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ONTARIO 


Rules and Regulations 

under 


The Retail Sales Tax Act 




HJ 

5715 TORONTO 

.057 

. R84 Printed and Published by Frank Fogg 

Queen’s Printer 

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-or mai 












ONTARIO 


Rules and Regulations 

under 

The Retail Sales Tax Act 



TORONTO 


Printed and Published by Frank Fogg 
Queen’s Printer 




Digitized by the Internet Archive 
in 2018 with funding from 
Ontario Council of University Libraries 


https://archive.org/details/rulesregulationsOOonta 


1 


TABLE OF CONTENTS 


INTRODUCTION... 5 

QUESTIONS AND ANSWERS: 

I General Provisions. 6 

II Obtaining a Permit. 7 

III Filing the Retail Sales Tax Return. 8 

IV Use of Schedule of Amounts of Tax that relate to Sale Prices. 9 

V Sales for resale and other non-taxable sales. 10 

VI Accounting Procedures. 11 

VII Miscellaneous. 12 


REGULATION 1—Definitions: 


1 . 

2 . 

3. 

4. 

5 . 

6 . ' 

7. 

8 . 
9. 

10 . 

11 . 

12 . 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20 . 
21 . 
22 . 

23. 

24. 

25. 

26. 

27. 

28. 

29. 

30. 

31. 

32. 

33. 

34. 

35. 

36. 

37. 

38. 

39. 

40. 

41. 

42. 

43. 


“agricultural feeds”. 

“as part of one transaction”. 

“books”. 

“candy”. 

“capital investment”. 

“capital works”. 

“catalogues”. 

“children’s clothing”. 

“children’s footwear”. 

“classroom supplies”. 

“confections”.. 

“construction contract”. 

“containers”. 

“contractor”. 

“dentures” and “dental appliances”. 

“dentist”. 

“drugs and medicines”. 

“drugs and medicines when sold on the prescription of a physician, dentist 

or veterinarian”. 

“farm implements” and “farm machinery”. 

“farm implements” and “farm machinery”. 

“food products”. 

“magazines and periodicals”. 

“manufactured gas”. 

“natural gas”. 

“natural water”. 

“newspapers”. 

“optician”. 

“optometrist”. 

“oculist”. 

“optical appliances”. 

“orthopaedic appliances”. 

“parts”. 

“periodicals”. 

“physician”. 

“plants”. 

“premises”. 

“prepared meals”. 

“prescription”. 

“price list”.. 

“producing”, “fabricating”, “processing”, “printing” and “imprinting”. 

“railway rolling stock”. 

“sales catalogue”.. 

“sales handbill”. 


13 

13 

13 

13 

13 

13 

13 

13 

14 
14 
14 
14 
14 
14 

14 

15 
15 

15 

15 

16 
16 
16 
16 
16 
16 
16 
16 
16 
17 
17 
17 
17 
17 
17 
17 

17 

18 
18 
18 
18 
18 
18 
18 





















































2 


44. “shrubs”. 18 

45. “soft drinks”. 18 

46. “tangible personal property”. 19 

47. “unfinished stone”. 19 

48. “vendor”. 19 

49. “veterinarian”. 19 

50. “wood”. 19 

REGULATION 2—Vendors and Vendors’ Permits. 19 

REGULATION 3—Responsibilities of vendors. 20 

REGULATION 4—Purchase Exemption Certificate. 21 

REGULATION 5—Form of Purchase Exemption Certificate. 22 

REGULATION 6—Merchandise purchased for consumption or use. 23 

REGULATION 7—Registered Consumer. 24 

REGULATION 8—Monthly Tax Returns. 25 

REGULATION 9—Orders taken by non-registered vendors. 26 

REGULATION 10—Returns under Section 2(7) of the Act. 26 

REGULATION 11—Remittance of Tax. 27 

REGULATION 12—Collection of Tax by Vendor. 27 

REGULATION 13-Vendors’ Records. 27 

REGULATION 14—Destruction of Records. 27 

REGULATION 15—Tax on transactions held to be in lieu of Transfer of Title. 28 

REGULATION 16—Containers. 28 

REGULATION 17—Finance and Carrying Charges. 29 

REGULATION 18-Settlers’ Effects. 29 

REGULATION 19—Transfers of Merchandise between Related Persons. 30 

REGULATION 20—Rebate of Tax. 31 

RULING 1—Remuneration of Vendors. 32 

RULING 2—Service Enterprises: 

(1) General. 32 

(2) Advertising Agencies. 33 

(3) Printing and Advertising Expenses. 33 

(4) Barber and Beauty Shops. 34 

(5) Dentists and Dental Laboratories. 34 

(6) Dry Cleaners and Repairers. 34 

(7) Educational, Hospital and Charitable Institutions. 34 

(8) Optometrists, Oculists and Opticians. 35 

(9) Physicians, Architects, Engineers, Accountants, Lawyers, etc. 35 

(10) Towel and Linen Service. 35 

(11) Veterinary Surgeon. 35 








































3 


RULING 3—Contractors and Subcontractors: 

(1) Construction Contractors — General Rules. 36 

(2) Manufacturing Contractor. 36 

(3) Contractor — Retailers. 37 

(4) Installation Contract. 38 

(5) Contractors as Registered Consumers. 38 

RULING 4: 

(1) Manufacturers. 38 

(2) Wholesalers. 39 

(3) Wholesale and Retail Businesses. 40 

RULING 5—Repairers and Reconditioners. 41 

RULING 6—Classes of Retailers: 

(1) Artists, Painters, Sculptors, Cabinet-makers. 42 

(2) Auctioneers. 43 

(3) Florists and Nurserymen. 43 

(4) Garage Operators. 43 

(5) Memorial Dealers. 44 

(6) Photographers and the like. 44 

(7) Printing and Related Industries. 45 

(8) Signs, Show-cards and Posters. 46 

(9) Taxidermists. 46 

(10) Morticians, Undertakers and Funeral Directors. 46 

RULING 7—Guarantees, Gifts, Discounts and Finance Charges: 

(1) Finance Charges. 46 

(2) Gifts, Premiums and Samples. 46 

(3) Guaranteed Parts, Replacements. 47 

(4) Importation Charges. 47 

(5) Trade and Cash Discounts. 47 

RULING 8—Demonstration and Display. 47 

RULING 9—Automobile Dealers: 

(1) Relationship of Salesmen to Automobile Dealers. 48 

(2) Separate Vendor’s Permit for Garage Business from New and Used Car 

Business. 48 

(3) Separate Vendor’s Permit for Salesmen. 48 

(4) Automobiles held for Demonstration. 48 

(5) Exchange of Vehicle Motors. 48 

(6) Passenger Vehicles, Trucks and Buses. 49 

(7) Retreading and Recapping Tires. 49 

RULING 10—Machinery and Apparatus. 49 

RULING 11—Consumables: Materials consumed or expended. 49 

RULING 12—Use of Purchase Exemption Certificates. 49 

RULING 13—Restaurants, Resorts and Lodges, Boarding Houses and Similar 

Establishments. 51 

RULING 14—Agricultural Machinery. 52 

RULING 15—Vending Machines. 52 








































4 


RULING 16—General: 

(1) Barter or Exchange of Goods. 53 

(2) Brokers and Fiduciaries. 54 

(3) Credit Transactions. 54 

(4) Federal Sales Tax. 54 

(5) Delivery Charges. 54 

(6) Goods Damaged in Transit. 55 

(7) Tangible Personal Property temporarily brought into Ontario. 55 

(8) Installation, Service, etc. 55 

(9) Interprovincial and Foreign Trade. 56 

(10) Lease Contracts. 56 

(11) Mail Order Purchases. 57 

(12) Packers, Loaders, Shippers. 57 

(13) Polishers, Finishers, Refinishers. 57 

(14) Purchases by Federal and Provincial Government Departments. 57 

(15) Purchases by Federal and Provincial Crown Corporations. 57 

(16) Returned Merchandise. 58 

(17) Separate Sales. 58 

(18) Service Charges. 58 

(19) Lay-away Sales. 58 

(20) Diplomatic Corps and Foreign Consuls. 58 






















5 


THE RETAIL SALES TAX ACT 

AND 

RULINGS AND REGULATIONS THEREUNDER 

INTRODUCTION 

Ontario is the eighth province of Canada to introduce a retail sales tax. 
The Retail Sales Tax Act comes into force on September 1, 1961. The Act 
will be administered by the Retail Sales Tax Branch of the Office of the 
Comptroller of Revenue for Ontario. The methods of administration 
employed by the seven other provinces imposing this kind of taxation and 
by a number of the states of the United States including California, 
Michigan, Louisiana, Kentucky, Tennessee and Maine have been studied. 
The resources and information gained through the experience of these 
provinces and states have been used to produce rules and regulations to be 
applied under the Ontario Act. These Rules and Regulations are intended 
to provide an administration that will create the fewest possible problems 
for the taxpayer who is the purchaser of taxable goods and for the retailer 
who is the vendor of taxable goods and for the administration. 

This booklet which contains the rules and regulations is being for¬ 
warded to all vendors of goods (termed ‘Tangible personal property” in 
the Act) to assist them in complying with the Act and the regulations 
made thereunder. 

Numerous questions have been asked by vendors relative to this tax 
and these questions have been codified with appropriate answers to aid 
various businesses in the collection and remittance of the tax. 

Returns are to be filed monthly with the Comptroller of Revenue by 
all vendors within twenty-three days after the close of the month. A return 
form, together with instructions will be mailed at the commencement of 
each month to each vendor who holds a permit, thereby giving the vendor 
twenty-three days to complete the return and file it with the Comptroller. 
Each vendor should be certain that his return as filed includes the account 
number provided in his permit, as payment of tax under this Act will be 
credited to the account number shown on the return filed. 

The following information should answer most questions regarding 
the tax. If there is a question that is not answered in this booklet it should 
be submitted to the Comptroller of Revenue, Retail Sales Tax Branch, 
Parliament Buildings, Toronto 2, or to the District Office located nearest 
to you. 

This part of the booklet is divided into the following parts: 

I General Provisions 
II Obtaining a Permit 

III Filing a Return 

IV Use of Schedule of Amounts of Tax that relate to Sale Prices 
V Sales for Resale and other Non-taxable Sales 

VI Accounting Procedure 

VII Miscellaneous 


6 


I GENERAL PROVISIONS 

1. What is the sales tax? 

The sales tax is imposed upon the final purchaser of goods and com¬ 
modities. The term used in the Act to describe goods and commodities is 
“tangible personal property.” Goods and commodities include anything 
that can be lifted or removed from one place to another but they are also 
defined to include telephone services. 

2. How is the sales tax collected ? 

The vendor must collect from his customers the tax in addition to the 
price he charges for the goods he sells to his customers and remit it with his 
monthly return to the Comptroller. 

3. What tax is payable on goods purchased outside Ontario and 

brought into Ontario on which sales tax has not been paid ? 

Goods that are purchased outside Ontario and brought into Ontario 
are subject to the tax. Goods purchased outside Ontario for storage, use or 
other consumption in Ontario are subject to the tax if delivery to the 
purchaser in Ontario occurs after September 1, 1961. 

4. What is the date upon which the sales tax comes into force? 

Sales tax must be collected on all sales made after September 1, 1961. 
Where orders for goods are placed with vendors before September 1, 1961, 
and the goods are delivered to the purchaser after September 1, 1961, the 
tax must be collected on the price charged for such goods. 

5. What is the sales tax rate? 

The sales tax is three per cent computed on the price charged for the 
goods. The tax should be calculated separately on every purchase and be 
computed to the nearest cent. In the calculation every fraction of less than 
one-half cent should not be counted and every fraction of one-half cent or 
more should be counted as one cent. Where, on the same occasion or as 
part of one transaction, several items of goods are purchased, the total of 
the purchase must be deemed to be one purchase, and the tax should be 
calculated on such total. 

6. Are all sales of goods taxable? 

No. There are three major groups of sales that are not taxable. These 

are: 

(1) Sales of goods to another vendor who executes a “Purchase Exemp¬ 
tion Certificate.” 

(2) Sales of goods to be delivered by the vendor to points outside 
Ontario for use outside Ontario. 

(3) Sales of goods which are specifically exempt from tax under 
the Act. 

7. Who is responsible for reporting and paying tax on purchases of 

goods made outside Ontario and brought into Ontario for use, 

storage or consumption? 


7 


The person who stores, uses or otherwise consumes the goods in 
Ontario is liable for the tax. However, if the supplier outside Ontario holds 
an Ontario retail sales tax vendor’s permit, then such supplier is required 
to collect and remit the tax to the Comptroller of Revenue. The purchaser, 
in this event, must obtain from the supplier outside Ontario a receipt, 
showing that the tax has been paid in order for him to be relieved of tax 
liability in Ontario. In no case should a purchaser in Ontario pay tax to a 
supplier outside Ontario who does not hold an Ontario Retail Sales Tax 
Act vendor’s permit. 

8. Are vendors allowed compensation for reporting and remitting 
tax? 

Yes. The basis of compensation is set out in Ruling 1. 

9. Does the department require the vendor to provide the pur¬ 
chaser with a receipt showing that tax has been paid? 

No, but should the purchaser require a receipt, the vendor must give 
him one. 

10. If the vendor desires to absorb the sales tax rather than collect 
it separately from the customer, may he do so ? 

No. It is provided that every vendor shall state and charge the tax to 
be collected on each taxable sale separately from the sale price, and shall 
show such tax separately from the sale price on any record he makes, and 
on any receipt, bill, invoice or other document he keeps or issues. A vendor 
may not advertise or post or otherwise quote a price “tax included” without 
specifying separately the amount of the tax. 

A vendor is not required to indicate in his advertisements or in a 
quotation of price with respect to the sale of goods that the tax will be 
added to the price, but if a vendor quotes a price for an article without 
reference to the tax, the price he quotes is that to which he must add and 
collect the tax. (See section 12 of the Regulations.) 

11. Will a registered vendor have to pay tax on equipment such as 
scales, cash registers, office furniture, etc., used in the opera¬ 
tion of his business? 

Yes. The person who supplies the vendor with such taxable goods is 
liable to collect the tax on the price which he charges such vendor. But if 
the equipment is purchased from a supplier outside Ontario who does not 
hold an Ontario retail sales tax vendor’s permit, the vendor in Ontario is 
required to pay the tax on the sale price for the equipment, in which case 
the Ontario vendor would report such price in his monthly return. 

II OBTAINING A PERMIT 

1. What is the purpose of a retail sales tax vendor’s permit? 

The permit shows that the vendor is properly registered with the 
Comptroller of Revenue as required by The Retail Sales Tax Act. The 
permit must be posted in a conspicuous place in the business establishment 
of the vendor. 


8 


2. Who must obtain a retail sales tax vendor’s permit? 

Every person must have a vendor’s permit who sells goods to con¬ 
sumers, or purchases goods for resale, or who sells prepared meals, or 
telephonic services. Every salesman, or manufacturer’s agent who solicits 
orders for a non-resident vendor not registered in Ontario must have a 
vendor’s permit. 

3. How is a permit application form obtained ? 

If a vendor has not already received a copy of the application form, 
please write to the Comptroller of Revenue, Retail Sales Tax Branch, 
Parliament Buildings, Toronto 2, Ontario, or request a copy from the 
District Office of the Retail Sales Tax Branch nearest you. 

4. Can assistance in completing the permit application form be 
obtained? 

Yes. A field representative of the Retail Sales Tax Branch is available 
to give you prompt assistance. To obtain such assistance, write to the 
Comptroller of Revenue, Retail Sales Tax Branch, Parliament Buildings, 
Toronto 2, or contact the District Office of the Retail Sales Tax Branch 
nearest you. 

5. When should the permit application form be completed and 
mailed to the Retail Sales Tax Branch? 

This form should be mailed as soon as possible in order that it may be 
processed by the Retail Sales Tax Branch and a permit returned to the 
vendor before August 1, 1961. 

6. What happens if an application form is not completed and the 
vendor, therefore, does not receive a permit? 

If a vendor who sells tangible personal property to consumers is 
operating without a permit having been granted after September 1, 1961, 
penalties will be imposed. A security bond may be required of any vendor 
who fails to apply for and to be granted a permit. 

7. Will a security bond to ensure remittance of retail sales tax 
collected be required of the vendor? 

Section 31 of The Retail Sales Tax Act provides that a vendor may be 
required to deposit with the Treasurer a bond by way of cash or other 
security in an amount satisfactory to the Treasurer. However, if a vendor 
obtains his permit before September 1, 1961 and remits the taxes that are 
collectable by him within the times prescribed no such deposit will be 
required of him. 

Ill FILING THE RETAIL SALES TAX RETURN 
1. What kind of a retail sales tax return is to be filed? 

The return form will be an accounting machine card that will have 
certain information pre-punched on the card. The vendor must use this 
card as his return. Any other return form will not be accepted. If the 
vendor has applied for a vendor’s permit and such permit has been issued 
the Retail Sales Tax Branch will mail him a retail sales tax return form at 


9 


the commencement of each month following that in which the taxable sales 
have been made. The first return form will be mailed to the registered 
vendors on October 1, 1961. 

2. Will retail sales tax return forms be available in District Offices 
of the Retail Sales Tax Branch or in the offices of banks and 
other places ? 

No. The return form will be mailed to each vendor individually and 
bear the number of his vendor’s permit which will be his account number 
in the department. It is very important that each vendor should use the 
return form forwarded to him. If the return form is lost, mutilated or 
damaged, another return form must be requested from the Comptroller of 
Revenue, Retail Sales Tax Branch, Parliament Buildings, Toronto 2, 
Ontario. 

3. When is the first retail sales tax return due ? 

The first return is due to be filed on or before October 23, 1961 covering 
sales made during the month of September 1961. Every vendor must file a 
return for each month. The return is due to be filed on or before the twenty- 
third day of the month following the month during which the sales are 
made. The Act provides penalties and interest for late filing of the return 
and late remittance of the tax. 

4. Will instructions for completion of the return be mailed with 
each return form ? 

Yes. 

5. Is it important that the return form received by the vendor bear 
the same account number that appears on his vendor’s permit? 
Yes. The vendor must make certain that the monthly return form 

filed with the Retail Sales Tax Branch carries the same account number 
that is shown on his Ontario retail sales tax vendor’s permit. Any dis¬ 
crepancy in account numbers must be reported to the Retail Sales Tax 
Branch immediately since remittances of tax will be credited to the account 
number appearing on the return that is filed by the vendor. 

6. Should special precautions be taken by the vendor in filing 
monthly returns if the vendor has more than one business 
location and a permit for each location ? 

Yes. The vendor must be certain that the monthly return form bears the 
same account number that appears on his permit for each business location. 

IV USE OF SCHEDULE OF AMOUNTS OF TAX THAT 

RELATE TO SALES PRICES 

1. Is there a schedule available for use by clerks in computing the 
tax under The Retail Sales Tax Act ? 

Yes. 

2. What is the schedule? 

The basis of computing the tax under this Act shall be in accordance 
with the following table: 


10 


Amount of 

Sale or 

Tax 

Amount of 

Sale or 

Tax 

Rental 

Payable 

Rental 

Payable 

SO. 17 to SO.49 

lc. 

$1.84 to $2.16 

6c. 

0.50 to 0.83 

2c. 

2.17 to 2.49 

7c. 

0.84 to 1.16 

3c. 

2.50 to 2.83 

8c. 

1.17 to 1.49 

4c. 

2.84 to 3.16 

9c. 

1.50 to 1.83 

5c. 

3.17 to 3.49 

10c. 


Sales or rentals exceeding S3.50 shall be subject to the tax at 3 per cent 
calculated to the nearest cent, one-half cent being counted as one cent. 

A vendor can extend this schedule for as many brackets as he wishes. 
The low price in each bracket will always end in 17 cents, 50 cents or 84 
cents and the high price in the bracket will always end in 49 cents, 83 cents 
and 16 cents. 

V SALES FOR RESALE AND OTHER NON-TAXABLE SALES 

1. What should the vendor do if he makes sales to other persons 

which are for resale ? 

The vendor must obtain a Purchase Exemption Certificate from the 
purchaser. In order for a Purchase Exemption Certificate to be valid it 
must be made by an Ontario purchaser who possesses a retail sales tax 
vendor’s permit. The burden of proving that the sale made to such a 
purchaser is not taxable is on the vendor of such material unless such 
vendor receives from his customer a valid Purchase Exemption Certificate. 

2. What is a Purchase Exemption Certificate ? 

A Purchase Exemption Certificate is a statement signed by the pur¬ 
chaser to the effect that the goods being purchased by him are being 
purchased either for resale or to be used, consumed or expended directly in 
the process of manufacture or production of tangible personal property for 
the purpose of sale or to be processed, fabricated or manufactured into, 
attached to or incorporated into tangible personal property for the purpose 
of sale. In order for a Purchase Exemption Certificate to be valid the 
purchaser must list on the certificate the nature of his business, the nature 
of the goods being purchased, his vendor’s permit number, his address and 
the date the certificate is signed. Where a vendor regularly sells the same 
kind of merchandise to the same customer, the customer may submit to 
the vendor a blanket Purchase Exemption Certificate. A blanket certificate 
will be sufficient for all such sales and a new single certificate need not be 
signed each time a sale is made. This blanket Purchase Exemption Certifi¬ 
cate will remain valid until revoked by the purchaser or cancelled by the 
Comptroller of Revenue. 

3. Where may Purchase Exemption Certificate forms be obtained? 

Purchase Exemption Certificate forms will be available at the District 
Offices of the Retail Sales Tax Branch. They may also be obtained by 
writing to the Comptroller of Revenue, Retail Sales Tax Branch, Parliament 
Buildings, Toronto 2, Ontario. The vendor or the purchaser may provide 
his own forms if the required information is listed thereon. 


11 

4. What should a vendor do with Purchase Exemption Certificates 
he receives from his customers? 

These must be kept by the vendor to prove that sales to purchasers 
who provide him with the Purchase Exemption Certificate are not taxable. 
The certificates must be maintained in the possession of the vendor until 
such time as the Comptroller of Revenue authorizes the vendor to destroy 
them. 

5. What must a vendor do if he makes sales which are non-taxable 
because he ships the goods to points outside Ontario for use 
outside Ontario? 

He must maintain records which are sufficient to show that the goods 
were actually shipped to customers located outside Ontario. Copies of sales 
invoices and bills of lading are sufficient. 

6. If the vendor makes a sale to a non-resident of Ontario, is the 
sale taxable? 

Yes, if the delivery of the goods is taken in Ontario. If the vendor 
delivers the goods to a point outside Ontario for use outside Ontario, then 
the sale is not a taxable sale because the goods are shipped by the vendor 
for use outside Ontario. 

7. Are sales of real estate or intangible property taxable? 

No. Sales of real estate and intangible property (such as stocks and 
bonds) are not taxable. 

8. What happens when a purchaser gives a vendor a Purchase 
Exemption Certificate and uses the goods purchased in some 
manner other than holding them for resale or for some other 
non-taxable purpose? 

The purchaser is liable for payment of the tax as the goods were 
purchased free of tax under a Purchase Exemption Certificate. 

9. What happens if a vendor purchases goods for resale or for use in 
a non-taxable way but uses the property in some manner other 
than holding it for resale or for a non-taxable purpose? 

Such a vendor is liable to pay the tax on the cost price of such tangible 
personal property. The tax must be reported in his monthly sales tax 
return and he must pay the tax thereon. 


VI ACCOUNTING PROCEDURES 

1. What types of books, records, etc., are required to be kept by a 
vendor? 

The Retail Sales Tax Branch does not wish to change the present 
bookkeeping system of any vendor. However, it is necessary for a vendor 
to keep adequate records and documents to prove that the total sales and 
the deductions of non-taxable sales he reports to the Retail Sales Tax 
Branch are correct as stated. These records must include an accurate and 


12 


complete account of his sales of tangible personal property and must be 
supported by the normal books of accounts usually kept by such a vendor 
together with all cheques, invoices, bills and other documents. It is necessary 
that in the records, taxable sales and the tax collectable thereon from the 
customers of the vendor should be maintained separately. 

2. Must the sales tax be reported on an accrual basis or on a cash 
basis? 

Ordinarily the accrual basis must be used. This means that cash sales, 
instalment sales and credit sales are reported for the month in which the 
sales are made. For example, credit sales made in September will be reported 
on the return to be filed for September on or before October 23 and should 
not be reported in the month in which cash payment of the credit sales 
are collected. 

3. If a sale is made on credit, may the vendor bill his customer for 
the tax at the same time as he bills him for the selling price? 

Yes. The sales tax must be billed to the customer when the sale is made. 

4. May a vendor take credit for goods on which he paid tax to his 
supplier, but which he then resold to someone else? 

Yes. If the vendor purchased the goods for his own consumption or 
use and therefore paid the tax when he purchased the goods, but he sold 
them before making any use of them, he may deduct the tax paid to his 
supplier from the tax he collects from the ultimate purchaser on the resale 
of such goods. 

5. Must a tax return be filed by a vendor if he made no sales during 
a month? 

Yes. 

6. Are sales of goods sold through vending machines subject to tax ? 

Yes. See Ruling number 15. 

VII MISCELLANEOUS 

1. Are Ontario merchants at a competitive disadvantage with 
merchants in other provinces because of The Retail Sales Tax 
Act of Ontario ? 

No. If Ontario purchasers buy goods outside Ontario in an effort to 
avoid the Ontario Retail Sales Tax, such purchasers are liable to pay tax on 
such goods if the goods are stored, used or consumed in Ontario. Severe 
penalties apply where a purchaser fails to advise the Comptroller of Revenue 
of such goods having been purchased outside Ontario for storage, use or 
consumption in Ontario and to pay the tax on the purchase price thereof. 


13 


Regulation Made Under 
The Retail Sales Tax Act 

DEFINITIONS 

1. In the Act and this Regulation, 

1. “agricultural feeds” includes any drug or medicine fed to or in¬ 
jected into livestock or poultry; 

2. “as part of one transaction” does not include a transaction or 
transactions where several articles are purchased from different 
departments of the same vendor; 

3. “books that are printed and bound and that are published solely 
for educational, technical, cultural or literary purposes,” includes 
all books that are printed and bound that are not directories, price 
lists, time-tables, rate books, catalogues, periodic reports, fashion 
books, albums, books for drawing upon or any books of the same 
general classes; 

4. “candy” does not include chocolate, sugar or honey sold for cook¬ 
ing purposes; 

5. “capital investment” of a religious, charitable or benevolent 
organization means the result of any construction project that, 
when complete, is real property; 

6. “capital works” means any construction project that, when com¬ 
plete, is real property; 

7. “catalogues” includes bound, stitched, sewed or stapled books or 
pamphlets containing a list and description of goods, wares, 
merchandise or services, with specific information, with or without 
price, but does not include a sales catalogue, a sales pamphlet or a 
sales hand bill; 

8. “children’s clothing” means, 

(a) children’s dresses, suits, coats, blouses, sweaters, undershirts, 
pyjamas, combinations, snow-suits, overalls, and such other 
children’s garments that fit the upper half or the whole body 
up to and including girl’s commercial trade size designation 
14X or boy’s commercial trade size designation 15, or “Canada 
Standard Size” 34A, depending upon the size designation 
applicable; 

(b) children’s trousers, slacks, jeans, slims, undershorts, briefs, 
outer shorts, and other children’s garments that fit at or below 
the waist up to and including girl’s and boy’s commercial 
trade size designation 14 or “Canada Standard Size” 34Y, 
depending upon the size designation applicable; 

(c) boy’s dress and sport shirts up to and including commercial 
trade size designation 14 or “Canada Standard Size” 13 Yi 
neck, depending upon the size designation applicable; 


14 


(d) children’s hose up to and including girl’s commercial trade 
size designation 93^ and boy’s commercial trade size designa¬ 
tion 10; 

(e) children’s hats up to and including girl’s commercial trade 
size designation 22 and boy’s commercial trade size designa¬ 
tion 7; 

(f) children’s gloves up to and including girl’s and boy’s com¬ 
mercial trade size designation 7; 

9. “children’s footwear” means footwear up to and including girl’s 
and boy’s commercial trade size designation 6; 

10. “classroom supplies” means tangible personal property that stu¬ 
dents or scholars use in exercising their functions as students or 
scholars and includes pencils, pens, blank paper books, book bags, 
rulers, drawing instruments, drawing books and classroom furni¬ 
ture such as desks, chairs, benches, tables and blackboards; 

11. “confections” include chocolate coated nuts, candied fruits, crys¬ 
tallized fruits and glace fruits, preparations of fruits, nuts or pop¬ 
corn in combination with chocolate, sugar or honey; 

12. “construction contract” means a contract for erecting, remodelling 
or repairing a building or other structure on land and includes 
lump-sum, cost-plus and time and material contracts, but does not 
include a contract for the sale and installation of machinery, 
appliances or equipment that the contractor has sold; 

13. “containers” means the articles and devices in which tangible 
personal property is placed for shipment and delivery, such as 
wrapping materials, bags, cans, twines, gummed tapes, barrels, 
boxes, bottles, drums, carboys, cartons, sacks, and materials from 
which such containers are manufactured; 

14. “contractor” includes persons regularly engaged in the business 
of constructing, altering, repairing or improving real estate for 
others and the term includes: 

(a) general contractors and subcontractors, 

(b) carpenter, bricklaying, stonemason, plasterer, sheet-metal, 
steel, tile and terrazzo, electrical, plumbing, heating, air 
conditioning, insulating, ventilating, papering, bridge, road, 
landscape, roofing, painting, decorating, cement and paving 
contractors; and 

(c) other persons 

who install on or incorporate into real property, tangible personal 
property for a person other than themselves; but does not include a 
manufacturer who manufactures tangible personal property for 
sale; 

15. “dentures” and “dental appliances” include gold, amalgam, 
porcelain or any other kind of dental filling and the materials 


15 


necessary to be used by a dentist in performing such an operation 
for his patient; 

16. “dentist” means a person legally qualified and entitled to practise 
the profession of dentistry in Ontario; 


17. “drugs and medicines” includes: 

(a) X-ray pictures, 

(b) drugs and medicines for internal use, including injections and 
inhalants; and 

(c) drugs and medicines for external use and recognized as stand¬ 
ard household medical aids; 

but does not include disinfectants such as creoline, rodent exter¬ 
minators; cosmetics of all kinds, medicated or otherwise, includ¬ 
ing hair tonics, shampoos, toothpastes, shaving creams, beauty 
aids and toiletries, depilatories and perfumes; 

18. “drugs and medicines when sold on the prescription of a physician, 
dentist or veterinarian” includes drugs and medicines administered 
by a physician, dentist or veterinarian and those administered to 
patients in a hospital; 


19. 


(( 


farm implements” and “farm machinery” include: 

(a) all implements and machinery designed for farm use that are 
drawn, propelled or powered by motor or animal power, 
except, 


(c) 


bale elevators and loaders 
balers 

barn water systems 
combines 

electric motors for 
farm equipment 
farm circular saws 
feed mixers 
grain cleaners 


grain dryers 
grain elevators 
grain picklers and 
treaters 
hay presses 
manure loaders 
milk coolers 
pumps 
tractors 


(b) the following classes of tangible personal property: 


brooders 

chick and poultry founts 
parts and controls 
cow chains and stanchions 
cow halters 
cow stanchions 
cream separators 
electric fencers 
feed cookers 


hen specks 

livestock watering troughs 
metal egg-laying nests 
milking machines 
poultry feeders, waterers 
and automatic shut-offs 
scufflers 

steel haystack forms 
teat dilators 


hay and grain slings 

the following classes of tangible personal property when pur¬ 
chased by a person who with respect to the purchase of such 
property provides the vendor with a signed statement certify¬ 
ing that he is engaged in the business of farming and that such 


16 


property will be used exclusively in the conduct of such 
business: 


bale elevators and loaders 
balers 

barn water systems 
combines 

electric motors for 
farm equipment 
farm circular saws 
feed mixers 
grain cleaners 

20. “farm implements” and 

bulldozer equipment 
calcium chloride 
grease guns 
lighting plants 
pulleys 
refrigerators 
rope 


grain dryers 
grain elevators 
grain picklers and treaters 
hay presses 
livestock weigh scales 
manure loaders 
milk coolers 
pumps 
tractors 

farm machinery” do not include, 

stoves 

tanks 

tools 

trailers 

truck boxes 

washing machines 


21. “food products” does not include prepared meals, soft drinks, 
chewing gum, lozenges, candies, confections, colouring extract, 
dog, cat, bird and other animal foods, root beer and root beer 
extracts, malt and malt extracts; 


22. “magazines and periodicals when purchased by subscription for 
delivery by mail” includes magazines and periodicals that are sold 
over the counter if they are ‘books that are printed and bound and 
that are published solely for educational, technical, cultural or 
literary purposes’ as defined by paragraph 3 of section 1 ; 

23. “manufactured gas” means artificial gas intended to be used as 
fuel for heating or cooking but does not include oxygen, acetylene, 
argon, nitrogen, hydrogen, carbon dioxide, compressed air, nitrous 
oxide or helium; 

24. “natural gas” means natural gas intended to be used as fuel for 
heating or cooking; 

25. “natural water” includes water that has been treated for the con¬ 
trol of impurities in the interest of public health; 

26. “newspapers” means printed publications, usually daily or weekly, 
containing the news, advertisements and literary matter, but does 
not include trade journals, magazines containing articles by various 
writers, and periodicals of any kind or nature; 

27. “optician” is the manufacturer and vendor of glasses or spectacles; 

28. “optometrist” includes an oculist and means a person who exam¬ 
ines the eyes for the purpose of determining if glasses are necessary 
and, if so, prescribes for them; 


17 


29. “oculist” is a physician who specializes in diseases of the eyes and 
whose services include, in addition to the examination of the eyes 
and treatment of diseases pertaining to sight, the prescription of 
glasses or spectacles where necessary; 

30. “optical appliances” means contact lenses and eyeglasses enclosed 
in frames intended to maintain the eyeglasses in place on the face 
of the wearer; 

31. “orthopaedic appliances” includes trusses and parts, surgical sup¬ 
ports and appliances and parts, spinal braces, sacro-iliac belts and 
supports, elastic hosiery, but does not include shoulder braces, 
athletic supports, suspensories, arch, ankle, knee and like supports, 
including bracer and sporter types; 

32. “parts” means such parts, repairs and accessories as are specially 
designed for the manufacture, repair and replacement of the 
particular article of tangible personal property to which reference 
is made in the Act, but does not include items of tangible personal 
property suitable as parts, repairs and accessories for the manu¬ 
facture, repair or replacement of articles to which reference is made 
in the Act as well as to other articles and does not include motor 
car radios, rear vision mirrors and other accessories not affixed at 
the factory and forming part of the machine or vehicle when sold 
or any item of tangible personal property commonly known as an 
accessory that may be purchased separately and affixed to any 
article that is tangible personal property; 

33. “periodicals” does not include publications issued by an invest¬ 
ment counsel or securities adviser as defined in The Securities Act 
unless such publication is a bona fide newspaper, news magazine or 
business or financial publication of general and regular paid circula¬ 
tion distributed only to subscribers thereto for value and to pur¬ 
chasers thereof and is the only publication issued by such invest¬ 
ment counsel or securities adviser and such counsel or adviser 
gives advice only through such publication; 

34. “physician” means a legally qualified medical practitioner; 

35. “plants” includes any tree that is sold by the Department of 
Lands and Forests of Ontario but does not include any other plant 
that does not produce fruit or other food for human consumption, 
or tobacco; 

36. “premises” means the entire building, tent or other structure, 
together with contiguous lands or any lands whether enclosed or 
not, in or on any part of which the vendor, by permission, licence, 
grant, privilege or by any other right whatsoever, makes sales, but 
in business blocks, apartments or other buildings in which separate 
and distinct rooms and apartments are owned, leased or occupied 
by more than one tenant, such separate and distinct rooms or 


18 


apartments constitute separate premises; and includes hotels, 
tourist courts, motels, boarding houses and other lodging places; 

37. “prepared meals” includes soft drinks, sodas and other non¬ 
alcoholic beverages served as a composite part of a prepared meal 
and any food or food products purchased for consumption on the 
premises where purchased including such items as sandwiches, 
hamburgers, hot dogs, and other arrrangements of food in such 
form as may be eaten on the premises where sold even when such 
preparations are consumed elsewhere; but does not include spiritu¬ 
ous, malt or vinous liquors or other alcoholic beverages when 
served with a prepared meal or food items sold in the original 
package in which they were enclosed without any processing by 
the vendors; 

38. “prescription” means a formula or direction given in writing by a 
physician, dentist or veterinarian of a remedy for or as a treatment 
for a disease or a disorder, prescribing the ingredients with or 
without the method of using; 

39. “price list” means numerical or alphabetical enumeration of goods, 
wares, merchandise items or services, quoting wholesale or retail 
prices or both and printed on cards or sheets of paper presented in 
loose-leaf form, stapled, stitched or bound; 


40. “producing,” “fabricating,” “processing,” “printing” and “im¬ 
printing” include any operation that results in the creation or 
production of tangible personal property or that is a step in a 
process or series of operations resulting in the creation or produc¬ 
tion of tangible personal property, but do not include operations 
that constitute exclusively the labour involved in the repair or 
reconditioning of tangible personal property to refit it for the use 
for which it was originally produced; 

41. “railway rolling stock” means rolling stock capable of operating 
exclusively on rails as distinct from pavements or other roads; 


42. “sales catalogue” includes “sales pamphlet” and means a printed 
work advertising goods, wares, merchandise or services, consisting 
of two or more sheets of paper stapled, sewed or stitched, with or 
without covers; 


43. “sales hand bill” means a printed single sheet of paper intended to 
be circulated to advertise goods, wares, merchandise or services, 
and includes circulars and dodgers; 

44. “shrubs” does not include any shrub that does not produce a fruit 
or other food for human consumption; 


45. “soft drinks” means non-alcoholic beverages consisting of, 

(a) fruit juices, flavouring or sweetening or any combination of 
them, and carbonated water; 


19 


(6) soda, sparkling water and mineral water; and 
(c) non-carbonated fruit juice beverages containing less than 
25 per cent by volume of a natural fruit juice or combination 
of natural fruit juices or a natural fruit juice or combination of 
natural fruits that have been reconstituted into the original 
state, 

whether sold in bottles or other containers or by the glass and 
whether they are manufactured or prepared at soda fountains, and 
includes preparations which when added to water produce a drink 
that is a soft drink as defined; 

46. “tangible personal property’’ does not include uncancelled Canada 
postage or revenue stamps or uncancelled provincial revenue stamps 
valid for transportation of mail or for revenue tax purposes; 

47. “unfinished stone” includes crushed stone and what is generally 
known as blast furnace slag but does not include any stone on 
which chipping or work other than crushing has been performed in 
order for the stone to be capable of being mortared to another 
piece of stone in building a stone structure; 

48. “vendor” includes a person who has no fixed place of business in 
Ontario and an agent who takes orders or makes sales on behalf of 
a principal, but does not include, 

(а) the owner or operator of a hotel, tourist court, motel, boarding 
house or other lodging place operating exclusively on the 
American Plan where the charge for lodging and meals is less 
than $6.50 per day; 

(б) a school board; or 

(c) a person engaged exclusively in the business of farming; 

49. “veterinarian” means a person duly qualified and registered under 
The Veterinary Act; 

50. “wood” means wood intended to be used as fuel and no other 
kind of wood. 

VENDORS AND VENDORS’ PERMITS 

2.—(1) Where a vendor has no fixed place of business in Ontario he shall 
keep his vendor’s permit on his person at all times while doing 
business and produce it upon request to a purchaser or a duly 
authorized representative of the Comptroller. 

(2) Where an agent makes sales on behalf of a principal and does not 
have any fixed place of business of his own, his principal shall 
obtain for him a vendor’s permit and the agent shall keep such 
permit on his person at all times while doing business and pro¬ 
duce it upon request to a purchaser or a duly authorized repre¬ 
sentative of the Comptroller. 

(3) Where a vendor changes his address, he shall forthwith return 


20 


his vendor’s permit to the Comptroller for amendment and 
apply for a new one. 

(4) Where a vendor changes the name or nature of his business, he 
shall forthwith return his vendor’s permit to the Comptroller 
and apply for a new one. 

(5) Where a vendor ceases to carry on business in respect of which a 
vendor’s permit has been issued, the permit is thereupon void 
and he shall return it to the Comptroller within fifteen days of 
the date of discontinuance. 

(6) Where a vendor’s permit is lost or destroyed, application shall 
immediately be made to the Comptroller for a copy of the original. 

RESPONSIBILITIES OF VENDORS 

3.—(1) Where a vendor sells tangible personal property to a person who 
alleges that it is exempt from tax under paragraph 38, 39 or 40 
of section 5 of the Act or that it is being purchased for purposes 
of resale, he shall obtain from the purchaser a certificate of 
exemption. 

(2) The exemption certificate required by subsection 1 is invalid 
unless the purchaser is a vendor who discloses the number of his 
vendor’s permit under the Act in such certificate. 

(3) Where a vendor fails to obtain an exemption certificate he shall 
collect tax from the purchaser calculated on the price charged for 
the tangible personal property sold. 

(4) Where a vendor purchases tangible personal property for his own 
consumption or use in the exercise of his business, he shall pay 
the tax to his supplier on such tangible personal property unless 
he is in possession of a special vendor’s permit as provided in 
section 6. 

(5) Where a vendor who sells tangible personal property to a person 
claiming the purchase is not taxable under the Act and the vendor 
is not satisfied as to the correctness of the claim, he shall require 
the person to pay the tax and such tax may be refunded by the 
Treasurer to the purchaser upon receipt from him of satisfactory 
evidence that the tax should not have been paid. 

(6) A vendor who has paid tax on tangible personal property that he 
has purchased for consumption or use and who resells it before 
making any use thereof other than retention for demonstration 
or display while holding it for sale in the regular course of busi¬ 
ness, may apply for a refund under subsection 6 of section 2 of 
the Act upon production of evidence satisfactory to the Comp¬ 
troller in the form provided for such purpose. 


21 


(7) Subsection 6 applies where, 

(а) the vendor when making the purchase intends to use the 
tangible personal property rather than resell it but later 
resells it before making any use thereof; 

(б) the particular property is of a kind not ordinarily sold or 
stocked by the vendor and not customarily covered by 
exemption certificates given to his suppliers and is subject 
to an unusual sale, such as a sale for the accommodation of 
a customer, employee or other person; 

( c ) the particular property is generally for the consumption or 
use of the vendor but a small portion is incidentally resold; or 

(d) through error, the tax is paid by the vendor with respect to 
the purchase price of tangible personal property purchased 
for resale in the regular course of business. 

(8) Where a motor vehicle is sold within Ontario to a non-resident of 
the province and within thirty days of the date of such sale the 
vehicle is taken out of Ontario to be used solely outside Ontario, 
the tax collected at the time of the sale may be refunded by the 
Treasurer upon receipt of satisfactory evidence. 

PURCHASE EXEMPTION CERTIFICATE 

4.—(1) A purchase exemption certificate referred to in section 3 shall be 
in two categories, 

(a) “single certificate” on which the purchaser must itemize the 
tangible personal property to be purchased; 

(b) “blanket certificate” on which the purchaser is required to 
describe generally the kind of tangible personal property to 
be purchased in the regular course of his business. 

(2) A single purchase exemption certificate may be used only for a 
single purchase of tangible personal property. 

(3) Every blanket purchase exemption certificate supplied by a pur¬ 
chaser to a vendor remains valid until revoked by the purchaser 
or cancelled by the Comptroller of Revenue. 

(4) Subject to subsection 3 a purchaser who has executed a blanket 
purchase exemption certificate shall not be required to execute 
additional exemption certificates for individual purchases so long 
as there is no change in the character of his operation and if the 
purchases are of tangible personal property of the kind usually 
purchased by the purchaser either for resale or for use or con¬ 
sumption in producing tangible personal property for sale. 

(5) All sales for resale or for consumption or use in producing tangible 
personal property for sale that are not supported by a properly 
executed exemption certificate shall be deemed to be retail sales 
and the burden of proving that a sale was not at retail is on the 
vendor. 


22 


(6) An exemption certificate shall be substantially in the form pre¬ 
scribed by section 5 and to be valid shall 

(a) include the number of the vendor’s permit held by the 
purchaser and his signature; 

(b) bear his name and address; 

(c) indicate the general character of the tangible personal prop¬ 
erty which the purchaser sells in the regular course of his 
business; and 

(d) indicate whether it is a single exemption certificate or a 
blanket exemption certificate. 

(7) An exemption certificate shall not be used to obtain tangible 
personal property free of tax unless such property is for resale or 
is exempt from tax pursuant to paragraph 38, 39 or 40 of section 5 
of the Act. 

(8) When an exemption certificate is used in contravention of sub¬ 
section 7, the purchaser is liable to have his vendor’s permit 
suspended or cancelled under subsection 3 of section 3 of the Act 
on the grounds that he made use of the exemption certificate 
wrongfully. 

(9) Any person who provides his supplier with an exemption certificate 
knowing that the tangible personal property which he is pur¬ 
chasing is not to be resold by him in the regular course of business 
or is to be used for a purpose other than that certified by him in 
the exemption certificate shall be guilty of an offence against 
the Act. 

FORM 

5. The exemption certificate referred to in section 3 shall be in the follow¬ 
ing Form: 

PURCHASE EXEMPTION CERTIFICATE 

Number of Vendor’s Permit Name of Purchaser 

held by the Purchaser holding Permit 


□ Single Purchase Exemption Certificate 

□ Blanket Purchase Exemption Certificate 
I Hereby Certify: 

1. That I hold a valid vendor’s permit, the code number of which 
is.and that it was issued under sub¬ 

section 2 of section 3 of The Retail Sales Tax Act. 





23 


2. That I am engaged in the business of selling 


3. That the tangible personal property which I shall buy from 

.(name) 

.(address) 

will be either 

(a) resold, or 

( b ) used, consumed or expended directly in the process of manu¬ 
facture or production of tangible personal property for the 
purpose of sale, or 

(c) processed, fabricated or manufactured into, attached to or 
incorporated into, tangible personal property for the purpose 
of sale. 

4. That, in the event that the tangible personal property purchased 
tax free pursuant to the terms of this certificate is not used for one 
or other of the purposes indicated, I undertake to pay the tax 
imposed under The Retail Sales Tax Act calculated on the purchase 
price of such property. 

5. That it is understood that where this certificate is submitted to a 
vendor as a “blanket purchase exemption certificate,” it remains 
valid until revoked by the purchaser or until cancelled by the 
Comptroller of Revenue. 

6. Description of property to be purchased:. 


For a single purchase exemption certificate, itemize the 
tangible personal property to be purchased; for a blanket 
purchase exemption certificate, give a general description 
of the kind of property to be purchased in the regular 
course of the purchaser’s business. 


(Signature of Purchaser) 


Dated:.19 


(Address) 


at 


MERCHANDISE PURCHASED FOR CONSUMPTION OR USE 

6.—(1) The holder of a vendor’s permit shall not use the permit to 














24 


purchase free of tax tangible personal property of which he is to 
be the ultimate consumer or user unless his permit is a special 
permit, the code number of which is identified with the suffix “G”. 

(2) In this section, a special permit referred to in subsection 1 is 
known as a “G” permit. 

(3) The holder of a “G” permit is authorized at his discretion to 
purchase free of tax tangible personal property whether such 
property is taxable or is exempt from tax under section 5 of the 
Act or because it is being purchased for resale. 

(4) Each holder of a “G” permit shall notify his suppliers that he is 
the holder of a “G” permit by filing with them a copy of a “G” 
permit exemption certificate in the prescribed form. 

(5) Each holder of a “G” permit shall declare in his monthly tax 
return the value of the tangible personal property purchased for 
his own consumption or use and shall remit the tax due on such 
purchases directly to the Treasurer. 

(6) Where a “G” permit holder buys tangible personal property 
outside Ontario he shall declare in his monthly tax return the 
value of the tangible personal property which he received in 
Ontario from points outside Ontario during the month for which 
such return is being filed and shall remit the tax due on such 
purchases directly to the Treasurer. 

(7) A “G” permit may be issued to a vendor only upon application 
made by him in the prescribed form. 

REGISTERED CONSUMER 

7.—(1) A person who is not the holder of a vendor’s permit but who 
brings into Ontario or who receives delivery in Ontario of tangible 
personal property that he has purchased outside Ontario and 
that has a fair value exceeding $100 in each of two months or 
more during a calendar year shall register with the Comptroller 
as a registered consumer. 

(2) A person registered as a registered consumer shall hold a consumer 
registration certificate issued by the Comptroller in the prescribed 
form. 

(3) The possession of a consumer registration certificate does not 
permit the holder to purchase free of tax tangible personal 
property within Ontario by the issuance of exemption certificates, 
such exemption certificates being authorized for use only by the 
holder of a vendor’s permit. 

(4) Where a registered consumer ceases to buy tangible personal 
property outside Ontario in an amount exceeding $100 in each 
of two months or more during a calendar year, the Comptroller 
may cancel his consumer registration certificate. 


25 


MONTHLY TAX RETURNS 

8.—(1) On or before the twenty-third day of each month, every vendor 
shall make a return to the Comptroller in the prescribed form 

(a) of all sales of tangible personal property made by him; and 

(b) of all purchases of tangible personal property made by him 
upon which tax was not collected by the vendor thereof at 
the time of purchase, 

during the calendar month immediately preceding and shall remit 
to the Treasurer the tax collectable and payable by him during 
such period. 

(2) On or before the twenty-third day of each month, every registered 
consumer shall make a return to the Comptroller in the prescribed 
form of all purchases of tangible personal property made by him 
outside Ontario and brought into or received in Ontario by him 
during the calendar month immediately preceding and shall remit 
to the Treasurer the tax payable by him during such period. 

(3) Notwithstanding subsections 1 and 2 the Comptroller may at any 
time require a vendor or a registered consumer to make a return 
covering such period and including such information as the 
Comptroller may determine and the vendor or registered con¬ 
sumer shall therewith remit to the Treasurer the tax collectable 
or payable by him or the tax collectable and payable by him 
during such period. 

(4) Every vendor shall make a separate return in respect of each 
place of business operated by him, but, if the branches that are 
operated make returns of sales to a central office where all account¬ 
ing is centralized, a consolidated return for all branches may be 
granted on application to the Comptroller. 

(5) Where the Comptroller approves the filing of a consolidated 
return by a vendor, the consolidated return shall in each case be 
accompanied by a schedule showing the address of each place of 
business, the gross sales, the allowable deductions, the net taxable 
sales and the amount of tax due for each location. 

(6) Where a vendor has made sales of tangible personal property 
that are all exempt from tax or has made no sales during the 
period for which he is reporting, he shall file a return and so state. 

(7) Where a vendor has made sales of tangible personal property on a 
basis whereby the purchase price is stipulated to be on terms or 
by instalments or otherwise and for that reason does not collect 
the tax at the time of the sale, he shall report the total amount of 
such sale and the total amount of tax collectable thereon in the 
return required by subsection 1. 

(8) In the return prescribed, every vendor shall report the fair value 


26 


of all items of tangible personal property purchased or taken out 
of stock by himself for his own consumption or use and the fair 
value of all items of tangible personal property supplied to his 
employees out of stock where such items have not been included 
as a retail sale. 

ORDERS TAKEN BY NON-REGISTERED VENDORS 

9.—(1) Every person who is not the holder of a vendor’s permit but who 
solicits orders in Ontario for the sale of tangible personal property 
which is to be shipped to the purchaser in Ontario from a point 
outside Ontario, shall apply for and shall have received a special 
certificate in the prescribed form authorizing him to engage in 
such activity. 

(2) The application shall set forth the name under which the applicant 
carries on his business, the name and address of the person for 
whom he takes orders and such other information as is required 
by the Comptroller. 

(3) Each such certificate shall be issued by the Comptroller and the 
holder shall keep such certificate on his person at all times while 
soliciting orders in Ontario and shall produce it upon request to a 
purchaser or a duly authorized representative of the Comptroller. 

(4) On or before the twenty-third day of each month each person 
who holds a special certificate issued under this section shall file 
a return with the Comptroller concerning the orders he obtained 
during the calendar month immediately preceding. 

(5) The return shall contain, 

(a) the name and address of each person from whom an order 
is taken; 

(b) a description of the tangible personal property to be sold 
pursuant to the order and the price to be paid therefor; 

(c) the date upon which the order is taken; 

(d) the date, as nearly as can be determined, on which the 
tangible personal property is to be delivered to the purchaser. 

RETURNS UNDER SECTION 2 (7) OF THE ACT 

10. Every person other than a registered consumer or a vendor holding a 
vendor’s permit who is required to report the purchase of tangible 
personal property acquired by him outside Ontario and which he 
brings into or has delivered to him in Ontario shall make a return to 
the Comptroller in such form as may be satisfactory to the Comptroller 
and he shall pay the amount of tax that is payable with the filing of 
such return on or before the twenty-third day of the month following 
the month during which he receives delivery of the taxable tangible 
personal property covered by the return. 


27 


REMITTANCE OF TAX 

11. Every person required to file returns by section 8 or 10 shall remit the 
amount of tax shown by the return to be collectable and payable 
with the filing of such return. 

COLLECTION OF TAX BY VENDOR 

Every vendor shall state and charge the tax to be collected on 
each taxable sale separately from the sale price and shall show 
such tax separately from the sale price on any record, receipt, bill, 
invoice or other document, kept or issued by the vendor. 

A vendor may not advertise or post or otherwise quote a price 
“tax included” without specifying separately the amount of 
the tax. 

A vendor is not required to indicate in his advertisements or in a 
quotation of price with respect to the sale of tangible personal 
property that the tax will be added to the price. 

If a vendor quotes a price for an article of tangible personal 
property without reference to the tax, the price thus quoted is 
that to which the tax shall be added and collected. 

VENDORS’ RECORDS 

Every vendor shall keep books of account, records and documents 
sufficient to furnish the Comptroller with particulars of, 

(a) all inventories of tangible personal property taken; 

(b) purchases of tangible personal property; 

(c) sales of tangible personal property; 

(d) tangible personal property purchased or taken from stock 
by the vendor for his personal consumption or use or that of 
his business or supplied to his employees where any such 
property has not been included as retail sales; 

(e) non-taxable sales of tangible personal property including sales 
for resale, discounts, refunds, and exemptions; 

(f) taxable sales of tangible personal property; 

(g) the amount of tax collected; 

(h) the disposal of tax, including the remuneration taken. 

(2) All entries concerning the tax in such books of account, records 
and documents, shall be separate and distinguishable from all 
other entries made therein. 

DESTRUCTION OF RECORDS 

14. Every vendor shall preserve all books of account, records and docu¬ 
ments required under the Act or this Regulation until such time as the 
Comptroller authorizes their destruction. 


12 . ( 1 ) 

( 2 ) 

(3) 

(4) 

13.—(1) 


28 


TAX ON TRANSACTIONS HELD TO BE IN LIEU OF 

TRANSFER OF TITLE 


15.—(1) 


( 2 ) 

(3) 

(4) 

(5) 


16.—(1) 




In the case of transactions held by the Comptroller to be in lieu 
of transfer of title, exchange or barter, the tax shall be calculated 
on a portion of the rental price of tangible personal property that 
is leased or rented and such tax shall be collected at the time of 
payment of the rental price; 

Where the transaction involves the rental of tangible personal 
property to one lessee for a period of less than seven days, the tax 
shall be calculated on 100 per cent of the rental price; 

Where the transaction involves the rental of tangible personal 
property to one lessee for a period of more than six days and not 
more than one month, the tax shall be calculated on 90 per cent 
of the rental price; 

Where the transaction involves the rental of tangible personal 
property to one lessee for a period of more than one month the 
tax shall be calculated on 80 per cent of the rental price; 

Where the transaction is a hire-purchase contract or is designated 
as a lease or rental for the purpose of retaining title in the vendor 
as security for payment of the purchase price, the transaction 
shall be deemed not to be in lieu of a transfer of title but to be a 
sale on credit and the tax shall be calculated on the total fair 
value of the tangible personal property at the time the transaction 
is arranged. 


CONTAINERS 


In this section, 

(a) “returnable containers” means containers of a kind custom¬ 
arily returned by the purchaser of the contents thereof for 
re-use, such as milk bottles, steel drums, beer and soft drink 
bottles, wine barrels, chemical carboys and gas cylinders; 

(b) “non-returnable containers” means containers not intended 
to be returned for re-use, such as wrapping and packing 
materials, paper bags, twine, medicine bottles and bottles 
that are intended to contain distilled spirits, and includes 
bottle tops and crowns when used to close. 

Sales of returnable containers to manufacturers, compounders, 
bottlers and others that are for use in packaging their product 
and that are intended for re-use are subject to the tax imposed 
by the Act and such tax applies at the time of the sale to such 
persons. 

A returnable container is not subject to tax when it is transferred 
to the customer in connection with a retail sale of its contents, 
notwithstanding the fact that the retailer requires a deposit 


(4) 

(5) 


( 6 ) 

(7) 



17.—(1) 



18. (1) 


29 

against the return of the container or allows a credit upon its 
return. 

Sales of non-returnable containers to manufacturers, compounders, 
bottlers and others that are for use in packaging their product 
for resale are not subject to tax under the Act. 

Sales of wrapping paper, clothes hangers, twine, tape and similar 
articles to purchasers who use them to package merchandise for 
sale at retail are usually sales made for resale and are not subject 
to tax, but sales of such articles to purchasers who use them in 
the conduct of an activity other than the sale of tangible personal 
property at retail, for example, laundries and dry cleaning estab¬ 
lishments, are subject to tax. 

Sales of non-returnable paper napkins, straws and like articles to 
restaurants, lunch counters or other eating places where they are 
used in connection with the sale and serving of food are sales 
made for resale and are not subject to tax. 

Sales of labels, name plates, price tags and shipping tags are not 
subject to tax if, 

(a) they are affixed to a non-returnable container or to the 
property sold; or 

(b) they are affixed to returnable containers on which it is 
necessary to affix a new label each time it is refilled. 

Advertising material purchased by the vendor and used in con¬ 
nection with the sale by him of tangible personal property or 
enclosed with tangible personal property is subject to tax. 

FINANCE AND CARRYING CHARGES 

The fair value of tangible personal property sold does not include 
finance charges, carrying charges or interest charges on condi¬ 
tional sale contracts or other contracts providing for deferred 
payments of the sale price if the amount of such finance charges, 
carrying charges or interest is in addition to the usual or estab¬ 
lished cash selling price and if such amount, 

(a) is segregated on the invoice or bill of sale; or 

(b) is billed separately to the customer. 

Unless these conditions are met, such charges shall be deemed to 
be part of the fair value for the purpose of computing tax. 

SETTLERS’ EFFECTS 

Where a person who was ordinarily resident outside of Ontario 
takes up residence in the Province and brings with him for his 
own consumption or use household goods and equipment that he 
owned before taking up residence in Ontario, such household 
goods and equipment shall be deemed to be settler’s effects and 


30 


are exempt from tax if such effects are brought into Ontario within 
six months of his taking up residence in the Province. 

(2) For the purpose of this section, a person shall be deemed to have 
been ordinarily resident outside Ontario if he has sojourned 
outside Ontario for a period exceeding six consecutive months. 

TRANSFERS OF MERCHANDISE BETWEEN RELATED PERSONS 

19.—(1) In this section, 

(a) “parent corporation” means a corporation that owns bene¬ 
ficially at least 95 per cent of the share capital, except 
directors’ qualifying shares, of another corporation and also 
means any other corporation which, in the opinion of the 
Comptroller and not inconsistent with the intent of this 
section, is for all intents and purposes, a parent corporation 
to a wholly-owned subsidiary corporation; 

(b) “wholly-owned subsidiary corporation” means a corporation 
at least 95 per cent of the share capital of which, except 
directors’ qualifying shares, is beneficially owned by the 
corporation to which it is subsidiary, and also means any 
other corporation which, in the opinion of the Comptroller 
and not inconsistent with the intent of this section, is for all 
intents and purposes, a wholly-owned subsidiary to a parent 
corporation. 

(2) Where tangible personal property is sold by a parent corporation 
to its wholly-owned subsidiary, or by a wholly-owned subsidiary 
to its parent corporation, or by one wholly-owned subsidiary of a 
parent corporation to another wholly-owned subsidiary of the 
same parent corporation, and if the tangible personal property 
sold was located within Ontario and belonged to one of these 
corporations on the 31st day of August, 1961, or if tax under the 
Act has been paid on the purchase of the tangible personal 
property sold by one of such corporations, no tax is payable by 
the purchaser in respect of such sale. 

(3) Where tangible personal property is sold to a corporation at the 
time of its incorporation by a person or by a partnership or by a 
corporation which wholly owns and controls the purchasing cor¬ 
poration, and if the tangible personal property sold was located 
in Ontario and belonged on the 31st day of August, 1961 to the 
person, partnership or corporation making the sale, or if the tax 
under this Act has been paid on such tangible personal property 
by the person, partnership or corporation making the sale, no 
tax is payable by the purchasing corporation in respect of such sale . 

(4) Where tangible personal property is sold to a corporation at the 
time of its incorporation by a person or by a partnership or by a 
corporation which does not wholly own and control the purchasing 
corporation, and 


31 


(a) if the tangible personal property sold was located in Ontario 
and belonged on the 31st day of August, 1961 to the person, 
partnership or corporation making the sale; or 

(b) if tax under the Act has been paid on such tangible personal 
property by the person, partnership or corporation making 
the sale, 

and if as payment for such tangible personal property, the person, 
partnership or corporation selling the tangible personal property 
receives and retains shares in the purchasing corporation at least 
equal in actual value to the actual value of the tangible personal 
property sold, no tax is payable by the purchasing corporation 
in respect of the sale, but if the actual value of the tangible 
personal property sold to the purchasing corporation exceeds the 
actual value of the shares of the corporation which are transferred 
to the person, partnership or corporation selling the tangible 
personal property, the difference between the actual value of the 
tangible personal property sold and the actual value of the shares 
transferred is subject to tax under the Act. 

REBATE OF TAX 

20.—(1) The Treasurer may authorize a rebate of the tax paid by a 
purchaser where, 

(a) a person has entered into a construction contract before the 
30th day of March 1961 and the tangible personal property 
on which tax is paid enters directly into and becomes part 
of the construction or alteration of any capital works as well 
as the preparation for the work of construction of, and the 
preparation for or the laying of the foundation of, any such 
capital works; 

(b) a person purchases tangible personal property that enters 
into capital investment by a religious, charitable or benev¬ 
olent organization; 

(c) a person purchases tangible personal property that enters 
directly into and becomes part of a hospital, nurses’ home, 
school or university building; 

(d) a person purchases tangible personal property that enters 
directly into and becomes part of the construction of capital 
works of a municipal corporation or a local board thereof. 

(2) An application for rebate shall be made in writing setting forth 
such information as the Treasurer from time to time deems 
necessary and such application shall be sworn to by the applicant. 


32 


RULING 1-REMUNERATION TO VENDORS 

(1) The remuneration payable to each vendor for his services in collecting 
and remitting the tax under this Act shall be calculated at the follow¬ 
ing percentages of the tax he collects from others: 

(a) where the amount resulting from dividing the gross 
sales made by the vendor during a month by the num¬ 
ber of sales transactions completed during that month 

is SI000 or more. H of 1% 

(b) where the amount resulting from dividing the gross 

sales made by the vendor during a month by the num¬ 
ber of sales transactions completed during that month 
exceeds $300 but is not more than $1000. 1% 

(c) where the amount resulting from dividing the gross 
sales made by the vendor during a month by the num¬ 
ber of sales transactions completed during that month 
is $300 or less, and 

1. where the gross amount of tax exempt sales is less 


than 50% of the total gross sales during that 
month. 2% 

2. where the gross amount of tax exempt sales is 50% 

or more and less than 80% of total gross sales 
during that month. 3% 

3. in all other cases. 4% 


(2) No remuneration shall be paid to a vendor with respect to the tax 
payable by him on tangible personal property which he purchases or 
takes out of his own stock for his own consumption or use whether 
such tax is paid to his supplier or is paid directly to the Treasurer at 
the time of purchase. 

(3) The remuneration provided by sub-ruling 1 shall be disallowed where 
the return reporting the sale is not filled within the time prescribed 
by the Regulations. 

RULING 2-SERVICE ENTERPRISES 

(1) Service Enterprises in General 

Persons engaged in the business of rendering service are consumers 
and not vendors of the tangible personal property which they use 
incidentally in rendering the service. The tax imposed under this Act 
applies accordingly to the sale of tangible personal property to them. 
Examples of service enterprises may include, but are not limited to, 
the following: banks, advertising agencies, commercial artists, laun- 
derers, cleaners, barbers, beauty shop operators, tire repairers, taxi¬ 
dermists, shoe repair men, bootblacks and similar enterprises. 

Persons rendering professional services are consumers and not vendors 
of the tangible personal property which they use incidentally in 
rendering their services. Examples of such persons are lawyers, 
architects, engineers and accountants. 







33 


If any of the persons referred to under this heading, in addition to 
using tangible personal property incidentally in connection with 
rendering services, are regularly engaged in selling tangible personal 
property to consumers, they are vendors with respect to such sales 
and they must obtain vendors’ permits, file returns and must collect 
and remit tax based upon the amount of such sales. 

(2) Advertising Agencies 

Advertising agencies are not vendors of tangible personal property 
when they render the services of preparing and placing advertisements 
in advertising media. These media include but are not limited to, 

(a) newspapers, magazines and other publications; 

(b) radio and television programs; 

(c) billboards and other forms of outdoor advertising; and 

(d) cards in cars, buses and other facilities used in public trans¬ 
portation. 

Advertising agencies are not vendors of roughs, comprehensives or 
visualizations prepared solely for the purpose of displaying the 
advertising idea to the clients of the agencies. 

Advertising agencies are consumers of tangible personal property 
incidental to the operation of their offices, such as stationery, ink, 
paint, tools and office supplies, and the tax applies to the price paid 
by the agencies when they purchase such articles. 

When advertising agencies, acting as agents for their clients, purchase 
tangible personal property, the tax applies to the purchase price paid 
for such property by the agencies. Examples of such transactions are 
purchases of: pamphlets, booklets and other printed matter; art work; 
radio transcriptions; engravings; and electrotypes and matrices. 

When an advertising agency does not act as a true agent, it will be 
regarded as a vendor of the tangible personal property which it 
furnishes to its clients. Under such circumstances, the advertising 
agency must hold a vendor’s permit, file returns and must collect and 
remit the tax based upon the price charged by it to its clients for such 
property. In determining whether advertising agencies act as true 
agents of their clients, consideration shall be given to the contract 
between the parties, the conduct of the parties with respect to the 
property involved and the facts and circumstances of the transaction. 

(3) Printing and Advertising Expenses 

Every vendor must pay tax on purchases of office supplies, such as 
circulars, business cards, invoice forms, statements and all accounting 
forms, registers, minute books and other printed matter, such as labels 
used for purposes of publicity; and on purchases of blotters, calendars 
and all other articles which he distributes for purposes of publicity. 
Advertising space in newspapers, reviews, periodicals and other 
publications including billboards is not subject to tax but the cuts, 
sketches, engravings, vignettes, maps, etc., used for such advertise¬ 
ments are subject to the tax. 


34 


Labels and identification tags attached to a product representing 
printed matter giving instructions for its use and information about 
such product are deemed not to be used for publicity purposes but to 
form part of the product sold and as such are not subject to the tax. 
Subject to the above, tangible personal property commonly known 
as sales catalogues, sales price lists, sales pamphlets and sales hand 
bills when produced upon the special order of the purchaser and all 
materials used or consumed in the industrial processing of such 
catalogues, sales price lists, sales pamphlets and sales hand bills 
purchased by a printer, advertising agency, manufacturer or merchant 
are exempt from tax. 

(4) Barber and beauty shops 

Barbers and beauty shop operators render service. They are pur¬ 
chasers for use or consumption of the tangible personal property used 
or consumed incidental to the rendering of such service and the use or 
consumption of such goods by them is taxable. 

Barbers and beauty shop operators are required to collect the tax on 
retail sales of cosmetics, hair tonics, lotions and like articles when not 
used in connection with their services, except as provided in the 
next paragraph. 

When such sales are few and infrequent the vendor is not required to 
hold a permit, but in such a case, he must pay the tax on the purchase 
price of such articles at the time of purchase on the basis that he is the 
consumer or user thereof. 

(5) Dentists and dental laboratories 

Dentists and dental laboratories primarily render professional services 
and are therefore not required to collect tax thereon from the client 
paying for such services. Dentists are deemed to be consumers of the 
materials, supplies, equipment and laboratory products which they 
buy and, with the exception of materials entering into dentures and 
dental appliances which dentists and dental laboratories may buy 
free of tax, such materials, supplies, equipment and laboratory 
products are subject to tax and such dentists and dental laboratories 
must pay the tax to their suppliers. 

Taxable purchases include among others: sales of equipment such as 
dental chairs, motors, instruments, X-ray machines, office equipment, 
stationery, implements and all materials and supplies of whatever 
nature except those which enter directly into dentures and dental 
appliances. 

(6) Dry Cleaners and Repairers 

Dry cleaners and repairers are consumers and must pay tax on supplies 
and machinery used in dry cleaning and in performing repair services. 

(7) Educational, hospital and charitable institutions 

Tangible personal property purchased by any of the institutions 
referred to are taxable if used or consumed by the institution in the 


35 


process of rendering service. If, however, tangible personal property 
is purchased for resale, the institution then becomes a vendor and 
must hold a vendor’s permit, file returns and collect and remit taxes 
from the ultimate consumer at the time of sale. 

(8) Optometrists, Oculists and Opticians 

Ophthalmic materials entering into the manufacture of spectacles 
supplied to patients on prescription of an optometrist or physician 
are free from tax. Optometrists, oculists and opticians who regularly 
sell miscellaneous items such as sun goggles, binoculars, cameras, 
magnifiers, barometers, etc., not forming part of ophthalmic materials 
used in the filling of prescriptions for spectacles, shall hold vendors’ 
permits, file returns and collect and remit taxes from their customers. 
Optometrists, oculists and opticians must pay tax in respect of all 
purchases of tangible personal property which constitutes equipment 
and supplies purchased for use in the pursuit of their profession. 

(9) Physicians, Architects, Engineers, 

Accountants and Lawyers, etc. 

Persons such as physicians, architects, engineers, accountants, and 
lawyers who exercise a profession or trade and provide only services 
and thus are not vendors under the Act, must pay tax to their suppliers 
of all purchases of tangible personal property which they purchase 
for use in the pursuit of their professions. 

(10) Towel and linen service 

Persons furnishing periodic cleaning or laundering of coats, caps, 
aprons, diapers, uniforms, dresses, towels, linens and articles of a 
similar nature under an agreement which provides for the continuous 
service to be rendered to barber shops, beauty shops, industrial plants 
and other establishments or to individuals, are consumers of the 
supplies and other property used in performing their services and the 
tax applies at the time such supplies are purchased. 

The tax does not apply to the rental of or other charges made for 
such articles. 

(11) Veterinary Surgeons 

A veterinary surgeon is deemed to perform only services and is exempt 
from obtaining a vendor’s permit unless such surgeon outside of 
rendering his service regularly sells to the public merchandise such as 
patent medicaments, bandages, sterilized gauze, absorbent cotton, 
wadding and surgical material. In this event such veterinary surgeon 
must obtain a vendor’s permit and collect tax on the fair value of 
such sales. 

A veterinary surgeon who dispenses drugs and medicines to animals 
is exempt from collecting the tax on such materials. 


36 


RULING 3-CONTRACTORS AND SUBCONTRACTORS 

(1) Construction Contractors: General Rules 

Contractors, as defined by item 14 of Regulation 1 are consumers of 
tangible personal property used by them in fulfilling construction 
contracts, as well as of the equipment, supplies and other items of 
tangible personal property acquired by them. Tax applies, t h erefo re, 
at the time when such materials, supplies and other tangible personal 
property are sold to the contractor. Tax is to be collected on such 
transactions from the contractor by his supplier. This rule applies 
regardless of the precise form which ~the contract takes, whether it be 
fixed price, time and materials, cost-plus or any variation of these 
forms, or any other form. 

Thus a contractor engaged exclusively in the performance of con¬ 
struction contracts and not engaged in manufacturing as a manufac¬ 
turing contractor or in making sales at retail, shall not be issued a 
vendor’s permit. Tax shall apply in all cases to his purchases. It is not 
necessary for the contractor to report the tax separately to the person 
for whom the contract work is being performed, except in the case 
where the person for whom the contract work is being performed is a 
municipality, charitable or other institution entitled to apply for 
rebate of the tax under Regulation 20. 

These rules apply to general contractors and to those contractors 
generally known as subcontractors, such as electrical, plumbing, heat¬ 
ing and other types of contractors, whether operating in a particular 
instance as a subcontractor or as a primary contractor. 

(2) Manufacturing Contractor 

A manufacturing contractor is a manufacturer who fabricates tangible 
personal property which is used in the performance of contracts which 
he makes, and which he may sell over-the-counter. For example, a 
sheet metal contractor may produce eavestroughs, gutters, furnaces, 
etc., for use in fulfilling contracts. 

One or more of the four following rules apply depending upon the 
nature of the production: 

(a) if the tangible personal property is manufactured or fabricated 
under specifications for a particular construction project, whether 
on the site of the project or in the plant or workshop of the con¬ 
tractor in Ontario, the manufacturing contractor is regarded as a 
consumer of the materials and other articles used in such fabrica¬ 
tion and the tax applies in the same fashion as to other materials 
used in fulfilling construction contracts. & construction contractor 
who is also a manufacturing contractor doing only this type of 
fabrication in addition to his construction contract work will be 
deemed to be a consumer only and will not be issued a vendor’s 
permit; 

(b) if a manufacturing contractor is not manufacturing or fabricating 
tangible personal property under particular specifications for a 






37 


particular construction contract but is producing in his shop, 
plant or other premises standard items usable in a variety of 
construction contracts, he becomes a vendor of these items and 
must obtain a vendor’s permit and account for tax on those items 
on the basis of total cost of the fabricated item including labour 
and materials. A manufacturing contractor may buy the materials 
for such fabricated items tax free or he may buy them tax paid 
and credit the tax paid on such materials against tax due on the 
value of the fabricated article. Examples of tangible personal 
property of this character include completed cabinets, gutters, 
eavestroughs, prefabricated summer cottages, garages, or houses 
and ready-mix concrete; 

(c) if a manufacturing contractor uses tangible personal property 
thus manufactured or fabricated only in the fulfilling of contracts 
and does not sell them at retail independently of the fulfilling of 
contracts, he is not a “contractor-retailer” within the meaning of 
sub-ruling 3 below. He should not use his vendor’s permit when 
purchasing items of tangible personal property for the purpose of 
fulfilling construction contracts except the materials and con¬ 
sumables used in fabrication. Instead he should make all other 
purchases as a consumer or on a tax-paid basis; 

(d) where a manufacturing contractor fabricates articles to a partial 
degree only and brings them to a standard pattern and where he 
holds such partially completed articles in stock in the standard 
form and subsequently completes the fabrication of these articles 
to particular specification for a particular project, tax applies to 
the fair value of the article in the standard pattern form at the 
time of completion. Beyond this stage only the materials and 
other articles of tangible personal property added are taxable. 

(3) Contractor-Retailers 

A number of contractors, particularly those known as subcontractors 
not only perform construction contract work or manufacturing con¬ 
tract work, but also make sales at retail. This is particularly true in 
electrical, plumbing, heating and similar fields. In addition some 
vendors who are primarily in the business of operating retail stores 
perform some construction contracts or manufacturing contracts. 

Any contracting firm which besides performing contract work sells 
tangible personal property to purchasers in Ontario in the regular 
course of its business must obtain a vendor’s permit and collect tax in 
the usual fashion on all retail sales. Such a firm must keep separate 
books for the contract work, in which case tax applies to the fair value 
of all taxable tangible personal property transferred to contract work 
at the time or in the period when such transfer is made, regardless of 
the time when payment is obtained for the contract. Fair value in this 
instance will normally be interpreted to be the price paid by the 
vendor to the supplier. So long as the retail vending is a substantial 
portion of the total business of the firm, all purchases of tangible 
personal property which are either to be resold at retail or to be used 


38 


in the performance of construction contracts may be purchased tax 
free by the issuance by the contractor of a Purchase Exemption 
Certificate. If the retail business i s of a limited and irregular char acter , 
all purchases should P>e made on a tax-paid basis, in which case tax 
should be collected on those articles sold at retail and when reporting 
this tax, the Contractor shou ld cla im a deduction for the tax paid on 
the purchase of those items sold at retail. 

(4) Installation Contract 

A contract for installation of tangible personal property which does 
not become a part of real property, even though it may be attached to 
real property, is not a construction contract. The sale of this kind of 
tangible personal property is a retail sale and the entire price including 
the charge for installation is taxable unless the installation charge is 
quoted separately in the contract and on the invoice to the customer. 
In the latter case the installation charge is not subject to tax. 

Examples of the items installed in this fashion are draperies, shades, 
blinds, linoleum, carpets, rugs, awnings, stoves, ranges, heaters, 
refrigerators, cabinets other than those built into real property, etc. 

If a construction contract calls also for installation of tangible personal 
property which does not become real property, this portion of the 
contract shall be treated for tax purposes as a separate installation 
contract. The overall contract must separate the charge for the 
tangible personal property to be installed from that for the construc¬ 
tion of real property. The taxable price of the tangible personal 
property shall be the price at which it is billed to the customer, not the 
price at which it was purchased by the vendor and must include the 
installation charge unless such charge is separately quoted, both in the 
contract and on the invoice to the customer. 

(5) Contractors as Registered Consumers 

A contractor who is not licensed as a vendor but who makes taxable 
purchases of tangible personal property in excess of $100 in any two 
months of a calendar year from outside Ontario must have a “regis¬ 
tered consumer certificate” which will permit him to file special 
returns and remit the tax monthly on such purchases. Such a certificate 
is not to be deemed to be a vendor’s permit and will not enable the 
contractor to buy tangible personal property within Ontario free of 
tax by the issuance of Purchase Exemption Certificates. 

RULING 4—MANUFACTURERS, PRODUCERS, 
PROCESSORS AND WHOLESALERS 

(1) Manufacturers 

All persons who manufacture tangible personal property for sale are 
vendors and each must secure a vendor’s permit, even if he makes no 
sales at retail whatsoever. Most manufacturers, however, do make 
some retail sales. Manufacturers, as do other vendors, must collect tax 
from customers on all sales of taxable tangible personal property 




















39 


except when the purchaser supplies the manufacturer with a Purchase 
Exemption Certificate under Regulation 3, indicating that the prop¬ 
erty is being purchased for resale or is exempt under items 38, 39 or 40 
of Section 5 of the Act. If the transaction is otherwise taxable the 
manufacturer must collect the tax on the full price asked of his 
customer, even if the charges for labour and materials are separated 
on the invoice or if the manufacture or fabrication is executed accord¬ 
ing to information furnished by the customer and with materials 
selected by him. Likewise if the customer supplies his own materials 
and the manufacturer performs any operation thereon, the manufac¬ 
turer must collect tax on the entire charge made. Such an activity 
constitutes manufacture and the sale of tangible personal property 
and is not deemed to be the rendering of a service. 

A manufacturer is not required to pay tax on the purchase of tangible 
personal property which he buys for resale or for incorporation into 
products which he manufactures or for use as a consumable as defined 
in Ruling 11, or as industrial machinery and apparatus as defined in 
Ruling 10. 

In these categories only those items of tangible personal property 
which are interpreted specifically to fall within the categories are 
exempt from the tax. Tax must be paid on all other taxable articles 
purchased including such items as furniture, office equipment and 
supplies, supplies for cleaning and maintenance, building materials, 
motor vehicles, etc. A manufacturer possessing a “G” permit may 
purchase all items tax free but must account for the tax himself on 
items of taxable tangible personal property which he has purchased. 

When a manufacturer uses or consumes any taxable tangible personal 
property which he has manufactured himself, he is required to pay 
tax on the total finished cost of the merchandise. If he also sells 
similar articles the price of the items on which he must pay tax shall 
be the regular price at which similar items are sold to others. If he 
does not sell similar articles, he shall calculate total cost, including 
labour, materials and overhead. In general the rules followed in such 
instances for the purpose of ascertaining the amount of tax due under 
The Excise Tax Act of Canada may be employed for purposes of The 
Retail Sales Tax Act unless otherwise specified. 

Tangible personal property purchased for the purpose of being incor¬ 
porated into real property shall be taxable on the purchase price. 

(2) Wholesalers 

A person or firm engaged in the business of wholesaling is a vendor 
and must obtain a vendor’s permit, even if he makes no sales at retail. 
In practice virtually all wholesalers will make some sales at retail, 
either to employees or to contractors or to other business firms, or 
others. Every wholesaler must collect tax on such sales in the same 
fashion as any other vendor selling at retail. 

A wholesaler making sales for resale must obtain a Purchase Exemp¬ 
tion Certificate from the purchaser. The Certificate shall be in the 


40 


form provided by Regulation 5 and to be valid must include the 
number of the vendor’s permit held by the purchaser. A wholesaler 
is liable for tax on any sale made for which he does not possess a valid 
Purchase Exemption Certificate or other evidence that would author¬ 
ize exemption. A wholesaler selling materials or consumables or 
industrial machinery to manufacturers must likewise obtain a Pur¬ 
chase Exemption Certificate in the form prescribed by Regulation 5 
from the purchaser. Purchase Exemption Certificates will normally 
take the “blanket” form; once the purchaser has executed such a 
blanket Purchase Exemption Certificate for a particular vendor he 
may make all of his subsequent purchases of the types of merchandise 
specified in the certificate tax free so long as the particular Purchase 
Exemption Certificate is in force. In any case where he uses or con¬ 
sumes for taxable purposes certain items which he has purchased free 
of tax under the Purchase Exemption Certificate, he must report and 
pay the tax on such items. 

The purchaser and not the original vendor is liable for the tax in such 
cases. The possession of a valid Purchase Exemption Certificate which 
the purchaser could legally execute frees the supplier or vendor from 
responsibility for the tax. 

A vendor who does not hold a “G” permit must not issue Purchase 
Exemption Certificates for his purchases of taxable equipment, sup¬ 
plies or other items, not regularly handled in the business, when such 
taxable equipment, supplies or other items are purchased for taxable 
purposes. To do so will be deemed to be an offence against the Act. 
Where it is obvious that a purchaser who holds a vendor’s permit is 
purchasing taxable items for taxable purposes, the vendor of such 
taxable items should refuse to accept a Purchase Exemption Certificate 
from the purchaser thereof. However, a firm may purchase articles of 
a type generally handled for resale free of tax, even if the particular 
items are to be used by the firm for taxable purposes, as for example, 
light bulbs purchased by a hardware store for use in the store. How¬ 
ever, the purchaser must account for tax on these items on his own 
tax return for the period. 

(3) Wholesale and Retail Businesses 

Some persons conduct extensive combined businesses at wholesale and 
at retail. Such persons must collect tax on their sales made at retail in 
the usual fashion and keep a careful record of the retail sales as well 
as a careful record of total wholesale sales. 

Occasionally a person will seek to make a purchase from a firm which 
is primarily engaged in retail business. Either of two procedures may 
be followed: 

(a) the purchaser may execute a specific Purchase Exemption Certifi¬ 
cate which he will present to the vendor who may then make the 
sale to the purchaser free of tax, retaining the certificate as evi¬ 
dence that the sale was made for resale; or 

(b) the purchaser may make the purchase and pay the tax and later 


41 


collect tax when he resells the item and apply the tax paid to his 
supplier as shown on the invoice as credit against tax liability on 
his return for the period. Such a purchaser should retain specific 
evidence of the payment of the tax whenever the latter procedure 
is followed. 

RULING 5—REPAIRERS AND RECONDITIONERS 

(1) Repairers and Reconditioners in General 

A person who repairs or improves tangible personal property is 
deemed to be the vendor of the parts and materials furnished in 
connection with such work where the value of such parts and materials 
is substantial in relation to the total charge. This applies, for example, 
to repairs to motor vehicles, aeroplanes, bicycles, machinery, refriger¬ 
ators, musical instruments, sports equipment, radios, electrical equip¬ 
ment, boats and furniture. Such a person should segregate, on the 
invoices given to his customers and in his records, the fair retail value 
of the parts and materials from the charges for labour of repair and 
installation, and other services. If the labour and other services are 
not thus shown separately from the fair value of the parts and ma¬ 
terials furnished, it will be presumed that the entire charge represents 
the fair value of the tangible personal property and tax will apply to 
that fair value. 

(2) If, however, the value of the parts and materials used in repair work 
is insignificant in relation to the charge for the labour or other services 
performed and where no separate charge is made for such tangible 
personal property, the person making the repair is deemed to be the 
consumer of the property so used and his suppliers are deemed to be 
retail vendors required to collect the tax with respect to the property 
which they sell to him. This applies, for example, to jewellers, repairers 
of clocks and watches, goldsmiths, vulcanizers, bookbinders, shoe¬ 
makers, tailors, sign painters, repairers of tires, tubes and fishing 
rods, who, in the execution of such work consume or use tangible 
personal property which is not usually invoiced separately. Such a 
person is deemed to be a consumer of the tangible personal property 
thus consumed or used. He is not required to collect tax for these 
repairs or improvements from his customers but must pay directly to 
his supplier the tax on the tangible personal property which he pur¬ 
chased for the purpose of making the repairs, such tangible personal 
property being deemed to be for his own consumption or use and not 
for resale. 

(3) If the method of repairing or reconditioning certain tangible personal 
property involves the commingling of tangible personal property 
delivered to the repairman or reconditioner with similar property, so 
that the customer receives repaired or reconditioned tangible personal 
property which may not be the identical property delivered to the 
repairman or reconditioner, but which is exactly the same kind of 


42 


property or derived from exactly the same kind of property as that so 
delivered, tax applies to the net amount charged by the repairman or 
reconditioner for the repaired or reconditioned goods after deducting 
the amount which he allows as a credit to the customer for the tangible 
personal property delivered by the customer to him. 

(4) On the sale of rebuilt jobs such as factory reconditioned or rebuilt 
motors, when not specifically exempt, tax is payable on the value of 
the rebuilt article. As a general guide it may be said that a rebuilt job 
is one where the cost of the repair exceeds the value of the tangible 
personal property before the repair was done and an itemized break¬ 
down of the repair job cannot be furnished to the customer. 

(5) A watch and jewellery repairman including a trade repairman is 
regarded as a consumer of all watch, clock and jewellery material, 
irrespective of the quantity purchased, including crystals, findings 
and chain links used in repairing watches, clocks or jewellery and the 
tax applies to the price charged to the repairman by his supplier of 
such tangible personal property. A watch and jewellery repairman 
including a trade repairman is deemed to be a retailer of the straps, 
metal bands, watches, clocks, jewellery, chains and other goods sold 
by him and the tax applies to the sale price of such tangible personal 
property when sold to the consumer or user. Purchases of such 
tangible personal property by the repairman and of materials which 
become an ingredient or component part of old tangible personal 
property which are to be resold by him are purchases made by the 
repairman for the purpose of resale and consequently not taxable. 

RULING 6—CLASSES OF RETAILERS 

(1) Artists, painters, sculptors, cabinet makers 

Sales of sketches, paintings, engravings, sculptures, furniture or any 
other objects of art or articles of handicraft whether executed accord¬ 
ing to specifications or otherwise are sales of tangible personal prop¬ 
erty and subject to tax. 

A commercial artist or other person or firm engaged in the creation or 
production of drawings, paintings, designs, photographs or other art 
work is a vendor of such tangible personal property sold to advertising 
agencies for use by the agency in the rendering of their services. 

Such an artist, painter, sculptor or cabinet maker must secure a 
vendor’s permit and collect the tax on the total sale price charged for 
the production of such tangible personal property unless the purchaser 
certifies that the tangible personal property is being purchased for 
the purpose of resale. 

When an artist, painter, sculptor or other craftsman is in the employ 
of another person and receives a salary for his work, he is not deemed 
to be a vendor under the Act and has no tax to collect unless he makes 
sales as an agent for his principal in which case tax must be collected 
for the account of the principal. 


43 


(2) Auctioneers 

A person engaged in the business of making sales at auction is a vendor 
and must obtain and hold a vendor’s permit and collect tax on the 
sales of tangible personal property which he makes. 

(3) Florists and Nurserymen 

Sales of flowers, wreaths, bouquets, potted plants, shrubbery and 
other such items of tangible personal property are subject to tax. 
Where a florist conducts transactions through a florists’ telegraphic 
delivery association, the following rules will apply in the computation 
of tax liability: 

(a) on all orders taken by an Ontario florist and telegraphed to a 
second florist in Ontario for delivery in Ontario the florist taking 
the order will collect the tax on the price charged; 

(b) in cases where an Ontario florist receives an order pursuant to 
which he gives telegraphic instructions to a second florist located 
outside Ontario for delivery of flowers to a point outside Ontario, 
no tax shall be collected by the florist taking the order; 

(c) in cases where an Ontario florist receives telegraphic instructions 
from another florist located either within or outside Ontario for 
the delivery of flowers, the Ontario florist receiving such tele¬ 
graphic instructions shall not be liable to collect tax from the 
person to whom such flowers are to be delivered. In this instance 
if the order originated in Ontario, tax will be collectable by the 
Ontario florist who first received the order and gave the tele¬ 
graphic instructions to the second florist. 

When a nurseryman or florist sells shrubbery, young trees or similar 
items and as part of the transaction transplants them to the land of 
the purchaser for a lump sum or flat rate, the vendor so selling and 
installing must make a segregation of that portion of the charge which 
is for tangible personal property sold and that portion of the charge 
which is for installation. If the vendor fails to segregate the charge 
the entire consideration including the charge for transplanting the 
shrubbery, young trees or similar items, will bear the tax. 

The following classes of tangible personal property usually sold by 
nurserymen and florists are exempt from tax: seeds that will produce 
forage, cereal, fruit, root, vegetable and tobacco crops; fruit trees; 
plants that produce fruit or other food for human consumption; 
tobacco plants; and shrubs that will produce fruit or other food for 
human consumption. 

(4) Garage Operators 

A garage or other motor vehicle repair shop is in part a vendor of 
tangible personal property and in part a service enterprise. 

The activities of towing, shop labour, battery charging, repairs to 
tires, chassis lubrication and similar services constitute the provision 
of services. The charge for such services is not taxable and the garage 
or other motor vehicle repair shop is the consumer, not the vendor, of 


44 


any tangible personal property, such as grease, used in rendering the 
services. The garage or other motor vehicle repair shop must pay tax 
on the purchase price of such items, or, if they are taken from stock 
held for resale, pay tax in the period in which they are taken from 
stock on the price they would have charged for them at retail. 

On motor vehicle repair work, the charge for labour is not taxable if 
separately invoiced. The garage is the vendor of all parts and supplies 
used in the repair work and must collect and remit tax upon them. If 
labour is not invoiced separately, the entire charge is taxable. 

The garage is the vendor of car accessories, sun glasses, or other 
items sold at retail. 

The garage is the vendor of lubricating oil sold directly or placed in 
motor vehicles when oil is changed, and of grease used for trans¬ 
mission and rear axle greasing. 

See Ruling 9 with regard to sale of motor vehicles. 

(5) Memorial Dealers 

A memorial dealer is the vendor of the tombstones, markers and other 
memorials sold by him. He is also the vendor of the materials, such 
as cement used in setting the memorial in the cemetery. 

If the memorial dealer agrees to furnish a memorial and to erect it in 
the cemetery for a lump sum, the tax applies to the entire amount 
charged. If a separate charge is made for the memorial and the 
materials used and an additional charge is made for the labour of 
erecting same, the tax does not apply to the charge for the labour. 
However, no deduction may be made of the charges for cutting, 
shaping, polishing or lettering the memorial. 

(6) Photographers, Photo finishers, 

Photostat Producers and the like 

Photo finishing involves two operations, the developing of negatives 
and the printing of the finished pictures. If but one charge is made for 
both operations the entire charge is taxable. If, however, a charge is 
made for the developing of the negative and a separate charge is made 
for the printed pictures, the tax will apply to the charge for the printed 
picture and not for the charge for the developing of the negatives. 

The tinting or colouring of photographs delivered to a photographer 
or photo finisher by a customer constitutes a service and the charge 
made for such service is not taxable provided there is no sale of 
tangible personal property included in the transaction. Sales of tangible 
personal property to photographers and photo finishers to be used by 
them in performing such services and in the development of negatives 
are sales at retail and tax should be charged thereon and paid by the 
photographers and photo finishers. Where a complete tinted photo¬ 
graph is supplied, the tax should be calculated on the entire charge or 
sale price of the finished article. 

The sale of photostat copies by a photostat producer to purchasers 
for use constitutes a sale of tangible personal property at retail and is 


45 


taxable. Likewise sales of frames, camera and photographic films and 
other articles by photographers or photo finishers to purchasers for 
use are sales at retail and are taxable. 

Sales of photographs by commercial or portrait photographers are 
taxable. However, the purchase of materials that become an ingredi¬ 
ent or component part of the finished picture is not taxable since these 
materials are purchased for resale and the tax is to be collected from 
the ultimate user. Films, mounts, frames and paper become an 
ingredient or component part of the finished picture and such tangible 
personal property when sold to photographers for that purpose is not 
taxable. Tangible personal property that is used in the manufacture of 
such pictures, such as proof paper, cameras, trays, etc., do not become 
a component part of the finished picture and sales of such tangible 
personal property to photographers are taxable. 

Persons engaged in the business of photo engraving and lithography 
and selling lithographs and photo engravings to persons other than 
job printers for use in printing advertising matter or other printed 
matter are making sales at retail and must collect tax on the price 
charged for such items of tangible personal property. 

(7) Printing and Related Industries 

Tax applies to charges for printing, photography, photo lithography, 
rotogravure, silk screen printing, imprinting, multilithing, multi¬ 
graphing, mimeographing, photostat, steel-die engraving and similar 
operations for consumers regardless of whether or not the paper and 
other materials are furnished by the consumer. Tax applies to charges 
for services in connection with the sale of printed matter such as die¬ 
cutting, embossing, folding and other binding operations, regardless 
of whether or not the printed matter is furnished by the consumer. 
Tax does not apply to additional charges for postage or for addressing, 
enclosing, sealing, preparing for mailing, or mailing letters of other 
printed matter, provided such charges are stated separately on in¬ 
voices and in the accounting records. Tax applies, however, to charges 
for envelopes. 

Charges for typography or typed composition are not taxable pro¬ 
vided that title thereto is not conveyed by the typesetter to the 
customer. The retention of title by the typographer or typesetter will 
be presumed when the books and records of the typographer or 
typesetter reflect the return of the type metal by issuance of credit 
slips and maintenance of proper records. The furnishing of reproduc¬ 
tion or galley proofs for no additional charge does not render taxable 
the charge for the typography or typed composition. Charges for 
reprints or proofs in quantity are classified as charges for printed 
matter and are subject to tax. 

Charges for advertising services in connection with which no tangible 
personal property is purchased by the advertiser, such as advertising 
in newspapers and magazines, are not taxable. Likewise charges made 


46 


by advertising agencies for preparing and placing in advertising media 
are charges for service and not taxable. 

Respecting job printing, signs and novelties, the tax applies to the 
users or consumers of tangible personal property including advertising 
novelties and printed matter, or any other article, regardless of the 
fact that it may be used for advertising purposes. 

Persons engaged in the business of photo engraving and lithography, 
and selling lithographs and photo engravings to persons other than 
job printers, for the use in printing, advertising matter or other 
printed matter are making sales at retail and such sales are taxable. 

(8) Signs,showcards and posters 

Tax applies to retail sales of signs, showcards and posters and to 
charges for painting signs, showcards and posters, even when the work 
is done according to information furnished by the customer and with 
materials selected by him. 

Tax does not apply to charges for painting or lettering on real property. 
The painter or letterer is the consumer of the materials used in such 
work and tax applies with respect to the sale of such materials to him. 

(9) Taxidermists 

Taxidermists are consumers of the materials used in repairing, stuffing 
and mounting skins, heads, etc., of animals, birds, fish and the like, 
furnished by their customers, unless they make a separate charge at a 
fair retail selling price for such property to their customers, in which 
case the taxidermist is the vendor of the goods and must collect tax 
thereon. 

Tax applies to retail sales by taxidermists of skins, heads, mountings 
or other like tangible personal property. 

(10) Morticians, Undertakers and 
Funeral Directors 

Morticians, undertakers and funeral directors are engaged in render¬ 
ing personal services which are not taxable. They are deemed to be 
consumers of the various items of tangible personal property which 
they use or consume in the rendition of his service and the tax applies 
at the time of the sale to the mortician, undertaker or funeral 
director calculated on the price they pay for such property. 

RULING 7-GUARANTEES, GIFTS, DISCOUNTS, 

FINANCE CHARGES 

(1) Finance Charges 

The fair value of tangible personal property does not include finance 
charges, carrying charges or interest charges on conditional sale 
contracts or other contracts providing for deferred payments of the 
purchase price if the amount of such finance charges, carrying charges 
or interest is in addition to the usual or established cash selling price 
and such amount 


47 


(a) is segregated on the invoice or bill of sale, or 

(b) is billed separately to the customer. 

Unless these conditions are met, such charges shall be deemed to be 
part of the selling price for the purpose of computing the tax. 

(2) Gifts, Premiums and Samples 

When a person who is the holder of a vendor’s permit, upon the return 
of coupons or trading stamps or award prizes to the winners of com¬ 
petitions makes gifts or gives premiums with tangible personal prop¬ 
erty which he sells, whether such tangible personal property is taxable 
or not, or otherwise distributes merchandise as gifts or samples, such 
person is deemed to be the consumer of the tangible personal property 
which he gives away and he must pay tax on the purchase of such 
property. 

(3) Guaranteed Parts, Replacements 

No tax is charged on the replacement of guaranteed parts if such parts 
are not paid for by the user, as it is presumed that the average cost of 
replacing parts is included in the sale price of the article guaranteed 
and tax is paid on such sale price at the time of sale. 

(4) Importation Charges 

Importation charges form part of the cost of goods and therefore are 
deemed to be included in “fair value” when computing the tax payable. 

(5) Trade and cash discounts 

Trade and cash discounts are to be deducted before computing the 
tax. The issuance of premium or trading stamps are not to be con¬ 
sidered as trade or cash discounts. 


RULING 8—DEMONSTRATION AND DISPLAY 

A purchaser who buys tangible personal property free of tax on the issuance 
of a resale certificate therefor, and who uses such tangible personal property 
solely for demonstration or display purposes while holding it for sale in the 
ordinary course of business, is not required to pay tax on account of such 
use. If such tangible personal property is to be used for any purpose other 
than demonstration or display the user must pay the tax upon the fair value 
of such property at the time he purchases it. If the property is purchased 
free of tax and then ultimately used for a taxable purpose, the purchaser 
shall report and pay the appropriate tax at the time of such use. If the sole 
use of the property while holding it for sale is its rental, the purchaser must 
collect tax upon the rental price received in accordance with Regulation 15. 
When the tangible personal property is sold after its use for demonstration 
and display, the purchaser becomes the vendor thereof and he shall col¬ 
lect tax from the purchaser thereof on the sale price of such property. 


48 

RULING 9—AUTOMOBILE DEALERS AND SALESMEN- 

DEMONSTRATORS 

(1) An automobile dealer is regarded as the vendor of tangible personal 
property sold by his salesmen in their own behalf if he aids his sales¬ 
men in making such sales in any one or more of the following ways: 

(a) by reporting the salesmen’s sales on the dealer’s report of sales to 
the Motor Vehicle Branch of the Department of Transport; 

(b) by executing conditional sales agreements with respect to such 
salesmen’s sales in which the dealer appears as the vendor; 

(c) by acting as guarantor on conditional sales agreements executed 
by the salesmen; 

(d) by requiring or by permitting the salesmen to use the dealer’s 
showroom or other facilities in making such sales. 

The dealer accordingly is required to include in his returns under The 
Retail Sales Tax Act, all such sales made by his salesmen, whether on 
behalf of the salesmen or on behalf of the dealer. 

(2) An automobile dealer who also operates a garage shall have a separate 
vendor’s permit pursuant to which he buys and sells new and used 
automobiles and another vendor’s permit pursuant to which he sells 
car accessories, lubricating oil, etc., and performs service of the 
character set out under subsection 4 of Ruling 6. 

(3) A dealer’s salesman who makes sales of automobiles on his own 
behalf entirely independent of the dealer and without any of the aids 
described in subruling 1 is himself a vendor and is required to obtain 
a vendor’s permit in his own name and to file returns and collect and 
remit tax with respect to all sales which he makes. 

(4) Automobiles purchased for 
Demonstration and Display 

A motor vehicle may be purchased free of tax on the issuance of 
a Purchase Exemption Certificate therefor by an automobile dealer 
pursuant to his automobile vendor’s permit. A dealer’s salesman is 
not granted this privilege. 

If at the expiry of six months following the date upon which an auto¬ 
mobile dealer purchases a motor vehicle for demonstration purposes 
it has not in the meantime been used for any purpose other than 
demonstration or display or it has not been rented to customers or it 
has not been sold, such motor vehicle will be deemed to have been 
purchased for use by the dealer and he must pay the tax calculated 
on the fair value of such motor vehicle as of that date. 

(5) Exchange of Vehicle Motors 

The exchange of a reconditioned vehicle motor for a worn motor 
together with the removal of the worn motor and the installation of 
the reconditioned motor in a vehicle constitutes an integral trans¬ 
action and the tax applies to the total charge for the new motor and 


49 

any materials used in making the exchange minus the trade-in allow¬ 
ance, if any, granted for the worn motor turned in. 

(6) Passenger vehicles, trucks and buses 

The tax applies only to the difference between the full purchase price 
of the vehicle being sold and the credit allowed by the vendor for the 
vehicle submitted as trade-in. Where motor vehicles are sold outright 
at a retail sale, whether or not the tax has been paid previously on 
such vehicles, the tax shall apply on the full purchase price of the 
vehicle being sold outright. 

(7) Retreading and Recapping tires 

Tire retreaders and recappers are the vendors of the tangible personal 
property furnished in performing this service and the tax applies to 
the sale of such property. If a customer has a specific tire recapped or 
retreaded, tax applies to the entire charge made. If the method of 
handling retreaded or recapped tires involves commingling of old 
tires delivered by the customer with similar property turned in by 
other customers so that the customer does not have returned to him 
his own tire, the tax applies to the entire charge made minus any 
allowance as trade-in for the old tire turned in. 

RULING 10-MACHINERY AND APPARATUS 

The term “machinery and apparatus and parts thereof’’ as used in item 38 
of section 5 of The Retail Sales Tax Act means any item declared to be 
exempt under the category of “machinery and apparatus to be used in 
manufacture or production” of schedule III of the federal Excise Tax Act 
and items declared to be exempt under schedule III of the federal Excise 
Tax Act by virtue of their inclusion of section 411a of the Tariff Act 
(Canada) and includes only those items exempt under the provisions 
referred to. Items declared to be exempt under the categories referred to 
for certain industries only, shall be exempt for the same industries only 
under The Retail Sales Tax Act. 

RULING 11—CONSUMABLES: 

MATERIALS CONSUMED OR EXPENDED 

The term “materials consumed or expended directly in the process of 
manufacture or production of tangible personal property for sale” as used 
in item 39 of section 5 means any item declared to be exempt under the 
category of processing materials in schedule III of the federal Excise Tax 
Act. Items declared to be exempt under the category of processing materials 
in schedule III of the Excise Tax Act (Canada) with respect to certain 
industries only shall be exempt for the same industries only under The 
Retail Sales Tax Act. 

RULING 12-USE OF PURCHASE EXEMPTION CERTIFICATES 

(1) A purchaser who regularly purchases tangible personal property in 


50 


the form of industrial machinery to be used directly in the process of 
manufacture or production of tangible personal property for sale or 
materials to be consumed or expended directly in the process of 
manufacture or production of tangible personal property for sale or 
property that is purchased for the purpose of being processed, fabri¬ 
cated or manufactured into, attached to or incorporated into tangible 
personal property for the purpose of sale, should submit a blanket 
Purchase Exemption Certificate to his suppliers. These Certificates 
will allow such a purchaser to buy free of tax all tangible personal 
property covered by the general category listed on the Certificate, 
e.g., hardware, clothing, shoes, etc. 

(2) A purchaser making a casual purchase for resale from a vendor should 
execute a single Purchase Exemption Certificate. 

(3) Where tangible personal property has been purchased free of tax under 
a Purchase Exemption Certificate and the purchaser subsequently 
uses such property for a taxable purpose, he shall report and pay tax 
thereon. The person who purchased the tangible personal property 
free of tax under the Purchase Exemption Certificate and not the 
original vendor who received the Purchase Exemption Certificate is 
liable for the tax in such instances. 

(4) A purchaser holding a “G” permit enabling him to make all purchases 
free of tax must so indicate to his suppliers by providing his suppliers 
with his special “G” permit number. His supplier should keep this 
“G” permit number as evidence of authority to sell to such purchaser 
all goods free of tax. 

(5) A vendor who makes sales for resale and fails to obtain a Purchase 
Exemption Certificate from the purchaser, certifying that such goods 
are for resale, must collect tax on such sales and if he does not, such 
vendor will be liable to remit the tax on such sales, even if he has not 
collected it. 

(6) A Purchase Exemption Certificate must take the form prescribed in 
Regulation 5, either on the actual form provided by the Retail Sales 
Tax Branch or on a form of identical wording prepared by the pur¬ 
chaser. 

(7) Purchase Exemption Certificate forms will be supplied to all manu¬ 
facturers and wholesalers who have the responsibility of ensuring that 
their customers execute them properly. Additional copies will be 
available from District Offices. 

(8) All purchases being made under a blanket Purchase Exemption 
Certificate must indicate that the purchases are being made under 
such a blanket Purchase Exemption Certificate and this may be done 
by rubber stamp or otherwise. 


51 


RULING 13—RESTAURANTS, RESORTS AND LODGES, 
BOARDING HOUSES AND SIMILAR ESTABLISHMENTS 

(1) Tax applies to all meals in excess of SI.50. The criterion for ascertain¬ 
ing liability is the size of each check. If several persons eat together 
and the entire charge is on one check and exceeds SI.50 the charge is 
taxable even though any of the meals ordered by one or other of the 
persons in the group is under SI.50. If separate checks are issued tax 
applies only to those in excess of SI.50 even if one person pays all of 
the checks. 

(2) Soft drinks served with a meal constitute a part of the meal. 

(3) Resorts, resort lodges, American-plan hotels, boarding houses, lodges 
and similar establishments providing both lodging and meals for a 
single charge are vendors under the Act and must have vendors’ 
permits unless the maximum charge for both room and board per 
person is less than $45 a week. 

(4) Establishments whose charges in no case are $45 or more a week per 
person and that do not serve meals to persons other than residents of 
the establishment are not vendors under the Act and may not hold 
vendors’ permits. 

(5) Those establishments where the charge is $45 a week or more per 
person may use either of two alternatives in calculating the tax: 

(a) the charge for lodging and for each meal may be separated in the 
records of the firm and the tax in this event shall be applied to all 
meals, separately shown, in excess of $1.50. The total amount of 
tax must be shown on the customer’s bill and the breakdown of 
charges between lodging and meals must be shown. The break¬ 
down must be reasonable or it may be disallowed and the second 
alternative method of calculation be required. 

(b) One-half of the total daily charge for lodging and meals shall be 
assumed to be for meals. Such charge for meals shall be broken 
down amongst three meals on the ratios of 

1/6 for breakfast 
2/6 for lunch 
3/6 for dinner 

and the tax shall be applied to those meals calculated in this 
manner to exceed $1.50. In each case tax must be applied to 
meals in excess of $1.50 served to any person other than those 
who are lodgers in the establishment. 

(6) Meals in excess of $1.50 served in railway dining cars are taxable if 
they are ordered within Ontario. 

(7) Meals served gratuitously by airlines are either purchased by the 
airlines from catering firms or are prepared by the airlines themselves. 
Tax is payable by the airline on the purchase price of the meals paid 
to the caterers or on an equivalent fair value on meals prepared by 


52 


the airlines themselves, if such meals are purchased or prepared in 
Ontario, regardless of where they are served. 

(8) Drive-in restaurants, lunch stands and similar establishments serving 
prepared meals as defined in Paragraph 37 of Regulation 1 must 
collect tax in the event that a charge for a particular purchase exceeds 
SI.50, even though the item purchased may be eaten by several people. 

(9) Meals provided free of charge to employees of an establishment 
serving meals are not taxable. 

(10) Meals served in private clubs are subject to tax if they exceed SI.50 
each. 

(11) Persons regularly engaged in the business of catering are vendors and 
must obtain a permit and collect tax on all meals sold. 


RULING 14—AGRICULTURAL MACHINERY 


Pursuant to Paragraph 19(a) 
ments” and “farm machinery’ 
of the following items: 

bale stookers 
belt harvester 
combination seeders 
corn binders 
corn pickers 
corn planters 
cultivators 

disc, chain and tooth harrows 

dusters and sprayers 

ensilage cutters 

fanning mills 

farm seed-drills 

farm wagons 

farm tractor trailers 

feed grinders 

fertilizer spreaders 

forage harvesters 

forage wagons 

fruit and vegetable graders 

grain binders 

hammer-mills 

harrow carts 


of Regulation 1 which defines “farm imple- 
’ vendors may sell to anyone free of tax any 

hay conditioners 

hay loaders 

hay mowers 

hay rakes 

hay tedders 

land packers 

land rollers 

manure spreaders 

oat crushers 

one-way tillers 

pick-ups 

ploughs 

potato diggers 

potato harvesters 

rod weeders 

roto tillers and weeders 

sheep clippers 

stubble burners 

subsoilers 

swathers 

threshing machines 


RULING 15-VENDING MACHINES 


(1) A person who owns a vending machine that dispenses tangible personal 
property or the operator of such a machine under lease or rental 


53 


agreement, must obtain a vendor’s permit to engage in the business 
of selling tangible personal property and must collect tax, file returns 
and remit the tax on the sales of such property made through such 
machines. A single permit is sufficient for all machines operated by 
one owner or operator. 

(2) The owner or operator of vending machines shall be responsible for 
collecting, reporting and paying the tax on the total sales made 
through the machines even though the owner or operator in the place 
in which the machine is located receives a share of such sales under a 
commission or concession contract. In reporting and remitting such 
tax the owner or operator of the vending machines shall be deemed to 
be the agent of the owner or operator of such place of business in 
which the machine is located to the extent of the commission due the 
latter. 

(3) A statement in the following form must be affixed to each vending 
machine in a conspicuous place: 

“This vending machine is owned (operated), by 


Owner (operator) 


Place of business of owner (operator), 

who holds vendor’s permit number. 

issued pursuant to The Retail Sales Tax Act.” 

(4) The owner or operator of vending machines must place upon each 
machine a sign or sticker in a conspicuous place showing the amount 
of tax collected on each item dispensed by the machine. The placing 
of such a sign or sticker upon each machine shall be deemed to be 
compliance with the requirement that the tax be stated and charged 
separately from the sale price of the property sold. 

(5) Adequate and complete records must be kept by the owner or operator 
of vending machines showing the location of each machine owned or 
operated by him, the serial number thereof, merchandise bought for 
sale through such machines and the gross sales receipts derived from 
each location during each tax period. 

RULING 16-GENERAL 

(1) Barter or exchange of goods 

In the case of exchange or barter the true fair value of the tangible 
personal property purchased constitutes the price upon which the tax 
must be paid. For example, in the case of a general merchant who sells 
goods to a value of $10 and accepts in trade or part payment goods 
valued at $3, the tax must be calculated on the total charge of $10. 
Barter or exchange of goods is distinguished from a trade-in allow¬ 
ance. The latter involves the acceptance as a partial payment for the 





54 


item purchased of an item of the same or similar character as that 
which is being purchased. The trade-in allowance is not subject to tax, 
the tax applying only to the net charge over and above the trade-in 
allowance. For example a motor vehicle dealer allows a trade-in 
allowance of SI000 on an old car turned in on the purchase price of a 
new car priced at S3000. Tax applies to $2000. In contrast a lumber 
dealer buys a new truck from a motor vehicle dealer but pays for it in 
part with a load of lumber w’hich the motor vehicle dealer wishes to 
use himself. The full price of the truck is taxable as well as the fair 
value of the lumber. 

(2) Brokers and Fiduciaries 

Persons having possession of tangible personal property for the pur¬ 
pose of sale, and fiduciaries such as trust companies holding tangible 
personal property for sale on behalf of their principals are vendors with 
respect to the sale of the tangible personal property to purchasers 
and each must hold a vendor’s permit, collect tax on such sales and 
remit it with the monthly returns required by the Act. 

(3) Credit transactions 

Where tangible personal property is sold on credit, either under 
conditional sale or lease contract or otherwise, the user or consumer is 
taxable on the basis of the whole amount of the contract price. Where 
a vendor has made sales on a charge basis without collecting the tax at 
the time of sale, he is obliged to report such sales in his monthly 
return and remit the tax payable thereon. 

The tax must be collected on the total sale price including both any 
amount received in cash and the total of the amounts of the payments 
to be received later. However, when interest and finance charges form 
part of the contract but appear as separate items the tax is not to be 
computed on such interest and finance charges. 

Tax payable under The Retail Sales Tax Act shall be computed on 
the total charge for each transaction entering into a monthly state¬ 
ment rather than on the total of the monthly statement at the time of 
being rendered or paid. 

(4) Federal Sales Tax 

The federal sales tax imposed under the Excise Tax Act of Canada 
must be included as part of the price or fair value of tangible personal 
property charged to a purchaser and thus must be included in the 
price before applying the retail sales tax. 

An article sells for $111 which is made up of an invoice price of $100, 
federal sales tax of $11. The retail sales tax is therefore three per cent 
of $111, amounting to $3.33. 

(5) Delivery Charges 

Tax does not apply to transportation charges which are separately 
stated, provided that, 

(a) the sale or purchase is made at a “f.o.b. supply point” price; and 


55 


(b) the amount of freight, express, postage, cartage and other trans¬ 
portation costs is shown separately on the sales invoice when the 
freight or other transportation charge is prepaid by the supplier. 
Tax does not apply to transportation charges which are paid by the 
purchaser to a carrier, provided the purchase price is f.o.b. supply 
point. 

When tangible personal property is sold at a retail sale for a delivered 
price “f.o.b. destination” no deduction may be taken for transporta¬ 
tion charges incurred in delivery by the vendor to the carrier, paid to 
the carrier by the purchaser and deducted by him from the sales 
invoice as a “freight allowance,” or incurred by the vendor in the 
operation of his own delivery facilities. Such transportation costs form 
part of the “fair value” of the tangible personal property sold to the 
purchaser and must be included in the laid down price of the tangible 
personal property sold. 

(6) Goods Damaged in Transit 

If damage to goods in transit to the consumer occurs after a sale as 
defined in item 11 of section 1 of the Act is made, tax applies to the 
sale. If the damage occurs prior thereto, tax applies as follows: 

(a) if the tangible personal property is destroyed, tax does not apply 
to the damages paid to the retailer to compensate him for its 
destruction ; 

(b) if the goods are not destroyed and are sold at retail in their 
damaged condition, tax applies to that portion of the total amount 
paid to the vendor representing the fair value of the tangible 
personal property in their damaged condition. 

(7) Tangible Personal Property 
Temporarily Brought into Ontario 

Where tangible personal property temporarily brought into Ontario 
for consumption or use is taxable under section 2 of the Act, the tax 
may be applied subject to the approval of the Comptroller, on the 
basis of the fair rental value of the tangible personal property thus 
brought into the province. 

(8) Installation, Service, etc. 

The vendor of a machine, an appliance or any other tangible personal 
property who binds himself to install, to put in place or running order 
for a lump-sum price, the tangible personal property sold must collect 
the tax on the total amount of the selling price without deducting any 
amount for charges of installation, service, etc. 

When the selling price of a machine, an appliance or any other tangible 
personal property includes any of the aforementioned charges, the 
vendor must collect the tax on the total amount of the selling price and 
it is not permissible for either the vendor or the purchaser to make any 
deduction from the selling price for the computation and payment of 
the tax levied under the Act. The vendor of the machine, appliance 
or other tangible personal property, for the upkeep of which he binds 


56 


himself for a certain period, must collect the tax on the total amount 
of the sale without deducting anything as charges for the service or 
upkeep. However, if the charges for installation, service, etc., are 
indicated separately and are not included in the original contract 
price agreed to by the purchaser, such charges are not subject to tax. 

(9) Interprovincial and Foreign Trade 

Tax does not apply to sales of goods that are: 

(a) shipped to a point outside Ontario, pursuant to the contract of 
sale by delivery by the vendor to such point by means of 

(i) facilities operated by the vendor, 

(ii) deliveries by the vendor to a common carrier for shipment 
to a consignee at such point, or 

(iii) delivery by the vendor to a customs broker or forwarding 
agent for shipment outside Ontario; 

(b) bills of lading or other documentary evidence of the delivery of 
the goods to a carrier, customs broker or forwarding agent for 
shipment outside Ontario must be retained by the vendor to 
support deductions taken under clause (a). Documentary evi¬ 
dence that goods were delivered by the vendor to a point outside 
Ontario by facilities operated by the vendor must be retained by 
the vendor to support deductions under clause (a). 

The fact that a purchase is made within Ontario and delivery taken 
is evidence of consumption or use within Ontario. As long as delivery 
is taken the ultimate destination of the goods is not important. 

(10) Lease contract 

If tangible personal property is, for all intents and purposes, and in 
the opinion of the Comptroller, sold, but the transaction is designated 
as a lease or a rental for the purpose of retaining title in the vendor as 
security for payment of the purchase price, or for the purpose of 
avoiding the tax, the transaction is deemed to be a sale and is therefore 
taxable. Furthermore if the tangible personal property is substantially 
consumed during the period of the lease this transaction is deemed to 
be a sale and is taxable. 

Rental agreements for tangible personal property entered into with 
the understanding that the lessee shall become the owner of the 
property upon completion of the prescribed payments are deemed to 
constitute sales of tangible personal property and the tax applies. 

An agreement providing for the lease or rental of tangible personal 
property which grants the lessee an option to purchase the tangible 
personal property is deemed to result in a sale when the option is 
exercised. Upon the exercise of the option the tax applies to the entire 
selling price specified in the agreement including any amounts pre¬ 
viously paid as rental and applied to that price. 

If the lessor has collected tax with respect to rental payments pursuant 
to Regulation 15 and the lessee exercises the option referred to in the 
previous paragraph, the tax collected on the rental price previous to 


57 


the exercise of the option and applied to the selling price upon the 
exercise of the option may be deducted from the tax calculated on the 
total selling price. If only a portion of the rental payments is applied 
to the total selling price the tax applies to that price minus the portion 
of the rental payments that have been so applied. 

(11) Mail Order Purchases 

Subsection 7 of section 2 of the Act provides that all residents of Ontario 
who bring tangible personal property into the province for their own 
consumption or use must report such purchases to the Comptroller 
and pay tax thereon. Forms are available for this purpose. However, 
to facilitate the means of collecting the tax on this class of business, 
large mail order houses situated outside Ontario but doing business in 
the province may arrange to impose and collect the tax on all orders 
received from residents of Ontario. It will be understood, however, 
that the onus of reporting the purchase and paying the tax still rests 
upon the purchaser. 

(12) Packers, loaders, shippers 

Tax applies to the purchases made by packers, loaders and shippers of 
tangible personal property such as car strips and bracing materials 
used in transporting commodities or in preparing them for trans¬ 
portation. 

(13) Polishers, finishers and refinishers 

Persons engaged in painting, polishing and otherwise finishing tangible 
personal property in connection with the production of a finished 
product shall be deemed to be consumers of the tangible personal 
property used and shall pay tax thereon whether the article to be 
finished is supplied by the customer or by the finisher. 

The tax does not apply to charges for repainting or refinishing used 
articles. The tax applies in such cases to the sales made to the refinisher 
of the paint and other materials used in the process, as he is regarded 
as the consumer of such product. 

(14) Purchases by federal government departments 
and provincial government departments 

Sales made to any department of the federal government properly 
authorized by such department are not taxable. Sales made to provin¬ 
cial government departments are subject to payment of the tax. 

(15) Purchases by federal and provincial 
Crown corporations 

Federal and provincial Crown corporations are subject to the pay¬ 
ment of tax. Tax should be levied on any sales of taxable tangible per¬ 
sonal property made to any federal or provincial Crown corporations 
when such tangible personal property is for the use or consumption of 
the corporation and not for resale. 

(16) Returned Merchandise 

If the purchase price of an item of tangible personal property is 


refunded the consumer is entitled to the refund of the tax which he 
paid. Refund should be made by the vendor who originally collected 
the tax. 

Separate Sales 

In the case of several distinct sales occurring on the same day or during 
the same month the tax is due and must be calculated on each sale 
separately and not on the total of the sales or the total of the amount 
invoiced during the month. In the case of several items making up one 
purchase, the rule that all items purchased through one telephone call 
or before the purchaser steps out the door is a safe one to use in 
determining whether or not such items form one purchase. 

Service Charges 

Where the vendor of an appliance, a machine or any other article 
binds himself for its upkeep during a certain period without making 
an additional charge, such vendor must collect the tax on the total 
amount of the sale without deducting anything as charges for service. 
When the vendor exacts an additional payment for his services and 
enters it separately in his account the tax must be collected on the 
selling price of the tangible personal property without including the 
charge for service. 

Layaway Sales 

In the case of a layaway or will-call sale including one on which a 
deposit is made by the customer, the vendor must report the total sale 
price for the tangible personal property involved during the taxable 
period in which it is entered as a sale in the vendor’s books. If the 
deposit is forfeited by the customer or if instalment payments have 
been made by the customer and forfeited, the vendor may subse¬ 
quently claim a credit of tax equal to the difference between the tax 
originally reported and the tax applicable to the amount of the 
deposit or instalment payment made, provided that the tangible 
personal property involved in the transaction is returned to stock and 
intended for resale. 

Diplomatic Corps and Foreign Consuls 

Purchases of tangible personal property for personal use or for office 
use made by members of the diplomatic corps and foreign consuls 
are subject to tax and such tax must be paid directly to the vendors 
thereof. However, members of the diplomatic corps and foreign con¬ 
suls may file with the Comptroller a request for the rebate of the tax 
so paid in any case where the tangible personal property purchased 
for office use was paid for by the government of the member of the 
diplomatic corps or of the foreign consul involved. The request for 
rebate in such a case must be accompanied by supporting documents 
and proof to the effect that the tangible personal property purchased 
by a member of the diplomatic corps or by a foreign consul was a 
purchase of tangible personal property for office use and was paid for 
with funds of the government which he represents. 


59 


INDEX 

A 



Reg. 

Ruling 



No. 

No. 

Page 

Accessories. 

. 1(32) 


17 

Accountants’ services. 


2(9) 

35 

Accounting procedures. 



11 

Acetylene. 

. 1(23) 


16 

Advertising 




agencies. 


2(2) 

33 

expenses. 


2(3) 

33 

material enclosures. 

. 16 

6(7) 

28, 45 

Agricultural 




drugs or medicines. 

. 1(1) 


13 

feeds. 

. KD 


13 

machinery. 


14 

52 

Air conditioning contractor. 

. 1(14) 


14 

Albums. 

. 1(3) 


13 

Animal foods. 

. 1(21) 


16 

Apparatus and machinery. 


10 

49 

Appliance installation and sale. 

. 1(12) 


14 

Appliances, dental. 

. 1(15) 


14 

optical. 

. 1(30) 


17 

orthopaedic. 

. 1(31) 


17 

Application, for rebate. 

. 20 


31 

for permit, see also section 3 of the Act. 



8 

Arch, ankle, knee supports. 

. 1(31) 


17 

Architects’ services. 


2(9) 

35 

Argon. 

. 1(23) 


16 

Artists. 


6(1) 

42 

As part of one transaction. 

. 1(2) 


13 

Athletic supports. 

1(31) 


17 

Auctioneers. 


6(2) 

43 

Automobile, dealers and salesmen. 


9 

48 

purchased for demonstration and display. 


9(4) 

48 

B 




Bags. 

. 1(13) 


14 

Barber and beauty shops. 


2(4) 

34 

Barrels. 

. 1(13) 


14 

Barter or exchange of goods. 


16(1) 

53 

Beauty aids. 

. 1(17) 


15 

Benevolent organizations. 

. 20 


31 

Beverages, non-alcoholic. 

. 1(37,45) 

13(2) 

18, 51 

non-carbonated. 

. 1(45) 


18 

Blackboards. 

. 1(10) 


14 

Boarding house. 

. 1(48) 

13(3) 

19, 51 

Book bags. 

. 1(10) 


14 

Books. 

. 1(3,22) 


13,16 

Bottles. 

. 1(13) 


14 

Boxes. 

. 1(13) 


14 

Braces. 

. 1(31) 


17 

Bricklayer. 

. 1(14) 


14 

Bridge contractor. 

. 1(14) 


14 

Brokers and fiduciaries. 


16(2) 

54 

Buses, trucks and passenger vehicles. 


9(6) 

49 


















































60 



Reg. 

Ruling 



No. 

No. 

Page 

Business, place of. 

. 2 


19 

Business publications. 

. 1(33) 


17 

c 




Cabinetmakers. 


6(1) 

42 

Candy. 

. 1(4,21) 


13,16 

Cans. 

. 1(13) 


14 

Capital, investment. 

. 1(5), 20 


13,31 

works. 

. 1(6), 20 


13,31 

Car radios. 

. K32) 


17 

Carboys. 

. 1(13) 


14 

Carbon dioxide. 

1(23) 


16 

Carbonated water. 

. 1(45) 


18 

Carpenter. 

. 1(14) 


14 

Carrying charges, finance and. 

. 17 

7(1) 

29,46 

Cartons. 

. 1(13) 


14 

Catalogues. 

. 1(3,7,42) 


13,18 

Catering. 


13 

51 

Cement contractor. 

Certificate, 

. 1(14) 


14 

consumer registration. 

. 7 


24 

form of Purchase Exemption. 

. 5 

12(7) 

10, 22, 50 

non-registered vendors. 

. 9 


26 

Purchase Exemption. 

. 4 

4(2), 12 

10, 21, 




39,49 

Charges, 




delivery. 


16(5) 

54 

service. 


16(18) 

. 58 

transportation. 


16(5) 

54 

Charitable, 




institutions. 


2(7) 

34 

organizations. 

. 20 


31 

Chewing gum. 

Children’s clothing. 

. 1(21) 


16 

. 1(8) 


13 

footwear. 

. 1(9) 


14 

Chocolate. 

. 1(4) 


13 

Classroom furniture. 

. 1(10) 


14 

supplies. 

. 1(10) 


14 

Collection of tax by vendor. 

.... 12 


6, 27 

Colouring extract. 

. 1(21) 


16 

Compensation to vendors. 


1 

7, 32 

Compressed air. 

.... 1(23) 


16 

Computation of tax, schedule of. 



9 

Conditional sale contracts. 

.... 17 


29 

Confections. 

.... 1(11,21) 


14,16 

Construction contract. 

.... 1(12) 

3(1) 

14, 36 

rebate of tax. 

.... 20 


31 

Consumables: materials consumed or expended. 


11 

49 

Consumer, registered. 

.... 7 

3(5) 

24, 38 

Contact lenses. 

Containers 

.... 1(30) 


17 

defined. 

.... 1(13), 16 


14, 28 

deposit. 

.... 16(3) 


28 

non-returnable. 

.... 16 


28 

returnable. 

.... 16 


28 

wrapping, packing, labels. 

.... 16 


28 

Contractor, defined. 

.... 1(14) 


14 




















































61 




Reg. 

No. 

Ruling 

No. 

Page 

Contractors and subcontractors 

airconditioning. 


. 1(14) 


14 

bricklayer. 


. 1(14) 


14 

bridge. 


. 1(14) 


14 

carpenter. 


. 1(14) 


14 

cement and paving. 


. 1(14) 


14 

construction. 


. 1(14) 

3(1) 

14, 36 

decorating. 


. 1(14) 


14 

electrical. 


. 1(14) 


14 

general. 


. 1(14) 


14 

heating... 


. 1(14) 


14 

insulating. 


. 1(14) 


14 

landscape. 


. 1(14) 


14 

manufacturing. 



3(2) 

36 

painting. 


. 1(14) 


14 

papering. 


. 1(14) 


14 

plasterer. 


. 1(14) 


14 

plumber. 


. 1(14) 


14 

registered consumers. 



3(5) 

38 

retailer. 



3(3) 

37 

road. 


. 1(14) 


14 

roofing. 


. 1(14) 


14 

sheet metal. 


. 1(14) 


14 

steel. 


. 1(14) 


14 

stone mason. 


. 1(14) 


14 

tile and terrazzo. 


. 1(14) 


14 

ventilating. 


. 1(14) 


14 

Contracts 

conditional sale. 


. 17 


29 

construction. 


. 1(12), 20 

3(1) 

14,31,36 

cost-plus. 


. 1(12) 


14 

hire-purchase. 


. 15 


28 

installation. 



3(4) 

38 

lease. 



16(10) 

56 

lump-sum. 


. 1(12) 


14 

time and material. 


. 1(12) 


14 

Cooking fuel. 


. 1(23,24) 


16 

Corporations, parent. 


. 19 


30 

wholly-owned subsidiary. 


. 19 


30 

Cosmetics. 


. 1(17) 

2(4) 

15,34 

Cost-plus contract. 


. 1(12) 


14 

Credit sales. 




12 

transactions. 



16(3) 

54 

Creoline. 


. 1(17) 


15 

Crown corporations, purchases by. 



16(15) 

57 

Crushed stone. 

D 

. 1(47) 


19 

Decorator. 


. 1(14) 


14 

Definitions. 


. 1 


13 

Delivery charges. 



16(5) 

54 

Demonstration and display. 



8,9 

47,48 

automobiles purchased for. 



9(4) 

48 

Dental appliances. 


. 1(15) 


14 

Dental fillings. 


. 1(15) 


14 

Dentist, defined. 


. 1(16) 


15 

dental laboratories. 



2(5) 

34 























































62 




Reg. 

Ruling 




No. 

No. 

Page 

Dentures. 


1(15) 


14 

Depilatories. 


. 1(17) 


15 

Destruction of records. 


. 14 


27 

Diplomatic corps and foreign consuls. 



16(20) 

58 

Directories. 


. K3) 


13 

Discounts, cash and trade. 



7(5) 

47 

Disinfectants. 


. 1(17) 


15 

Display and demonstration. 



8,9 

47, 48 

automobiles purchased for. 



9(4) 

48 

Doctor. 


. 1(34) 


17 

Drawing books and instruments. 


. 1(3,10) 


13,14 

Drugs and medicines 





agricultural feeds. 


. KD 


13 

external use. 


. 1(17) 


15 

internal use. 


. 1(17) 


15 

prescriptions. 


. 1(18) 


15 

Drums. 


. 1(13) 


14 

Dry cleaners and repairers. 



2(6) 

34 


E 




Educational institutions. 



2(7) 

34 

Effects, settlers’. 


. 18 


29 

Elastic hose. 


. 1(31) 


17 

Electrical contractor. 


. 1(14) 


14 

Engineers’ services. 



2(9) 

35 

Equipment installation and sale. 


. 1(12) 


14 

Erection of building. 


. 1(12) 


14 

Exchange, vehicle motors. 



9(5) 

48 

or barter of goods. 



16(1) 

53 

Exempt articles. 




6 

see also section 5 of the Act 





Exemption, Purchase Certificate. 


. 4 


21 

form of. 


. 5 

12(7) 

10, 22, 50 

use of. 



4(2), 12 

49 

Exterminators, rodent. 


. 1(17) 


15 

Eye glasses. 


. 1(27-30) 


16,17 


F 




Fabricating. 


. 1(40) 


18 

Farm implements. 


. 1(19,20) 


15,16 

certificate of use. 


. 1(19) 


15 

exceptions. 


. 1(20) 


16 

power drawn. 


. 1(19) 


15 

Farm machinery. 


. 1(19,20) 


15, 16 

certificate of use. 


. 1(19) 


15 

exceptions. 


. 1(20) 


16 

power drawn. 


. 1(19) 


15 

Farmer, not vendor. 


. 1(48) 


19 

Fashion books. 


. 1(3) 


13 

Federal sales tax. 



16(4) 

54 

Feeds, agricultural. 


. KD 


13 

Fiduciaries and brokers. 



16(2) 

54 

Filing the Retail Sales Tax Return. 




8 

Finance and carrying charges. 


.... 17 

7(1) 

29,46 

Financial publications. 


.... 1(33) 


17 



















































63 


Finishers, polishers and refinishers. 


Reg. 

No. 

Ruling 

No. 

16(13) 

Page 

57 

Flavouring. 


. 1(45) 


18 

Florists and nurserymen. 



6(3) 

43 

Food, animal. 


. 1(21) 


16 

products. 


. 1(21) 


16 

Footwear, children’s. 


. K9) 


14 

Foreign and interprovincial trade. 



16(9) 

56 

Foreign consuls and diplomatic corps. 



16(20) 

58 

Form, Purchase Exemption Certificate. 


. 5 


22 

Fruit juice. 


. 1(45) 


18 

Fruits, candied, glace, crystallized. 


. 1(11) 


14 

Fruit trees. 



6(3) 

43 

Fuel 

heating. 


. 1(24) 


16 

manufactured gas. 


. 1(23) 


16 

natural gas. 


. 1(24) 


16 

wood. 


. K50) 


19 

Funeral directors, morticians, undertakers.. 



6(10) 

46 

Furniture, classroom. 


. 1(10) 


14 

Garage operators. 

G 


6(4),9(2) 

43, 48 

Gas, manufactured. 


. 1(23) 


16 

natural. 


. 1(24) 


16 

General contractor. 


. 1(14) 


14 

General provisions. 




6 

Gifts, premiums and samples. 



7(2) 

47 

Gloves, children’s. 


. KB) 


14 

Goods damaged in transit. 



16(6) 

55 

Government department purchases. 



16(14) 

57 

“G” permit. 


. 6 

12(4) 

23, 50 

Guaranteed parts, replacements. 



7(3) 

47 

Guarantees, gifts, discounts, finance charges. 

. 17 

7 

29,46 

Gummed tape. 


. 1(13) 


14 

Hair tonics. 

H 

. 1(17) 

2(4) 

15, 34 

Hand bills. 


. 1(43) 


18 

Hats, children’s. 


. 1(8) 


14 

Heating contractor. 


. 1(14) 


14 

Helium. 


. 1(23) 


16 

Hire-purchase contract. 


. 15 


28 

Honey. 


. 1(4) 


13 

Hose, children’s. 


. 1(8) 


13 

elastic. 


. 1(31) 


17 

Hospital institutions. 



2(7) 

34 

Hotel. 


. 1(48) 


19 

American Plan. 



13(3) 

51 

Household medical aids. 


. 1(17) 


15 

Hydrogen. 

I 

. 1(23) 


16 

Implements, farm. 

. 1(19,20) 


15,16 

Importation charges. 



7(4) 

47 

















































64 


Imprinting. 

Inhalants. 

Injections. 

Installation and sale. 

Installation, contracts. 

service, etc. 

Installation on real property.. 

Institutions, educational, hospital and charitable 

Insulating contractor. 

Interprovincial and foreign trade. 

Introduction. 

Investment, capital. 

subscriptions. 


L 


Laboratories, dental. 

Landscape contractor. 

Lawyers’ services. 

Layaway sales. 

Lease contract. 

Linen and towel service. 

Livestock, agricultural feed. 

drugs and medicines. 

Loaders, packers, shippers. 

Local boards and municipal corporations 

Lodging. 

Lozenges. 

Lump-sum contract. 


M 

Machinery, 

agricultural. 

and apparatus. 

farm. 

installation and sale. 

Machines, vending. 

Magazines and periodicals. 

Mail order purchases. 

Malt, malt extracts. 

Manufactured gas. 

Manufacturers, producers, processors 

and wholesalers. 

Manufacturing contractor. 

Meals, 

airlines. 

and lodging breakdown. 

catered. 

drive-in restaurants, lunch stands. 

employees. 

prepared. 

private clubs. 

railway dining cars. 

Medical aids, household. 

Medicines and drugs. 

Memorial dealers. 


Reg. 

Ruling 


No. 

No. 

Page 

1(40) 

6(7) 

18, 45 

1(17) 


15 

1(17) 


15 

1(12) 


14 


3(4) 

38 


16(8) 

55 

1(14) 


14 


2(7) 

34 

1(14) 


14 


16(9) 

56 



5 

K5) 


13 

1(33) 


17 



2(5) 

34 

1(14) 


14 


2(9) 

35 


16(19) 

58 


16(10) 

56 


2(10) 

35 

KD 


13 

KD 


13 


16(12) 

57 

20 


31 

1(48) 

13(3) 

19,51 

1(21) 


16 

1(12) 


14 



14 

52 


10 

49 

1(19, 20) 


15,16 

1(12) 


14 


15 

52 

1(22, 33) 


16, 17 


16(11) 

57 

1(21) 


16 

1(23) 


16 


4 

38 


3(2) 

36 


13(7) 

51 


13(5) 

51 


13(7,11) 

51,52 


13(8) 

52 


13(9) 

52 

1(21,37) 

13 

16,18,51 


13(10) 

52 


13(6) 

51 

1(17) 


15 

1(17,18) 


15 


6(5) 

44 


















































65 



Reg. 

No. 

Ruling 

No. 

Page 

Merchandise, purchased for resale. 

. 3 

4(2, 3) 

10, 39, 40 

returned. 


16(16) 

58 

transfers of, between related persons. 

. 19 


30 

vendors, consumption or use. 

. 6 


23 

Mineral water. 

. 1(45) 


18 

Mirrors, rear vision. 

. 1(32) 


17 

Monthly tax returns. 

. 8 


25 

Morticians, undertakers and funeral directors. 


6(10) 

46 

Motel. 

. 1(48) 


19 

Municipal corporations and local boards. 

. 20 


31 

N 

Natural gas. 

. 1(24) 


16 

Natural water. 

. 1(25) 


16 

Newspapers, news magazines. 

. 1(26, 33) 


16,17 

Nitrogen. 

. 1(23) 


16 

Nitrous oxide. 

. 1(23) 


16 

Non-alcoholic beverages. 

. 1(37) 


18 

Non-carbonated beverages. 

. 1(45) 


18 

Non-registered vendor, orders taken by. 

. 9 


26 

Non-taxable sales. 



10 

Nurserymen and florists. 


6(3) 

43 

0 

Obtaining a permit. 



7 

Oculist. 

. 1(29) 

2(8) 

17,35 

Operators, garage. 


6(4), 9(2) 

43, 48 

Optical appliances. 

. 1(30) 


17 

Optician. 

. 1(27) 

2(8) 

16, 35 

Optometrist. 

. 1(28) 

2(8) 

16, 35 

Orders taken by non-registered vendors. 

. 9 


26 

Orthopaedic appliances. 

. 1(31) 


17 

Oxygen. 

. 1(23) 


16 

P 

Packers, loaders, shippers. 


16(12) 

57 

Painter. 

. 1(14) 


14 

Painters, art. 


6(1) 

42 

Pamphlets, sales. 

. 1(7,42) 


13,18 

Paper books, blank. 

. 1(10) 


14 

Paper hanger. 

. 1(14) 


14 

Parts, repairs and accessories. 

. 1(32) 


17 

guaranteed, and replacements. 


7(3) 

47 

Passenger vehicles, trucks and buses. 


9(6) 

49 

Paving contractor. 

. 1(14) 


14 

Pencils and pens. 

. 1(10) 


14 

Perfumes. 

. 1(17) 


15 

Periodicals. 

. 1(22,26,33) 


16,17 

Periodic reports. 

. 1(3) 


13 

Permits — (See also section 3 of the Act) 

“G”. 

. 6 

12(4) 

23,50 

obtaining a. 

vendors’. 



7 

. 2 


19 

Personal property, tangible. 

. 1(46) 


19 

Photographers, photo finishers, photostat 

producers, etc. 


6(6) 

44 


















































66 



Reg. 

Ruling 



No. 

No. 

Page 

Physician, defined. 

-■ K34) 


17 

services. 


2(9) 

35 

Place of business. 

.... 2 


19 

Plants. 

.... 1(35) 

6(3) 

17, 43 

Plasterer. 

.... 1(14) 


14 

Plumber. 

.... 1(14) 


14 

Polishers, finishers and refinishers. 


16(13) 

57 

Postage stamps. 

.... 1(46) 


19 

Posters, signs, show cards. 


6(8) 

46 

Poultry, 

agricultural feeds. 

Kl) 


13 

drugs and medicines. 

.... 1(1) 


13 

Premises. 

.... 1(36) 


17 

Prepared meals. 

.... 1(21,37) 

13 

16,18, 51 

Prescriptions, drugs and medicines. 

.... 1(18,38) 


15,18 

Price lists. 

.... 1(3,39) 


13,18 

Printed books. 

... 1(3) 


13 

Printing. 

.... 1(40) 


18 

and related industries. 


6(7) 

45 

expenses. 


2(3) 

33 

Processing. 

.... 1(40) 


18 

Producing. 

.... 1(40) 


18 

Provisions, general. 



6 

Publications, 

business and financial. 

.... 1(33) 


17 

magazines. 

.... 1(22) 


16 

newspaper. 

.... 1(26,33) 


16,17 

Purchase Exemption Certificate. 

.... 4 

4(2), 12 

10,21, 

39, 49 

form of. 

.... 5 

12(7) 

10, 22, 50 

use of. 


12 

49 

Purchases, 

by government departments. 


16(14) 

57 

Crown corporations. 


16(15) 

57 

mail order. 


16(11) 

57 

received and brought into Ontario. 

. 6(6), 7,10 

16(7) 

6,24, 

26, 55 

0 

Questions and answers. 



6-12 

accounting procedures. 



11 

fifing the retail sales tax return. 



8 

general provisions. 



6 

miscellaneous. 



12 

obtaining a permit. 



7 

sales for resale and other non-taxable sales. 



10 

use of schedule of amounts of tax that 

relate to sales prices. 



9 

R 

Radios, automobile. 

. 1(32) 


17 

Railway dining cars. 


13(6) 

51 

Railway rolling stock. 

. 1(41) 


18 

Rate books. 

. 1(3) 


13 

Real estate. 



11 

Rear vision mirrors. 

. 1(32) 


17 

Rebate of tax. 

.... 20 

16(20) 

31,58 

















































67 



Reg. 

No. 

Ruling 

No. 

Page 

Reconditioners and repairers. 


5 

41 

Records, 

destruction of. 

... 14 


27 

to be kept. 

vendors’. 



11 

... 13 


27 

Refinishers, finishers and polishers. 


16(13) 

57 

Registered consumer. 

... 7 

3(5) 

24,38 

Regulations. 



13-31 

Religious organizations. 

... 20 


31 

Remittance of tax. 

... 11 


27 

Remodelling of buildings. 

... 1(12) 


14 

Remuneration to vendors. 


1 

32 

Rentals. 

... 15 

8,16 (10) 

28,47, 56 

Repairers, 

dry cleaners. 


2(6) 

34 

reconditioners. 


5 

41 

watch and jewellery. 


5(5) 

42 

Repairs of buildings. 

... 1(12) 


14 

Repairs, parts and accessories. 

... 1(32) 


17 

Reports, periodic. 

... 1(3) 


13 

Responsibilities of vendors. 

... 3 


20 

Restaurants, resorts, lodges, boarding houses, etc. 


13(3) 

51 

Retail and wholesale businesses. 


4(3) 

40 

Retailer (contractor). 


3(3) 

37 

Retailers, classes of. 


6 

42 

Retreading and recapping tires. 


9(7) 

49 

Returned merchandise. 


16(16) 

58 

Returns, 

monthly tax. 

... 8 


8,25 

non-registered vendors. 

... 9 


26 

purchases outside Ontario. 

... 10 


26 

under section 2(7) of the Act. 



10,26 

Revenue stamps. 

.. 1(46) 


19 

Road contractor. 

K14) 


14 

Rodent exterminators. 

1(17) 


15 

Roofing contractor. 

... K14) 


14 

Root beer... 

... 1(21) 


16 

Rulers. 

... 1(10) 


14 

Rulings. 



32-58 


S 


Sacks. 

. 1(13) 


14 

Sacro-iliac, belts and supports. 

Sales, 

. 1(31) 


17 

catalogue. 

. 1(42) 

2(3) 

18,33 

hand bill. 

. 1(43) 

2(3) 

18,33 

layaway. 


16(19) 

58 

pamphlet. 

. 1(7,42) 

2(3) 

13,18,33 

separate. 


16(17) 

58 

Sales for resale and other non-taxable sales. 


4(2,3) 

10,39,40 

Sales tax, federal. 


16(4) 

54 

School board. 

. 1(48) 

19 

Sculptors. 

6(1) 

42 

Securities adviser, publications. 

. 1(33) 

17 

Seeds. 

6(3) 

43 

Service charges. 


16(18) 

58 




















































68 



Reg. 

Ruling 



No. 

No. 

Page 

Service enterprises. 


2 

32 

advertising agencies. 


2(2) 

33 

barber and beauty shops. 


2(4) 

34 

dentists and dental laboratories. 


2(5) 

34 

dry cleaners and repairers. 


2(6) 

34 

educational, hospital and charitable institutions.... 


2(7) 

34 

general. 


2(1) 

32 

optometrists, oculists and opticians. 


2(8) 

35 

physicians, architects, engineers, accountants and 




lawyers. 


2(9) 

35 

printing and advertising expenses. 


2(3) 

33 

towel and linen service. 


2(10) 

35 

veterinarv surgeon. 


2(11) 

35 

Service, installation, etc. 


16(8) 

55 

Settlers’ effects. 

18 


29 

Shampoo. 

1(17) 


15 

Shaving cream. 

1(17) 


15 

Sheet metal contractor. 

1(14) 


14 

Shippers, packers, loaders. 


16(12) 

57 

Shoulder braces. 

1(31) 


17 

Shrubs. 

1(44) 

6(3) 

18, 43 

Signs, show cards and posters. 


6(8) 

46 

Sizes, children’s clothing. 

1(8) 


13 

Slag, blast furnace. 

1(47) 


19 

Soft drinks. 

1(21,45) 

13(2) 

16,18,51 

Spectacles. 

1(27-30) 


16,17 

Spinal braces. 

1(31) 


17 

Stamps, uncancelled. 

1(46) 


19 

Steel contractor. 

1(14) 


14 

Stone, unfinished, crushed, slag. 

1(47) 


19 

Stonemason. 

1(14) 


14 

Subcontractors. See contractors and subcontractors.... 

1(14) 

3 

14,36 

Subscriptions. 

1(22) 


16 

Sugar. 

1(4) 


13 

Surgical supports. 

1(31) 


17 

Suspensories. 

1(31) 


17 

T 




Tangible personal property. 

1(46) 

16(7) 

19,55 

Tax, rebate of. 

20 


31 

collection of, by vendor. 

12 


27 

computation of. 



9 

on transactions held to be in lieu of transfer 




of title. 

15 


28 

remittance of. 

11 


27 

returns. 

8 


25 

filing of. 



8 

Taxidermists. 


6(9) 

46 

Tile and terrazzo contractor. 

1(14) 


14 

Time and material contract. 

1(12) 


14 

Time-tables. 

1(3) 


13 

Tires, retreading and recapping. 


9(7) 

49 

Tobacco, crops and plants. 

1(35) 

6(3) 

17, 43 

Toiletries. 

1(17) 


15 

Toothpaste. 

1(17) 


15 

Tourist court. 

1(48) 


19 




















































69 




Reg. 

Ruling 




No. 

No. 

Page 

Towel and linen service. 



2(10) 

35 

Trade and cash discounts. 



7(5) 

47 

Trade-in allowance. 



16(1) 

53 

Trade journals. 


1(26) 


16 

Trading stamps. 



7(2,5) 

47 

Transaction, defined. 


1(2) 


13 

credit. 



16(3) 

54 

transfer of title. 


15 


28 

Transfers of merchandise between related persons,. 

19 


30 

Transit, goods damaged in. 



16(6) 

55 

Transportation charges. 



16(5) 

54 

Trees, fruit. 



6(3) 

43 

Trucks, buses and passenger vehicles. 



9(6) 

49 

Trusses and parts. 


1(31) 


17 

Twine. 


1(13) 


14 


u 




Undertakers, morticians, funeral directors,. 



6(10) 

46 

Unfinished stone. 


1(47) 


19 

Use of schedule of amounts of tax that relate to sales 




prices. 




9 


V 




Vehicle motors, exchange of. 



9(5) 

48 

Vehicles, passenger, trucks and buses. 



9(6) 

49 

Vending machines. 



15 

12,52 

Vendors 





collection of tax by. 


12 


27 

dealer’s salesman. 



9(1,3) 

48 

defined. 


1(48) 


19 

garage business. 



6(4), 9(2) 

43,48 

orders taken by non-registered. 


9 


26 

permits. 


2 


19 

records. 


13 


11,27 

remuneration to. 



1 

32 

responsibilities of. 


3,8 

9 

20,25/48 

vending machine operators. 



15 

52 

Ventilating contractor. 


1(14) 


14 

Veterinarian, defined. 


1(49) 


19 

Veterinary surgeon. 



2(11) 

35 


w 




Water, natural. 


1(25) 


16 

carbonated. 


1(45) 


18 

mineral. 


1(45) 


18 

sparkling. 


1(45) 


18 

Wholesale and retail businesses. 



4(3) 

40 

Wholesalers. 



4(2) 

39 

Wood. 


1(50) 


19 

Wrapping materials. 


16(5) 


29 


X 




X-ray pictures and machines. 


1(17) 

2(5) 

15,34 













































HJ/5715/.057/ .R84 
Ontario. Ministry of Reven 
Rules and regulations 

under the Retail fnpf 

c.1 tor mai