New Harmonized Value-added Tax System Regulations, No. 2 — 53
ly made to the particular person by the original vendor of the complex multiplied by the percentage of total floor space (as defined in subsection 256.2(1) of the Act) of the unit. Subsequent reseller — condominium complex (6) If a person (in this section referred to as a “subsequent reseller”) acquires a condominium complex and makes a taxable supply by way of sale (in this section referred to as the “subsequent resale”) of the complex or any residential condominium unit located in the complex to a particular person under an agreement evidenced in writing and no tax is payable under subsection 165(2) of the Act pursuant to subsection (3) or this subsection in respect of the acquisition by the subsequent reseller of the complex, 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 or of any residential condominium unit located in the complex; (b) either (i) the subsequent reseller is a builder of the complex or unit, as the case may be, 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 unit, or all or substantially all of the last substantial renovation of the complex or unit and any subsequent construction or renovation, as the case may be, that is completed at the earlier of the time ownership of the complex or unit is transferred and the time possession of the complex or unit is transferred by the subsequent reseller to the particular person has been completed by a person other than the subsequent reseller, or (ii) the subsequent reseller is a builder of the complex or unit, as the case may be, 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 or unit, as the case may be. Subsequent reseller — disclosure (7) If a subsequent reseller makes a subsequent resale of a condominium complex, or any residential condominium unit located in a condominium complex, to a particular person 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 person (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 or unit, as the case may be, 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. Subsequent reseller — residential condominium unit (8) If a person (in this section referred to as a “subsequent reseller”) acquires a residential condominium unit and makes a taxable supply by way of sale (in this section referred to as the “subsequent resale”) of the unit to a particular person under an agreement evidenced in writing and no tax is payable under subsection 165(2) of the Act pursuant to subsection (3), (6) or this subsection in respect of the acquisition by the subsequent reseller of the unit, 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 that unit primarily for the purpose of making a taxable supply by way of sale of the unit; (b) either (i) the subsequent reseller is a builder of the unit that is described in parag