Search - consideration

As per section 165, GST/HST is calculated on the value of the consideration for the supply. ... As per subsection 168(1), tax in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. ... Consideration is defined under subsection 123(1) and includes any amount that is payable for a supply by operation of law. […][Therefore Y] is required to pay GST/HST on the full consideration payable for the pledge amounts […]. ...

Further, subsection 141.01(2) provides that a person is deemed to have acquired property or a service for consumption or use in commercial activities only to the extent that the property or service is acquired for the purpose of making taxable supplies for consideration (e.g., fees or charges) in the course of an endeavour (e.g., a business) of the person. To the extent that the property or service is acquired for the purpose of making supplies in the course of an endeavour that are not taxable supplies made for consideration, or for a purpose other than making supplies, the person is considered to have acquired the property or service for consumption or use otherwise than in commercial activities. ... As the Law Firm’s services were acquired by you for consumption or use otherwise than in making taxable supplies for consideration, the conditions of subsection 169(1) are not met. ...

EXPLANATION Pursuant to subsection 165(1), every recipient of a taxable supply made in Canada shall pay tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. Pursuant to subsection 165(2), every recipient of a taxable supply made in a participating province shall pay in addition to the tax imposed by subsection 165(1), tax in respect of the supply calculated at the rate of tax for that province (Ontario 8%) on the value of the consideration for the supply. ... The rebate is not a reduction in consideration for the supply of electricity, nor is it a reduction to the HST payable in respect of the supply of electricity.   ...

EXPLANATION Pursuant to subsection 165(1), every recipient of a taxable supply made in Canada shall pay tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. Pursuant to subsection 165(2), every recipient of a taxable supply made in a participating province shall pay in addition to the tax imposed by subsection 165(1), tax in respect of the supply calculated at the rate of tax for that province (Ontario 8%) on the value of the consideration for the supply. ... The rebate is not a reduction in consideration for the supply of electricity, nor is it a reduction to the HST payable in respect of the supply of electricity. ...

EXPLANATION Pursuant to subsection 165(1), every recipient of a taxable supply made in Canada shall pay tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. Pursuant to subsection 165(2), every recipient of a taxable supply made in a participating province shall pay in addition to the tax imposed by subsection 165(1), tax in respect of the supply calculated at the rate of tax for that province (Ontario 8%) on the value of the consideration for the supply. ... The rebate is not a reduction in consideration for the supply of electricity, nor is it a reduction to the HST payable in respect of the supply of electricity. ...

EXPLANATION A damage payment or other amount that is paid other than as consideration for a supply that was to be made under an agreement may fall under the deeming provision in subsection 182(1), resulting in a GST/HST liability. This subsection deems certain amounts to be consideration for a taxable supply where the following conditions are met: an agreement must have been breached, modified, or terminated; the breach, modification, or termination of the agreement must have occurred after 1990; the agreement must have been for the making of a taxable supply (other than a zero-rated supply) of property or a service in Canada by a GST/HST registrant; an amount must be paid or forfeited to the GST/HST registrant as a result of the breach, modification, or termination; and the amount paid or forfeited must not be consideration for the taxable supply that was to be made under the agreement. ...

EXPLANATION Generally, every recipient of a taxable supply made in Canada shall pay GST/HST calculated at the rate of 5% on the value of the consideration for the supply (15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 14% in Prince Edward Island). ... Where an automotive part is sold and the vendor charges a core charge, the core charge forms part of the consideration payable for the sale of the part. As such, the vendor is required to charge the applicable rate of GST/HST calculated on the total consideration payable for the part including the core charge. ...

Under section 10.01 of the Lease Agreement, in consideration for the sum of $XXXXX and other good and valuable consideration paid by the Association to the City, the City granted the Association the Option to purchase the Property under the following terms: • the Association could exercise the Option at any time during the XXXXX-year term, and • the Association had to provide written notice to the City of its intention to exercise the Option. ... Explanation The coming into force provisions for the relevant legislative changes to section 25 of Part VI of Schedule V XXXXX provide, relative to this case, that the amendments to section 25 apply to any supply for which consideration becomes due after March 9, 2004, or is paid after that date without becoming due, but do not apply to a sale made under an agreement entered into before March 10, 2004. ...

Explanation Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. ... Consideration was given that the Product may be yoghurt, as yoghurt supplied in all sizes of servings is generally zero-rated for purposes of section 1 of Part III of Schedule VI, unless there are other exclusions in paragraphs 1(a) to (r) that apply. ... Consideration was given to the Product being included in "other products similar to pudding". ...

GST applies on the total amount of the consideration payable for the electricity before the XXXXX% financial incentive is applied. 2. ... Explanation Although not asked in your request for a ruling, we would like to point out that XXXXX is required to collect GST from XXXXX on the consideration payable for its taxable supplies made to XXXXX under the Program. This consideration includes the management fees, bonus payments, and the reimbursed costs, other than the financial incentives. ...