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Volume 53, No. 8

B.C. Reg. 116/2010

The British Columbia Gazette,

Part II

May 4, 2010

B.C. Reg. 116/2010 , deposited April 30, 2010, pursuant to the SOCIAL SERVICE TAX ACT [Sections 143 and 147]. Order in Council 234/2010, approved and ordered April 30, 2010.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that, effective May 1, 2010, the Social Service Tax Act Regulations, B.C. Reg. 84/58, are amended as set out in the Schedule.

— C. HANSEN, Minister of Finance and Deputy Premier ; I. CHONG, Presiding Member of the Executive Council .

Schedule

1 The Social Service Tax Act Regulations, B.C. Reg. 84/58, are amended by adding the following Division:

Division 21 – Social Service Tax Act Transition

Definitions

21.1

(1) In this Division:

"application sections" has the same meaning as in

section 4.8 of the Act;

"consideration" has the same meaning as in

section 4.8 of the Act.

(2) Sections 4.81 and 4.83 of the Social Service Tax Act apply for the purposes of sections 21.3 and 21.4 of this regulation as if

(

a) sections 21.3 and 21.4 of this regulation were application sections, and

(

b) section 4.81 of the Social Service Tax Act included a reference to "a related item," after each reference to "tangible personal property,".

Continuous supplies

21.2 (1) Subsection (2) applies if a vendor

(

a) provides tangible personal property or a telecommunication service to a purchaser on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,

(

b) invoices the purchaser on a regular or periodic basis, and

(

c) in relation to an invoice period that begins before July 1, 2010 and ends on or after July 1, 2010, cannot reasonably determine what portion of the tangible personal property is delivered to the purchaser or what portion of the telecommunication service is provided to the purchaser before July 1, 2010.

(2) In the circumstances in which this subsection applies, for the purposes of determining the tax payable under the Act, the portion of the tangible personal property delivered, or the telecommunication service provided, before July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days before July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.

Combined supplies

21.3

(1) In this section:

"related item" means a service or intangible personal property that is not a taxable item;

"taxable item" has the same meaning as in

section 143 of the Act.

(2) For the purpose of applying the Act in relation to taxable items, if

(

a) a taxable item that is tangible personal property and one or more other taxable items or related items are provided together for a single price,

(

b) in respect of a taxable item that is tangible personal property,

(

i) ownership of the tangible personal property is transferred or the tangible personal property is delivered to the purchaser before July 1, 2010, or

(ii) the rental period under the lease begins before July 1, 2010, and

(

c) either

(

i) no tax would be payable under the Act by reason of the application sections in respect of some or all of the consideration for the taxable items referred to in paragraph (

a) if any of the taxable items were provided separately, or

(ii) in relation to a related item referred to in paragraph (a),

(

A) any consideration attributable to the related item would not be included for the purposes of the Act in the purchase price or lease price of a taxable item if the related item was provided separately,

(

B) the related item is provided or partially provided on or after July 1, 2010, and

(

C) a portion of the consideration attributable to the related item,

(

I) if the related item is a service, is not paid before May 1, 2010 and becomes due on or after May 1, 2010, or

(II) if the related item is intangible personal property, is not paid before July 1, 2010 and becomes due on or after July 1, 2010,

each taxable item or related item is deemed to have been supplied separately from the other taxable items and related items.

(3) If a taxable item is deemed under subsection (2) to have been supplied separately, for the purposes of determining the tax payable under the Act, the purchase price or lease price of the taxable item is to be determined as if, before the applicable application

section is applied,

(

a) the purchase price or lease price of the taxable item was an amount equal to that portion of the single price that is attributable to the taxable item, and

(

b) the consideration for the taxable item was the portion of the consideration attributable to the taxable item.

(4) This

section does not apply to the following:

(

a) taxable items and related items that are provided together if,

(

i) in relation to the taxable items that are tangible personal property, ownership of all of the tangible personal property is transferred or all of the tangible personal property is delivered to the purchaser before July 1, 2010,

(ii) in relation to the taxable items that are leased property, the rental period under each lease begins before July 1, 2010 and ends before July 31, 2010,

(iii) in relation to the taxable items or related items that are services, all of the services are substantially provided before July 1, 2010, and

(vii) in relation to the related items not referred to in subparagraph (iii), all of the related items are provided before July 1, 2010;

(

b) taxable items for which the consideration is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period to which the arrangement applies;

(

c) tangible personal property and services described in paragraph (

d) of the definition of "sale" in

section 1 (1) of the Act;

(

d) taxable items and related items that are provided together if the consideration for the taxable items and related items becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due.

Software

21.4

(1) In this section, "designated licence" means

(

a) the right to use software that is delivered by electronic means and for which the purchase price for that right to use software varies with the amount of use of the software, or

(

b) the right to use software that is purchased separately from the software if the software is delivered other than by electronic means.

(2) Despite

section 5.1 (3) of the Act, tax is payable by a purchaser under

section 5 of the Act in respect of a purchase of tangible personal property that is software delivered by electronic means if a portion of the consideration for the software becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.

(3) Despite

section 5.1 (5) of the Act, tax is not payable by a purchaser under

section 5 of the Act in respect of a purchase of tangible personal property that is software delivered by electronic means if

(

a) all of the consideration for the software becomes due on or after July 1, 2010, and

(

b) none of the consideration for the software is paid before July 1, 2010.

(4) If tax is payable under

section 5 of the Act by reason of subsection (2) of this section, for the purpose of calculating the tax payable under

section 5 of the Act, the purchase price of the tangible personal property that is software delivered by electronic means is deemed to be the amount equal to the purchase price of the software less that portion of the consideration for the software that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.

(5) Despite

section 5.1 (3) of the Act and subsection (2) of this section, tax is payable by a purchaser under

section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence

(

a) if, before May 1, 2010, the consideration for the designated licence becomes due or is paid without having become due,

(

b) if the period of use under the designated licence begins before July 1, 2010 and ends before July 31, 2010,

(

c) if the period of use under the designated licence begins before July 1, 2010 and ends on or after July 31, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the designated licence becomes due or is paid without having become due, and

(ii) the period of use under the designated licence begins on or after July 1, 2010.

(6) Despite

section 5.1 (3) of the Act and subsection (2) of this section, tax is not payable by a purchaser under

section 5 of the Act in respect of a purchase of tangible personal property that is a designated licence if

(

a) all of the consideration for the designated licence becomes due on or after May 1, 2010,

(

b) none of the consideration for the designated licence is paid before May 1, 2010, and

(

c) the period of use under the designated licence begins on or after July 1, 2010.

(7) If tax is payable under

section 5 of the Act by reason only of subsection (5) (

c) of this section, for the purpose of calculating the tax payable under

section 5 of the Act, the purchase price of the tangible personal property that is a designated licence is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the period of use that is on or after July 1, 2010.

(8) If tax is payable under

section 5 of the Act by reason of subsection (5) (

d) of this section, for the purpose of calculating the tax payable under

section 5 of the Act, the purchase price of the tangible personal property that is a designated licence is deemed to be the amount equal to the purchase price of the designated licence less that portion of the consideration for the designated licence that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

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