New Harmonized Value-added Tax System Regulations — 42
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 made available in a specified province or to which physical possession of the property is transferred in a specified province, 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 218.1(1) or 220.08(1) 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, despite subsection 218.1(2) and section 220.04 of the Act, to pay, in accordance with subsection (8), the tax under subsection 218.1(1) or 220.08(1) of the Act, as the case may be, payable in respect of the supply, in the absence of section 1 of Part II of Schedule X to the Act, on that part of the amount of consideration. Exception — subsections (5) and (6) (7) Subsections (5) and (6) do not apply in respect of a supply of property by way of lease, licence or similar arrangement made to a person if (a) the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person; (b) the person (i) would be entitled to include, for the purpose of determining an input tax credit of the person in respect of the property, the total amount of tax under subsection 165(2), 218.1(1) or 220.08(1) of the Act, as the case may be, that would otherwise be payable by the person in respect of the supply, and (ii) would not have been required to add, in determining its net tax for any reporting period of the person, an amount in respect of an input tax credit referred to in subparagraph (i); and (c) the person is neither (i) a registrant that is a selected listed financial institution, nor (ii) a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations . Payment of tax — subsections (5) and (6) (8) If a person is required to pay tax in accordance with this subsection as a consequence of the application of subsection (5) or (6), (a) in the case of a person that is a registrant whose return under section 238 of the Act for the reporting period that includes July 1, 2010 is required to be filed on or before a particular day that is before November 1, 2010, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return; and (b) in any other case, section 219 and subsection 220.09(1) of the Act do not apply in respect of the tax and the person shall, before November 1, 2010, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. Lease or licence period ending before July 31, 2010 (9) Despite subsections (3) and (5), no tax is payable under subsection 165(2) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made in a specified province if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before July 1, 2010 and ends before July 31, 2010. Lease or licence period ending before July 31, 2010 (10) Despite subsections (4) and (6), no tax is payable under subsection 218.1(1) or 220.08(1) of the Act in respect of a taxable supply of property by way of lease, licence or similar arrangement made to a person to which the property is delivered or made available, or physical possession of the property is transferred, in a specified province, if the consideration for the supply is a rent, royalty or similar payment attributable to a period that begins before July 1, 2010 and