2 (1) Every purchaser of tangible personal property, except the classes thereof referred to in subsection (2), shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use thereof, computed at the rate of 8 per cent of the fair value thereof.  R.S.O. 1990, c. R.31, s. 2 (1). of liquor, beer, wine (2) Every purchaser of liquor, beer or wine shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use thereof computed at the rate of, (a)  10 per cent of the fair value thereof if the liquor, beer or wine is sold or is required to be sold under the authority of a licence issued by the Alcohol and Gaming Commission of Ontario under the Liquor Licence Act; or (b)  12 per cent of the fair value thereof if the liquor, beer or wine is sold or is required to be sold by or under the authority of the Liquor Control Board of Ontario under the Liquor Control Act.  1993, c. 12, s. 2 (1); 1998, c. 34, s. 93. of taxable service (3) Every purchaser of a taxable service other than a taxable service described in clause (b) of the definition of “taxable service” in subsection 1 (1) shall pay to Her Majesty in right of Ontario a tax in respect thereof computed at the rate of 8 per cent of the fair value thereof.  R.S.O. 1990, c. R.31, s. 2 (3); 1994, c. 13, s. 2 (1); 2002, c. 22, s. 171 (1). Idem (4) Every purchaser of a taxable service described in clause (b) of the definition of “taxable service” in subsection 1 (1) shall pay to Her Majesty in right of Ontario a tax in respect thereof computed at the rate of 5 per cent of the fair value thereof.  R.S.O. 1990, c. R.31, s. 2 (4). Tax on admission to a place of amusement (5) Every purchaser of admission to a place or places of amusement shall pay to Her Majesty in right of Ontario a tax computed at the rate of 10 per cent of the price of admission where the price of admission exceeds $4.  R.S.O. 1990, c. R.31, s. 2 (5). When tax payable (6) A purchaser shall pay the tax imposed by this Act at the time of the sale or the promotional distribution of an admission.  R.S.O. 1990, c. R.31, s. 2 (6); 1996, c. 29, s. 24 (1). Sale by rent or lease (7) Despite subsection (6) and section 12, where a purchaser, (a)  rents or leases from any person any taxable service at a sale in Ontario; or (b)  acquires tangible personal property at a sale that is the lease or rental to the purchaser of such tangible personal property without provision for the transfer to the purchaser of title thereto, or with the provision of such transfer only upon the exercise of an option or similar right to acquire such tangible personal property, the tax imposed by this section and section 2.1.1 shall be computed, paid and collected on the due date of, and on the fair value of, each rental payment by or on behalf of the purchaser in respect of the lease or rental of such taxable service or tangible personal property, and tax shall, in addition, be computed, paid and collected at the time of, and on the fair value for, each of the obtaining of any option or similar right to purchase the tangible personal property leased or rented or the exercising of any such option or similar right.  R.S.O. 1990, c. R.31, s. 2 (7); 1993, c. 12, s. 2 (2); 2010, c. 1, Sched. 25, s. 1 (1). (8) Repealed:  2005, c. 31, Sched. 19, s. 2. Determination of fair value (9) Where the Minister considers it necessary or advisable, he or she may determine the amount of any price of admission or of any premium, or the fair value of any tangible personal property or any service, for the purpose of taxation under this Act, and thereupon the price of admission, the premium or the fair value of the tangible personal property or any service, for such purpose shall be so determined by the Minister unless, in proceedings instituted by an appeal under section 25, it is established that the determination is unreasonable.  1994, c. 13, s. 2 (2); 2002, c. 22, s. 171 (2). Refund of tax (10) Subject to subsection (11), if a person sells any tangible personal property at a retail sale in Ontario to a person who alleges that he, she or it is not purchasing it for consumption or use in Ontario, the person shall nevertheless require the person who is purchasing it to pay the tax, but such payment shall be refunded on receipt by the Minister of satisfactory evidence that the tax was wrongfully paid.  R.S.O. 1990, c. R.31, s. 2 (10). Application for refund (11) An amount paid under this Act as tax that is not payable as tax and that was not paid to discharge liability under an assessment made under this Act shall be refunded if application for the refund is made to the Minister within four years after the date of payment of the amount.  R.S.O. 1990, c. R.31, s. 2 (11). Exception (11.1) Despite subsection (10), the Minister shall not refund any tax paid in respect of tangible personal property permanently removed from Ontario by the purchaser to another Canadian province or territory on or after July 1, 1993, unless the purchaser supplies proof satisfactory to the Minister that all of the taxes in respect of the property payable to the other Canadian jurisdiction have been paid and that none of the tax is refundable to the purchaser.  1994, c. 13, s. 2 (3); 1996, c. 29, s. 24 (2). Limitation (12) Only one application may be made under subsection (11) in respect of the same amount.  R.S.O. 1990, c. R.31, s. 2 (12). Refund to contracting party (13) If the amount that is the subject of an application under subsection (11) was paid in the course of performing a contract for the construction of any building or structure or other improvement which on completion will be real property and was repaid by another party to the contract, the amount may be refunded to the other party.  1996, c. 29, s. 24 (3). Overpayment refunded (14) Subject to subsection 18 (8), subsection 19 (3) and to subsection 20 (9), where an assessment or reassessment under this Act or the final decision of a court in proceedings commenced under section 25 establishes that the person assessed or reassessed or the appellant, as the case may be, has overpaid the tax payable under this Act for the period covered by the assessment or reassessment, the amount of such overpayment shall be refunded to the person.  R.S.O. 1990, c. R.31, s. 2 (14). Extension of time (15) Where, within four years following the payment of an amount under this Act as tax that is not payable as tax, the person who paid such amount informs the Minister that a claim for a refund of such amount will be made, and further provides to the Minister evidence of the nature of the claim and an explanation satisfactory to the Minister of why the full particulars of the claim cannot be furnished in the proper form within such four-year period, the Minister may extend by not more than six months the four-year period mentioned in subsection (11).  R.S.O. 1990, c. R.31, s. 2 (15). Refund by vendor (16) Despite subsection (11), a vendor may refund to a purchaser from whom the vendor has collected tax the whole or a part of such tax, as the case requires, (a)  if any of the circumstances described in subsection (16.0.1) exist; and (b)  if the refund is made within four years following the sale with respect to which the tax being refunded was collected.  2002, c. 22, s. 171 (3). Time limit for refund of certain taxes (16.0.0.1) A vendor is not permitted to provide a refund under subsection (16) after October 31, 2010 in respect of tangible personal property that is returned to the vendor after June 30, 2010.  2010, c. 1, Sched. 25, s. 1 (2). Same (16.0.1) The following are the circumstances in which a vendor may refund to a purchaser all or part of the tax collected by the vendor from the purchaser: 1.  The tax payable and collected, or the purchase price charged, was overstated by reason of a clerical or arithmetical error in computation. 2.  The purchaser acquired from the vendor the goods on which a refund of tax is sought for the purpose of reselling the goods, and after the sale and before the refund is made provides the vendor with a proper purchase exemption certificate with respect to the goods. 3.  The price paid for the tangible personal property, taxable service or as the price of admission is subsequently reduced and the amount of the reduction refunded or credited to the purchaser. 4.  The refund made is with respect to a class of transactions prescribed by the Minister for the purpose of this subsection or has been authorized by the Minister in writing before the refund is made.  2002, c. 22, s. 171 (3). Deduction by vendor from amount remitted (16.0.2) The vendor may deduct from a subsequent remittance of tax under this Act the amount of a refund to a purchaser made in accordance with subsection (16) if the vendor takes the deduction within four years from the date of the refund to the purchaser.  2002, c. 22, s. 171 (3). Same (16.0.3) Despite subsection (16.0.2), a vendor may not deduct the amount of a refund to a purchaser from a subsequent remittance to a person authorized under subsection 11 (1) to collect the tax from the vendor.  2002, c. 22, s. 171 (3). Same (16.0.4) If subsection (16.0.3) applies with respect to a vendor, the Minister may refund to the vendor the amount of a refund to a purchaser referred to in subsection (16).  2002, c. 22, s. 171 (3). Refund on premiums (16.1) Despite subsection (11), where a premium payable under a contract of insurance or a benefits plan is subsequently cancelled or reduced, the vendor may refund to the person from whom the vendor has collected tax, the whole or a part of such tax, as the case may be, if the refund is made within four years following the due date of the premium with respect to which the tax being refunded was collected.  1994, c. 13, s. 2 (5). Same (16.2) Despite subsection (11), where a policy dividend or an experience rating refund is paid to a person who has entered into a contract of insurance, the insurer may refund an additional amount on account of tax if the premiums paid by the person were subject to tax under this Act and if the refund is made within four years following the due date of the original premium.  1994, c. 13, s. 2 (5). Refund, reduction in tax (16.3) Despite subsection (11), any amount of tax paid before, on or after May 3, 2000 in respect of a premium payment due after May 2, 2000 under a contract of automobile insurance that exceeds the amount of tax payable under this section in respect of that premium payment may be refunded by the vendor to the person from whom the vendor collected the tax.  However, no refund shall be made more than four years after the date on which the tax to be refunded was paid.  2000, c. 10, s. 25. Deduction of refund (16.4) Any refund made under subsection (16.1), (16.2) or (16.3) may be deducted by the vendor from subsequent remittances of tax under this Act, if the vendor takes the deduction within four years from the date of the refund to the person who paid the premiums.  2000, c. 10, s. 25. Refund not to include tax (17) Where the erroneous payment giving rise to a claim for a refund under subsection (11) or (14) is the result of a sale under a contract in which a party other than the applicant for the refund is the purchaser who should have paid the tax or any part thereof a refund of which is sought, and where such tax, had it been properly paid, can reasonably be considered to have been likely to form a part of the contract price that would have been charged to the person claiming the refund, the Minister may, despite subsection (11) or (14), determine by such method or formula as he or she considers appropriate the amount by which the payment sought to be refunded exceeds the tax that would have been properly payable in the performance of the contract, and shall refund only the amount of such excess so determined.  R.S.O. 1990, c. R.31, s. 2 (17). Tangible personal property brought into or received in Ontario (18) Every person who brings into Ontario or who receives delivery in Ontario of tangible personal property acquired by the person for value for his, her or its own consumption or use, or for the consumption or use of other persons at his, her or its expense, or on behalf of, or as agent for, a principal who desires to acquire such property for the consumption or use by such principal or other persons at his, her or its expense, shall immediately report the matter in writing to the Minister and shall supply the Minister with the invoice and all other pertinent information required by him or her in respect of the consumption or use of such property and at the same time shall pay to Her Majesty in right of Ontario the same tax in respect of the consumption and use of such property as would have been payable if the property had been purchased at a retail sale in Ontario at the time such tangible personal property is brought into Ontario or delivery thereof is received in Ontario together with any tax payable under section 4.  R.S.O. 1990, c. R.31, s. 2 (18); 1994, c. 13, s. 2 (6). Calculation of tax (19) The tax imposed by this Act shall be calculated separately on every purchase and shall be computed to the nearest cent, and every fraction of less than one-half cent shall not be counted and every fraction of one-half cent or more shall be counted as one cent, but, where on the same occasion or as part of one transaction several items of tangible personal property are purchased, the total of the purchase shall be deemed to be one purchase for the purposes of this Act.  R.S.O. 1990, c. R.31, s. 2 (19). Tax on merchandise tendered in trade (20) Where tangible personal property is accepted at the time of sale by a person or a vendor on account of the price of other tangible personal property sold, the purchaser shall pay the tax under subsection (1) calculated on the difference between the fair value of the property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade.  R.S.O. 1990, c. R.31, s. 2 (20); 1993, c. 12, s. 2 (4); 2010, c. 26, Sched. 17, s. 2. Exception (20.1) Subsection (20) does not apply if any purchaser could acquire the tangible personal property exempt from tax imposed by this Act at the time it is so accepted.  1993, c. 12, s. 2 (5). If exempt property put to taxable use (21) If tangible personal property is purchased exempt from the tax imposed by this Act and the tangible personal property is subsequently put to a taxable use before July 1, 2010, the purchaser shall pay the tax imposed by this Act on the fair value of the tangible personal property at the time of the change in use.  2009, c. 34, Sched. R, s. 1 (2). Tax on promotional distributions (22) The tax payable under this section and section 2.1.1 in respect of tangible personal property, a taxable service or an admission that is supplied on a promotional distribution, (a)  is payable by the person to whom the promotional distribution is made in the amount determined by applying the appropriate tax rate to the amount, if any, paid or payable by the person for the tangible personal property, taxable service or admission, as the case may be; and (b)  is payable by the promotional distributor in the amount determined by applying the appropriate tax rate to the amount by which the full fair value of the tangible personal property or taxable service, or the full price of admission, exceeds the amount, if any, paid or payable to the promotional distributor by the person to whom the promotional distribution is made.  1997, c. 43, Sched. D, s. 2; 2010, c. 1, Sched. 25, s. 1 (3). Section Amendments with date in force (d/m/y) 1993, c. 12, s. 2 (1, 4, 5) - 29/07/1993; 1993, c. 12, s. 2 (2) - 01/06/1989; 1994, c. 13, s. 2 (1, 3) - 01/07/1993; 1994, c. 13, s. 2 (2, 5, 6) - 20/05/1993; 1996, c. 29, s. 24 (1-3) - 09/12/1996; 1997, c. 43, Sched. D, s. 2 - 18/12/1997; 1998, c. 34, s. 93 - 21/02/1998 2000, c. 10, s. 25
- 03/05/2000 2002, c. 22, s. 171 (1, 2) - 19/07/2002; 2002, c. 22, s. 171 (3)
- 01/01/2003 2005, c. 31, Sched. 19, s. 2 - 15/12/2005 2009, c. 34, Sched. R, s. 1 (1, 2) - 15/12/2009 2010, c. 1, Sched. 25, s. 1 (1, 3) - 18/05/2010; 2010, c. 1, Sched. 25, s. 1 (2) - 01/07/2010; 2010, c. 26, Sched. 17, s. 2 - 01/07/2010 Transitional rules re s. 2