New Harmonized Value-added Tax System Regulations

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 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.