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

Marginal note:Definitions

• 47 (1) In this subsection, percentage of total floor space, qualifying residential unit and relation have the same meanings as in subsection 256.2(1) of the Act.

• Marginal note:Meaning of “provincial portion of basic tax content”

  (2) In this section, provincial portion of basic tax content, at a particular time, of property of a person means the amount that would be the basic tax content of the property at that time if no amount of tax under any of subsection 165(1) and sections 212 and 218 of the Act were included in determining that basic tax content.

• Marginal note:Land and building — Ontario

  (3) Subject to subsections (13) to (15), if a person is entitled to claim a rebate under subsection 256.2(3) of the Act in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, situated in Ontario, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate under that subsection in respect of the complex, interest or addition, as the case may be, is equal to the total of all amounts each of which is an amount, in respect of each residential unit that forms part of the complex or addition and that is a qualifying residential unit of the person at the specified time — being the time at which the tax in respect of the complex, interest or addition, as the case may be, first becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) or is deemed to have been paid by the person in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) — equal to the lesser of $24,000 and the amount determined by the formula

  A × B

  where

  A

  is 75% of the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase of the complex or addition; and

  B

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of the total floor space.

• Marginal note:Land and building — British Columbia

  (4) Subject to subsections (13) to (15), if a person is entitled to claim a rebate under subsection 256.2(3) of the Act in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, situated in British Columbia, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate under that subsection in respect of the complex, interest or addition, as the case may be, is equal to the total of all amounts each of which is an amount, in respect of each residential unit that forms part of the complex or addition and that is a qualifying residential unit of the person at the specified time — being the time at which the tax in respect of the complex, interest or addition, as the case may be, first becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) or is deemed to have been paid by the person in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) — equal to the lesser of $26,250 and the amount determined by the formula

  A × B

  where

  A

  is 71.43% of the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase of the complex or addition; and

  B

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of the total floor space.

• Marginal note:Sale of building and lease of land — Ontario

  (5) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(4) of the Act in respect of a residential complex or an addition to a multiple unit residential complex, situated in Ontario, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000 for the purposes of that subsection and subsection 254.1(2) of the Act and the amount determined by the first formula in subsection 256.2(4) of the Act were a positive amount, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the complex or addition under that subsection is equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the specified time — being the time at which the person is deemed under section 191 of the Act to have made and received a taxable supply by way of sale of the complex or addition and to have paid tax in respect of that supply — determined by the formula

  A - B

  where

  A

  is the lesser of $24,000 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 75% of the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the person at the specified time, and

  A₂

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(1), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the complex or unit.

• Marginal note:Sale of building and lease of land — British Columbia

  (6) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(4) of the Act in respect of a residential complex or an addition to a multiple unit residential complex, situated in British Columbia, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000 for the purposes of that subsection and subsection 254.1(2) of the Act and the amount determined by the first formula in subsection 256.2(4) of the Act were a positive amount, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the complex or addition under that subsection is equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the specified time — being the time at which the person is deemed under section 191 of the Act to have made and received a taxable supply by way or sale of the complex or addition and to have paid tax in respect of that supply — determined by the formula

  A - B

  where

  A

  is the lesser of $26,250 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 71.43% of the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the person at the specified time, and

  A₂

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(2), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the complex or unit.

• Marginal note:Cooperative housing corporation — Ontario

  (7) Subject to subsections (13) and (14), if a cooperative housing corporation (in this subsection referred to as the “cooperative”) is entitled to claim a rebate in respect of a residential unit included in a residential complex situated in Ontario under subsection 256.2(5) of the Act, or would be so entitled if the fair market value of the residential complex were less than $450,000 and the amount determined by the first formula in that subsection were a positive amount, for the purposes of subsection 256.21(1) of the Act, the cooperative is a prescribed person in respect of the unit and the amount of the rebate in respect of the unit under that subsection is equal to the amount determined by the formula

  A - B

  where

  A

  is the lesser of $24,000 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 75% of the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) of the complex or an interest in the complex, as the case may be, or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) of the complex or an addition to the complex, as the case may be, and

  A₂

  is

  • (a) if the unit is a single unit residential complex, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(2), that the recipient of the exempt supply of the unit referred to in paragraph 256.2(5)(c) of the Act is entitled to claim in respect of the unit.

• Marginal note:Cooperative housing corporation — British Columbia

  (8) Subject to subsections (13) and (14), if a cooperative housing corporation (in this subsection referred to as the “cooperative”) is entitled to claim a rebate in respect of a residential unit included in a residential complex situated in British Columbia under subsection 256.2(5) of the Act, or would be so entitled if the fair market value of the residential complex were less than $450,000 and the amount determined by the first formula in that subsection were a positive amount, for the purposes of subsection 256.21(1) of the Act, the cooperative, is a prescribed person in respect of the unit and the amount of the rebate in respect of the unit under that subsection is equal to the amount determined by the formula

  A - B

  where

  A

  is the lesser of $26,250 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 71.43% of the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) of the complex or an interest in the complex, as the case may be, or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) of the complex or addition to the complex, as the case may be, and

  A₂

  is

  • (a) if the unit is a single unit residential complex, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(3), that the recipient of the exempt supply of the unit referred to in paragraph 256.2(5)(c) of the Act is entitled to claim in respect of the unit.

• Marginal note:Land leased for residential purposes — Ontario

  (9) Subject subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(6) of the Act in respect of an exempt supply of land situated in Ontario, or the person would be so entitled if the amount determined for B in the formula in that subsection were less than $112,500, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under that subsection is equal to

  • (a) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the lesser of $7,920 multiplied by the total number of sites in the park or addition, as the case may be, and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the provincial portion of the basic tax content of the park or addition at that time; and

  • (b) in any other case, the lesser of $7,920 and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the provincial portion of the basic tax content of the land at that time.

• Marginal note:Land leased for residential purposes — British Columbia

  (10) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(6) of the Act in respect of an exempt supply of land situated in British Columbia, or the person would be so entitled if the amount determined for B in the formula in that subsection were less than $112,500, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under that subsection is equal to

  • (a) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the lesser of $8,663 multiplied by the total number of sites in the park or addition, as the case may be, and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 71.43% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 71.43% of the provincial portion of the basic tax content of the park or addition at that time; and

  • (b) in any other case, the lesser of $8,663 and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 71.43% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 71.43% of the provincial portion of the basic tax content of the land at that time.

• Marginal note:Application for rebate

  (11) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under this section, must be filed within two years after,

  • (a) in the case of a rebate the amount of which is determined under subsection (7) or (8), the end of the month in which the person makes the exempt supply referred to in that subsection;

  • (b) in the case of a rebate the amount of which is determined under subsection (9) or (10), the end of the month in which the person is deemed to have paid the tax referred to in that subsection; and

  • (c) in the case of any other rebate in respect of a residential unit the amount of which is determined under this section, the end of the month in which tax first becomes payable by the person, or is deemed to have been paid by the person, in respect of the unit or interest in the unit or in respect of the residential complex or addition, or interest therein, in which the unit is situated, as the case may be.

• Marginal note:Prescribed circumstances

  (12) The following circumstances are prescribed for the purposes of subsection 256.21(1) of the Act in respect of any rebate, the amount of which is determined under this section, to a person:

  • (a) if the rebate is in respect of a taxable supply received by the person from another person, the person has paid all of the tax payable in respect of that supply;

  • (b) if the rebate is in respect of a taxable supply in respect of which the person is deemed to have collected tax in a reporting period of the person, the person has reported the tax in the person’s return under Division V of Part IX of the Act for the reporting period and has remitted all net tax remittable, if any, as reported in that return;

  • (c) no amount of tax included in determining the rebate would otherwise be included in determining a rebate of the person under section 256.1 of the Act or in determining a rebate of the person under section 256.21 of the Act, the amount of which is determined under any of sections 41, 43, 45 and 46; and

  • (d) no amount of tax that would otherwise be included in determining the rebate is included in determining a rebate of the person under section 259 of the Act.

• Marginal note:Special rules

  (13) For the purposes of this section, subsection 256.2(8) of the Act applies with any necessary modifications.

• Marginal note:Restrictions

  (14) In determining under this section the amount of a rebate payable to a person under subsection 256.21(1) of the Act, there shall not be included any amount of tax that the person is, under an Act of Parliament (other than the Act) or any other law,

  • (a) not required to pay or remit; or

  • (b) entitled to recover by way of a rebate, refund or remission.

• Marginal note:Exception — prescribed person

  (15) If, in the absence of this subsection, a person would be, under subsection (3) or (4), a prescribed person for the purposes of subsection 256.21(1) of the Act in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 of the Act to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person is deemed never to have been a prescribed person under subsection (3) or (4), as the case may be, for the purposes of subsection 256.21(1) of the Act in respect of the qualifying residential unit.