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Streamlined Accounting (GST/HST) Regulations (SOR/91-51)

Regulations are current to 2022-09-22 and last amended on 2019-06-21. Previous Versions

PART IVStreamlined Accounting Quick Method (continued)

Prescribed Registrants

  •  (1) Where

    • (a) a person is, at any time in a reporting period of the person, a specified registrant,

    • (b) the total threshold amount for the reporting period does not exceed $400,000, and

    • (c) the registrant was engaged in commercial activities throughout the 365-day period ending immediately before the beginning of the reporting period and an election of the registrant did not cease to have effect in that 365-day period because of a revocation of the election,

    the registrant is a registrant who may file an election, to take effect on the first day of the reporting period, to determine the net tax of the registrant in accordance with this Part.

  • (2) A registrant who has filed an election to determine the net tax of the registrant in accordance with this Part ceases to be a registrant who may so determine that net tax at the end of the earliest of

    • (a) the first fiscal year of the registrant that is a reporting period of the registrant in which the registrant ceases to be a specified registrant,

    • (b) the fiscal year of the registrant immediately before the first fiscal year of the registrant that is a reporting period of the registrant for which the total threshold amount exceeds $400,000,

    • (c) the first fiscal quarter of the registrant that includes a reporting period of the registrant for which the total threshold amount exceeds $400,000, and

    • (d) the fiscal quarter of the registrant immediately before the first fiscal quarter of the registrant that includes a reporting period of the registrant in which the registrant ceases to be a specified registrant.

  • SOR/99-368, s. 5
  • SOR/2012-191, s. 14

Calculation of Net Tax

  •  (1) Subject to subsection 21.3(1), if an election by a registrant to determine the net tax of the registrant in accordance with this Part is in effect during a particular reporting period of the registrant, the net tax of the registrant for the particular reporting period is equal to the positive or negative amount determined by the formula

    A + B - C - (1% × D)

    where

    A
    is the total of all amounts each of which is determined, in respect of all the particular supplies to which the same quick-method rate applies, by the formula

    E × F

    where

    E
    is the quick-method rate of the registrant for the particular reporting period that applies to the particular supplies, and
    F
    is the portion of the net specified supplies of the registrant for the particular reporting period attributable to the particular supplies;
    B
    is the total of
    • (a) all amounts that became collectible and all other amounts collected by the registrant in the particular reporting period as or on account of tax under Division II in respect of

      • (i) supplies (other than specified supplies) made by the registrant, and

      • (ii) supplies made on behalf of another person for whom the registrant acts as agent and in respect of which the registrant has made an election under subsection 177(1.1) of the Act,

    • (b) all amounts in respect of supplies (other than specified supplies) that are required under Division V to be added in determining the net tax for the particular reporting period, and

    • (c) the amount that is required under subsection 238.1(4) of the Act to be added in determining the net tax for the particular reporting period;

    C
    is the total of all amounts each of which is
    • (a) an input tax credit

      • (i) for the particular reporting period or a preceding reporting period of the registrant in respect of property (other than specified property) acquired, imported or brought into a participating province by the registrant or an improvement to that property,

      • (ii) for a reporting period of the registrant ending before the election became effective in respect of specified property or services (other than an improvement to property that is not specified property) acquired, imported or brought into a participating province by the registrant,

      • (iii) for the particular reporting period or a preceding reporting period of the registrant in respect of tangible personal property that is specified property acquired, imported or brought into a participating province by the registrant for the purpose of supply by way of sale and is deemed under subsection 177(1.2) of the Act to have been supplied by an auctioneer acting as agent for the registrant or is supplied by a person acting as agent for the registrant in circumstances in which subsection 177(1.1) of the Act applies, or

      • (iv) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of tangible personal property that is deemed under paragraph 180(e) of the Act to have been acquired by the registrant and under subsection 177(1) or (1.2) of the Act to have been supplied by the registrant,

      that is claimed in the return filed under Division V by the registrant for the particular reporting period,

    • (b) an amount in respect of a supply (other than a specified supply) that may be deducted by the registrant under Division V in determining the net tax for the particular reporting period and that is claimed in the return under Division V filed by the registrant for the particular reporting period,

    • (c) an amount equal to 2.8% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Ontario and to which the quick-method rate of 0% applies, or

    • (d) an amount equal to 4% of the portion of the registrant’s net specified supplies for the particular reporting period that is attributable to supplies which are made through a permanent establishment of the registrant in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador and to which the quick-method rate of 0% applies; and

    • (e) [Repealed, SOR/2012-191, s. 15]

    • (f) [Repealed, SOR/2016-212, s. 5]

    D
    is
    • (a) where the election was not in effect,

      • (i) if the registrant became a registrant on a day in the registrant’s fiscal year that includes the particular reporting period, on that day, or

      • (ii) in any other case, on the first day of that fiscal year,

      nil,

    • (b) if the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period is equal to or greater than $30,000, nil, and

    • (c) in any other case,

      • (i) if the particular reporting period is the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of the net specified supplies of the registrant for the particular reporting period and $30,000, and

      • (ii) if the particular reporting period is not the first reporting period in that fiscal year during which the registrant was a registrant, the lesser of

        • (A) the net specified supplies of the registrant for the particular reporting period, and

        • (B) the amount by which $30,000 exceeds the total net specified supplies of the registrant for all reporting periods of the registrant in that fiscal year during which the registrant was a registrant that end before the particular reporting period.

  • (2) For the purposes of paragraphs (b) and (c) of the description of E in subsection (1), the first reporting period of a registrant beginning after 1993 in a fiscal year of the registrant beginning before 1994 is deemed to be the first reporting period of the registrant in that fiscal year.

  • SOR/99-368, s. 6
  • SOR/2007-203, s. 2
  • SOR/2011-56, s. 19
  • SOR/2012-191, s. 15
  • SOR/2013-44, s. 6
  • SOR/2016-119, s. 5
  • SOR/2016-212, s. 5

Rules for New Registrants

[
  • SOR/93-242, s. 2
  • SOR/99-368, s. 7
]
  •  (1) For the purposes of this Part, where, on the first day of a reporting period of a registrant, the registrant has not been engaged in commercial activities throughout the 365 day period ending immediately before that day and it is reasonable to expect that the registrant will be, at the beginning of the particular fiscal year that is the first fiscal year of the registrant beginning at least 365 days after the registrant began to engage in commercial activities, a registrant who may file an election to determine the net tax of the registrant in accordance with this Part,

    • (a) the registrant is a registrant who may file an election, to take effect on that day, to determine the net tax of the registrant in accordance with this Part; and

    • (b) the quick-method rate of the registrant for reporting periods of the registrant ending before the beginning of the particular fiscal year is the rate prescribed by subsection 15(5) that is reasonable in the circumstances.

    • (c) and (d) [Repealed, SOR/99-368, s. 8]

  • (2) to (4) [Repealed, SOR/99-368, s. 8]

  • SOR/93-242, s. 2
  • SOR/99-368, s. 8

PART VSpecial Quick Method for Public Service Bodies

Interpretation

  •  (1) In this Part,

    designated supply

    designated supply means

    • (a) a supply by way of sale of real property or capital assets of the supplier,

    • (b) a supply included in Part V of Schedule VI to the Act, and

    • (c) a supply made to Her Majesty in right of a province unless Her Majesty in right of that province has agreed, under an agreement with Her Majesty in right of Canada, to pay the tax under Part IX of the Act in respect of the supply; (fourniture désignée)

    retail establishment

    retail establishment of a registrant means a shop or store of the registrant at which the registrant primarily carries on the business of making supplies of property or services to consumers attending at the shop or store; (établissement de détail)

    specified facility operator

    specified facility operator means a non-profit organization that operates, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V to the Act; (exploitant d’établissement déterminé)

    specified property

    specified property[Repealed, 2016, c. 12, s. 98]

    specified supply

    specified supply, in respect of a registrant, means

    • (a) a supply by way of sale of real property,

    • (b) a supply by way of sale of a capital asset of the registrant that has a fair market value at the time of the supply of at least $10,000,

    • (c) a supply made by the registrant by way of sale of a capital asset of the registrant if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

    • (d) a supply deemed under subsection 172(2), section 175.1 or subsection 183(5) or (6) of the Act to have been made by the registrant or a supply by the registrant to which subsection 173(1) of the Act applies,

    • (e) a zero-rated supply,

    • (f) a supply made outside Canada,

    • (g) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament unless, in the case of a supply to Her Majesty in right of a province, Her Majesty in right of that province has agreed, under an agreement with Her Majesty in right of Canada, to pay the tax under Part IX of the Act in respect of the supply,

    • (h) a supply to which subsection 177(1.1) of the Act applies, and

    • (i) a supply deemed under subsection 177(1) or (1.2) of the Act to have been made by a registrant acting as an agent for another person. (fourniture déterminée)

  • (2) For the purposes of this Part, the expressions external supplier, facility operator, municipality, qualifying non-profit organization and selected public service body have the meanings assigned by section 259 of the Act.

  • (3) Subject to this Part, the special quick-method rate of a registrant that applies, for a reporting period in a particular fiscal year of the registrant, in respect of a particular supply made by the registrant is

    • (a) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a specified facility operator, a qualifying non-profit organization, or a charity that is designated under section 178.7 of the Act, and not as a selected public service body,

      • (i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

        • (A) 9.9%, if the particular supply is made in Ontario,

        • (B) 11.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 3%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick or Newfoundland and Labrador,

        • (A) 8.4%, if the particular supply is made in Ontario,

        • (B) 10%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 1.4%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (iii) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island,

        • (A) 7.7%, if the particular supply is made in Ontario,

        • (B) 9.3%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 0.7%, if the particular supply is made in a non-participating province, and

      • (iv) if subparagraphs (i) to (iii) do not apply,

        • (A) 10.5%, if the particular supply is made in Ontario,

        • (B) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 3.6%, if the particular supply is made in a non-participating province;

      • (iv.1) and (v) [Repealed, SOR/2016-212, s. 6]

    • (b) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a school authority,

      • (i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

        • (A) 11%, if the particular supply is made in Ontario,

        • (B) 12.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.2%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,

        • (A) 10.4%, if the particular supply is made in Ontario,

        • (B) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 3.6%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (iii) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick, Prince Edward Island or Newfoundland and Labrador,

        • (A) 8.8%, if the particular supply is made in Ontario,

        • (B) 10.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 1.9%, if the particular supply is made in a non-participating province, and

        • (C.1) [Repealed, SOR/2016-119, s. 6]

        • (D) [Repealed, SOR/2016-212, s. 6]

      • (iv) if subparagraphs (i) to (iii) do not apply,

        • (A) 11.1%, if the particular supply is made in Ontario,

        • (B) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.4%, if the particular supply is made in a non-participating province;

      • (iv.1) and (v) [Repealed, SOR/2016-212, s. 6]

    • (c) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant in the registrant’s capacity as a university or public college,

      • (i) if supplies made in the ordinary course of business through vending machines operated by the registrant and retail establishments of the registrant (other than a restaurant, cafeteria, pub or similar establishment) at which the registrant primarily makes supplies of tangible personal property account for at least 25% of the amount determined by the formula

        (A + B) × (365 / C)

        where

        A
        is the total of all consideration for taxable supplies (other than designated supplies) made in Canada by the registrant that became due, or was paid without becoming due, to the registrant in the fiscal year of the registrant immediately preceding the particular fiscal year,
        B
        is the total of all tax under Division II that became collectible in the fiscal year of the registrant immediately before the particular fiscal year in respect of taxable supplies (other than supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and
        C
        is the number of days in the fiscal year of the registrant immediately preceding the particular fiscal year, and
        • (A) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

          • (I) 10.2%, if the particular supply is made in Ontario,

          • (II) 11.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 3.3%, if the particular supply is made in a non-participating province,

          • (III.1) and (IV) [Repealed, SOR/2016-212, s. 6]

        • (B) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,

          • (I) 9.6%, if the particular supply is made in Ontario,

          • (II) 11.2%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 2.7%, if the particular supply is made in a non-participating province,

          • (III.1) and (IV) [Repealed, SOR/2016-212, s. 6]

        • (C) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick, Prince Edward Island or Newfoundland and Labrador,

          • (I) 7%, if the particular supply is made in Ontario,

          • (II) 8.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 0%, if the particular supply is made in a non-participating province, and

          • (III.1) [Repealed, SOR/2016-119, s. 6]

          • (IV) [Repealed, SOR/2016-212, s. 6]

        • (D) if clauses (A) to (C) do not apply,

          • (I) 10.9%, if the particular supply is made in Ontario,

          • (II) 12.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 4.1%, if the particular supply is made in a non-participating province, and

        • (D.1) and (E) [Repealed, SOR/2016-212, s. 6]

      • (ii) when subparagraph (i) does not apply,

        • (A) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

          • (I) 10.7%, if the particular supply is made in Ontario,

          • (II) 12.3%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 3.9%, if the particular supply is made in a non-participating province,

          • (III.1) and (IV) [Repealed, SOR/2016-212, s. 6]

        • (B) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,

          • (I) 10.4%, if the particular supply is made in Ontario,

          • (II) 12%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 3.6%, if the particular supply is made in a non-participating province,

          • (III.1) and (IV) [Repealed, SOR/2016-212, s. 6]

        • (C) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick, Prince Edward Island or Newfoundland and Labrador,

          • (I) 8.9%, if the particular supply is made in Ontario,

          • (II) 10.5%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 2%, if the particular supply is made in a non-participating province, and

          • (III.1) [Repealed, SOR/2016-119, s. 6]

          • (IV) [Repealed, SOR/2016-212, s. 6]

        • (D) if clauses (A) to (C) do not apply,

          • (I) 11.1%, if the particular supply is made in Ontario,

          • (II) 12.7%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

          • (III) 4.4%, if the particular supply is made in a non-participating province;

        • (D.1) and (E) [Repealed, SOR/2016-212, s. 6]

    • (d) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as an external supplier, a facility operator or a hospital authority,

      • (i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

        • (A) 11%, if the particular supply is made in Ontario,

        • (B) 12.5%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.2%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia,

        • (A) 10.8%, if the particular supply is made in Ontario,

        • (B) 12.4%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (iii) if the registrant makes the particular supply through a permanent establishment of the registrant in New Brunswick, Prince Edward Island or Newfoundland and Labrador,

        • (A) 8.5%, if the particular supply is made in Ontario,

        • (B) 10.1%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 1.6%, if the particular supply is made in a non-participating province, and

        • (C.1) [Repealed, SOR/2016-119, s. 6]

        • (D) [Repealed, SOR/2016-212, s. 6]

      • (iv) if subparagraphs (i) to (iii) do not apply,

        • (A) 11.3%, if the particular supply is made in Ontario,

        • (B) 12.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.5%, if the particular supply is made in a non-participating province; and

      • (iv.1) and (v) [Repealed, SOR/2016-212, s. 6]

    • (e) in the case of a registrant that makes the particular supply in the course of an activity engaged in by the registrant acting in the registrant’s capacity as a municipality,

      • (i) if the registrant makes the particular supply through a permanent establishment of the registrant in Ontario,

        • (A) 11.1%, if the particular supply is made in Ontario,

        • (B) 12.6%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.3%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (ii) if the registrant makes the particular supply through a permanent establishment of the registrant in Nova Scotia, New Brunswick or Newfoundland and Labrador,

        • (A) 10.5%, if the particular supply is made in Ontario,

        • (B) 12.1%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 3.7%, if the particular supply is made in a non-participating province,

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

      • (iii) [Repealed, SOR/2016-119, s. 6]

      • (iii.1) if the registrant makes the particular supply through a permanent establishment of the registrant in Prince Edward Island,

        • (A) 9.2%, if the particular supply is made in Ontario,

        • (B) 10.8%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 2.3%, if the particular supply is made in a non-participating province, and

        • (D) [Repealed, SOR/2016-212, s. 6]

      • (iv) [Repealed, SOR/2016-212, s. 6]

      • (v) if subparagraphs (i) to (iii.1) do not apply,

        • (A) 11.5%, if the particular supply is made in Ontario,

        • (B) 13%, if the particular supply is made in Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

        • (C) 4.7%, if the particular supply is made in a non-participating province.

        • (C.1) and (D) [Repealed, SOR/2016-212, s. 6]

  • (4) For the purpose of determining under subsection (3) the special quick-method rate applicable to a supply in respect of which the supplier is entitled to a deduction under subsection 234(3) of the Act,

    • (a) the supply is deemed to have been made in a non-participating province; and

    • (b) the supplier is deemed to have made the supply through a permanent establishment of the supplier in a non-participating province.

  • (5) For the purpose of determining under subsection (3) the special quick-method rate of a registrant for a reporting period, the registrant may,

    • (a) if substantially all of the supplies (other than specified supplies) made in the reporting period by the registrant through a permanent establishment of the registrant are made in a participating province, treat all of the supplies made by the registrant in the reporting period through that establishment as having been made in the participating province; and

    • (b) if substantially all of the supplies (other than specified supplies) made in the reporting period by the registrant through a permanent establishment of the registrant are made in non-participating provinces, treat all of the supplies made by the registrant in the reporting period through that establishment as having been made in a non-participating province.

  • SOR/99-368, s. 9
  • SOR/2002-272, s. 1
  • SOR/2007-203, s. 3
  • SOR/2011-56, s. 20
  • SOR/2012-191, s. 16
  • SOR/2013-44, s. 7
  • 2016, c. 12, s. 98
  • SOR/2016-4, s. 3
  • SOR/2016-119, s. 6
  • SOR/2016-212, s. 6
 
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