New Harmonized Value-added Tax System Regulations, No. 2 — 53
ay of sale of the complex or unit, as the case may be; (b) possession of the complex is transferred to the first reseller after the construction or last substantial renovation of the complex is substantially completed; (c) the original vendor of the complex and the first reseller deal with each other at arm’s length and are not associated with each other; (d) either (i) the first reseller is a builder of the complex or unit, as the case may be, that is described in paragraphs (b) and (d) of the definition builder in subsection 123(1) of the Act but not in paragraphs (a), (c) and (e) of that definition and all or substantially all of the construction of the complex or unit, or all or substantially all of the last substantial renovation of the complex or unit and any subsequent construction or renovation, as the case may be, that is completed at the earlier of the time ownership of the complex or unit is transferred and the time possession of the complex or unit is transferred by the first reseller to the particular person has been completed by a person other than the first reseller, or (ii) the first reseller is a builder of the complex or unit, as the case may be, that is described only in paragraph (d) of the definition builder in subsection 123(1) of the Act; and (e) neither the original vendor of the complex nor any person that does not deal at arm’s length with, or that is associated with, the original vendor acquires an interest in the complex or unit, as the case may be. First reseller — disclosure (4) If a first reseller makes a first resale of a condominium complex, or any residential condominium unit located in a condominium complex, to a particular person and no tax is payable under subsection 165(2) of the Act in respect of the first resale pursuant to subsection (3), or no tax would have been payable under subsection 165(2) of the Act in respect of the first resale pursuant to subsection (3) if that subsection were read without reference to paragraph (3)(e), the first reseller shall indicate in writing to the particular person, (a) the name of the original vendor of the complex; and (b) that the first reseller was the recipient of a previous supply of the complex in respect of which no tax was payable under subsection 165(2) of the Act pursuant to subsection (1) or (2), as the case may be. Input tax credit — first reseller (5) If a particular person makes a particular taxable supply by way of sale of a condominium complex, or any residential condominium unit located in a condominium complex, to another person under an agreement evidenced in writing, the particular person is the recipient of a previous supply of the complex in respect of which no tax is payable under subsection 165(2) of the Act pursuant to subsection (1) or (2) and tax under subsection 165(2) of the Act is payable in respect of the particular supply, for the purposes of determining an input tax credit of the particular person and for the purposes of section 54, (a) if the particular supply is a supply of a condominium complex, the particular person is deemed to have received another taxable supply in respect of the complex and to have paid, at the time possession of the complex is transferred to the other person, tax in respect of the other supply equal to 2% of the consideration for the previous supply made to the particular person by the original vendor of the complex; or (b) if the particular supply is a supply of a residential condominium unit located in a condominium complex, the particular person is deemed to have received another taxable supply in respect of the complex and to have paid, at the time possession of the unit is transferred to the other person, tax in respect of the other supply equal to 2% of the consideration for the previous supply made to the particular person by the original vendor of the complex multiplied by the percentage of total floor space (as defined in subsection 256.2(1) of the Act) of the unit. Subsequent reseller