Canada: Commodity Clips, 2012 Issue 6



The Canada Revenue Agency (CRA) released GST/HST Notice 277 – The Nekaneet First Nation Implements the First Nations Goods and Services Tax. Effective October 10, 2012, everyone, including Indians, pays First Nations GST on goods and services acquired on the reserve lands of the Nekaneet First Nation.

GST/HST Notice 276 – Elimination of the HST in British Columbia in 2013 – Transitional Rules for Real Property Including New Housing, replaced the version dated October 2012. New questions and answers were added, and others revised, to reflect the Regulations made under the New Housing Transition Tax and Rebate Act and the Excise Tax Act.

British Columbia

Notices and bulletins

The Ministry of Finance released the following publications in October and November. Some of the rules and requirements described in this notice are subject to legislative and regulatory approval.

What's Taxable under the PST and What's Not? provides general information on which goods and services will be taxable under the Provincial Sales Tax Act and which will not, subject to the approval of the legislature and the passage of regulations.

PST Notice 2012-009 – Notice to Liquor Vendors, provides information to help liquor vendors understand when and how to register with the Ministry of Finance to collect and remit PST.

PST Notice 2012-010 – General Transitional Rules for the Re-implementation of the Provincial Sales Tax is now available. This notice provides a general overview of the PST and general descriptions of transitional rules for the re-implementation of the PST, other than transitional rules related to housing. The transitional rules describe how and when PST will apply to transactions that straddle April 1, 2013.

PST Notice 2012-011 – Purchases of Tangible Personal Property (Goods) in British Columbia. This provides a general overview of the application of the Provincial Sales Tax (PST) to purchases of goods in British Columbia upon the re-implementation of the PST on April 1, 2013.

PST Notice 2012-012 – Leases of Tangible Personal Property (Goods), provides a general overview of the application of the PST to leases of goods in British Columbia upon the re-implementation of the PST on April 1, 2013.

Bulletin PST 002 – Charging, Collecting and Remitting PST. This new bulletin provides information to help businesses understand their obligation to charge, collect and remit PST.

PST Notice 2012-013 – Tangible Personal Property (Goods) Brought Into British Columbia, provides a general overview of the application of the PST to purchases of goods, other than leased goods, upon the re-implementation of the PST on April 1, 2013.

Notice 2012-014 – Legal Services, provides a general overview of the application of the PST to purchases of legal services in British Columbia upon the re-implementation of the PST on April 1, 2013.

Notice 2012-015 – Notice to Propane Purchasers and Sellers, provides important information about how propane will be taxed under the Motor Fuel Tax Act as a result of the re implementation of the PST on April 1, 2013.

Notice 2012-016 – Related Services, provides a general overview of the application of the PST to purchases of related services in British Columbia upon the re-implementation of the PST on April 1, 2013.


Retail Sales Tax on accounting Services

In November 2012, Manitoba Finance issued revised Information Bulletin No. 057 -Accounting Services. The main revision to the bulletin was the addition of "inventory counting services" to the description of Taxable Accounting Services.


Information Notice – Extra-Provincial Vendors of Taxable Insurance Contracts, explains that all insurance companies and brokers (including those located outside Manitoba) that invoice for insurance contracts covering taxable risks in Manitoba are required to be registered with Manitoba Finance, Taxation Division to collect and remit RST.

Prince Edward Island

Harmonized Sales Tax

The Comprehensive Integrated Tax Coordination Agreement (CITCA), which details the conditions of implementing the HST in Prince Edward Island, was signed on November 23, 2012, by the province and the Government of Canada.

The first reading of the Draft Amendments to the Retail Sales Tax Acttook place on November 27, 2012. Subsequent readings will occur over the next few months.


Revenue Tax Guide 185 – Implementation of the Harmonized Sales Tax in Prince Edward Island was released on November 8, 2012. It provides a general description of the transitional rules for the HST in Prince Edward Island and includes rules for new residential housing, which will be proposed by way of regulations under the federal Excise Tax Act (ETA), and the wind-down of the applicable provisions of the PEI Revenue Tax Act.

Revenue Tax Guide 186 – Temporary Recapture of Certain Provincial Input Tax Credits was also released on November 8, 2012. The guide provides general descriptions of the temporary recapture of input tax credits (RITC) requirement that will apply as a result of the HST in Prince Edward Island.


Tobacco tax

On November 20, 2012, Quebec's Minister of Finance delivered the 2013-2014 budget speech and announced that an increase in tobacco tax would take effect at 12:01 a.m. on November 21, 2012. The Tobacco Tax Rate Table comes into effect on that date.

Specific tax on alcoholic beverages

Similarly, as part of the 2013-2014 budget address, an increase in the specific tax on alcoholic beverages was announced. The increase is effective as of 3:00 a.m. on November 21, 2012. Details are in the Table of Rates of the Specific Tax on Alcoholic Beverages on the Revenu Québec website.

Settling tax debts

On November 20, 2012, Revenu Québec announced that individuals, including individuals in business, can now use pre-authorized debits (PADs) to settle their tax debts. Certain conditions must be met and the amount owing cannot exceed $100,000.


Provincial Sales Tax

In October 2012, the Business Assets Declaration Form was updated and now includes a complete set of guidelines to help complete the forms. The form is to be completed by purchasers of new and used assets upon commencement of business in Saskatchewan.


The Ministry of Finance released the following updated bulletins in November.

Information Bulletin PST-69 – PST Exemption on New Energy-Efficient Household Appliances. This bulletin provides an updated website address for Natural Resources Canada ( The updated website provides a link to the ENERGY STAR® website, which indicates whether a particular refrigerator, freezer, dishwasher or clothes washer is a qualifying energy-efficient household appliance.

Information Bulletin PST-70 PST – Exemption on New Energy Star Qualified Furnaces, Boilers and Pumps. This bulletin provides an updated website address for Natural Resources Canada ( ). The updated website provides a link to the listing of the qualifying furnaces, boilers, and ground and air source heat pumps that are ENERGY STAR® qualified.


Canadian customs

Customs Notice 12-026 – Implementation of the Canada-Jordan Free Trade Agreement (CJFTA) states that the CJFTA was implemented on October 1, 2012. With the exception of a few agricultural goods, the CJFTA will essentially eliminate the customs duties on all imports from Jordan, either immediately upon implementation of the agreement, or through a tariff phase-out. Information regarding the CJFTA and the text of the agreement can be found on the Foreign Affairs and International Trade Canada website at

Customs Notice 12-031 – Changes to the Import Requirements for Non-Restricted Firearms advises the changes affecting the importation of non-restricted firearms, as a result of Bill C-19 Ending the Long-Gun Registry Act, which came into force on April 5, 2012.

Canadian residents importing non-restricted firearms will no longer be required to present a registration certificate for their non-restricted firearm. However licensing requirements under the Firearms Act still apply and must be met by non-residents importing non-restricted firearms.

Canada and Japan conclude productive first round of trade negotiations

On November 30, 2012, the Minister ofInternational Trade and Minister for theAsia-Pacific Gateway announced the productiveconclusion of the first full round of negotiationstoward a Canada-Japan economic partnershipagreement. Negotiations took place in Tokyo fromNovember 26 to 30, 2012.

European Union customs

EU publishes revised preferential import scheme for developing countries

The European Union has issued its revised import preference scheme – known as the Generalised Scheme of Preferences (GSP) – for developing countries most in need, which will take effect on January 1, 2014. Following agreement with the Council and European Parliament, specific tariff preferences will be granted under the GSP in the form of reduced or zero tariff rates. The final criteria under which developing countries will benefit from the relief will also be published.

The new scheme will be focused on fewer beneficiaries (89) to ensure more impact on countries most in need. At the same time, more support will be provided to countries that are serious about implementing international human rights, labour rights, and environment and good governance conventions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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