Search - consideration

Councils under XXXXX of the (MOU) are provided for no consideration. Ruling Requested Are the supplies made by the XXXXX to the Councils pursuant to the MOU exempt from the GST/HST under section 1 of Part V.1 of Schedule V? ... For example, section 5 of Part V.1 exempts a supply where "all or substantially all of the supplies...are made for no consideration." ... " (XXXXX appears to recognize that the use of trademarks is supplied under the terms of the MOU, but that such use is "provided for no consideration.") ...

Please note that subsection 123(1) defines recipient of a supply of property or a service to mean (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, (b) Where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and (c) Where no consideration is payable for the supply, (i) In the case of a supply of property by sale, the person to whom the property is delivered or made available, (ii) In the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and (iii) In the case of a supply of a service, the person to whom the service is rendered, And any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply That being said, where subsection 221(2)(b) applies, the recipient of the supply of real property is required to self-assess the tax payable under subsection 228(4), which states (4) Where tax under Division II is payable by a person in respect of a supply of real property and the supplier is not required to collect the tax and is not deemed to have collected the tax, (a) where the person is a registrant and acquired the property for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person's return for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. ...

RULING GIVEN Based on the facts set out above, we rule that the supply of the Service made by the Authority to the City is a taxable supply and the consideration for the supply is subject to GST/HST. ... Taxable supplies are supplies made in the course of a commercial activity and may be taxable at the rate of 0% (zero-rated supplies), 5%, 13%, or 15% on the value of the consideration for the supply depending on the province in which the supply is made. ... The disclosure requirements set out in the ETA require, in part, that a registrant making a taxable supply (other than a zero-rated supply) must clearly indicate to the recipient in the invoice, receipt or agreement in writing, the consideration paid or payable in respect of the supply and the applicable amount of tax, or that the amount of tax payable by the recipient for the supply is included in the consideration payable for the supply. ...

The web site operator is making a taxable supply of advertising services to the merchant and would charge GST/HST on the consideration payable for the supply. ... In this case, the person ceases to be a small supplier immediately before the consideration becomes due or is paid for the particular taxable supply that puts the person over the small supplier threshold. Both of these calculations exclude consideration attributable to the sale of goodwill of a business, supplies of financial services, and supplies by way of sale of capital property. ...

You are the recipient of that supply (as defined in subsection 123(1) of the ETA, the "recipient" of a supply of property or a service is the person who is liable to pay the consideration for the supply), although the books are shipped directly to your clients, most of whom are non-residents. ... In this case, the person ceases to be a small supplier immediately before the consideration becomes due or is paid for the particular taxable supply that puts the person over the $30,000 (or $50,000) threshold. Both of these calculations exclude consideration attributable to the sale of goodwill of a business, supplies of financial services, and supplies by way of sale of capital property in determining the $30,000 (or $50,000) threshold. ...

Interpretation Given Section 232 of the ETA permits an adjustment, refund or credit of the GST in two situations: where an excess amount of tax has been charged or collected; or where consideration for a supply is reduced at some time after the tax has been charged or collected, and the supplier adjusts, refunds or credits the tax charged on the original consideration. ... There is no mention of repayment of the consideration for a supply as this is a contractual matter between suppliers and recipients. ... BCo has met the documentary requirements of the ETA under subsection 232(3) by providing a prescribed debit note to ACo in consideration of the returned goods. ...

The participants are carrying out research activities and making available to interested parties the project results for no consideration. ... The same supplies made by public sector bodies are exempt pursuant to section 10 of Part VI of Schedule V to the ETA if provided for no consideration. ... Thus, the exemption provided in section 10 of Part VI of Schedule V applies to supplies made for no consideration by XXXXX Consequently, as the Project participants are not making taxable supplies for consideration and because they are engaged in exempt activities with respect to the Project, no portion of the GST paid on project-related expenses may be recovered through input tax credits. ...

The Corporation is providing to the Professionals a taxable service of marketing their services and collecting on their behalf their Professional Fees for a consideration equal to […] % (Footnote 1) of the Professionals Fees. ... Taxable supplies are supplies made in the course of a commercial activity and may be taxable at the rate of 0% (zero-rated supplies), 5%, 13%, or 15% on the value of the consideration for the supply depending on the province in which the supply is made. ... The address obtained by the supplier in the ordinary course of business must be an address of the "recipient" of the supply who, under subsection 123(1), is generally the person who is liable under the agreement for the supply to pay the consideration payable for the supply. ...

Likewise, [XCo] will not have to collect the GST/HST on the consideration for any future supplies made through its ATMs of any other type of cryptocurrency that meets the definition of a virtual payment instrument. ... The subsection defines “supplier” as the person who makes a supply (i.e., the seller in the case of a sale) and “recipient” as the person who is liable to pay consideration for the supply. ... Determining the GST/HST treatment of [XCo’s] supplies made through its ATMs The supply made by [XCo] in the circumstances is a supply by way of sale (i.e., transfer of ownership) of cryptocurrency. […] The total consideration for the sale is the total amount of cash that the customer inserts into the ATM. ...

Under subsection 123(1): 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, (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and (c) where no consideration is payable for the supply, (i) in the case of a supply of property by way of sale, the person to whom the property is delivered or made available, (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and (iii) in the case of a supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply; Supplier, in respect of a supply, means the person making the supply; and Supply means, subject to sections 133 and 134, the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition. ...