News and Insights

CRA GST/HST Info Sheet GI-076

Tax Development Jun 12, 2010

This new info sheet explains whether the GST or the HST applies to continuous supplies, and supplies made under a budget payment arrangement, during a period that includes the July 1, 2010 implementation date of the HST in Ontario and British Columbia.

In order to determine whether GST or HST applies to continuous supplies provided in Ontario or British Columbia during the transition period that includes July 1, 2010, suppliers must determine the following: 

  • when the property or service is delivered, performed or made available; 
  • when an amount for the continuous supply becomes due; and 
  • whether an amount is paid without having become due.  

This info sheet also discusses the transitional rules used to determine whether GST or HST will apply to property or services provided under a budget payment arrangement.  Generally, these rules will apply where a supplier invoices a customer the same amount throughout a period, usually one year, for a supply such as natural gas or electricity supplied under an equal billing plan.