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

Marginal note:Adaptation — subsection 218.1(1) of Act

7.01 If a person is the recipient of an imported taxable supply of property or a service and the person is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due, subsection 218.1(1) of the Act is adapted in respect of the amount of consideration for the supply as follows:

• 218.1 (1) Subject to this Part,

  • (a) every person that is the recipient of an imported taxable supply of intangible personal property or a service and that is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due must, for that amount of consideration and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula

    A × B × C

    where

    A

    is the tax rate for the participating province,

    B

    is the value of that consideration that is paid or becomes due at that time, and

    C

    is

    • (i) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the property or service was acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

    • (ii) in the case of a provincial investment plan for the participating province, 100%, and

    • (iii) in the case of a provincial investment plan for a province other than the participating province, 0%; and

  • (b) every person

    • (i) that is a registrant and is the recipient of a supply of property included in paragraph (b) of the definition imported taxable supply in section 217, or

    • (ii) that is the recipient of a supply of property included in any of paragraphs (b.01) to (b.3) or (c.1) to (e) of the definition imported taxable supply in section 217

    and that is a provincial investment plan or a provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due shall, for that amount of consideration and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula

    A × B × C

    where

    A

    is the tax rate for the participating province,

    B

    is the value of that consideration that is paid or becomes due at that time, and

    C

    is

    • (i) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the property was acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

    • (ii) in the case of a provincial investment plan for the participating province, 100%, and

    • (iii) in the case of a provincial investment plan for a province other than the participating province, 0%.