Search - consideration

The co-promotion agreement indicates an amount of monetary consideration is payable by XXXXX to XXXXX based upon the number of coupons redeemed by XXXXX purchasers to obtain XXXXX. 5. ... You have also specifically requested confirmation tha tXXXXX payment to XXXXX is deemed not to be consideration for a supply under paragraph 181(5)(a) and that XXXXX is allowed an input tax credit under paragraph 181(5)(c). ... Therefore, this amount paid to XXXXX under the co-promotion agreement is regarded as consideration for a taxable supply made by XXXXX. ...

In such circumstances the total amount would be regarded as consideration for an exempt supply pursuant to subsection 6(b) of Part I of Schedule V to the Excise Tax Act (the ETA). ... When the unit owners use the units themselves they are receiving a licence back from the management company; the staying charge is part of the consideration for this supply. As the additional charge is related to the supply of the units by way of licence to the owners and is required under the agreement, we would also regard the additional charge as part of the consideration paid for the supply. ...

The reimbursement by the salesperson to the firm for it's payment of the registration fee to the XXXXX is not consideration for a supply and GST is not payable on that amount. ... If the consideration for that service is nil and the firm and salespersons are dealing at arm's length, there will be no GST payable on this supply. On the other hand, if the firm is registered or is required to be registered for purposes of the ETA and charges an amount as consideration (e.g. $25.00) for the service of paying the registration fee for the salespersons, GST will apply on said consideration (e.g. $25.00 x 7% = $1.75, in provinces not subject to the harmonized sales tax and $25.00 x 15% = $3.75 in provinces subject to the harmonized sales tax), regardless if it is paid by the salespersons through a lump sum or by reducing the salespersons' first commissions of the year until the charge is fully paid (e.g. first 5 commissions are reduced by $5.00). ...

"Consideration" is defined to include any amount that is payable for a supply by operation of law. ... Pursuant to subsection 165(1), every recipient of a taxable supply made in Canada shall pay tax in respect of the supply equal to 7% of the value of the consideration for the supply. A "recipient" is a person who is liable to pay consideration for a supply. ...

In accordance with section 168 of the ETA, where a person gives a deposit in respect of a supply (other than an amount in respect of a covering or container governed by section 137), that deposit is not regarded as consideration for the supply unless and until the supplier applies the deposit against the consideration for the supply. The GST will be payable by the recipient at the time the supplier applies the deposit against the consideration fort the taxable supply. ... If a deposit is forfeited to a registrant because of a breach, modification or termination of an agreement to make a taxable (other than zero-rated) supply, then the deposit is deemed to be consideration for the supply and to be paid at the time of the forfeiture. ...

Interpretation 1 Pursuant to subsection 168(1) of the ETA, tax in respect of a taxable supply is payable by the recipient of the supply on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. Pursuant to the general rules in subsection 152(1) of the ETA the consideration for a supply becomes due on the earliest of: •   the day of issuance of the supplier's invoice or the date of that invoice, whichever is the earlier; •   the day on which, but for an undue delay in the issuance of the invoice by the supplier, the invoice would have been issued; and •   the day on which, under a written agreement, the recipient is required to pay the consideration or part thereof to the supplier for the supply. ...

., consideration for a taxable supply. Whether or not the group invoices the associate physicians for management services, the XXXXX fees that remain with the group of principal physicians are consideration for management services. ... Where the group is a GST/HST registrant, the group would be required to collect and remit the tax on the value of the consideration paid by the associate physicians for the taxable supply of management services. If the arrangement with the associate physicians is between one of the group members, then that principal physician, if a GST/HST registrant, would be required to collect and remit the tax on the value of the consideration paid by the associate physicians for the taxable supply of management services. ...

Explanation What must be determined is whether the payment from XXXXX is consideration for the supply provided by XXXXX or whether it is a grant. ... Therefore, XXXXX is viewed as contracting out its responsibilities and, based on TIB-067, the payment made to your company is consideration for a supply. Section 165 of the Excise Tax Act (ETA) requires every recipient of a taxable supply made in Canada to pay to Her Majesty the GST/HST on the value of the consideration for the supply except where the supply is zero-rated. ...

We consider this fee to be a rental fee and therefore, it is consideration for a taxable supply. The fact that the consideration is calculated on the number of ABM transactions is irrelevant. ... As for the situation where the ABM owner pays a portion of the interchange fee to the merchant, the fee is also taxable because it is not paid as consideration for the supply of an exempt financial service as explained above. ...

The contributions may be based on an estimate of the consideration that will be payable for the funeral services and the eventual GST/HST that will apply. GST/HST will apply on the value of the consideration to be paid to the funeral home under the prepaid funeral arrangement at the time it is paid or becomes due to the funeral home whichever is earlier. The value of the consideration and tax payable to the funeral home under the agreement generally approximates the amount of the contributions and any interest that has accumulated in the trust. ...