New Harmonized Value-added Tax System Regulations — 41
at day and the person is required, despite subsection 218.1(2) of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) of the Act payable in respect of the supply on that amount of consideration. Exception — subsections (5) and (6) (7) Subsections (5) and (6) do not apply in respect of a supply by way of sale of tangible personal property made to a person if (a) the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person; (b) the person (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2) or 218.1(1) of the Act that would otherwise be payable by the person in respect of the supply, and (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and (c) the person is neither (i) a registrant that is a selected listed financial institution, nor (ii) 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 . Payment of tax — subsections (5) and (6) (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6), (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and (b) in any other case, section 219 of the Act does not apply in respect of the tax and the person shall, before November 1, 2010, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. Exception — subscriptions (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of any consideration paid before July 1, 2010 for a taxable supply made in a specified province of a subscription for newspapers, magazines or other publications published periodically. Exercise of option to purchase (10) No tax under subsection 165(2) of the Act is payable in respect of a taxable supply by way of sale of tangible personal property made in a specified province to a person if (a) the person was the recipient of another supply of the tangible personal property by way of lease, licence or similar arrangement; (b) the taxable supply is made as a consequence of the person exercising, after July 1, 2010, an option to purchase the tangible personal property provided for under the arrangement referred to in paragraph (a); and (c) retail sales tax of the specified province in respect of the sale of the tangible personal property became payable before July 1, 2010 or would have become payable before that day if the tangible personal property or the person, as the case may be, were not exempt from that tax. Application (11) This section does not apply to a supply to which section 46 or 54 applies.