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New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Regulations are current to 2022-09-22 and last amended on 2019-03-04. Previous Versions

New Harmonized Value-added Tax System Regulations

SOR/2010-117

EXCISE TAX ACT

Registration 2010-05-31

New Harmonized Value-added Tax System Regulations

P.C. 2010-701 2010-05-31

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 277Footnote a and 277.1Footnote b of the Excise Tax ActFootnote c, hereby makes the annexed New Harmonized Value-added Tax System Regulations.

Interpretation

Marginal note:Definitions

 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

 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

 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

  •  (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%.

  • SOR/2013-44, s. 14

DIVISION 2Intangible Personal Property

Marginal note:Application

 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

  •  (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

 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

 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

 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

 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

 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

 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

  •  (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.

  • SOR/2011-56, s. 23

Marginal note:Services in relation to real property

 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

 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.

 
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