Search - consideration

Subsection 142.1(1) states that "the billing location for a telecommunication service supplied to a recipient is in Canada if (a) where the consideration payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to a telecommunications facility that is used or is available for use by the recipient to obtain telecommunication services, that telecommunications facility is ordinarily located in Canada; and (b) in any other case, the telecommunications facility used to initiate the service is located in Canada. ... Generally, the GST/HST is applied to the consideration paid or payable for taxable supplies that are made in Canada, or deemed to be made in Canada, unless a legislative provision specifically exempts the supply. ...

Where consideration for a supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration is the "recipient" of the supply as defined in subsection 123(1) of the Act. ...

This section generally provides that an early payment discount does not reduce the value of the consideration for a supply of tangible personal property or services for purposes of calculating the GST/HST payable and collectible. ... Subsection 232(3) is applicable where a supplier chooses to adjust, refund or credit tax where the tax has been erroneously charged or collected or where the consideration for a supply upon which tax has been charged or collected has been subsequently reduced (for example, in the case of volume discounts). ...

., a non-profit organization) of any property or service where all or substantially all of the supplies of the property or service by the body are made for no consideration, but not including a supply of blood or blood derivatives. Therefore, where a non-profit organization, for example, provides employment-related counseling free of charge for the benefit of a segment of the public (e.g., Aboriginal people), government funding received by the non-profit organization for this public purpose is generally viewed as not being consideration for a supply. ...

The following documents were provided for our consideration: a) A NRRP rebate dated [mm/dd/yyyy], submitted in the name of […] (Holdings) for the purchase of a new residential condominium unit (the Unit) located at […]. b) A letter from Holdings to the Canada Revenue Agency dated [mm/dd/yyyy] with respect to the above mentioned rebate. ... For purposes of this opinion, we will assume the trust is a bare trust in which Properties holds legal title to the Unit on behalf of the beneficial owner, Holdings). c) The statement of adjustments for the purchase of the Unit by Properties, adjusted as of [mm/dd/yyyy], indicates the following: * consideration of $[…] * GST (at […]%) of $[…] * NRRP rebate of $[…] It appears that […] (the Vendor) has credited the amount of the NRRP rebate against the amount owing by Properties. d) A tenancy agreement (the Lease) between Properties and […] (the Tenant) for the rental of the Unit dated [mm/dd/yyyy]. ...

There is no consideration payable by the parties to the nominee corporation. 7. ... With respect to your view that the nominee corporation (or bare trust) is engaged in commercial activities and that it could therefore register for GST/HST purposes, we suggest that you provide further details, including a joint venture agreement together with the relevant nominee (bare trust) agreement for the nominee corporation that would form part of the joint venture and a clear indication of the activities carried on by the nominee corporation to the Special Provisions – General Unit in the Financial Institutions and Real Property Division for their consideration. ...

Sincerely, Batoul Hassan Senior Rulings Officer Digital Economy Unit General Operations and Border Issues Division GST/HST Rulings Directorate FOOTNOTES 1 Under subsection 211.1(1), an “Accommodation Platform Operator” is defined as a person (other than the supplier of the short-term accommodation) that controls or sets the essential elements of the transaction between a supplier of short-term accommodation and the recipient, or if no such person exists, it would be a person that is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply of short-term accommodation and transmitting that consideration to said supplier. 2 Under subsection 123(1), a “Short-term accommodation” is defined as a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month. 3 Pursuant to subsection 211.1(1), an “Accommodation Platform” is defined as a digital platform through which a person facilitates the making of supplies of short-term accommodation situated in Canada by another person that is not registered under the regular GST/HST. ...

Sincerely, Teresa Lau Senior Rulings Officer Digital Economy Unit General Operations and Border Issues Division GST/HST Rulings Directorate FOOTNOTES 1 Under subsection 211.1(1), an “Accommodation Platform Operator” is defined as a person (other than the supplier of the short-term accommodation) that controls or sets the essential elements of the transaction between a supplier of short-term accommodation and the recipient, or if no such person exists, it would be a person that is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply of short-term accommodation and transmitting that consideration to said supplier. 2 […][the Company] is registered under the simplified regime. ...

Policy Statement P-077R2 also explains that the way in which the consideration for a transaction is set out does not in itself determine whether there are one or more supplies. A single consideration does not automatically mean that there is one supply. Equally, separately identified consideration for certain elements do not necessarily mean that there are two or more supplies. ...

Accordingly the case is similar to the scenario in 1.1 above (the difference being that in 1.1 XXXXX is selling the Resort points in its own name) and the Club is deemed to have received a supply of the resort points for no consideration. ... That portion is determined approximately by allocating the consideration payable by a recipient of resort points to the extent that the resort points represent a right to use real property situated in Canada, and such an allocation must be fair, reasonable and used consistently. ... Where the seized resort points are sold by XXXXX as agent of the Club, subsection 183(1) is applicable and the Club is deemed to have received, before the sale, a supply of resort points for consideration equal to the consideration received from the sale of the seized resort points. ...