined by the formula

      A − B

      where

      A

      is the total tax, and

      B

      is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made.

PART 3.3New Brunswick Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.48 (1) If a builder makes a taxable supply of a residential complex in New Brunswick under an agreement of purchase and sale entered into after March 30, 2016 but before July 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 8% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.49 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after June 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for New Brunswick in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for New Brunswick on the last day of the particular fiscal year were 8%; and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes July 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for New Brunswick is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for New Brunswick on the last day of the particular fiscal year were the rate determined by the formula

  8% + (2% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after June 2016, and

  H

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.50 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in New Brunswick, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in New Brunswick at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

13%, and

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.51 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes July 1, 2016 and for New Brunswick, the tax rate for New Brunswick is deemed to be equal to the rate determined by the formula

Marginal note:Adaptation — rebate for pension entities

58.52 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes July 1, 2016, the description of C in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is New Brunswick:

C

is the rate determined by the formula

8% + (2% × C₁/C₂)

where

C₁

is the number of days in the claim period that are after June 2016, and

C₂

is the number of days in the claim period, and

PART 3.4Newfoundland and Labrador Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.53 (1) If a builder makes a taxable supply of a residential complex in Newfoundland and Labrador under an agreement of purchase and sale entered into after May 3, 2016 but before July 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 8% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.54 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after June 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for Newfoundland and Labrador in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Newfoundland and Labrador on the last day of the particular fiscal year were 8%; and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes July 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for Newfoundland and Labrador is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Newfoundland and Labrador on the last day of the particular fiscal year were the rate determined by the formula

  8% + (2% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after June 2016, and

  H

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.55 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Newfoundland and Labrador or the Newfoundland offshore area, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Newfoundland and Labrador at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

13%, and

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.56 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes July 1, 2016 and for Newfoundland and Labrador or the Newfoundland offshore area, the tax rate for those participating provinces is deemed to be equal to the rate determined by the formula

Marginal note:Adaptation — rebate for pension entities

58.57 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes July 1, 2016, the description of C in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is Newfoundland and Labrador:

C

is the rate determined by the formula

8% + (2% × C₁/C₂)

where

C₁

is the number of days in the claim period that are after June 2016, and

C₂

is the number of days in the claim period, and

PART 3.5Prince Edward Island Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.58 (1) If a builder makes a taxable supply of a residential complex in Prince Edward Island under an agreement of purchase and sale entered into after June 16, 2016 but before October 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 9% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.59 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after September 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for Prince Edward Island in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were 9%; and

• Marginal note:Adaptation — paragraph 172.1(5.1)(c) of Act

  (1.1) If a person acquires at any time property or a service for the purpose of making a supply of all or part of the property or service to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time and if the acquisition is not for the purpose of making a supply after September 2016 of any part of the property or service to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, then, for the purposes of determining the value for B in paragraph 172.1(5.1)(c) of the Act, the amount for Prince Edward Island in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5.1)(a) of the Act is determined by adapting the description of G in paragraph 172.1(5.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were 9%, and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after September 2016, and

  H

  is the number of days in the particular fiscal year; and

• Marginal note:Adaptation — paragraph 172.1(6.1)(c) of Act

  (3) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6.1)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of G in paragraph 172.1(6.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × I/J)

  where

  I

  is the number of days in the particular fiscal year that are after September 2016, and

  J

  is the number of days in the particular fiscal year; and

• Marginal note:Adaptation — paragraph 172.1(7.1)(c) of Act

  (4) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(7.1)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of G in paragraph 172.1(7.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the particular pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × I/J)

  where

  I

  is the number of days in the particular fiscal year that are after September 2016, and

  J

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.60 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Prince Edward Island, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Prince Edward Island at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows except in respect of section 37 of the New Harmonized Value-added Tax System Regulations, No. 2:

13.25%, and

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.61 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes October 1, 2016 and for Prince Edward Island, the tax rate for Prince Edward Island is deemed to be equal to the rate determined by the formula

Marginal note:Adaptation — rebate for pension entities

58.62 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes October 1, 2016, the description of C in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is Prince Edward Island:

C

is the rate determined by the formula

9% + (1% × C₁/C₂)

where

C₁

is the number of days in the claim period that are after September 2016, and

C₂

is the number of days in the claim period, and

PART 4Repeal

59 [Repeal]

PART 5Application

60 Sections 1 and 34 apply as of March 26, 2009, except that the definition continuous journey in section 1 applies as of February 26, 2010.

61 Parts 1 and 4 apply to any supply made

• (a) on or after May 1, 2010; and

• (b) after February 25, 2010 and before May 1, 2010 unless any part of the consideration for the supply becomes due or is paid before May 1, 2010.

62 Section 35 applies to any agreement varied, altered or terminated on or after March 26, 2009 and to any new agreement entered into on or after that day.

63 Section 36 applies to any agreement varied, altered or terminated on or after April 6, 2010 and to any new agreement entered into on or after that day.

64 Section 37 applies to any transaction made on or after March 26, 2009.

65 Part 3 is deemed to have come into force on October 15, 2009.