Search - consideration

When determining who is considered to have received a supply, you may wish to refer to the definition of "recipient" contained in section 123(1) of the ETA as follows: "recipient" of a supply of property or a service means (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration,... ...

Question 4: For supplies made after April 23, 1996, new subsection 153(4) of the ETA provides that, where a registered supplier accepts a used good (or a leasehold interest therein) as full or partial consideration for another good from a person who is not required to collect GST on the used good (e.g. a non-registrant), the supplier will calculate the GST remittance on the other good on the net value if the property being accepted as a trade-in is for consumption, use or supply in the course of the supplier's commercial activities. Moreover, in circumstances where the supplier and the recipient are not dealing with each other at arm's length and the amount credited to the recipient for the trade-in exceeds the fair market value, the value of the consideration for the trade-in will be the fair market value at the time the ownership is transferred to the supplier. ...

You present two scenarios for our consideration and request that we comment on the eligibility of each individual to claim the GST new housing rebate. ... The treatment of rebate availability and ITCs as discussed herein has been brought to the attention of the Department of Finance for their consideration and we will keep you advised of any legislative changes in this area. ...

It is our view that the payment of these amounts from XXXXX represents the consideration for the taxable supply of the right that the Region supplies to XXXXX[.] ... Because the Region only began to share in the processing revenues effective XXXXX, and the incremental electricity revenues from XXXXX we are of the opinion that the right is supplied for nil consideration from the date of the agreement, XXXXX, until XXXXX. ...

Ruling Given Based on the facts set out above, we rule that the payments made by the Minister to companies operating licensed facilities under Agreement I and to eligible producers under Agreement II are not consideration for a supply and therefore GST does not apply to those payments. ... Explanation Under the Department's administrative policy respecting grants and subsidies, a payment made by a person is viewed as not being consideration for a supply where neither the person making the payment or a specified third party receives a supply in return for the payment made. ...

There are four scenarios that could apply in these circumstances. 1) Purchases of scrap metal from registrants prior to April 24, 1996 Prior to April 24, 1996, subsection 176(5) of the Act was applicable to STPP acquired by way of sale for consideration that exceeded prescribed amounts. ... Therefore, should jewellery be purchased by the registrant where the consideration per item exceeds $2,000, the input tax credit restrictions applicable to the purchase of the coins, would also apply to the purchase of the jewellery. ...

Ruling Given In the scenario mentioned in the above paragraph, we rule that XXXXX customers are not making a supply to XXXXX and that the amounts paid to them by XXXXX are not consideration for a supply and are not subject to GST. Explanation In fact, where they pay back an amount to their customers picking up the goods, XXXXX is reducing the consideration previously charged to reflect that they are not providing transportation to their customers. ...

Since there are no exempting provisions that apply to the sale of subscriptions, this supply will be taxable at the rate of 7% (15% in participating provinces) on the value of the consideration for the subscription. ... "Government funding" means an amount of money that is readily measurable and is paid or payable to a non-profit organization by a grantor (e.g. government or municipality) for the purpose of: (i) financially assisting the organization in carrying out its objectives and not as consideration for supplies made by the organization, or (ii) payment for exempt supplies of property or services provided to persons other than the grantor or a person related to the grantor. ...

Explanation An amount reimbursed to DND pursuant to QR&O, Chapter 38, by an officer or man who is found liable under the regulations for damage or loss does not constitute consideration for a taxable supply. ... It is not viewed as consideration for a taxable supply, and thus no GST/HST is applicable. ...

As a result of the application of paragraph 152(1)(c) and subsection 168(1), the supply of XXXXX by the Distributor to the Customer is made at the time the consideration is due under the written agreement, i.e., three days after the vessel containing the XXXXX leaves the Canadian port. ... Contrary to the suggestion in your letter, the provisions of paragraph 152(1)(c) of the Act and subsection 168(1) of the Act, which deal with when consideration for a taxable supply comes due and the timing of the liability for payment of the tax under Division II, are not relevant when determining the place of supply by way of sale of tangible personal property. ...