Subsection 220.05(1)
See Also
Beaulieu c. Agence du revenu du Québec, 2016 QCCQ 12015
The taxpayer, a resident of Québec, purchased a used boat and engine from an Ontario resident, who had purchased the property from a resident of Québec, who had originally bought the items from a retailer in Québec on a taxable basis. The ARQ assessed under s. 17 of the Quebec Sales Tax Act, which provided:
Every person who brings into Québec corporeal property for consumption or use in Québec by the person…shall, immediately after the bringing into Québec of the property, pay to the Minister a tax in respect of that property, calculated at the rate of 9.975% on the value of the property.
After noting the inequity that if the taxpayer had purchased the used boat directly from a Quebec resident, such purchase would not have qualified as a “taxable supply” to him so that there would have been no QST payable, Laurin J concluded that the legislature did not intend to create such unfairness, and that s. 17 should be read to mean "taxable supply" for the particular situation in which the property was originally purchased in Quebec (para 21).
Administrative Policy
GST/HST Memorandum 13.5 Non-creditable Tax Charged January 2017
Goods brought into higher rate province
45. ...
Example 6 – Property brought into a participating province from another participating province
In a claim period, a non-registrant PSB purchases goods (other than a specified motor vehicle) in Ontario from an unrelated supplier. The value of the consideration for the supply is $22,000, on which the PSB pays $2,860 in HST ($22,000 × 13%).
The federal part of the HST paid in respect of the supply of the goods is $1,100 ($2,860 × 5/13). This amount is included in subparagraph 259(1)(a)(i) when calculating the federal non-creditable HST charged in respect of the goods for the claim period. The provincial part of the HST paid in respect of the supply of the goods is $1,760 ($2,860 × 8/13). This amount is included in subparagraph 259(1)(a)(i) when calculating the provincial non-creditable HST charged in respect of the goods for the claim period.
The goods are immediately removed from Ontario and are brought into Nova Scotia. The fair market value of the goods at the time they are brought into Nova Scotia is also $22,000. The PSB is required to self-assess tax at the rate of 2% on the value of the goods purchased in Ontario and brought into Nova Scotia (2% being the difference between the 10% rate of the provincial part of the HST in Nova Scotia and the 8% rate of the provincial part of the HST in Ontario). The PSB self-assesses the amount of $440 ($22,000 × 2%) on Form GST489. … This amount is included in subparagraph 259(1)(a)(i) when calculating the provincial non-creditable HST charged in respect of the goods for the claim period. ...