Section 220.06 — Excise Tax Act: Supply by unregistered non-resident

Subject to this Part, where a person is the recipient of a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property that is, at a particular time, delivered or made available to the person in a participating province, or sent by mail or courier to an address in the participating province, by a non-resident supplier who is not registered under Subdivision D of Division V, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula A × B where A is the tax rate for the participating province; and B is where the supply of the property was made to the person by way of sale by a non-resident person with whom the person dealt at arm’s length, the lesser of the value of the consideration paid or payable in respect of the supply and the fair market value of the property at the particular time, notwithstanding paragraph (a), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed manner, and in any other case, the fair market value of the property at the particular time. Tax under subsection (1) in respect of property supplied to a person in a participating province becomes payable on the day the property is delivered or made available to the person in the province. No tax is payable under subsection (1) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or in prescribed circumstances. Subsection (1) does not apply to a supply of property that is delivered or made available to the recipient in the Nova Scotia offshore area or the Newfoundland offshore area, or that is sent to the recipient at an address in the Nova Scotia offshore area or the Newfoundland offshore area, unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity.