New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

DIVISION 5Non-taxable Property and Services

Marginal note:Additional specified item

22.1 For the purposes of this Division, property in respect of which a person has been paid or credited, or is entitled to be paid or credited, a qualifying amount (as defined in section 1 of the Credit for Provincial Relief (HST) Regulations) is a specified item in respect of Ontario.

Marginal note:Non-taxable property

23 For the purposes of section 23 of Part I of Schedule X to the Act, the following property is prescribed:

• (a) property that would be non-taxable property under section 6 of Part I of Schedule X to the Act if

  • (i) the reference to “non-participating province” were read as a reference to “participating province”,

  • (ii) the reference to “a participating province” were read as a reference to “another participating province”,

  • (iii) the reference to “who is not resident in the participating provinces” were read as a reference to “who is resident in a participating province”, and

  • (iv) the reference to “that participating province” were read as a reference to “the particular participating province”;

• (b) property that is given as a gift or bequest to an individual who is resident in a participating province and that is brought into a participating province, if the property is

  • (i) personal and household effects of an individual who died in a participating province and was, at the time of death, resident in a participating province, or

  • (ii) personal and household effects received, by an individual who is resident in a participating province, as a result or in anticipation of the death of an individual who was resident in a participating province;

• (c) medals, trophies and other prizes, not including usual merchantable goods, that are won in a participating province in competitions, that are bestowed, received or accepted in a participating province or that are donated by persons in a participating province, for heroic deeds, valour or distinction;

• (d) property that is brought into a participating province at a particular time by a person after having been acquired in, or brought into, a particular participating province by the person at another time in circumstances in which tax was payable by the person under subsection 165(2) or 218.1(1) of the Act or Division IV.1 of Part IX of the Act if

  • (i) the rate at which that tax was calculated is greater than, or equal to, the tax rate for the participating province at the particular time,

  • (ii) the person was not entitled to a rebate of any part of that tax under section 261.1 of the Act, and

  • (iii) the property was not a specified item in respect of the particular participating province at the other time;

• (e) property that a person brings at any time into a participating province and that at that time is being supplied in a participating province to the person by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of more than three months and in circumstances in which tax under subsection 165(1) of the Act is payable by the person in respect of that supply;

• (f) property that is brought into a participating province at a particular time by a person after having been imported by the person at another time in circumstances in which tax was imposed under subsection 212.1(2) of the Act at the tax rate for a particular participating province if

  • (i) the rate at which that tax was calculated is greater than, or equal to, the tax rate for the participating province at the particular time,

  • (ii) the person was not entitled to a rebate of any part of that tax under section 261.2 of the Act, and

  • (iii) the property was not a specified item in respect of the particular participating province at the other time;

• (g) property that is brought into a participating province at a particular time by a person after having been used in and, at another time, removed from any participating province (in this paragraph referred to as the “specified province”) by the person if

  • (i) the tax rate for the specified province at the other time is greater than, or equal to, the tax rate for the participating province at the particular time,

  • (ii) where tax was payable by the person under subsection 165(2) of the Act in respect of a supply of the property to the person made in the specified province, the person was not entitled to a rebate of any part of that tax under section 261.1 of the Act, and

  • (iii) the property was not a specified item in respect of the specified province at the other time; and

• (h) a specified motor vehicle that is brought into a participating province by a person after having been supplied to the person by way of sale in a participating province in circumstances in which tax was not payable under subsection 165(1) of the Act in respect of the supply.

Marginal note:Non-taxable property and services

24 For the purposes of section 7 of Part II of Schedule X to the Act, a supply of a service (other than a custodial or nominee service in respect of securities or precious metals of the recipient of the supply) that is in respect of tangible personal property and that is acquired by the recipient of the supply in any circumstances is a prescribed supply if the tangible personal property is removed from a particular participating province to another participating province as soon after the service is performed as is reasonable having regard to the circumstances surrounding the removal and is not consumed, used or supplied in the particular participating province after the service is performed and before the removal of the property.

Marginal note:Non-taxable property and services

25 For the purposes of section 7 of Part II of Schedule X to the Act, 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 that is in the nature of an appeal from a decision of a court or other tribunal established under the laws of a province, and that is acquired by the recipient of the supply in any circumstances is a prescribed supply.

PART 6Recapture of Specified Provincial Input Tax Credits

DIVISION 1Interpretation

Marginal note:Definitions

26 The following definitions apply in this Part.

British Columbia recapture amount

British Columbia recapture amount means a specified provincial input tax credit in respect of

• (a) the acquisition in British Columbia of property;

• (b) the bringing into British Columbia of property; or

• (c) the acquisition of a service for consumption or use in British Columbia. (montant de récupération de la Colombie-Britannique)

eligible roadway

eligible roadway means a road, highway, bridge, tunnel or ferry landing that is for the passage of vehicles, but does not include a dedicated parking area, an airport runway, a shipyard, a driveway or a bicycle or pedestrian pathway. (voie admissible)

farming

farming has the meaning assigned by subsection 248(1) of the Income Tax Act. (agriculture)

industry classification system

industry classification system means the North American Industry Classification System as it read on July 1, 2010.  (système de classification des industries)

instalment period

instalment period means any period beginning on the first day of the fourth fiscal month of a fiscal year of a person and ending on the last day of the third fiscal month of the immediately following fiscal year of the person.  (période d’acomptes)

motor vehicle

motor vehicle means a motorized vehicle designed for the transportation of individuals or of tangible personal property, but does not include

• (a) a power-assisted bicycle;

• (b) a snow vehicle;

• (c) an all-terrain vehicle;

• (c) an electrically propelled wheelchair;

• (d) a street car;

• (e) a vehicle that runs only on rails; or

• (f) a farm tractor, or other farm machinery, acquired, or brought into a province, exclusively for use in farming activities. (véhicule automobile)

Ontario recapture amount

Ontario recapture amount means a specified provincial input tax credit in respect of

• (a) the acquisition in Ontario of property;

• (b) the bringing into Ontario of property; or

• (c) the acquisition of a service for consumption or use in Ontario. (montant de récupération de l’Ontario)

Prince Edward Island recapture amount

Prince Edward Island recapture amount means a specified provincial input tax credit in respect of

• (a) the acquisition in Prince Edward Island of property;

• (b) the bringing into Prince Edward Island of property; or

• (c) the acquisition of a service for consumption or use in Prince Edward Island. (montant de récupération de l’Île-du-Prince-Édouard)

production

production means an activity (other than the assembling, processing or manufacturing of tangible personal property in a retail establishment or the storage of finished products) that is

• (a) the assembling, processing or manufacturing of particular tangible personal property to create other tangible personal property that is different in nature or character from the particular tangible personal property;

• (b) the generation of any form of energy or its transformation into another form of energy;

• (c) the restoring of tangible personal property by its owner;

• (d) the recording of images or sound on media;

• (e) the cutting, transforming and handling of timber in a forest and the building and maintenance of forest access roads in the course of those activities;

• (f) the extraction and processing of a mineral until the first stage of concentration or the equivalent;

• (g) the transformation of toxic industrial waste into a non-toxic product; and

• (h) if performed in conjunction with an activity referred to in any of paragraphs (a) to (g) by the same person that performed that activity,

  • (i) the detection, measurement, treatment, reduction or elimination of water, soil or air pollutants that are attributable to producing personal property,

  • (ii) the transportation of refuse or waste derived from producing personal property,

  • (iii) the quality control of personal property being produced or of production equipment, and

  • (iv) the cleaning, screening, sifting, wrapping, packing or putting into containers of property. (production)

production equipment

production equipment means

• (a) machinery, tools, equipment and accessories;

• (b) moulds and dies;

• (c) media for recording images or sounds;

• (d) plans, drawings, models and prototypes;

• (e) components or spare parts of the property described in paragraphs (a) to (d);

• (f) material used to produce or repair the property described in paragraphs (a) to (e); and

• (g) explosives and the material used to manufacture them. (matériel de production)

qualifying motor vehicle

qualifying motor vehicle means a motor vehicle acquired in, or brought into, a specified province that is licensed, or required to be licensed, for use on a public highway under the laws of the specified province relating to the licensing of motor vehicles and that weighs, while carrying its maximum capacity of fuel, lubricant and coolant, less than 3,000 kilograms at the time when the vehicle is first licensed, or first required to be licensed, under those laws. (véhicule automobile admissible)

recapture period

recapture period means any period of 12 calendar months that

• (a) begins on July 1 of a calendar year; and

• (b) occurs between July 1, 2010 and June 30, 2021. (période de récupération)

recapture rate

recapture rate applicable at a time in respect of a specified provincial input tax credit means

• (a) in the case of a specified provincial input tax credit that is a British Columbia recapture amount,

  • (i) in the case of a time that is on or after July 1, 2010 and before April 1, 2013, 100%, or

  • (ii) in the case of a time that is on or after April 1, 2013, 0%;

• (b) in the case of a specified provincial input tax credit that is an Ontario recapture amount,

  • (i) in the case of a time that is on or after July 1, 2010 and before July 1, 2015, 100%,

  • (ii) in the case of a time that is on or after July 1, 2015 and before July 1, 2016, 75%,

  • (iii) in the case of a time that is on or after July 1, 2016 and before July 1, 2017, 50%,

  • (iv) in the case of a time that is on or after July 1, 2017 and before July 1, 2018, 25%, and

  • (v) in the case of a time that is on or after July 1, 2018, 0%; and

• (c) in the case of a specified provincial input tax credit that is a Prince Edward Island recapture amount,

  • (i) in the case of a time that is on or after April 1, 2013 and before April 1, 2018, 100%,

  • (ii) in the case of a time that is on or after April 1, 2018 and before April 1, 2019, 75%,

  • (iii) in the case of a time that is on or after April 1, 2019 and before April 1, 2020, 50%,

  • (iv) in the case of a time that is on or after April 1, 2020 and before April 1, 2021, 25%, and

  • (v) in the case of a time that is on or after April 1, 2021, 0%. (taux de récupération)

specified energy

specified energy means

• (a) electricity, gas and steam; and

• (b) anything (other than fuel for use in a propulsion engine) that can be used to generate energy

  • (i) by way of combustion or oxidization, or

  • (ii) by undergoing a nuclear reaction in a reactor for the generation of energy. (forme d’énergie déterminée)

specified province

specified province means Ontario, British Columbia or Prince Edward Island. (province déterminée)

specified time

specified time means in respect of a specified provincial input tax credit of a person that is attributable to tax in respect of a supply, importation or bringing into a province of a specified property or service that becomes payable by the person, that is paid by the person without having become payable or that would have become payable by the person if the rules described in paragraphs 29(1)(a) to (g) applied in respect of that supply, importation or bringing in or if subsection 29(2) applied in respect of that bringing in,

• (a) in the case where that tax would have only become payable by the person if the rules described in paragraphs 29(1)(a) to (g) applied in respect of that supply, importation or bringing in or if subsection 29(2) applied in respect of that bringing in, the day on which that tax would have become payable by the person; and

• (b) in any other case, the earlier of

  • (i) the day on which that tax becomes payable by the person, and

  • (ii) the day that is the later of July 1, 2010 and the day on which that tax is paid by the person. (moment déterminé)