Search - consideration

This memorandum explains how to determine the value of consideration for a supply in Canadian currency where the consideration is expressed in foreign currency. ... Where the consideration for a supply is expressed in foreign currency, the value of the consideration shall be calculated based on the value of that foreign currency in Canadian currency. ... Day Consideration Is Paid 7. The value of the consideration in equivalent Canadian currency may be calculated on the day payment in respect of a supply is received by the supplier (i.e., the day the consideration is paid by the recipient). ...

This memorandum explains how to determine the value of consideration for a supply in Canadian currency where the consideration is expressed in foreign currency. ... Where the consideration for a supply is expressed in foreign currency, the value of the consideration shall be calculated based on the value of that foreign currency in Canadian currency. ... Day Consideration Is Paid 7. The value of the consideration in equivalent Canadian currency may be calculated on the day payment in respect of a supply is received by the supplier (i.e., the day the consideration is paid by the recipient). ...

This memorandum explains how to determine the value of consideration for a supply in Canadian currency where the consideration is expressed in foreign currency. ... Where the consideration for a supply is expressed in foreign currency, the value of the consideration shall be calculated based on the value of that foreign currency in Canadian currency. ... Day Consideration Is Paid 7. The value of the consideration in equivalent Canadian currency may be calculated on the day payment in respect of a supply is received by the supplier (i.e., the day the consideration is paid by the recipient). ...

Where consideration is monetary, the amount of the money will be used to calculate the tax. ... The general timing of liability rule under subsection 168(1) of the Act is that tax is payable by the recipient of a taxable supply on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. ... Consideration Becomes Due 3. Under subsection 152(1) of the Act, consideration, or a part thereof, for a taxable supply, is deemed to become due on the earliest of the following days: (a) the day the supplier first issues an invoice in respect of the supply for that consideration or part; (b) the date of that invoice; (c) the day when, but for an undue delay, the supplier would have issued an invoice in respect of the supply for that consideration or part; and (d) the day that the recipient is required to pay that consideration or part pursuant to an agreement in writing. 4. ...

Where consideration is monetary the amount of the money will be used to calculate the tax. ... Consideration Becomes Due 4. Under subsection 152(1) of the Act, consideration, or a part thereof, for a taxable supply, is deemed to become due on the earliest of the following days: a) the day the supplier first issues an invoice in respect of the supply for that consideration or part; b) the date of that invoice; c) the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part; and d) the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing. 5. ... The issuance of an invoice in these situations will not cause consideration to become due. ...

Where consideration is monetary the amount of the money will be used to calculate the tax. ... Consideration Becomes Due 4. Under subsection 152(1) of the Act, consideration, or a part thereof, for a taxable supply, is deemed to become due on the earliest of the following days: a) the day the supplier first issues an invoice in respect of the supply for that consideration or part; b) the date of that invoice; c) the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part; and d) the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing. 5. ... The issuance of an invoice in these situations will not cause consideration to become due. ...

The taxable amount is the value of consideration for the sale of the subject item expressed in money and the fair market value of the consideration other than money at the time at which the sale is completed. ... Treatment of the taxable amount when a third-party makes a rebate payment The payment of a rebate by a third-party to the consumer does not reduce the value of consideration received by the vendor. ... Example of a Mail-in Rebate Purchased Subject Vehicle Initial Price from Retailer $115,000 Less: Discount (price adjustment) ($10,000) Add: Truck liner $500 Running boards $750 Trailer hitch $450 Vinyl wrap $4,000 Taxable Amount $110,700 (the value of consideration received by the retailer is $110,700) Luxury Tax amount (lesser of 10% of $110,700 and 20% of $110,700 less $100,000) $2,140 Sub-Total $112,840 GST $5,642 Total $118,482 (the purchaser pays the retailer the total amount of $118,482) Less: Manufacturer’s Rebate (the purchaser completes and submits a mail-in rebate application form and receives payment by mail) ($2,000) Final cost to Purchaser $116,482 (the value of consideration is $110,700: the payment of the manufacturer’s rebate paid to the purchaser has no impact on the consideration received by the retailer) Example of a Rebate at the Point-of-Sale Purchased Subject Vehicle Initial Price from Retailer $140,000 Less: Discount (price adjustment) ($5,000) Add: Floor mats $100 Upgraded audio system $4,000 Freight/Pre-delivery Inspection $2,000 Taxable Amount $141,100 (the value of consideration received by the retailer is $141,100) Luxury Tax amount (lesser of 10% of $141,100 and 20% of $141,100 less $100,000) $8,220 Sub-Total $149,320 GST $7,466 Total $156,786 Less: Manufacturer’s Rebate (the purchaser is eligible for a manufacturer’s rebate and assigns the application for the rebate over to the retailer. ...

Where consideration is monetary the amount of the money will be used to calculate the tax. ... Consideration Becomes Due 4. Under subsection 152(1) of the Act, consideration, or a part thereof, for a taxable supply, is deemed to become due on the earliest of the following days: a) the day the supplier first issues an invoice in respect of the supply for that consideration or part; b) the date of that invoice; c) the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part; and d) the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing. 5. ... The issuance of an invoice in these situations will not cause consideration to become due. ...