Sales of intangible personal property

GST will apply to any amount that becomes due or is paid without having become due before July 2010.

HST will apply to any amount that becomes due or is paid without having become due on or after July 1, 2010.

Examples
You sold a patent to manufacture widgets and receive fixed annual royalty payments in respect of the sale. A royalty payment becomes due on June 20, 2010, but it is not paid until July 10, 2010. Since the payment becomes due before July 2010, the GST applies to the royalty payment, even though the payment is made on or after July 1, 2010.

You operate a Web site that makes supplies of the right to use digital intangible personal property. You make a supply to a customer on June 29, 2010, but you do not issue an invoice for the supply until July 2, 2010. The HST applies to the sale of the right to use the digital intangible personal property, since the amount becomes due on or after July 1, 2010, and it is not paid without having become due before July 2010.

Forms and publications

• GST/HST Info Sheets GI-059, Ontario and British Columbia: Transition to the Harmonized Sales Tax - Intangible Personal Property