New Harmonized Value-added Tax System Regulations — 26
Railway rolling stock 26 (1) A supply of railway rolling stock otherwise than by way of sale is made in a particular province if the supplier delivers the rolling stock or makes it available to the recipient of the supply in that province. Place of supply for lease interval (2) If a supply of railway rolling stock is made in a particular province by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1) of the Act) in the period during which possession or use of the rolling stock is provided under the arrangement, the supply of the rolling stock for each of the other lease intervals in that period is, despite subsection (1), made in that province. Renewal of agreement (3) Subject to subsections (4) to (6), for the purposes of this section, if continuous possession or use of railway rolling stock is given by a supplier to a recipient throughout a period under two or more successive leases, licenses or similar arrangements entered into between the supplier and the recipient, the rolling stock is deemed to have been delivered or made available to the recipient under each of those arrangements at the location at which it is delivered or made available to the recipient under the first of those arrangements. Agreements entered into before April 1, 1997 (4) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 1997 and, under the particular agreement, the rolling stock was delivered or made available to the recipient before that day, (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock. Agreements entered into before July 1, 2010 (5) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on July 1, 2010 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Ontario or British Columbia before that day, (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock. Agreements entered into before April 1, 2013 (6) If a supply of railway rolling stock otherwise than by way of sale is made under a particular agreement that is in effect on April 1, 2013 and, under the particular agreement, the rolling stock was delivered or made available to the recipient in Prince Edward Island before that day, (a) the rolling stock is deemed to have been delivered or made available to the recipient under the particular agreement outside the participating provinces; and (b) if the recipient retains continuous possession or use of the rolling stock under an agreement (in this paragraph referred to as the “renewal agreement”) with the supplier that immediately succeeds the particular agreement, subsection (3) applies as if the renewal agreement were the first arrangement between the supplier and the recipient for the supply of the rolling stock. SOR/2013-44, s. 15