General Excise and Sales Tax Regulations

The General Excise and Sales Tax Regulations provide rules and guidelines for excise tax and sales tax in Canada. The regulations cover various aspects, including licensing requirements, exemptions, security given by wholesalers, returns and payment of tax, and refunds.

Licensing Requirements
The regulations outline the process for obtaining a manufacturer's sales tax licence or a manufacturer's excise tax licence, as well as a wholesaler's sales tax licence. Applicants must submit applications in specific forms and provide required information. The regulations also specify that changes in business ownership, name, or operations must be reported to the Department.

Exemptions
The regulations exempt small manufacturers from obtaining a licence for certain classes of goods. Additionally, some businesses may be eligible to file a return in accordance with subsection 50(1) or (2) of the Act, subject to certain conditions.

Security Given by Wholesalers
Wholesalers are required to provide security in the form of a bond or guarantee, which must be fully registered and accompanied by a transfer form. The amount of security shall be equal to double the amount of sales tax paid or payable on goods sold during the three months immediately preceding the month in which the application is made.

Returns and Payment of Tax
Every person required to pay sales tax or excise tax must make a return each month, showing the total amount of taxable sales during the period and the amount of sales tax and excise tax payable. The regulations also provide for exemptions from filing returns for certain businesses with low tax liabilities.

Refunds
Goods exported without being used in Canada may be eligible for a refund or deduction from future taxes payable, provided evidence of payment is maintained on file and satisfactory to the Minister is produced.

Overall, the General Excise and Sales Tax Regulations aim to provide clarity and guidelines for businesses operating in Canada, ensuring compliance with excise tax and sales tax laws.