Prince Edward Island: Transition to the Harmonized Sales Tax - Admissions

GST/HST Info Sheet GI-139
February 2013

This info sheet explains whether the goods and services tax (GST) or the HST would apply to taxable sales of admissions made in Prince Edward Island to events that take place during the period that includes the proposed April 1, 2013 implementation date for the HST in Prince Edward Island.

For more information on determining whether a supply is made in Prince Edward Island, refer to Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.

Admissions

The rules explained in this info sheet apply to admissions to a place of amusement, a seminar, an event or an activity. In this info sheet, "event" means any of these places or activities.

Introduction

To determine whether GST or HST would apply to an admission to an event that takes place during the period that includes the proposed April 1, 2013 implementation date for the HST in Prince Edward Island, suppliers would have to consider:

• when the event to which the admission relates takes place;
• when an amount payable for the admission becomes due; and
• whether an amount is paid without having become due.

Refer to Appendix A for a flowchart that illustrates the transitional rules that would apply for admissions to events that take place during the period that includes the proposed April 1, 2013 implementation date for the HST in Prince Edward Island.

Refer to Appendix B for information on when an amount becomes due and when an amount is paid without having become due.

When 90% or more of the event takes place before April 2013

When 90% or more of the event for which the admission relates takes place before April 2013, only the GST would apply to any amount that becomes due or is paid without having become due for the admission. Suppliers would account for the GST in their GST/HST returns according to the normal rules.

When more than 10% of the event takes place on or after April 1, 2013

The following rules would apply when more than 10% of the event to which the admission relates takes place on or after April 1, 2013:

• GST would apply to any amount that becomes due or is paid without having become due on or before November 8, 2012.
• GST would apply to any amount that becomes due or is paid without having become due after November 8, 2012 and before February 2013. Certain purchasers would have to self-assess the 9% provincial part of the HST. For more information, refer to "Self-assessing the provincial part of the HST".
• When an amount becomes due or is paid without having become due on or after February 1, 2013:
  • GST would apply to any amount that relates to the portion of the event that takes place before April 2013; and
  • HST would apply to any amount that relates to the portion of the event that takes place on or after April 1, 2013.

Accounting for the GST/HST charged on admissions

The previous rules explained whether GST or HST would apply to an admission to an event. The following rules explain who would account for the tax, and when it would be accounted for, when more than 10% of the event takes place on or after April 1, 2013.

After November 8, 2012 and before February 2013

When an amount becomes due or is paid without having become due after November 8, 2012 and before February 2013, the supplier would charge the purchaser the GST and would account for the GST in its GST/HST return according to the normal rules. Certain purchasers would have to self-assess the 9% provincial part of the HST. For more information, refer to "Self-assessing the provincial part of the HST".

On or after February 1, 2013 and before April 2013

When an amount becomes due or is paid without having become due on or after February 1, 2013 and before April 2013, the supplier would account for the tax in the following manner.

When GST would apply to an admission or a portion of an admission, the supplier would account for the GST in its GST/HST return according to the normal rules.

When HST would apply to an admission or a portion of an admission, the supplier would account for:

• the 5% federal part of the HST in its GST/HST return according to the normal rules; and
• the 9% provincial part of the HST in its GST/HST return for the reporting period that includes April 1, 2013. The purchaser, if a registrant, would be able to claim any eligible input tax credit in respect of the 9% provincial part of the HST in its GST/HST return for the reporting period that includes April 1, 2013.

On or after April 1, 2013

When an amount becomes due or is paid without having become due on or after April 1, 2013, the supplier would account for the GST/HST in its GST/HST return according to the normal rules.

Self-assessing the provincial part of the HST

Certain non-consumers would have to self-assess the 9% provincial part of the HST when:

• an event, or a portion of an event (i.e., more than 10% of the event) takes place on or after April 1, 2013; and
• an amount that relates to the admission to the event or the portion, as the case may be, becomes due or is paid without having become due after November 8, 2012 and before February 2013.

This self-assessment rule may apply to a person that is a sole proprietor, a partnership, a corporation, an organization, a public service body, or any other entity.

A non-consumer that purchases an admission would have to self-assess the 9% provincial part of the HST if:

• the non-consumer does not purchase the admission for consumption, use or supply exclusively in its commercial activity;
• the admission is subject to an input tax credit recapture (including if the admission would be subject to a proposed temporary recapture of an input tax credit in respect of the 9% provincial part of the HST);
• the non-consumer is a GST/HST registrant using a simplified method to calculate its net tax (including the net tax calculation for charities); or
• the non-consumer is a GST/HST registrant selected listed financial institution.

The non-consumer would account for the 9% provincial part of the HST either:

• on line 405 of its GST/HST return for the reporting period that includes April 1, 2013, if the due date for that return is before August 2013; or
• in any other case, by completing Form GST489, Return for Self-Assessment for the Provincial Part of Harmonized Sales Tax (HST), and paying that amount before August 2013.

If you are located in Quebec and wish to make a technical enquiry or request a ruling related to the GST/HST, please contact Revenu Québec at 1-800-567-4692. You may also visit the Revenu Québec Web site to obtain general information.

All technical publications related to GST/HST are available on the CRA Web site at www.cra.gc.ca/gsthsttech.

Appendix A – Transitional rules for admissions

The following illustrates the transitional rules for admissions to events that take place during the period that includes the proposed April 1, 2013, implementation date for the HST in Prince Edward Island.

Appendix B – When an amount becomes due or is paid without having become due

The following rules explain when an amount becomes due and when an amount is paid without having become due. These rules apply to services and supplies of tangible and intangible personal property.

Amount becomes due

An amount payable for a supply becomes due on the earliest of the following days:

• the date of an invoice for that amount;
• the day the supplier first issues that invoice for the amount;
• if there is an undue delay in issuing that invoice, the day the supplier would have issued the invoice; and
• the day the purchaser is required to pay that amount under a written agreement.

Amount is paid without having become due

An amount is paid without having become due when a purchaser pays an amount for a supply:

• before the date of an invoice, or before a supplier issues, or would have issued, the invoice; or
• before the purchaser is required to pay the amount under a written agreement and no invoice has been issued.

More than one invoice or payment

Sometimes, more than one amount becomes due or is paid without having become due. This could happen when, for example, a supplier issues more than one invoice or when the purchaser is required to make more than one payment under a written agreement. In this case, for each amount, the supplier must determine whether GST or HST applies. The supplier cannot, for example, just apply the HST on the final amount or on the total amount payable for the supply.

Date modified:

2013-03-06