New Harmonized Value-added Tax System Regulations, No. 2 — 51
t 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 purposes of section 54, the individual 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 person, tax in respect of the other supply equal to 2% of the consideration for the previous supply made to the individual by the original vendor of the complex. Subsequent reseller (6) If an individual (in this section referred to as the “subsequent reseller”) makes a taxable supply by way of sale (in this section referred to as the “subsequent 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 subsequent 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 (3) or this subsection, no tax is payable under subsection 165(2) of the Act in respect of the subsequent resale if the following conditions are satisfied: (a) the subsequent reseller acquires the complex primarily for the purpose of making a taxable supply by way of sale of the complex; (b) either (i) the subsequent 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 subsequent reseller to the particular individual has been completed by a person other than the subsequent reseller, or (ii) the subsequent 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 (c) 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. Subsequent reseller — disclosure (7) If a subsequent reseller makes a subsequent 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 subsequent resale pursuant to subsection (6), or no tax would have been payable under subsection 165(2) of the Act in respect of the subsequent resale pursuant to subsection (6) if that subsection were read without reference to paragraph (6)(c), the subsequent reseller shall indicate in writing to the particular individual (a) the name of the original vendor of the complex; and (b) that the subsequent 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 (3) or (6), as the case may be. Agreement not indicating tax (8) If (a) a first reseller or a subsequent reseller of a single unit residential complex (other than a floating home or a mobile home) makes a taxable supply by way of sale of the complex in a specified province under an agreement of purchase and sale, (b) tax under subsection 165(2) of the Act becomes payable in respect of the taxable supply, (c) the agreement does not indicate in writing (i) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) or 256.21(3) of the Act, and (ii) the total of the rates at