Search - consideration

As your supplies are made in Ontario, the consideration charged for your supplies is subject to the HST at the rate of 13%. ... Explanation When there is an agreement to provide specific goods and services in exchange for money, the money constitutes consideration for a supply unless the agreement could be classified as a contract for employment. ... If a service is not included in the list of exemptions, then the supply of the service is taxable and the result is that the value of the consideration charged for the supply is subject to the GST/HST. ...

Clients (occasionally including those in Canada) enter into licensing agreements with the Company whereby consideration is paid (license fees) for the right to XXXXX. ... Ruling Requested You would like to know whether the GST/HST is exigible on the consideration for the supply of intangible personal property under the licensing agreements made by the unregistered Company.. ... As set out in the enclosed GST/HST Policy Statement P-051R2: Carrying on Business in Canada, whether a non-resident is carrying on business in Canada for GST/HST purposes is a question that requires consideration of all relevant facts. ...

With respect to the discount amounts deducted from monies owed by XXXXX to its suppliers, you would like confirmation that the amounts deducted to promote the supplier's products are promotional allowances for purposes of section 232.1 of the ETA and hence the amounts are not consideration for a supply made by XXXXX to the suppliers. Ruling Given Based on the facts set out above, we rule that in each of the three outlined scenarios, the GST/HST applies on the consideration for the supply, net of the discounts, i.e, after the discounts are deducted from the price of the relevant goods. With respect to the discount amounts deducted by XXXXX from amounts owed by XXXXX to its suppliers, the payments as described in the facts relating to the temporary price discounts represent amounts paid for promotional allowances for purposes of section 232.1 of the ETA and hence are not consideration for a supply made by XXXXX to the suppliers. ...

Under the provisions of section 6 of Part VI of Schedule V to the ETA, a supply of a service purchased by a public service body (which includes a non-profit organization such as XXXXX) for the purpose of making a supply by way of sale of the service is exempt from GST or HST where the total charge for the supply is the usual charge by the public service body for such supplies to such recipients and: •   if the public service body does not charge the recipient the GST/HST in respect of the supply, the total charge for the supply does not, and could not reasonably be expected to, exceed the direct cost of the supply; and •   if the public service body charges the recipient GST/HST in respect of the supply, the consideration for the supply does not, and could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to GST/HST and, for Quebec Sales Tax (QST) registrants, the QST. For example, if XXXXX does not charge GST on the resupply of the legal services to XXXXX, and the consideration is equal to or less than $XXXXX, then the resupply is exempt pursuant to section 6 of Part VI of Schedule V to the ETA and XXXXX will not be eligible claim an ITC. If XXXXX does charge the GST to XXXXX on the resupply of the legal services and the consideration is equal to or more than $XXXXX, the resupply is taxable. ...

In our view, where a person receives a stock option enabling the person to purchase shares for an amount less than the fair market value of the shares as part of the compensation paid to him or her by the corporation for taxable services provided (or to be provided) to the corporation, the CRA will consider the difference between the purchase price of the shares under the option and the fair market value of the shares at the time of the granting of the option to be additional consideration for the contractor's services to the corporation. ... In the event that this is the case, your client, a GST/HST registrant, will be required to collect and remit an amount of the GST/HST on this amount of "additional consideration" for taxable services supplied to the corporation. Where the stock option price of the shares was equal to the fair market value of the shares at the time the options were granted, or your client received the stock options otherwise than as additional consideration for services provided to the XXXXX company, the granting of the stock options has no GST/HST implications. ...

Interpretation Given Every recipient of a taxable supply, other than a zero-rated supply (taxable at 0%), made in Canada is required to pay GST at the rate of 7% on the value of the consideration for the supply. ... As such, the amount of the promotional allowance is not consideration for a supply made by the retailer to the supplier. ... In other words, the GST/HST applies on the value of the consideration for the supply made by the retailer i.e., the reduced selling price. ...

Explanation Every recipient of a taxable supply made in Canada is required to pay tax in respect of the supply on the value of the consideration for the supply. ... As a result, the assessments are consideration for the supply of the membership. There is no consideration for the supply of a XXXXX membership. The supply of a membership by a non-profit organization is an exempt supply where certain conditions exist. ...

Interpretation Given Paragraph 154(2)(b) provides that the consideration for a supply of property or a service includes "any provincial levy payable by the recipient, or payable or collectible by the supplier, in respect of that supply, or in respect of the consumption or use of the property or service, other than a prescribed provincial levy that is payable by the recipient. ... Pursuant to section 154 a prescribed provincial levy is not included in the consideration for a supply of property or a service, and therefore is not subject to GST/HST. ... By virtue of paragraph 154(2)(b), the prescribed provincial levy payable by the recipient would not be included in the consideration for the supply of the XXXXX. ...

Consequently, if a medical practitioner or practitioner (as defined in section 1 of Part II of Schedule V to the Act) order such diagnostic services, the consideration charged for the testing procedures is exempt of the GST/HST pursuant to section 10 of Part II of Schedule V to the ETA. For example, if the medical review officer (MRO) orders a laboratory, radiological or other diagnostic test for an individual, the consideration for the supply of this service is exempt whether billed to an individual patient, XXXXX or other entity. ... Consequently, consideration for such services do not meet the exempting provision of section 10 of Part II of Schedule V to the ETA and are therefore taxable. ...

XXXXX agrees to pay the City on the Lease Commencement Date the sum of $ XXXXX in consideration for the licences to acquire from the City all of its right, title, interest in and to such raw water from the XXXXX as XXXXX may require for the facility and an exclusive license to sell finished water from the facility exclusively to XXXXX to be delivered at XXXXX period commencing on the Lease Commencement Date and ending on the Reversion Date. 6. ... XXXXX will be able to claim and receive a rebate equal to 57.14% of any GST and/or HST charged to and or paid by them on the consideration charged for property or services acquired in respect of their operation of the facility and Pumping Station and its subsequent sale of potable water to the City. 3. ... XXXXX is making a taxable supply of real property to the XXXXX where the consideration for the supply is $ XXXXX subject to adjustments resulting from project risk events or change orders. ...