New Harmonized Value-added Tax System Regulations

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 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.