New Harmonized Value-added Tax System Regulations — 42
Lease or licence periods before July 2010 42 (1) No tax is payable under subsection 165(2) of the Act in respect of any consideration for a taxable supply of property by way of lease, licence or similar arrangement made in a specified province to the extent that the consideration is a rent, royalty or similar payment attributable to a period before July 1, 2010. Lease or licence periods before July 2010 (2) No tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of any consideration for a supply of property by way of lease, licence or similar arrangement made outside the harmonized provinces to the extent that the consideration is a rent, royalty or similar payment attributable to a period before July 1, 2010, if the supply is made to (a) a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador; or (b) a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province. Rent and royalties due or paid after April 2010 (3) If a taxable supply of property by way of lease, licence or similar arrangement is made in a specified province and an amount of consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, that amount of consideration is deemed, for the purpose of applying subsection 165(2) of the Act to the supply, to have become due on July 1, 2010 and not to have been paid before that day. Rent and royalties due or paid after April 2010 (4) If a taxable supply of property by way of lease, licence or similar arrangement is made outside the harmonized provinces to a person resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, or to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, and an amount of consideration for the supply becomes due, or is paid without having become due, on or after May 1, 2010 and before July 1, 2010, to the extent that the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, that amount of consideration is deemed, for the purpose of applying subsection 218.1(1) or 220.08(1) of the Act, to have become due on July 1, 2010 and not to have been paid before that day. Rent and royalties due or paid before May 2010 (5) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made in a specified province by a registrant to a person that is not a consumer of the property becomes due, or is paid without having become due, after October 14, 2009 and before May 1, 2010 and any part of the amount of consideration is a rent, royalty or similar payment attributable to a period on or after July 1, 2010, for the purposes of applying subsection 165(2) of the Act to the supply, that part of the amount of consideration is deemed to have become due on July 1, 2010 and not to have been paid before that day and the person is required to pay, in accordance with subsection (8), the tax under subsection 165(2) of the Act payable in respect of the supply on that part of the amount of consideration. Rent and royalties due or paid before May 2010 (6) Subject to subsection (7), if an amount of consideration for a taxable supply of property by way of lease, licence or similar arrangement made outside the harmonized provinces to a person that is not a consumer of the property and that is resident in a specified province and not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador, or to a person that is not a consumer of the property and to which the property is delivered or mad