Excise Tax Act — E-15 218.1
Tax in participating province 218.1 (1) Subject to this Part, (a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed must, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula A × B × C where A is the tax rate for the participating province, B is the value of that consideration that is paid or becomes due at that time, and C is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and (b) every person that (i) is a registrant and is the recipient of a supply, included in paragraph (b) of the definition imported taxable supply in section 217, of property the physical possession of which is transferred to the registrant in a particular participating province, (ii) is the recipient of a supply, included in any of paragraphs (b.01) to (b.3) of the definition imported taxable supply in section 217, of property that is delivered or made available to the person in a particular participating province and is either resident in that province or is a registrant, or (iii) is the recipient of a supply that is included in paragraph (c.1), (d) or (e) of the definition imported taxable supply in section 217 and that is made in a particular participating province shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula A × B × C where A is the tax rate for the particular participating province, B is the value of that consideration that is paid or becomes due at that time, and C is (A) in the case of an imported taxable supply of tangible personal property, 100%, and (B) in any other case, the extent (expressed as a percentage) to which the person acquired the property for consumption, use or supply in the particular participating province. Delivery in a province (1.1) Section 3 of Part II of Schedule IX applies for the purpose of subparagraph (1)(b)(ii). Tax in a participating province (1.2) Subject to this Part, every qualifying taxpayer that is resident in a participating province shall, for each specified year of the qualifying taxpayer and for each particular participating province, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on (a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula A + B where A is the total of all amounts, each of which is an amount in respect of an internal charge for the specified year that is greater than zero determined by the formula A 1 × A 2 where A 1 is the internal charge, and A 2 is the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province, and B is the total of all amounts, each of which is an amount in respect of an external charge for the specified year that is greater than zero determined by the formula B 1 × B 2 where B 1 is the external charge, and B 2 is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which c