New Harmonized Value-added Tax System Regulations, No. 2

Marginal note:Specified provincial input tax credit

• 29 (1) For the purposes of paragraph (b) of the definition specified provincial input tax credit in subsection 236.01(1) of the Act, a prescribed amount in respect of an amount that would be an input tax credit of a person in respect of a specified property or service attributable to tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act is all of the amount that would be such an input tax credit if

  • (a) in the case where the specified property or service is acquired, or brought into a specified province, by the person for consumption, use or supply exclusively in the course of commercial activities and, as a result of the consumption, use or supply exclusively in the course of commercial activities, no tax under section 218.1 of the Act or Division IV.1 of Part IX of the Act is payable in respect of the acquisition or bringing in, tax under that section or that Division had been payable in respect of the acquisition or bringing in;

  • (b) in the case of a supply of the specified property or service deemed under subsection 143(1) of the Act to have been made outside Canada, the supply had not been deemed to have been made outside Canada;

  • (c) in the case of a supply of the specified property or service that is deemed under Part IX of the Act to have been made for nil consideration, the supply had not been deemed to have been made for nil consideration;

  • (d) in the case of a supply of the specified property or service that is deemed under paragraph 273(1)(c) of the Act not to be a supply, the supply had not been deemed not to be a supply;

  • (e) in the case where the specified property or service is supplied to the person in a specified province or brought into a specified province by the person and is an item included in the Schedule to the Deduction for Provincial Rebate (GST/HST) Regulations applicable to the specified province in respect of which an amount may be paid or credited under an Act of the legislature of the specified province, the specified property or service were not an item included in that Schedule;

  • (f) in the case of a supply of the specified property or service made between persons not dealing with each other at arm’s length for no consideration, the supply had been made for consideration, paid at the time the supply was made, of a value equal to the fair market value of the property or service at that time; and

  • (g) in the case of a supply of the specified property or service made between persons not dealing with each other at arm’s length for consideration less than the fair market value of the specified property or service at the time the supply is made, the value of the consideration were equal to the fair market value of the specified property or service at that time.

• Marginal note:Specified provincial input tax credit

  (2) If, at any time, a person brings tangible personal property into a specified province from a participating province and, as a consequence of that bringing in, the tangible personal property becomes a specified property or service at that time, for the purposes of paragraph (b) of the definition specified provincial input tax credit in subsection 236.01(1) of the Act, a prescribed amount in respect of an amount that would be an input tax credit of the person in respect of the tangible personal property attributable to tax under subsection 165(2) of the Act is equal to the amount determined by the formula

  A - B

  where

  A

  is the amount that would be such an input tax credit if

  • (a) a taxable supply (other than a zero rated supply) of the tangible personal property were made in the specified province to the person at that time,

  • (b) the consideration for the supply were equal to the value, determined under the description of B in section 9, in respect of the tangible personal property at that time,

  • (c) the tangible personal property were not an item included in the Schedule to the Deduction for Provincial Rebate (GST/HST) Regulations applicable to the specified province in respect of which an amount may be paid or credited under an Act of the legislature of the specified province, and

  • (d) tax in respect of the supply calculated on that consideration were paid by the person at that time; and

  B

  is the amount, if any, that is a specified provincial input tax credit of the person attributable to tax under Division IV.1 of Part IX of the Act in respect of that bringing in.