Nova Scotia HST Regulations, 2010 (SOR/2010-99)

Interpretation

Marginal note:Definitions

• 1 (1) The following definitions apply in these Regulations.

  Act

  Act means the Excise Tax Act. (Loi)

  continuous freight movement

  continuous freight movement has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (service continu de transport de marchandises)

  continuous journey

  continuous journey has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (voyage continu)

  continuous supply

  continuous supply means a supply of property or a service that is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility. (fourniture continue)

  freight transportation service

  freight transportation service has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (service de transport de marchandises)

  funeral services

  funeral services has the same meaning as in subsection 344(1) of the Act. (services funéraires)

  shipper

  shipper has the same meaning as in subsection 1(1) of Part VII of Schedule VI to the Act. (expéditeur)

  single unit residential complex

  single unit residential complex has the same meaning as in subsection 254(1) of the Act. (immeuble d’habitation à logement unique)

  validity period

  validity period of a passenger transportation pass means

  • (a) the period throughout which the passenger transportation pass entitles an individual to transportation services; or

  • (b) if the period described in paragraph (a) is not ascertainable at the time when the passenger transportation pass is supplied to a recipient, the period beginning on the day on which the passenger transportation pass is delivered or made available to the recipient of the supply and ending on the day on which the passenger transportation pass expires or, in the absence of an expiration date, ending on July 1, 2012. (période de validité)

• Marginal note:Continuous supplies

  (2) For the purposes of these Regulations, if property or a service is delivered, performed or made available on a continuous basis by means of a wire, pipeline, satellite, other conduit or other telecommunications facility during a period that includes July 1, 2010 and for which the supplier issues an invoice and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or service is delivered or provided cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, during the period, is deemed to have been delivered or provided, as the case may be, on each day of the period.

Tax Rate

Marginal note:Tax rate for Nova Scotia

• 2 (1) For the purposes of paragraph (a) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for Nova Scotia is 10%.

• Marginal note:Tax rate for Nova Scotia offshore area

  (2) For the purposes of paragraph (b) of the definition tax rate in subsection 123(1) of the Act, the prescribed rate for the Nova Scotia offshore area is 10%.

Transitional Rules

Marginal note:Transition — services

• 3 (1) Subject to subsection (2) and section 8, if a registrant makes a taxable supply (other than a zero-rated supply) of a service in Nova Scotia or in the Nova Scotia offshore area to a person that is not a consumer of the service and tax under subsection 165(2) of the Act is payable by the person in respect of an amount of consideration for the supply that becomes due, or is paid without having become due, after April 6, 2010 and before May 1, 2010, and a portion of that amount is attributable to any part of the service that is not performed before July 1, 2010, for the purposes of Part IX of the Act, the tax (in this section referred to as the “total tax”) under subsection 165(2) of the Act shall be calculated at the rate of 10% on that portion and the following rules apply:

  • (a) for the purpose of determining the amount of tax (in this section referred to as the “tax collectible”) that is required to be collected by the registrant, the tax under subsection 165(2) of the Act payable by the person on that portion is deemed to have been calculated at the rate of 8%; and

  • (b) the person is required to pay, in accordance with section 9, an amount of tax equal to the difference between the total tax and the tax collectible.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a taxable supply of a service if,

  • (a) in the case of a service that is the transportation of an individual or the transportation of the individual’s baggage in connection with the transportation of the individual, the transportation of the individual is part of a continuous journey that begins before July 1, 2010;

  • (b) in the case of a freight transportation service in respect of a continuous freight movement of tangible personal property, the shipper transfers possession of the property to the first carrier engaged in the continuous freight movement before July 1, 2010; and

  • (c) in any other case, all or substantially all of the service is performed before July 1, 2010.

Marginal note:Transition — leases and licences

• 4 (1) Subject to subsection (2) and section 8, if a registrant makes a taxable supply (other than a zero-rated supply) of property by way of lease, licence or similar arrangement in Nova Scotia or in the Nova Scotia offshore area to a person that is not a consumer of the property and tax under subsection 165(2) of the Act is payable by the person in respect of an amount of consideration for the supply that is a rent, royalty or similar payment that becomes due, or is paid without having become due, after April 6, 2010 and before May 1, 2010, and a portion of that amount is attributable to a period that is after June 2010, for the purposes of Part IX of the Act, the tax (in this section referred to as the “total tax”) under subsection 165(2) of the Act shall be calculated at the rate of 10% on that portion and the following rules apply:

  • (a) for the purpose of determining the amount of tax (in this section referred to as the “tax collectible”) that is required to be collected by the registrant, the tax under subsection 165(2) of the Act payable by the person on that portion is deemed to have been calculated at the rate of 8%; and

  • (b) the person is required to pay, in accordance with section 9, an amount of tax equal to the difference between the total tax and the tax collectible.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a taxable supply of property by way of lease, licence or similar arrangement if

  • (a) the consideration for the supply is a rent, royalty or similar payment attributable to a period of the lease, licence or similar arrangement that begins before July 1, 2010 and ends before July 31, 2010; or

  • (b) the property is intangible personal property and the amount of consideration for the supply is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property.

Marginal note:Transition — memberships and admissions

• 5 (1) Subject to subsection (2) and section 8, if a registrant makes a taxable supply (other than a zero-rated supply) of a membership (other than a membership for the lifetime of an individual) or an admission in Nova Scotia or in the Nova Scotia offshore area to a person that is not a consumer of the membership or the admission and tax under subsection 165(2) of the Act is payable by the person in respect of an amount of consideration for the supply that becomes due, or is paid without having become due, after April 6, 2010 and before May 1, 2010, and a portion of that amount is attributable to any part of the period of membership or admission that is after June 2010, for the purposes of Part IX of the Act, the tax (in this section referred to as the “total tax”) under subsection 165(2) of the Act shall be calculated at the rate of 10% on that portion and the following rules apply:

  • (a) for the purpose of determining the amount of tax (in this section referred to as the “tax collectible”) that is required to be collected by the registrant, the tax under subsection 165(2) of the Act payable by the person on that portion is deemed to have been calculated at the rate of 8%; and

  • (b) the person is required to pay, in accordance with section 9, an amount of tax equal to the difference between the total tax and the tax collectible.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a taxable supply of a membership or an admission if all or substantially all of the period of membership or admission is before July 1, 2010.

Marginal note:Transition — passenger transportation passes

• 6 (1) Subject to subsection (2) and section 8, if a registrant makes a taxable supply (other than a zero-rated supply) of a passenger transportation pass in Nova Scotia or in the Nova Scotia offshore area to a person that is not a consumer of the passenger transportation pass and tax under subsection 165(2) of the Act is payable by the person in respect of an amount of consideration for the supply that becomes due, or is paid without having become due, after April 6, 2010 and before May 1, 2010, and a portion of that amount is attributable to any part of the validity period of the passenger transportation pass that is after June 2010, for the purposes of Part IX of the Act, the tax (in this section referred to as the “total tax”) under subsection 165(2) of the Act shall be calculated at the rate of 10% on that portion and the following rules apply:

  • (a) for the purpose of determining the amount of tax (in this section referred to as the “tax collectible”) that is required to be collected by the registrant, the tax under subsection 165(2) of the Act payable by the person on that portion is deemed to have been calculated at the rate of 8%; and

  • (b) the person is required to pay, in accordance with section 9, an amount of tax equal to the difference between the total tax and the tax collectible.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of a taxable supply of a passenger transportation pass of which the validity period begins before July 1, 2010 and ends before August 1, 2010.

Marginal note:Transition — lifetime memberships

7 If a registrant makes a taxable supply (other than a zero-rated supply) of a membership for the lifetime of an individual in Nova Scotia or in the Nova Scotia offshore area to a person and tax under subsection 165(2) of the Act is payable by the person in respect of the total (referred to in this section as the “specified amount”) of all amounts of consideration for the supply that become due, or are paid without having become due, after April 6, 2010 and before July 1, 2010, and the specified amount exceeds 25% of the total consideration for the supply, for the purposes of Part IX of the Act, the tax (in this section referred to as the “total tax”) under subsection 165(2) of the Act shall be calculated at the rate of 10% on the difference between the specified amount and 25% of the total consideration and the following rules apply:

• (a) for the purpose of determining the amount of tax (in this section referred to as the “tax collectible”) that is required to be collected by the registrant, the tax under subsection 165(2) of the Act payable by the person on that difference is deemed to have been calculated at the rate of 8%; and

• (b) the person is required to pay, in accordance with section 9, an amount of tax equal to the difference between the total tax and the tax collectible.

Marginal note:Exception

8 Sections 3 to 6 do not apply in respect of a taxable supply of property or a service made to a person if

• (a) the property or service is acquired by the person for consumption, use or supply exclusively in commercial activities of the person;

• (b) the person is entitled to include, for the purpose of determining an input tax credit of the person in respect of the property or service, the total amount of tax under subsection 165(2) of the Act payable by the person in respect of the supply and the person would not, if the input tax credit were claimed, be required to add an amount in respect of such an input tax credit in determining its net tax for any reporting period of the person; and

• (c) the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations.

Marginal note:Payment

9 If a person is required to pay an amount of tax in accordance with this section as a consequence of the application of any of sections 3 to 7,

• (a) in the case of a person that is a registrant, the person shall add the amount in determining the net tax of the person for the reporting period of the person in which the amount became payable; and

• (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the amount became payable, pay the amount to the Receiver General and file with the Minister in prescribed manner a return in respect of the amount in prescribed form containing prescribed information.

Marginal note:Budget payment arrangements

• 10 (1) If a registrant makes a supply of property or a service in Nova Scotia under a budget payment arrangement relating to a particular period that begins before July 1, 2010 and ends on or after that day, the budget payment arrangement provides for a reconciliation of the payments of consideration for the supply that are made during the particular period and the reconciliation is to take place at or after the end of the particular period and before July 1, 2011, the registrant shall, at the time the registrant issues an invoice for the reconciliation, calculate the positive or negative amount determined by the formula

  A - B

  where

  A

  is the tax that would be payable by the recipient of the supply under subsection 165(2) of the Act in respect of the property, service or part thereof delivered, performed or made available on or after July 1, 2010 if the consideration for the supply of that property, service or part had become due and had been paid on or after July 1, 2010; and

  B

  is the total tax payable by the recipient of the supply under subsection 165(2) of the Act in respect of the property or service delivered, performed or made available during the particular period.

• Marginal note:Collection of tax

  (2) If the amount calculated by a registrant under subsection (1) is a positive amount,

  • (a) the amount is deemed to be tax payable by the recipient of the supply under subsection 165(2) of the Act; and

  • (b) the registrant is deemed to have collected the amount on the day on which the invoice for the reconciliation is issued.

• Marginal note:Refund of excess

  (3) If the amount calculated by a registrant under subsection (1) is a negative amount,

  • (a) the registrant shall refund or credit the amount to the recipient of the supply;

  • (b) the registrant shall issue a credit note to the recipient for the amount of the refund or credit; and

  • (c) section 232 of the Act applies as if the credit note were issued under that section.

Marginal note:Combined supply

11 If a particular supply that includes a combination of personal property, real property or a service (each of which is in this section referred to as an “element”) is made in Nova Scotia or in the Nova Scotia offshore area and the consideration for the particular supply becomes due, or is paid without having become due, after April 6, 2010 and before July 1, 2010, for the purpose of applying subsection 165(2) of the Act to the supply, each element of the supply that is tangible personal property is deemed to have been supplied separately from each other element of the supply for the portion of the consideration that is attributable to the tangible personal property.

Marginal note:Definitions

• 12 (1) In this section, direct seller, distributor, exclusive product, independent sales contractor and suggested retail price have the same meanings as in section 178.1 of the Act.

• Marginal note:Adjustment for exclusive products — direct sellers

  (2) If an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect, the direct seller makes a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect, the consideration for the supply becomes due, or is paid without having become due, before July 1, 2010 and the exclusive product is for resale in Nova Scotia by the independent sales contractor on or after July 1, 2010, in determining the net tax of the direct seller for the reporting period of the direct seller that includes July 1, 2010, there shall be added an amount equal to 2% of the suggested retail price of the exclusive product.

• Marginal note:Adjustment for exclusive products — distributors

  (3) If an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect, the distributor makes a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect, the consideration for the supply becomes due, or is paid without having become due, before July 1, 2010 and the exclusive product is for resale in Nova Scotia by the independent sales contractor on or after July 1, 2010, in determining the net tax of the distributor for the reporting period of the distributor that includes July 1, 2010, there shall be added an amount equal to 2% of the suggested retail price of the exclusive product.

Marginal note:Additional disclosure — real property

• 13 (1) If a builder makes a taxable supply of a residential complex in Nova Scotia under an agreement of purchase and sale entered into after April 6, 2010 and before July 1, 2010 and tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the builder shall indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and the builder is required under section 221 of the Act to collect tax at a particular time in respect of the supply,

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 8% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Employee and shareholder benefits

14 In respect of the 2010 taxation year, if

• (a) a benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Nova Scotia or in the Nova Scotia offshore area, or

• (b) a benefit amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Nova Scotia at the end of the year,

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

13%, and

Marginal note:Nova Scotia housing rebate

15 Subsections 254(2.01) to (2.1) of the Act do not apply in respect of a residential complex if the agreement of purchase and sale of the residential complex is entered into by an individual after April 6, 2010, unless ownership of the residential complex is transferred, or possession of the residential complex is given, to the individual before July 1, 2010.

Marginal note:Nova Scotia housing rebate

16 Subsections 254.1(2.01) to (2.1) of the Act do not apply in respect of a building or part of it in which a residential unit forming part of a residential complex is situated if the agreement under which the building or part is supplied by way of sale to an individual is entered into by the individual after April 6, 2010, unless possession of the unit is given to the individual before July 1, 2010.

Marginal note:Nova Scotia housing rebate

17 Subsections 255(2.01) to (2.1) of the Act do not apply in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the agreement of purchase and sale of the share is entered into by the individual after April 6, 2010, unless ownership of the share is transferred to the individual before July 1, 2010.

Marginal note:Nova Scotia housing rebate

18 Subsections 256(2.02) to (2.1) of the Act do not apply in respect of a residential complex, unless the application under subsection 256(3) of the Act for a rebate provided for under subsection 256(2.1) of the Act is filed in respect of the residential complex with the Minister of National Revenue before July 1, 2010.

Application

• 19 (1) Sections 1, 3 to 13 and 15 to 18 are deemed to have come into force on April 6, 2010.

• (2) Section 2 applies

  • (a) to any supply made on or after July 1, 2010;

  • (b) to any consideration for a supply (other than a continuous supply) by way of sale of tangible personal property or intangible personal property (other than an admission, a passenger transportation pass or a membership that is not a membership for the lifetime of an individual) that becomes due, or is paid without having become due, on or after July 1, 2010;

  • (c) to any consideration for a supply (other than a continuous supply) of a service that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010, and

    • (ii) is attributable to the portion of the service that is performed after June 2010;

  • (d) to any consideration for a supply of property by way of lease, licence or similar arrangement that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010, and

    • (ii) is a rent, royalty or similar payment attributable to a period that is after June 2010;

  • (e) to any consideration for a supply by way of sale of real property if ownership and possession of the property are transferred on or after July 1, 2010;

  • (f) to any consideration for a continuous supply that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010, and

    • (ii) is attributable to the portion of the property or service that is delivered, performed or made available after June 2010;

  • (g) to any consideration for a supply by way of sale of intangible personal property that is a membership (other than a membership for the lifetime of an individual), an admission or a passenger transportation pass that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010, and

    • (ii) is attributable to,

      • (A) in the case of a membership or an admission, the portion of the period of membership or admission that is after June 2010, or

      • (B) in the case of a passenger transportation pass, the portion of the validity period of the passenger transportation pass that is after June 2010;

  • (h) to any consideration for a supply made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010 as a progress payment under the contract, and

    • (ii) may reasonably be attributed to property delivered or a service performed under the contract on or after July 1, 2010;

  • (i) to goods imported into Canada on or after July 1, 2010;

  • (j) to goods imported into Canada before July 1, 2010 and that are, on or after that day, accounted for under subsection 32(1), paragraph 32(2)(a) or subsection 32(5) of the Customs Act or released in the circumstances set out in paragraph 32(2)(b) of that Act;

  • (k) to property brought into Nova Scotia or the Nova Scotia offshore area on or after July 1, 2010;

  • (l) to property that is brought into Nova Scotia or the Nova Scotia offshore area before July 1, 2010 by a carrier if the property is delivered in Nova Scotia or the Nova Scotia offshore area to a consignee on or after that day; and

  • (m) for the purposes of determining or calculating any of the following amounts if none of paragraphs (a) to (l) applies:

    • (i) tax in respect of Nova Scotia or the Nova Scotia offshore area on or after July 1, 2010,

    • (ii) tax that is not payable in respect of Nova Scotia or the Nova Scotia offshore area, but would have been payable in respect of Nova Scotia or the Nova Scotia offshore area on or after July 1, 2010 in the absence of certain circumstances described in the Act, or

    • (iii) an amount or number, at any time on or after July 1, 2010, by or in accordance with an algebraic formula that makes reference to the tax rate for a participating province if the amount or number is to be determined or calculated in respect of Nova Scotia or the Nova Scotia offshore area.

• (3) Despite subsection (2), section 2 does not apply in respect of

  • (a) a supply of property by way of lease, licence or similar arrangement if the consideration for the supply is rent, a royalty or a similar payment attributable to a period that begins before July 1, 2010 and ends before July 31, 2010;

  • (b) a supply (other than a continuous supply) of a service if all or substantially all of the service is performed before July 1, 2010;

  • (c) a supply of a service that is the transportation of an individual or the transportation of the individual’s baggage in connection with the transportation of the individual if the transportation of the individual is part of a continuous journey that begins before July 1, 2010;

  • (d) a supply of a freight transportation service in respect of a continuous freight movement of tangible personal property if the shipper transfers possession of the property to the first carrier engaged in the continuous freight movement before July 1, 2010;

  • (e) a supply of a membership (other than a membership for the lifetime of an individual) or an admission if all or substantially all of the period of membership or admission is before July 1, 2010;

  • (f) a supply of a passenger transportation pass in respect of which the validity period begins before July 1, 2010 and ends before August 1, 2010;

  • (g) a supply of funeral services under an arrangement to supply funeral services in respect of an individual,

    • (i) where, under the terms of the arrangement, it is the case that the funds required to pay for the funeral services are held by a trustee and the trustee is responsible for acquiring funeral services in respect of the individual, if

      • (A) the arrangement is entered into in writing before July 1, 2010, and

      • (B) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death, and

    • (ii) in any other case, if

      • (A) the arrangement is entered into in writing at any time before July 1, 2010, and

      • (B) at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death;

  • (h) a supply by way of sale of a single unit residential complex, or a residential condominium unit, if the supply is made under an agreement in writing entered into on or before April 6, 2010;

  • (i) a supply of a single unit residential complex, or a residential condominium unit, deemed to have been made under subsection 191(1) of the Act as a consequence of the builder of the complex or unit giving possession or use of the complex or unit to a person at any time on or after July 1, 2010 under an agreement, referred to in subparagraph 191(1)(b)(ii) of the Act, if the agreement is entered into in writing on or before April 6, 2010;

  • (j) any consideration for a supply made under a budget payment arrangement referred to in subsection 10(1) that becomes due, or is paid without having become due, before July 1, 2010;

  • (k) any consideration for a supply made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel that

    • (i) becomes due, or is paid without having become due, on or after May 1, 2010 as a progress payment under the contract, and

    • (ii) may reasonably be attributed to property delivered or a service performed under the contract before July 1, 2010; and

  • (l) any consideration for a supply of intangible personal property by way of lease, licence or similar arrangement that becomes due before July 1, 2010 if the amount of the consideration is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property.