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.