Bill C-70

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	TAX ON IMPORTED TAXABLE SUPPLIES
1990, c. 45, s. 12(1)	203. (1) Section 218 of the Act is replaced by the following:
Imposition of goods and services tax	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.
Tax in participating province	218.1 (1) Subject to this Part,
	(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,
	(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
	(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
	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
	A x B x C
	where
	A is the tax rate for the particular participating province,
	B is the value of that consideration that is paid or becomes due at that time, and
	C is
	(a) in the case of an imported taxable supply of tangible personal property, 100%, and
	(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.
Selected listed financial institutions	(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.
Application in offshore areas	(3) Subsection (1) does not apply to
	(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
	(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.
Use in offshore areas	(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.
When tax payable	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.
	(2) Subsection (1) comes into force on April 1, 1997.
	204. (1) The Act is amended by adding the following after section 220:
	DIVISION IV.1
	TAX ON PROPERTY AND SERVICES BROUGHT INTO A PARTICIPATING PROVINCE
Meaning of ``tangible personal property''	220.01 In this Division, ``tangible personal property'' includes a mobile home that is not affixed to land and a floating home.
Carriers	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.
In transit	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.
Selected listed financial institutions	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.
	Subdivision a
	Tax on tangible personal property
Tax in participating province	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
	A x B
	where
	A is the tax rate for the particular participating province; and
	B is
	(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,
	(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,
	(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
	(d) in any other case, the fair market value of the property at the particular time.
When tax payable	(2) Tax under subsection (1) on property brought into a participating province by a person becomes payable
	(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
	(b) in any other case, on the day the property is brought into the province.
Non-taxable property	(3) No tax is payable under subsection (1) in respect of property where
	(a) the recipient of the supply of the property has paid tax under section 220.06 in respect of the property;
	(b) tax under section 220.07 has been paid in respect of the property; or
	(c) the property is included in Part I of Schedule X.
Application in offshore areas	(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.
Supply by unregistered non-resident	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
	A x B
	where
	A is the tax rate for the participating province; and
	B is
	(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,
	(b) notwithstanding paragraph (a), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed manner, and
	(c) in any other case, the fair market value of the property at the particular time.
When tax payable	(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.
Non-taxable property	(3) No tax is payable under subsection (1) in respect of property where
	(a) the supplier of the property has paid tax under section 220.05 in respect of the property;
	(b) tax under section 220.07 has been paid in respect of the property; or
	(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.
Application in offshore areas	(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.
Imported commercial goods	220.07 (1) Subject to this Part, every person who brings into a participating province from a place outside Canada
	(a) a specified motor vehicle, or
	(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
	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.
Exception	(2) Tax under subsection (1) does not apply to
	(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;
	(b) a mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals; or
	(c) goods included in Schedule VII.
Value of goods	(3) For the purposes of this section, the value of goods brought into a province is equal to
	(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;
	(b) in the case of prescribed property brought into a province in prescribed circumstances, the value determined in prescribed manner; and
	(c) in any other case, the value of the goods determined in accordance with section 215.
When tax payable	(4) Tax under subsection (1) on goods brought into a participating province by a person becomes payable by that person
	(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
	(b) in any other case, on the day on which the goods are brought into the province.
Use in offshore areas	(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.
	Subdivision b
	Tax on intangible property and services
Tax in participating province	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
	A x B x C
	where
	A is the tax rate for the particular participating province;
	B is the value of that consideration that is paid or becomes due at that time; and
	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.
When tax payable	(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.
Non-taxable supplies	(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.
Application in offshore areas	(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.
Use in offshore areas	(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.

Bill C-70

TAX ON IMPORTED TAXABLE SUPPLIES

DIVISION IV.1

TAX ON PROPERTY AND SERVICES BROUGHT INTO A PARTICIPATING PROVINCE