Subsection 240(1) - Registration Required
See Also
Restaurant Loupy's inc. v. The Queen, 2016 TCC 260 (Informal Procedure)
When the operator of a restaurant ceased operations due to a termination of its lease, it applied for and was granted a revocation of its GST and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 171 - Subsection 171(3) | continued to be registrant following revocation of registration number | 314 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Registrant | registrant based on wind-up activities | 62 |
| Tax Topics - Excise Tax Act - Section 141.1 - Subsection 141.1(3) - Paragraph 141.1(3)(a) | holding discontinued equipment | 151 |
Administrative Policy
10 August 2023 GST/HST Interpretation 183417 - Non-resident cruise line company carrying on business in Canada
A non-resident cruise line company (CruiseCo) that sells cruises (including cruises with stops at Canadian ports) to customers from around the...
27 February 2020 CBA Roundtable, Q.24
Example 1 in Policy Statement P-051R2 indicates that a non-resident lessor (with a leasing business outside Canada) is considered to be carrying...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 179 - Subsection 179(9) | s. 179(9) does not affect whether a non-resident lessor is carrying on business in Canada | 153 |
27 February 2020 CBA Roundtable, Q.18
CRA indicated that, in general, GST/HST “retroactive registration is only available if a person was required to be registered for GST/HST...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | election for a real estate JV can prevent a subsequent unregistered purchaser of an interest therein receiving retroactive relief | 187 |
| Tax Topics - Excise Tax Act - Section 167 - Subsection 167(1.1) - Paragraph 167(1.1)(a) - Subparagraph 167(1.1)(a)(iii) | s. 167(1.1)(a)(iii) only applicable where both parties are not registrants | 26 |
30 August 2018 Ruling 185770
A non-resident insurer which otherwise was only making exempt (insurance policy) supplies in Canada was found to have been required to register...
| Other locations for this summary | |
|---|---|
| Tax Topics - Excise Tax Act - Section 136.1 - Subsection 136.1(2) | reciprocal provision of admin services with annual billing at cost |
8 March 2018 CBA Commodity Tax Roundtable. Q. 18
A non-resident (VCo) sells goods to PCo on consignment with the goods delivered to PCo at VCo’s U.S. warehouse (under Incoterm® “Free...
8 March 2018 CBA Commodity Taxes Roundtable, Q.1
Where non-resident actors and directors film at Canadian locations in Canada, and are paid large sums (exceeding $30,000) respecting services...
16 March 2018 Ruling 158124
Current arrangements
USco, which is not a registrant, supplies information services to businesses and individuals. A small portion of its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 5 | zero-rating of marketing assistance provided by Canco to U.S. affiliate | 186 |
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) | USco not carrying on business in Canada by virtue of extensive marketing assistance (without client contact) work provided by Canadian affiliate | 228 |
19 March 2018 Interpretation 183900
A corporation now governed by the Canada Not-for-profit Corporations Act (“Corporation A”) was registered by telephone with an effective date...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 225 - Subsection 225(4) - Paragraph 225(4)(b) | corp potentially could have its registration backdated by 6 years to claim ITCs | 205 |
23 March 2017 CBA Commodity Taxes Roundtable, Q.4
A non-resident leasing company enters into an agreement outside Canada for the lease of industrial equipment to a Canadian lessee. The lessor...
19 May 2017 Interpretation 178323
CRA found that a limited partnership, whose only asset was an interest in a real estate development limited partnership, was engaged only in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | holding LP for a commercial real estate LP was not engaged in a commercial activity | 135 |
26 February 2015 CBA Roundtable, Q.26
What should a non-resident do if it wishes to voluntarily register for HST/GST purposes but does not (contrary
to CRA practice) want a corporate...
26 February 2015 CBA Roundtable, Q. 16
Company B transfers its co-ownership interest in a commercial rental property on a rollover basis to Company C, whose sole activity is to hold the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 171 - Subsection 171(1) | unregistered purchaser of commercial real estate subsequently registered as small supplier | 256 |
May 2013 ICAA Roundtable, GST Q. 5 (reported in April 2014 Member Advisory)
[I]f person has provided services to the province of Alberta and has exceeded the small supplier threshold, must it be registered for GST/HST back...
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 15.
An unregistered non-resident enters into an agreement to supply and install a power generation facility inside Canada with the installation to...
20 August 2012 Interpretation Case No. 140855r (see also Ruling Case No. 137186)
USco (a non-resident which is not registered) provides information to its customers including Canadian customers using its website (without direct...
29 March 2012 Ruling Case No. 137186 [solicitation in Canada not sufficient]
A non-resident company which sold on-line books to Canadian residents over the internet was not carrying on business in Canada, given
that the...
16 March 2009 Interpretation Case No. 110027
After stating that "the categorization of the Nominee as an active or bare trust is significant as it dictates who, between the Beneficial Owner...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | 73 | |
| Tax Topics - Excise Tax Act - Section 177 - Subsection 177(1.1) | real estate nominee can make election | 62 |
9 March 2006 Canadian Bar Association Commodity Tax Section Roundtable, Q. 23
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | 111 | |
| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) | 27 |
9 March 2006 Canadian Bar Association Commodity Tax Section Roundtable, Q. 23
…a bare trustee is not seen as carrying on any commercial activity with respect to the trust property, and thus is not eligible to register….
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) | 0 | |
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | 111 |
RC2(E) "The Business Number and Your Canada Revenue Agency Program Accounts"
Indicates inter alia that the effective date of registration for someone who is required to be registered is the date it begins to provide taxable...
GST/HST Technical Information Bulletin B-068 "Bare Trusts" Amended 10 January 2005
The determination that a trust is a bare trust generally will result in a conclusion that only the beneficial owner should register and that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | 52 | |
| Tax Topics - General Concepts - Agency | 226 | |
| Tax Topics - Excise Tax Act - Section 269 | transfer of registered title by (or to) bare trustee generally is for nil consideration | 102 |
17 July 1995 Headquarter Letter File 11635-3
A non-resident company offers music discs for sale in Canada under a consignment arrangement with a distributor. The discs are both produced in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | 54 |
Policy Statement P-051R2 "Carrying on Business in Canada" 29 April 2005
Situs of leasing or services business
In the case of a supply of property by way of lease, factors that are typically of greater importance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 143 - Subsection 143(1) | 173 |
P-015 "Treatment of Bare Trusts under the Excise Tax Act", 20 July 1992
"The bare trustee would not be seen as carrying on any commercial activity with respect to the trust property, and thus the trust would not be...
GST M 200-3 "Calculation of the Small Suppliers' Threshold" under "Determining the Value of Consideration"
The small supplier threshold is calculated by determining the value of taxable supplies made by the person or an associate on a world-wide basis.
Articles
David M. Sherman, "GST Tidbits – Backdating of Voluntary Registrations by 30 Days", GST & HST Times, Release No. 280C – March 2013
At CRA's annual GST/HST meeting with the Canadian Bar Association Commodity Tax section on February 23, 2012, CRA stated in Question 48:
For a...
Barry Hull, "GST Tidbits - Backdating GST/HST Registrations", GST & HST Times, No. 267P, 24 February 2012, p. 5
CRA will no longer automatically allow an HST registration application to be backdated up to 30 days.
Michael J. Welters, "GST Number Caution", Canadian Tax Highlights, Vol. 18, No. 1, January, 2010"
Discussion of denial of taxpayers' claim for ITCs in Systematix Technology Consultants Inc., 2007 FCA 226, on the basis that suppliers had...
Vincze, Esteves, "Canadian GST: A Potential Tax Minefield for Nonresidents", Tax Notes International, Vol. 10, No. 12, March 20, 1995, p. 992
RC has taken a very strict approach respecting when a person is carrying on business in Canada for GST purposes, particularly in the area of...
Forms
RC1 "Request for a Business Number" (HST or GST)
GST/HST Registry: "The GST/HST Registry lets you validate the GST/HST number of a business."
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Subsection 240(1.1)
See Also
Uber B.V. v Commissioner of Taxation, [2017] FCA 110
The taxpayer used his Honda Civic vehicle to provide uberX driver services, whereby an app allowed registered riders to request transportation...
Uber Canada Inc. v. ARQ, 2016 QCCS 2158, aff'd 2016 QCCA 1303
The ARQ obtained a search warrant for searching an Uber Canada office in Montreal, which under s. 40 of the Tax Administration Act (Quebec),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 231.3 - Subsection 231.3(3) | it was reasonable for ARQ on a search to seize smart phones and laptops to make subsequent complete copies | 440 |
| Tax Topics - General Concepts - Illegality | Uber drivers' breach of provincial registration statute did not justify their failure to register for QST purposes | 238 |
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 8 | seizure of computers containing personal information was the only practicable approach | 142 |
Subsection 240(2.1)
Forms
RC1 Request for a Business Number and Certain Program Accounts
Different form for SLFIs
Do not use this form if both of the following apply to you:
• You are a selected listed financial institution (SLFI)...
Subsection 240(3) - Registration Permitted
Administrative Policy
May 2016 Alberta CPA Roundtable, GST Q.6
How is back-dating of registrations being assigned and what is the process if the request is denied? CRA responded:
If a taxpayer who is...
28 January 2014 Interpretation 156861
This interpretation essentially is an advance version of Notice [264] below. CRA stated that if a "nominee corporation is an agent and makes...
RC4022 "General Information for GST/HST Registrants"
If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily. If you register...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 238 - Subsection 238(2) | 621 |
P-216 Registration of a Partner 24 April 1996
Entitlement of corporate partner to register based on partnership’s commercial activity
The Department will permit a partner (other than an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(2) | 131 |
GST M 300-4-7 "Exempt Supplies - Financial Services"
If listed financial institutions are not engaged in any commercial activities (e.g., zero-rated financial services), they cannot register.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 150 - Subsection 150(1) | 0 |
GST Memeorandum (New Series), 2.3 "Voluntary Registration"
Articles
Andrew Linton, Jillian Adams, "CRA Denies Voluntary GST/HST Registration for Financial Institutions", Canadian Tax Focus, Vol. 9, No. 4, November 2019, p. 7
Potential reduction in filing and payment-frequency obligations if Cdn branch of foreign FI voluntarily registers (p. 7)
A Canadian branch of a...
Paragraph 240(3)(a)
Administrative Policy
14 October 2016 Interpretation 170549
ACo and BCo, which were co-tenants of a property in construction held through a Nominee made a s. 273 election in year X + 2 designating ACo as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | Westcan test for JV, co-tenancy was JV | 176 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | agent could not claim ITCs | 157 |
| Tax Topics - General Concepts - Agency | co-owners required to report pro rata portions of sale made by their agent | 195 |
GST/HST Notice 284 "Bare Trusts, Nominee Corporations and Joint Ventures" February 2014
After noting that a nominee corporation potentially may makes taxable supplies as agent on behalf of the participants in a joint venture, CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 177 - Subsection 177(1.1) | agent not entitled to ITCs | 113 |
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | administrative tolerance for nominee operators | 197 |
| Tax Topics - General Concepts - Agency | acquisitions of agent those of principal | 116 |
15 November 2011 Headquarters Letter Case No. 135608
Where a "capital pool company" raises capital pursuant to a prospectus on a blind pool basis in order to invest in a company or make an asset...
Paragraph 240(3)(b)
Administrative Policy
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 14. ("Voluntary Registration")
Respecting a non-resident person who purchases and sells tangible personal property in Canada, but does not "regularly solicit" orders in respect...
Paragraph 240(3)(c)
Administrative Policy
GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018
Ability of SLFI to backdate registration by more than 30 days to beginning of reporting period (p. 12)
An ILP may be able to voluntarily register...
Forms
RC7301 Request for a Business Number and Certain Program Accounts for Certain Selected Listed Financial Institutions
Use of RC7301
Only use this form if both of the following apply to you:
- You are a selected listed financial institution (SLFI) for goods and...
Subsection 240(6) - Security
Administrative Policy
Memorandum (New Series), 2.6 "Security Requirements for Non-Residents" May 1999
6. In general, the amount of security that must be posted is set at a minimum of $5,000 and a maximum of $1 million.
7. The initial amount of...
Subsection 240(7) - Failure to Comply
Administrative Policy
CBAO National Commodity Tax, Customs and Trade Section – 2014 GST/HST Questions for Revenue Canada, Q. 6
What are the implications of the non- resident's failure to provide the required security? CRA stated:
Subsection 240(7), outlines what the CRA...