When the GST and QST Are Payable
The GST and QST are payable on the earlier of the following dates:
- the date on which payment for a property or service is made
- the date on which payment for a property or service is due
A payment (whether in money or some other form, such as another property or service) is deemed to have been made when it is received by the supplier.
Payment is considered to be due, in whole or in part, on the earliest of the following dates:
- the date on which an invoice is first issued
- the date indicated on the invoice
- the date on which the invoice would have been issued had it not been for an undue delay
- the due date indicated in a written agreement
Special rules also apply.
In addition to the rules above, special rules also apply to collecting the GST and QST. See the section entitled Special Cases – GST/HST and QST.
Payment made in instalments
As a rule, when you receive a payment in instalments, you must collect the taxes on each instalment on the earlier of the following dates:
- the date on which the instalment is made
- the date on which the instalment is due
However, when corporeal movable property is sold and ownership or possession is transferred to the buyer before payment in full, the taxes on instalments not yet made are payable no later than the last day of the month following the month of the transfer.
If you rent out property, you must collect the taxes no later than the date on which the lessee is required to pay the rent under the written contract.
In the case of a construction contract, a portion of the payment is often withheld as security, in conformity with a federal or provincial law or a written agreement concerning construction, renovation, alteration or repair of an immovable (real property), until the transaction is completed.
If you carry out a construction contract, the GST and QST on the amount withheld must be collected on the earlier of the following dates:
- the date the amount is paid
- the date the amount is due
Conditional sales and instalment sales
Conditional sales are sales that are subject to one or more conditions. Sales made on a trial basis are the most common type of conditional sale. The sale becomes final only after possession on a trial basis has yielded conclusive results.
Instalment sales are similar, in that ownership of the property is transferred only after all instalments have been paid.
If you make a conditional sale or an instalment sale, the GST and QST are payable on the last day of the month following the month in which ownership or possession of the property is transferred to the purchaser. The taxes apply to amounts that have not already become payable or have not been paid in the meantime.