Sabrix

Below are highlights of scenarios that show how the application of the general transitional rules depend on the type of transactions involved:

The Sale of Tangible Personal Property ("TPP")

Generally, HST will apply to the sale of TPP where the TPP is delivered and ownership is transferred to the purchaser on or after July 01, 2010.  HST will also apply to payments that become due or are prepaid on or after May 01, 2010 where the TPP is delivered and ownership is transferred on or after July 01, 2010.  However, HST will not apply to payments made before July 01, 2010 for subscriptions to newspapers, magazines or other periodical publications.

The Provision of Services 

Generally, HST will apply to provision of services on or after July 01, 2010, however, where all or substantially all ie., 90% or more of the service is provided before July 01, 2010, then HST will not apply.  HST will apply to payments that become due or are prepaid on or after May 01, 2010 for services to be provided on or after July 01, 2010. 

The Provision of Licenses and Leases

Generally, HST will apply to the provision of leases and licenses for that portion of a lease interval that begins after July 01, 2010.  The HST will not apply to a lease payment that pertains to a lease interval that will begin before July 2010 and will end before July 31, 2010.  HST will however apply to payments that become due or are prepaid on or after May 01, 2010 for the provision of a lease or license to the extent that they are for a lease interval that will occur on or after July 01, 2010 unless the lease interval ends before July 31, 2010.   

The Sale of Intangible Property

Generally, HST will apply to the sale of intangible property supplied by way of sale where payment becomes due or is prepaid  on or after July 01, 2010. 

The Sale of Real Property

The HST will generally apply to the sale of real Property ("RP") other than used residential housing if both ownership and possession of the RP is transferred to the purchaser on or after on or after July 01, 2010.  

The above highlights are for your general information and should not be used as substitute for the law.  Should you need assistance with the rules you should contact your adviser.  However, I am interested in discovering if there is a particular element in the transitional rules that concern you.