Excise Tax Act (R.S.C., 1985, c. E-15)

PART I
Interpretation

• 1 The definitions in this section apply in this Schedule.

  lease interval, in respect of a supply by way of lease, licence or similar arrangement, has the same meaning as in section 136.1 of the Act.

  place of negotiation of a supply means the location of the supplier’s permanent establishment at which the individual principally involved in negotiating for the supplier the agreement for the supply ordinarily works, or to which that individual ordinarily reports, in the performance of the individual’s duties in relation to the activities of the supplier in the course of which the supply is made and, for the purposes of this definition, negotiating includes the making or acceptance of an offer.

• 2 For the purposes of this Schedule,

  • (a) a floating home, and

  • (b) a mobile home that is not affixed to land

  are each deemed to be tangible personal property and not real property.

• 3 For the purposes of this Schedule, where an agreement for the supply of property or a service is entered into but the property is never delivered to the recipient or the service is never performed, the property is deemed to have been delivered, or the service is deemed to have been performed, where the property or service was to be delivered or performed, as the case may be, under the terms of the agreement.

• 4 Where, for the purpose of determining, under this Schedule, if a supply is made in a province, reference is made to the ordinary location of property and, from time to time, the supplier and recipient mutually agree upon what is to be the ordinary location of the property at a particular time, that location is deemed, for the purposes of this Schedule, to be the ordinary location of that property at the particular time.

• 5 The definition courier in subsection 123(1) does not apply for the purposes of this Schedule.

PART II
Tangible Personal Property

• 1 Subject to section 3 of Part VI, a supply by way of sale of tangible personal property is made in a province if the supplier delivers the property or makes it available in the province to the recipient of the supply.

• 2 A supply of tangible personal property otherwise than by way of sale is made in a province if

  • (a) in the case of a supply made under an agreement under which continuous possession or use of the property is provided for a period of no more than three months, the supplier delivers the property or makes it available in the province to the recipient of the supply; and

  • (b) in any other case,

    • (i) where the property is a specified motor vehicle, it is required, at the time the supply is made, to be registered under the laws of the province relating to the registration of motor vehicles, and

    • (ii) where the property is not a specified motor vehicle, the ordinary location of the property, as determined at the time the supply is made, is in the province.

• 3 For the purposes of this Part and Part VII, property is deemed to be delivered in a particular province by a supplier and is deemed not to be delivered in any other province by the supplier where the supplier

  • (a) ships the property to a destination in the particular province that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient to ship the property to such a destination; or

  • (b) sends the property by mail or courier to an address in the particular province.

• 4 If

  • (a) a supply of tangible personal property is made by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of no more than three months,

  • (b) because of paragraph 136.1(1)(a) of the Act, there is deemed to be more than one supply of the property under that arrangement, and

  • (c) in the absence of that paragraph, the supply of the property under that arrangement would be made in a province,

  all the supplies of the property that are, because of that paragraph, deemed to be made under that arrangement are made in that province.

PART III
Intangible Personal Property

• 1 In this Part, Canadian rights, in respect of intangible personal property, means that part of the property that can be used in Canada.

• 2 A supply of intangible personal property is made in a province if

  • (a) in the case of property that relates to real property,

    • (i) all or substantially all of the real property that is situated in Canada is situated in the province, or

    • (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province;

  • (b) in the case of property that relates to tangible personal property,

    • (i) all or substantially all of the tangible personal property that is ordinarily located in Canada is ordinarily located in the province, or

    • (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the tangible personal property is ordinarily located outside the province;

  • (c) in the case of property that relates to services to be performed,

    • (i) all or substantially all of the services that are to be performed in Canada are to be performed in the province, or

    • (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the services are to be performed outside the province; and

  • (d) in any other case,

    • (i) all or substantially all of the Canadian rights in respect of the property can be used only in the province, or

    • (ii) the place of negotiation of the supply is in the province and the property can be used otherwise than exclusively outside the province.

• 3 Subject to section 2, where a supply of intangible personal property is made and

  • (a) in the case of intangible personal property that relates to real property,

    • (i) the real property that is situated in Canada is situated primarily in the participating provinces, and

    • (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the real property is situated in Canada,

  • (b) in the case of intangible personal property that relates to tangible personal property,

    • (i) the tangible personal property that is ordinarily located in Canada is ordinarily located primarily in the participating provinces, and

    • (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the personal property is ordinarily located in Canada,

  • (c) in the case of intangible personal property that relates to services to be performed,

    • (i) the services to be performed in Canada are to be performed primarily in the participating provinces, and

    • (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the services are to be performed in Canada, and

  • (d) in the case of intangible personal property that does not relate to real property, tangible personal property or services to be performed,

    • (i) the Canadian rights in respect of the intangible personal property cannot be used otherwise than primarily in the participating provinces, and

    • (ii) where the place of negotiation of the supply is outside Canada, the property cannot be used otherwise than exclusively in Canada,

  the supply of the intangible personal property is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, the tangible personal property ordinarily located in the participating provinces is ordinarily located, the services to be performed in the participating provinces are to be performed, or the Canadian rights that can be used only in the participating provinces can be used, as the case may be.

PART IV
Real Property

• 1 A supply of real property is made in a province if the property is situated in the province.

• 2 A supply of a service in relation to real property is made in a province if

  • (a) all or substantially all of the real property that is situated in Canada is situated in the province; or

  • (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province.

• 3 Subject to section 2, where a supply of a service in relation to real property is made and the real property that is situated in Canada is situated primarily in participating provinces, the supply is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the property is situated in Canada.

PART V
Services

• 1 In this Part, Canadian element of a service means the portion of the service that is performed in Canada.

• 2 Subject to Parts IV and VI to VIII, a supply of a service is made in a province if

  • (a) all or substantially all of the Canadian element of the service is performed in the province; or

  • (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the service is performed outside the province.

• 3 Subject to section 2, where the Canadian element of a service is performed primarily in the participating provinces, the supply of the service is made in the participating province in which the greatest proportion of the Canadian element is performed, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the service is performed in Canada.

PART VI
Transportation Services

• 1 The definitions in this section apply in this Part.

  continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

  destination of a freight transportation service means the place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper.

  freight transportation service has the meaning assigned by section 1 of Part VII of Schedule VI.

  leg of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes.

  origin of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

  stopover, in respect of a continuous journey, has the meaning assigned by section 1 of Part VII of Schedule VI except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.

  termination of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

• 2 A supply of a passenger transportation service that is part of a continuous journey is made in a province if,

  • (a) where the ticket or voucher issued in respect of the passenger transportation service included in the continuous journey that is provided first specifies the origin of the continuous journey, the origin is a place in the province and the termination, and all stopovers, in respect of the continuous journey are in Canada; and

  • (b) in any other case, the place of negotiation of the supply is in the province.

• 3 Where a supply by way of sale of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the conveyance during any leg of the journey that begins in any participating province and ends in any participating province, the supply is made in the participating province in which that leg of the journey begins.

• 4 A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service is made in the province:

  • (a) a service of transporting an individual’s baggage; and

  • (b) a service of supervising an unaccompanied child.

• 4.1 A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service would, if it were completed in accordance with the agreement for that supply, be made in the province.

• 5 Subject to Part VII, a supply of a freight transportation service is made in a province if the destination of the service is in the province.

PART VII
Postage

• 1 The definitions in this section apply in this Part.

  postage stamptimbre-poste

  postage stamp means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint or any “business reply” indicia or item bearing that indicia.

  permit imprintmarque de permis

  permit imprint means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any “business reply” indicia or item bearing that indicia.

• 2 A supply of a postage stamp or a postage-paid card, package or similar item (other than an item bearing a “business reply” indicia) that is authorized by the Canada Post Corporation is made in a province if the supplier delivers the stamp or item in the province to the recipient of the supply and, where the stamp or item is used as evidence of the payment of postage for a mail delivery service, the supply of the service is made in that province, unless

  • (a) the supply of the service is made pursuant to a bill of lading; or

  • (b) the consideration for the supply of the service is $5 or more and the address to which the mail is sent is not in a participating province.

• 3 Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation is evidenced by a postage meter impression printed by a meter, the supply of the service is made in a province if the ordinary location of the meter, as determined at the time the recipient of the supply pays an amount to the Corporation for the purpose of paying that postage, is in the province, unless the supply is made pursuant to a bill of lading.

• 4 Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation otherwise than pursuant to a bill of lading is evidenced by a permit imprint, the supply of the service is made in the province in which the recipient of the supply deposits the mail with the Corporation in accordance with the agreement between the recipient and the Corporation authorizing the use of the permit imprint.

PART VIII
Telecommunication Services

• 1 For the purposes of this Part, the billing location for a telecommunication service supplied to a recipient is in a province if,

  • (a) where the consideration paid or payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to telecommunications facilities that are used or are available for use by the recipient to obtain telecommunication services, all those telecommunications facilities are ordinarily located in the province; and

  • (b) in any other case, the telecommunications facility used to initiate the service is located in the province.

• 2 A supply of a telecommunication service (other than a service referred to in section 3) is made in a province if,

  • (a) in the case of a telecommunication service of making telecommunications facilities available,

    • (i) all of those facilities are ordinarily located in the province, or

    • (ii) where not all of those telecommunications facilities are ordinarily located in the province, the invoice for the supply of the service is sent to an address in the province; and

  • (b) in any other case,

    • (i) the telecommunication is emitted and received in the province,

    • (ii) the telecommunication is emitted or received in the province and the billing location for the service is in the province, or

    • (iii) the telecommunication is emitted in the province and is received outside the province and the billing location for the service is not in a province in which the telecommunication is emitted or received.

• 3 A supply of a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel, within the meaning assigned by section 136.4 of the Act, is made in a province if the supply is deemed under that section to be made in the province.

PART IX
Deemed Supplies and Prescribed Supplies

• 1 Notwithstanding any other Part of this Schedule, a supply of property that is deemed under any of sections 129, 129.1, 171, 171.1 and 172, subsections 183(1) and (4) and 184(1) and (3) and sections 196.1 and 268 of the Act to have been made or received at any time is made where the property is situated at that time.

• 2 Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is deemed under Part IX of the Act or regulations made under that Part to be made in the province.

• 3 Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is prescribed to be made in the province.