Provincial Sales Tax Act, Part 2 - When Tax is Payable

Section 28 – When Tax Is Payable In Respect Of A Purchase Or Lease

PST - SEC.28/Int.-R.2

References:

Act: Section 1 "online marketplace service", "reusable container"; Section 29; Section 30; Section 30.1; Section 37; Section 39; Section 43; Section 49; Section 52; Section 80; Section 88; Section 89; Section 92; Section 93; Section 98; Section 99; Section 101; Section 105; Section 112; Section 116; Section 117; Section 119; Section 122; Section 123; Section 123.02; Section 126; Section 127; Section 130; Section 131; Section 134.3; Section 179; Section 180; Section 182

PSTR: Section 31.1; Section 79

Interpretation (Issued: 2013/11; Revised: 2014/09; 2023/08)

Effective November 22, 2022, Bill 42, Provincial Sales Tax Amendment Act, 2022, added paragraph 28(1)(q.1) to include section 123.02 [tax on accommodation in designated major event accommodation area] in the list of relevant provisions.

Effective July 1, 2022, Bill 6, Budget Measures Implementation Act, 2022, added paragraph 28(1)(v) to reference section 134.3 [tax if online marketplace service provided in British Columbia] as a "relevant provision," to include tax on online marketplace services provided in B.C. in the standard rules for when tax is payable.

Effective April 11, 2019, Bill 5, Budget Measures Implementation Act, 2019, amended subsection 28(2) to note the application of section 28 to tax imposed under a relevant provision is subject to section 30.1 [when tax is payable in respect of promotional material].

Effective April 1, 2013, Bill 8, Budget Measures Implementation Act, 2014 repealed subsection 28(1)(a) of the Act and substituted a new paragraph (a), and amended subsection 28(8)(a) by striking out "Canada" and substituting "Canada, British Columbia".

The new subsection 28(1)(a) provides for an exclusion from the application of rules in section 28 respecting when tax is payable. Also see section 88 [tax if leased tangible personal property becomes part of real property] of the Act.

The amended subsection 28(8)(a) added a reference to a law of British Columbia. The amendment provides for the application of a rule respecting when tax is payable to circumstances in which a portion of consideration is retained under a law of British Columbia. Accordingly, the time when tax is payable is deferred when a holdback is made; the PST impact is the same for holdbacks made under a law of Canada or any province.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 and Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provide under section 28 when tax is payable in respect of relevant (i.e. specified) taxing provisions of the Act.

R.1 Progress Payments (Issued: 2014/08)

Progress payments are payments made as work progresses under a contract. Payments can be made upon the basis of costs incurred, of percentage of completion accomplished, or of a particular stage of completion. Under subsection 28(5), PST applies to progress billings for TPP when it has been delivered to the customer's site even though the installation may not be fully completed. Once all the equipment is on the customer's site, the full amount of PST is due on the equipment on the last day of the month immediately following the first month in which title to the TPP is transferred to the purchaser. This applies even if the customer is not required to complete payments until the machinery is operational.

Progress payments made in advance of delivery of TPP may be treated as down payments with PST payable on the value of equipment only at the time of delivery (i.e., when the sale has taken place).

Alternatively, PST may be paid on the value of each progress billing provided that the accumulated PST paid is sufficient to cover the PST due on the value of the TPP when delivered

For example, equipment valued at $3 million is ordered in January 2014. Progress payments of 25% of the value of the equipment are made every three months and equipment deliveries occur every four months. The $210,000 PST due on the equipment may be collected in either of the following ways.

PST Payable if Progress Payments Treated as Down Payments

Month	Payment	Value of Equipment Delivered	PST Payable
March	$750,000	-	-
April	-	$500,000	$35,000
June	$750,000	-	-
August	-	$1,500,000	$105,000
September	$750,000	-	-
November	-	$500,000	$35,000
December	$750,000	-	-
January	-	$500,000	$500,000
Total	$3,000,000	$3,000,000	$210,000

PST Payable if PST Paid on Each Progress Payment

Month	Payment	Value of Equipment Delivered	PST Payable
March	$750,000	-	$52,500
April	-	$500,000	-
June	$750,000	-	$52,500
August	-	$1,500,000	$35,000
September	$750,000	-	$52,500
November	-	$500,000	-
December	$750,000	-	$17,500
January	-	$500,000	-
Total	$3,000,000	$3,000,000	$210,000

R.2 Retainers For Legal Services (Issued: 2014/04)

Retainers for legal services are kept in trust and only payable to the lawyer when a bill is rendered. Retainers become subject to PST when they become payable from the trust to the lawyer.

Section 29 – When Tax Is Payable If Tax Not Collected When Consideration Is Paid Or Becomes Due

PST - SEC.29/Int.

References:

Act: Section 1 "entry date", "taxpayer return"; Section 28; Section 30; Section 49; Section 52; Section 93; Section 101; Section 179

PSTR: Section 31.1; Section 91

Interpretation (Issued: 2013/11; Revised: 2014/09)

Effective April 1, 2013, Bill 8, Budget Measures Implementation Act, 2014 added two new subsections (4) and (5) to section 29 of the Act to add rules for self-assessments by registrants.

The previous section 29 referred only to "a person" who is required to pay tax under certain provisions. The person is required to file a "taxpayer return" (i.e. a casual remittance return) on or before a date specified under section 29. The amendment requires that if a registrant is required to self-assess, the tax payable must be paid on or before the prescribed date and in the prescribed manner (see PSTR section 31.1).

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 29 the manner in which and when tax is payable in respect of relevant taxing provisions of the Act when the tax is not levied by a collector as required in respect of a taxable event.

For example, if the entry date of the tangible personal property was April 15th, under subsection 29(3), the tax would be payable on May 31st.

Section 30 – When Tax Is Payable In Respect Of Vehicles

PST - SEC.30/Int.-R.2

References:

Act: Section 1 "entry date", "registrant", "taxpayer return", "vehicle"; Section 28; Section 29; Section 31; Section 37; Section 40; Section 49; Section 50; Section 52; Section 100; Section 153.1; Section 179

PSTERR: Section 18; Section 19; Section 20; Section 46; Section 49; Section 120

PSTR: Section 15; Section 32

Bulletin PST 308

Interpretation (Issued: 2013/11)

Effective May 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 amended subsection 30(2) by adding a reference to subsection 100(1.3) [tax on gift of vehicle, boat or aircraft given in British Columbia].

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 and Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provide under section 30 when tax is payable in respect of vehicles.

Subsection 30(1) provides that subsection 30(1.1) applies in relation to tax imposed in respect of a vehicle under

(a) section 37 [tax on purchase], section 49 [tax if tangible personal property brought into British Columbia for use] or section 52 [tax if tangible personal property brought into British Columbia by non-residents] if the tax is not levied in accordance with subsection 179(1) [collection and remittance of tax by collector], or

(b) subsection 100(1) [tax on gift of vehicle, boat or aircraft given in British Columbia] if the tax is not levied in accordance with subsection 179(1.3).

Subsection 30(1.1) provides that tax imposed in respect of vehicle to which subsection 30(1.1) applies is payable at or before, or on or before, the earliest of the following:

(a) the time that an application is made for the registration of the vehicle under the vehicle registration legislation (i.e., the vehicle is registered with the Insurance Corporation of British Columbia);

(b) if the tax is payable by a person who is not a registrant, the last day of the month after the month,

(i) in the case of section 37, in which the vehicle is purchased at a sale in British Columbia,

(ii) in the case of section 49 or section 52, that includes the entry date of the vehicle, and

(iii) in the case of subsection 100(1), in which the person receives the gift of the vehicle;

For example, if the vehicle was purchased in British Columbia, had an entry date or was received as a gift on April 15th, provided paragraphs (a) or (c) do not apply, the tax would be payable on May 31st.

(c) if the tax is payable by a registrant, the prescribed date (as provided under PSTR section 32 [section 30 of Act – when tax is payable in respect of vehicles]; see PSTR/Sec.32/Int.).

Subsection 30(2) provides that tax imposed under section 40 [tax on motor vehicle leased outside British Columbia and registered for use in British Columbia], section 50 [tax on registration of vehicle brought into British Columbia] or subsection 100(1.3) is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation (i.e., the vehicle is registered with the Insurance Corporation of British Columbia).

Subsection 30(3) provides that if a person must pay tax imposed under section 37, section 40, section 49, section 50, section 52 or subsection 100(1) in respect of a vehicle and, under paragraph 30(1.1)(a) or subsection 30(2), the tax is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation, the person must

(a) pay the tax to the Insurance Corporation of British Columbia, and

(b) provide to the Insurance Corporation of British Columbia information in a form acceptable to the director.

Subsection 30(4) provides that if a person must pay tax imposed under section 37, section 49, section 52 or section 100 in respect of a vehicle and the tax is payable in accordance with paragraph 30(1.1)(b), the person must file a taxpayer return with the director.

Subsection 30(5) provides that tax payable under section 37, section 49, section 52 or subsection 100(1) by a registrant must be paid in the prescribed manner (as provided under PSTR subsection 79(2) [manner for payment of tax]; see PSTR/Sec.79/Int.) if the tax is not levied in accordance with section 179.

Subsection 30(6) provides that subsection 30(7) applies in relation to a person who must pay tax imposed under section 37, section 49, section 50, section 52 or section 100 in respect of a vehicle if the person alleges

(a) that tax has been levied in accordance with section 179 in respect of the vehicle,

(b) that the tax has been paid in accordance with paragraph 30(1.1)(b), or

(c) that the person is exempt from paying tax imposed under those sections.

Subsection 30(7) provides that if this subsection applies in relation to a person described in subsection 30(6), the Insurance Corporation of British Columbia must nevertheless levy and collect the tax unless the Insurance Corporation of British Columbia obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations (a Gift of a Vehicle (form FIN 319) is required under PSTERR subsection 18(6) [gifts between family members], PSTERR subsection 19(4) [registered charities] and PSTERR subsection 20(7) [prizes, draws and awards], a BC Farmer Identity card or Certificate of Exemption – Farmer (form FIN 458) is required under PSTERR subsection 46(6) [farmers], a Certificate of Exemption – Aquaculturist (form FIN 456) is required under PSTERR subsection 49(6) [aquaculturists], and a Certificate of Exemption – Production Machinery and Equipment (form FIN 492) is required under PSTERR section 120 [declaration required under section 30 (7) (a) of Act]),

(b) any information or document required by the regulations (currently, PSTR section 15 [documentation requirements for section 30 of Act] requires the Insurance Corporation of British Columbia to obtain a receipt, bill, invoice or other document that shows the tax as a separate item on the document), and

(c) any information or document required by the director.

R.1 Vehicle Transfers By ICBC Autoplan Brokers (Issued: 2014/07)

Autoplan brokers process vehicle registrations, including vehicle transfers, on behalf of the Insurance Corporation of British Columbia (ICBC). Processing vehicle registrations includes collecting any PST that is payable at the time of the transfer.

There are a number of vehicle registrations that are exempt from PST and each requires the collection of specific documentation or information by the broker to substantiate the non-collection of PST.

Subsection 30(7) requires that ICBC must nevertheless levy and collect the PST unless they obtain the following from the person at or before the time of registration:

• a declaration in a form acceptable to the director, if required by the regulations

• any information or document required by the regulations, and

• any information or document required by the director.

Procedurally, ICBC's computer system requires exempt transfers to be coded with a letter designation (A through T). Each letter represents a specific reason for exemption.

Some PST exempt registrations require an exemption stamp from the Consumer Taxation Programs Branch (CTPB) before the vehicle registrations can be processed without the collection of PST. After reviewing all relevant information and documentation, if the CTPB analyst is satisfied that the transfer qualifies for an exemption, the analyst physically stamps ICBC's vehicle transfer form (called a Transfer/Tax form (APV9T)). These transfers are coded by ICBC under the letter Q and are referred to as a "Q" stamp by ICBC and brokers. Other exempt registrations can be processed independently by the broker (i.e., without CTPB's approval) as long as they obtain specific information or documentation.

The following PST exempt vehicle registrations can generally be processed by brokers without obtaining a "Q" stamp from CTPB. However, brokers may still request a "Q" stamp if they are unsure whether the requirements for exemption have been met:

• Vehicle received as gift from related individual - PSTERR section 18 [gifts between family members], coded by ICBC under "A."

• Vehicle brought into BC as new resident's effects - PSTERR section 22 [new resident's effects - tangible personal property], coded by ICBC under "B."

• Vehicle received by trading item(s) of equal value - section 24 [purchase price if trade-in allowed on purchase of tangible personal property], coded by ICBC under "D."

• Vehicle transferred as part of a deceased individual's estate - PSTERR section 21 [inheritance of tangible personal property], coded by ICBC under "F."

• Vehicle obtained for use by a qualifying farmer solely for a farm purpose - PSTERR section 46 [farmers], coded by ICBC under "G."

• Vehicle purchased by First Nation individual or band - exempt under section 87 of the Indian Act (Canada), coded by ICBC under "K."

• Vehicle purchased by the Government of Canada - TPP purchased by the Government of Canada is exempt from PST, coded by ICBC under "M."

• Vehicle purchased by members of the diplomatic or consular corps - exempt under the Consular Tax Exemption Regulation, coded by ICBC under "O"

• Travel trailer imported by non-resident for non-business purpose - section 50 [tax on registration of vehicle brought into British Columbia], coded by ICBC under "P."

• Vehicle purchase for the sole purpose of leasing - section 142 [exemptions for tangible personal property intended for lease], coded by ICBC under "R."

• Vehicle transfer due to dissolution of marriage - PSTERR section 50 [transfer due to dissolution of marriage or relationship], coded by ICBC under "T."

The following vehicle registrations are not PST exempt. Rather, they do not attract PST under the Act. These registrations can also be processed by brokers without obtaining a "Q" stamp from CTPB. However, brokers may still request a "Q" stamp if they are unsure whether the requirements for exemption have been met:

• Vehicle purchased by a registrant for the sole purpose of resale (subject to below) - not subject to PST because of the definition of "use", coded by ICBC under "R."

• Vehicle transfer for the purpose of repossession where the vehicle is repossessed solely for resale or lease - not subject to PST because of the definition of "use", coded by ICBC under "E."

• Registration of u-built vehicles - not subject to PST because PST has previously been paid on the parts, coded by ICBC under "I".

• Vehicle transfer due to seizure/transfer by operation of law (for example, transfer under the Warehouse Lien Act) - this transfer is not subject to PST because no "sale" has taken place, coded by ICBC under "S".

• Vehicle transfers for insurance and licensing purposes only. This is intended only for taxis where the owner transfers to the taxi company only to license the vehicle in taxi company fleet, coded by ICBC under "N".

The following vehicle transfers require a "Q" stamp from CTPB before processing by a broker. If a broker does not obtain a "Q" stamp, they are required to collect any PST in accordance with subsection 30(7):

• Vehicle transferred under the Patients Property Act - this transfer is not subject to PST because no "sale" has taken place.

• Vehicle transferred by Court Order - this transfer is not subject to PST because no "sale" has taken place.

• Vehicle transferred to new corporations (i.e., rollovers) - PSTERR section 151 [tangible personal property transferred to new corporation - wholly owned and controlled] and PSTERR section 152 [tangible personal property transferred to new corporation - not wholly owned and controlled].

• Vehicle transferred back to original seller within 30 days - the refund provision for original purchaser to obtain a refund of PST paid on the original purchase is under PSTERR section 125 [vehicle, boat or aircraft returned to seller]. When the original seller takes the vehicle back from the original purchaser and refunds all or part of the purchase price, this is considered to be an unwinding of the initial sale.

• Vehicle transferred between related parties - PSTERR section 149 [tangible personal property transferred between related parties].

• Vehicle purchased by non-PST registrant for the sole purpose of resale - not subject to PST because of the definition of "use".

• Vehicle donated to charity - PSTERR section 19 [registered charities].

• Vehicle repossessed under a security instrument - PSTERR section 56 [tangible personal property subject to security instrument].

• Vehicle received as a prize or the result of a draw or award - PSTERR section 20 [prizes, draws and awards].

• Vehicle obtained in a straight exchange for a vehicle returned to the manufacturer or dealer because of defect - this is not subject to PST because the provision of the replacement vehicle is not a "sale" to the recipient, the new vehicle is transferred to fulfill the manufacturer or dealer's obligations under the original vehicle sale.

• Vehicle transferred to rectify an error (vehicle was mistakenly registered in a shareholder's name (individual or corporation) when it should have been registered in the corporation's name, or in a corporation's name when it should have been in the shareholder's name) - this is not an exemption, it is correcting an error.

• Vehicle transferred as part of an amalgamation - this transfer is not subject to PST because no "sale" has taken place.

• Vehicle is registered and no tax liability (e.g., trailer has been sitting on property without being registered) - this registration is not subject to PST because tax was previously remitted to the province.

• Vehicle transferred to reverse fraudulent transfer - this transfer is not subject to PST because no "sale" has taken place.

R.2 Fraudulent Vehicle Transfers (Issued: 2014/07)

The Insurance Corporation of British Columbia (ICBC) and law enforcement agencies regularly investigate fraudulent transfers of vehicles. Where a case of fraud is found, the vehicle is transferred back into the name of the true owner. Such a transfer is not a "sale" for the purposes of section 37 or a "gift" for the purposes of section 100. Accordingly, the transfer back to the true owner is not subject to PST.

Procedurally, ICBC processes these without collecting PST. The transaction does not require Ministry of Finance review. ICBC processes these transactions as a "stampless Q". The Autoplan broker should record the phrase "FRAUDTRANSFER" in the comments section of their processing system.

Section 30.1 - When Tax Is Payable In Respect Of Promotional Material

PSTA - Sec.30.1/Int.

References:

Act: Section 1 “collector”, “director”, “promotional distributor”, “promotional material”, “promotional sale”, “registrant”, “registration number”, “software”, “tangible personal property”, “taxpayer return”, “telecommunication service”; Section 28; Section 37; Section 49; Section 52; Section 92; Section 93; Section 105; Section 130; Section 131; Section 153.2; Section 179

PSTR: Section 31.2; Section 79

PSTERR: Section 124.1

Bulletin PST 311; Bulletin PST 400

Interpretation (Issued: 2023/10)

Effective April 11, 2019, Bill 5, Budget Measures Implementation Act, 2019 adds section 30.1. This section delays the calculation and payment of tax on certain promotional material (e.g. samples, gifts, premiums and prizes) obtained for resale in a promotional sale until after it is distributed (i.e. after the promotional sale occurs).

Subsections 30.1(1) and (2) allow a person to allege to a collector that they are purchasing promotional material for resale in a promotional sale. Such an allegation must be documented by providing either the person’s registration number or a declaration. If the allegation is not properly documented, the person must pay tax to the collector at the time consideration is paid or payable.

Subsection 30.1(3) delays, for a person who has made a properly documented allegation under subsection 30.1(1) or (2), the time when tax is payable until after distribution. For registrants, the prescribed date of payment can be found in PSTR section 31.2.

Subsections 30.1(4) and (5) provide rules for how tax must be paid by a promotional distributor who made a properly documented allegation under subsection 30.1(1) or (2). For registrants, the prescribed manner for payment can be found in PSTR subsection 79(2).

Section 31 – When Tax Is Payable In Respect Of Gifts Of Vehicles, Boats Or Aircraft

PST - SEC.31/Int.

References:

Act: Section 1 "boat", "collector", "registrant", "taxpayer return", "vehicle"; Section 30; Section 100; Section 179

PSTR: Section 33; Section 79

Bulletin PST 108; Bulletin PST 134; Bulletin PST 308

Interpretation (Issued: 2013/11)

Effective April 1, 2013, Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 repealed and replaced section 31.

Subsection 31(1) provides that, subject to subsection 31(2) and section 30 [when tax is payable in respect of vehicles], if a collector gives a gift of a vehicle, boat or aircraft and the person who receives the gift must pay tax imposed under subsection 100(1) [tax on gift of vehicle, boat or aircraft given in British Columbia] in respect of that gift, the tax is payable at the time the person receives the gift.

Subsection 31(2) provides that if a person must pay tax imposed under section 100 in respect of a gift of a boat or aircraft and the tax is not levied in accordance with subsection 179(1.3) [collection and remittance of tax by collector],

(a) the tax is payable on the last day of the month after the month in which the person receives the gift of the boat or aircraft, and

(b) the person must file a taxpayer return with the director.

For example, if the gift was received on April 15th, provided that paragraphs (a) and (b) apply and subsection 31(3) does not, under subsection 31(2) the tax would be payable on May 31st.

Subsection 31(3) provides that despite subsection 31(2), tax payable under section 100 by a registrant in respect of a gift of a boat or aircraft must be paid

• on or before the prescribed date (as provided under PSTR section 33 [section 31 of Act – when tax is payable in respect of gifts of boats or aircraft]; see PSTR/Sec.33/Int.), and

• in the prescribed manner (as provided under PSTR subsection 79(2) [manner for payment of tax]; see PSTR/Sec.79/Int.).

Section 32 – Tax Payment Agreements in Relation to Tangible Personal Property and Software

PST - SEC.32/Int.

References:

Act: Section 1 "eligible taxable services", "reporting period", "software", "tangible personal property", "use"; Section 237

PSTR: Section 12; Section 13; Section 14; Section 79

Bulletin PST 317

Interpretation (Issued: 2013/11; Revised: 2014/09; Revised 2022/12)

Effective February 2018, Bill 2, Budget Measures Implementation Act, 2018 amended subsections 32(1), 32(3), 32(3)(a)(ii) and 32(5) to allow for eligible taxable services to be acquired by certain large businesses under a tax payment agreement.

Effective April 1, 2013, Bill 8, Budget Measures Implementation Act, 2014 amended subsections 32(3) and (5) to provide for agreements respecting tax payable in relation to a delivery in BC of TPP or software purchased outside BC.

Tax payment agreements allow certain large businesses who would be eligible for PST exemptions or refunds to purchase classes of TPP and software without paying PST at the time of purchase and to self-assess PST when the TPP or software is put to a taxable use. The previous section 32 referred to purchases of TPP and software, but did not refer those obtained outside BC. The amendment clarifies that tax payment agreements cover TPP and software purchased inside or outside of BC.

Also, the amendment authorizes agreements to provide for circumstances in which the person liable to pay PST must pay the tax on or before a date that is different from the date that would otherwise be payable.

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 and Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provide under section 32 for agreements to establish different processes for the payment of tax on purchases.

The director may, in the circumstances established by the regulations (as provided under PSTR section 12 [when director may enter into agreement]), enter into an agreement, with a person liable to pay tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] or Part 4 [Taxes in Relation to Software], relating to the manner in which the tax is to be paid to the government.

Generally, the director may enter into a tax payment agreement with a person who:

• operates an interjurisdictional commercial railway, or

• is a large business eligible for the PM&E exemption.

Where a taxpayer has an agreement with the director under section 32, they pay tax directly to the government on taxable purchases.

Section 33 – When Consideration Becomes Due

PST - SEC.33/Int.

Interpretation (Issued: 2013/11)

Effective April 1, 2013, Bill 54, Provincial Sales Tax Act, 2012 provides under section 33 that for the purposes of the Act, all or a portion of the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service becomes due on the earliest of the following:

(a) the earlier of

(i) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii) the date of the invoice;

(b) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, would have, but for an undue delay, issued an invoice in respect of the sale or lease for that consideration or portion of that consideration;

(c) the day the purchaser or lessee is required under a written agreement to pay that consideration or portion of that consideration to the seller of the tangible personal property, software or taxable service or to the person from whom the tangible personal property is leased.

Subsection 33(2) provides that despite subsection 33(1), if tangible personal property, software or a taxable service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the Act, all or a portion of the consideration for the property, software or service becomes due on the day the purchaser or lessee is required under the agreement to pay the consideration or portion of the consideration to the seller or the person from whom the tangible personal property is leased.

Subsection 33(3) provides that for the purposes of the Act, if consideration that is not money is given or required to be given,

(a) the consideration that is given is deemed to be paid, and

(b) the consideration that is required to be given is deemed to be required to be paid.