GST/HST Notice No. 324, Proposed Amendment Addressing Mining Activities in respect of Cryptoassets, February 2023

Supplies of virtual payment instruments ceased to be taxable on or after May 18, 2019 (under “What is a cryptoasset?)

The financial instrument...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Utility tokens and non-fungible tokens are cryptoassets but not virtual payment instruments (under “What is a cryptoasset?)

The cryptoasset...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Mining activity includes executing proof-of-stake protocols and use of mining equipment (under “What is a mining activity?”)

The definition...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

No GST collectible re mining activity (under “Collection of tax”)

Subject to the exclusion in proposed subsection 188.2(5) … where a person...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Denial of ITCs by virtue of ss. 188.2(2) and (3) (under “Eligibility for ITCs”)

Subject to the exclusion in proposed subsection 188.2(5), to...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Two examples of the implications of not joining or joining a mining group (under “What are the implications of the proposed amendment in...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Prior to s. 188.2(2), mining was commercial activity with no recipient of the supply (under “Solo Miners”)

On a publicly distributed ledger,...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Application of s. 141.01(4) to crypto mining (which is not a taxable supply because no recipient) where there is a view to sale of the crypto...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

ITCs where virtual payment instruments are payable in respect of mining activities

Application of change-in-use rules as a result of virtual...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.