Subsection 211.17(2)
Paragraph 211.17(2)(a)
Subparagraph 211.17(2)(a)(i)
Administrative Policy
GST/HST Notice 322, Recovery of the GST/HST Under the Digital Economy Measures, April 2022
General requirement under s. 211.14(1) to register and charge GST/HST to unregistered recipient
Collection of the GST/HST
A key component of the measures is that a business or platform is not required to collect the GST/HST in respect of those supplies if the recipient is registered under the normal GST/HST rules and provides their GST/HST registration number to the business or platform when the supply is made. If such a recipient does not provide their registration number at that time, the business or platform is required to collect tax in respect of those supplies.
Charge to registered recipient can be rebated under s. 232
Recovery of the GST/HST
Pursuant to section 211.17 of the ETA, a recipient is generally not allowed to claim an input tax credit, rebate, refund or remission in respect of any GST/HST that is required to be collected by a person that is registered under the simplified GST/HST regime. However, a number of exceptions exist; in particular, where a recipient that is registered under the normal GST/HST rules has paid the GST/HST to a supplier that is registered under the simplified GST/HST regime, the recipient may approach the business or platform and seek a refund or credit of the amount that was paid, pursuant to section 232 of the ETA. The recipient would need to demonstrate to the supplier that their registration under the normal GST/HST rules was in effect at the time the supply was made. …
Additional information on procedures for refunds and adjustments of the GST/HST may be found in … Memorandum 12-2 … .
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) | 235 |
Paragraph 211.17(b)
Administrative Policy
14 February 2024 GST/HST Interpretation 231621 - Adjustment, credit or refund of tax charged or collected under Subdivision E of Division II
Can a person registered under Subdivision E of Division II refund GST/HST charged to a Canadian resident customer who provides evidence that they are registered for GST/HST under Subdivision D of Division V after the supply has taken place? After noting that “[w]here a Canadian resident recipient of a specified supply does not provide the required evidence of valid GST/HST registration under Subdivision D of Division V to the supplier before the supply is made, the specified supply would generally be subject to the GST/HST at the applicable rate” and that “subsection 211.17(1) generally restricts the recipient from claiming an input tax credit or filing a rebate application in respect of tax charged or paid under Subdivision E of Division II,” CRA stated:
[Where] GST/HST registration evidence is provided by the Canadian resident recipient to the supplier after the supply has been made, the Canada Revenue Agency (CRA) will permit the use of subsection 232(1) despite the fact that such evidence is provided after the supply has been made provided that the recipient’s registration under Subdivision D of Division V was valid at the time the supply was made.
CRA further noted:
- There was no requirement for the supplier to refund or credit the GST/HST charged or collected.
- Where a supplier had difficulties in issuing a credit note, the recipient was permitted to issue a debit note to the supplier, containing the prescribed information so as to satisfy the s. 232(3) documentary requirements.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) | debit note can be issued in lieu of a credit note including where the refund occurred pursuant to the s. 211.17(2)(b) exception | 142 |