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TAX ON IMPORTED TAXABLE SUPPLIES
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| 1990, c. 45,
s. 12(1)
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203. (1) Section 218 of the Act is replaced
by the following:
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| Imposition of
goods and
services tax
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218. Subject to this Part, every recipient of
an imported taxable supply shall pay to Her
Majesty in right of Canada tax calculated at
the rate of 7% on the value of the consideration
for the imported taxable supply.
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| Tax in
participating
province
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218.1 (1) Subject to this Part,
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(a) every person who is resident in a
particular participating province and is the
recipient of an imported taxable supply that
is a supply of intangible personal property
or a service that is acquired by the person for
consumption, use or supply primarily in
participating provinces,
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(b) every registrant who is the recipient of
a supply, included in paragraph (b) of the
definition ``imported taxable supply'' in
section 217, of property the physical
possession of which is transferred to the
registrant in a particular participating
province, and
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(c) every person who is the recipient of a
supply, included in paragraph (b.1) of that
definition, of property delivered or made
available to the person in a particular
participating province and who is either
resident in that province or is a registrant
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shall pay to Her Majesty in right of Canada,
each time an amount of consideration for the
supply becomes due or is paid without having
become due, in addition to the tax imposed by
section 218, tax equal to the amount
determined by the formula
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A x B x C
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where
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A is the tax rate for the particular participating
province,
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B is the value of that consideration that is paid
or becomes due at that time, and
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C is
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(a) in the case of an imported taxable
supply of tangible personal property,
100%, and
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(b) in any other case, the extent
(expressed as a percentage) to which the
person acquired the property or service
for consumption, use or supply in the
province.
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| Selected listed
financial
institutions
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(2) Tax (other than an amount of tax that is
prescribed for the purposes of paragraph (a) of
the description of F in subsection 225.2(2))
under subsection (1) that would, but for this
provision, become payable by a person when
the person is a selected listed financial
institution is not payable.
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| Application in
offshore areas
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(3) Subsection (1) does not apply to
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(a) an imported taxable supply of intangible
personal property or a service made to a
person who is resident in the Nova Scotia
offshore area or the Newfoundland offshore
area unless the property or service is
acquired by the person for consumption,
use or supply in the course of an offshore
activity or the person is also resident in a
participating province that is not an
offshore area; or
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(b) an imported taxable supply of tangible
personal property the physical possession
of which is transferred, or that is delivered
or made available, to the recipient of the
supply in the Nova Scotia offshore area or
the Newfoundland offshore area unless the
property is acquired by the recipient for
consumption, use or supply in the course of
an offshore activity.
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| Use in
offshore areas
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(4) For the purposes of subsection (1), a
person that acquires property or a service for
consumption, use or supply in the Nova Scotia
offshore area or the Newfoundland offshore
area is deemed to acquire the property or
service for consumption, use or supply in that
area only to the extent that it is acquired for
consumption, use or supply in that area in the
course of an offshore activity.
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| When tax
payable
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218.2 Tax under this Division that is
calculated on an amount of consideration for
a supply that becomes due at any time, or is
paid at any time without having become due,
becomes payable at that time.
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(2) Subsection (1) comes into force on
April 1, 1997.
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204. (1) The Act is amended by adding the
following after section 220:
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DIVISION IV.1
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TAX ON PROPERTY AND SERVICES BROUGHT
INTO A PARTICIPATING PROVINCE
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| Meaning of
``tangible
personal
property''
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220.01 In this Division, ``tangible personal
property'' includes a mobile home that is not
affixed to land and a floating home.
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| Carriers
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220.02 Where a particular person brings
property into a province on behalf of another
person, for the purposes of this Division, the
other person and not the particular person is
deemed to have brought the property into the
province.
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| In transit
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220.03 Where at any time a person brings
tangible personal property into a province in
the course of transporting property from a
place outside the province to another place
outside the province, and the property is not
stored in the province for purposes that are not
incidental to the transportation, the person is
deemed for the purposes of this Division not
to have brought the property into the province
at that time.
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| Selected listed
financial
institutions
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220.04 Where tax under this Division (other
than an amount of tax that is prescribed for the
purposes of paragraph (a) of the description of
F in subsection 225.2(2)) would, but for this
section, become payable by a person when the
person is a selected listed financial institution,
that tax is not payable.
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Subdivision a
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Tax on tangible personal property
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| Tax in
participating
province
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220.05 (1) Subject to this Part, where at a
particular time a person brings tangible
personal property into a particular
participating province from a
non-participating province, the person shall
pay tax to Her Majesty in right of Canada
equal to the amount determined by the
formula
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A x B
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where
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A is the tax rate for the particular participating
province; and
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B is
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(a) where the property is a specified
motor vehicle that the person is required
to register under the laws of the
participating province relating to the
registration of motor vehicles, the
prescribed value,
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(b) where the property is not a specified
motor vehicle referred to in paragraph (a)
and consideration was paid or payable in
respect of a supply of the property made
by way of sale at any time to the person
by another person with whom the person
dealt at arm's length, the lesser of the
value of that consideration and the fair
market value of the property at the
particular time,
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(c) notwithstanding paragraphs (a) and
(b), in the case of prescribed property
brought into a province in prescribed
circumstances, the value determined in
the prescribed manner, and
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(d) in any other case, the fair market
value of the property at the particular
time.
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| When tax
payable
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(2) Tax under subsection (1) on property
brought into a participating province by a
person becomes payable
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(a) in the case of a specified motor vehicle
that the person is required to register under
the laws of the province relating to the
registration of motor vehicles, on the earlier
of the day the person so registers the vehicle
and the day on or before which the person
is required to register the vehicle; and
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(b) in any other case, on the day the property
is brought into the province.
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| Non-taxable
property
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(3) No tax is payable under subsection (1) in
respect of property where
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(a) the recipient of the supply of the
property has paid tax under section 220.06
in respect of the property;
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(b) tax under section 220.07 has been paid
in respect of the property; or
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(c) the property is included in Part I of
Schedule X.
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| Application in
offshore areas
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(4) Subsection (1) does not apply to
property brought into the Nova Scotia
offshore area or the Newfoundland offshore
area by a person unless the property is brought
into the area for consumption, use or supply in
the course of an offshore activity.
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| Supply by
unregistered
non-resident
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220.06 (1) Subject to this Part, where a
person is the recipient of a taxable supply
(other than a zero-rated or prescribed supply)
of tangible personal property that is, at a
particular time, delivered or made available to
the person in a participating province, or sent
by mail or courier to an address in the
participating province, by a non-resident
supplier who is not registered under
subdivision d of Division V, the person shall
pay tax to Her Majesty in right of Canada
equal to the amount determined by the
formula
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A x B
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where
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A is the tax rate for the participating province;
and
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B is
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(a) where the supply of the property was
made to the person by way of sale by a
non-resident person with whom the
person dealt at arm's length, the lesser of
the value of the consideration paid or
payable in respect of the supply and the
fair market value of the property at the
particular time,
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(b) notwithstanding paragraph (a), in the
case of prescribed property supplied in
prescribed circumstances, the value
determined in the prescribed manner, and
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(c) in any other case, the fair market
value of the property at the particular
time.
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| When tax
payable
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(2) Tax under subsection (1) in respect of
property supplied to a person in a participating
province becomes payable on the day the
property is delivered or made available to the
person in the province.
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| Non-taxable
property
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(3) No tax is payable under subsection (1) in
respect of property where
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(a) the supplier of the property has paid tax
under section 220.05 in respect of the
property;
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(b) tax under section 220.07 has been paid
in respect of the property; or
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(c) the property is a specified motor vehicle
that is required to be registered under the
laws of a participating province relating to
the registration of motor vehicles or the
property is included in Part I of Schedule X.
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| Application in
offshore areas
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(4) Subsection (1) does not apply to a supply
of property that is delivered or made available
to the recipient in the Nova Scotia offshore
area or the Newfoundland offshore area, or
that is sent to the recipient at an address in the
Nova Scotia offshore area or the
Newfoundland offshore area, unless the
property is acquired by the recipient for
consumption, use or supply in the course of an
offshore activity.
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| Imported
commercial
goods
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220.07 (1) Subject to this Part, every person
who brings into a participating province from
a place outside Canada
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(a) a specified motor vehicle, or
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(b) goods that are accounted for as
commercial goods (within the meaning
assigned by subsection 212.1(1)) under
section 32 of the Customs Act
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and who is liable under that Act to pay duties
on the vehicle or goods, or would be so liable
if they were subject to duty, shall pay, in
addition to the tax imposed under section 212,
tax calculated at the tax rate for that
participating province on the value of the
vehicle or goods.
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| Exception
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(2) Tax under subsection (1) does not apply
to
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(a) goods, other than a specified motor
vehicle, brought into a participating
province from a place outside Canada by a
registrant (other than a registrant whose net
tax is determined under section 225.1 or
under Part IV or V of the Streamlined
Accounting (GST) Regulations) for
consumption, use or supply exclusively in
the course of commercial activities of the
registrant;
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(b) a mobile home or a floating home that
has been used or occupied in Canada as a
place of residence for individuals; or
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(c) goods included in Schedule VII.
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| Value of
goods
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(3) For the purposes of this section, the
value of goods brought into a province is equal
to
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(a) in the case of a specified motor vehicle
that a person is required to register under the
laws of the province relating to the
registration of motor vehicles, the
prescribed value;
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(b) in the case of prescribed property
brought into a province in prescribed
circumstances, the value determined in
prescribed manner; and
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(c) in any other case, the value of the goods
determined in accordance with section 215.
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| When tax
payable
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(4) Tax under subsection (1) on goods
brought into a participating province by a
person becomes payable by that person
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(a) in the case of a specified motor vehicle
that the person is required to register under
the laws of the province relating to the
registration of motor vehicles, on the earlier
of the day the person so registers the vehicle
and the day on or before which the person
is required to register the vehicle; and
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(b) in any other case, on the day on which
the goods are brought into the province.
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| Use in
offshore areas
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(5) Subsection (1) does not apply to goods
brought into the Nova Scotia offshore area or
the Newfoundland offshore area by a person
unless the goods are brought into the area for
consumption, use or supply in the course of an
offshore activity.
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Subdivision b
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Tax on intangible property and services
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| Tax in
participating
province
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220.08 (1) Subject to this Part, every person
who is resident in a particular participating
province and is the recipient of a taxable
supply made in a non-participating province
of intangible personal property or a service
that is acquired by the person for
consumption, use or supply primarily in
participating provinces shall pay to Her
Majesty in right of Canada, each time an
amount of consideration for the supply
becomes due or is paid without having
become due, tax equal to the amount
determined by the formula
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A x B x C
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where
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A is the tax rate for the particular participating
province;
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B is the value of that consideration that is paid
or becomes due at that time; and
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C is the extent (expressed as a percentage) to
which the person acquired the property or
service for consumption, use or supply in
participating provinces.
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| When tax
payable
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(2) Tax under subsection (1) that is
calculated on an amount of consideration for
a supply that becomes due at any time, or is
paid at any time without having become due,
becomes payable at that time.
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| Non-taxable
supplies
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(3) No tax is payable under subsection (1) in
respect of a supply of intangible personal
property or a service included in Part II of
Schedule X.
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| Application in
offshore areas
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(4) Subsection (1) does not apply to a supply
of property or a service made to a person who
is resident in the Nova Scotia offshore area or
the Newfoundland offshore area unless the
property or service is acquired for
consumption, use or supply in the course of an
offshore activity or the person is also resident
in a participating province that is not an
offshore area.
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| Use in
offshore areas
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(5) For the purposes of subsection (1), a
person that acquires property or a service for
consumption, use or supply in the Nova Scotia
offshore area or the Newfoundland offshore
area is deemed to acquire the property or
service for consumption, use or supply in that
area only to the extent that it is acquired for
consumption, use or supply in that area in the
course of an offshore activity.
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