New Harmonized Value-added Tax System Regulations, No. 2 — 51
dor of the complex and the individual who assigns the agreement deal with each other at arm’s length and are not associated with each other, and (iii) 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. In applying those rules, the reference to the “individual” in paragraph (1)(e) is to be read as a reference to the “particular individual”. First reseller (3) If an individual (in this section referred to as the “first reseller”) makes a taxable supply by way of sale (in this section referred to as the “first resale”) of a single unit residential complex (other than a floating home or a mobile home) to a particular individual under an agreement evidenced in writing and the first reseller 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), no tax is payable under subsection 165(2) of the Act in respect of the first resale if the following conditions are satisfied: (a) the first reseller acquires the complex primarily for the purpose of making a taxable supply by way of sale of the complex; (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 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 all or substantially all of the last substantial renovation of the complex and any subsequent construction or renovation, as the case may be, that is completed at the earlier of the time ownership of the complex is transferred and the time possession of the complex is transferred by the first reseller to the particular individual has been completed by a person other than the first reseller, or (ii) the first reseller is a builder of the complex 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. First reseller — disclosure (4) If a first reseller makes a first resale of a single unit residential complex (other than a floating home or a mobile home) to a particular individual 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 individual (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 an individual makes a particular taxable supply by way of sale of a single unit residential complex (other than a floating home or a mobile home) to a person under an agreement evidenced in writing, the individual 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 individual and for the