- The article discusses the application of GST/HST to warranties for tangible personal property (TPP).
- A warranty is not defined in the Excise Tax Act but is related to insurance policy definitions.
- Determining GST/HST application involves identifying if a single or multiple supply is made.
- A single supply occurs when TPP and a warranty are provided together by the same supplier.
- Multiple supplies occur when TPP and a warranty are provided by different suppliers.
- GST/HST charges on a warranty depend on whether the supplier is a registrant or insurer.
- Definitions of registrant and insurer are provided under subsection 123(1) of the ETA.
- An insurance policy excludes warranties supplied to a person acquiring property not for resale.
- Further details on insurance policy definitions can be found in GST/HST Memorandum 17-16.
Source: canada.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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