T-0.1 - Act respecting the Québec sales tax

Section 41.1 Disposition versions

1997-12-19

41.1. Where a person (in this section referred to as the “mandator”) makes a supply, other than an exempt or zero-rated supply, of corporeal movable property to a recipient, otherwise than by auction, in the case where the mandator is not required to collect tax in respect of the supply except as provided in this section and a registrant (in this section referred to as the “mandatary”), in the course of a commercial activity of the mandatary, acts as mandatary in making the supply on behalf of the mandator, the following rules apply:

(1)  where the mandator is a registrant and the property was last used, or acquired for consumption or use, by the mandator in an endeavour of the mandator, within the meaning of section 42.0.1, and the mandator and the mandatary jointly elect in writing, the supply of the property to the recipient is deemed to be a taxable supply for the following purposes:

(a)  all purposes of this Title, other than determining whether the mandator may claim an input tax refund in respect of property or services acquired or brought into Québec by the mandator for consumption or use in making the supply to the recipient, and

(b)  the purpose of determining whether the mandator may claim an input tax refund in respect of a service supplied by the mandatary relating to the supply of the property to the recipient; and

(2)  in any other case, the supply of the property to the recipient is deemed to be a taxable supply made by the mandatary and not by the mandator, and the mandatary is deemed, except for the purposes of section 327.7, not to have made a supply to the mandator of a service relating to the supply of the property to the recipient.

1994, c. 22, s. 388; 1995, c. 1, s. 259; 1995, c. 63, s. 315; 1997, c. 85, s. 439.

1995-12-15

41.1. Where a registrant (in this section referred to as the “mandatary”), acting as mandatary of a person (in this section referred to as the “mandator”) in the course of a commercial activity of the mandatary, makes a supply of movable property, otherwise than by auction, on behalf of the mandator, in the case where the mandator is not required to collect tax in respect of the supply and the mandatary does not disclose to the recipient in writing that the mandatary is making the supply on behalf of another person who is not required to collect tax in respect of the supply, the following rules apply:

(1)  the mandator is deemed not to have made the supply to the recipient;

(2)  the mandatary is deemed to have made the supply to the recipient;

(3)  the mandatary is deemed not to have made a supply to the mandator of a service relating to the supply to the recipient; and

(4)  where at one or more times the mandatary remits to, or credits in favour of, the mandator an amount on account of the supply to the recipient, the mandator is deemed to have made a supply of the property to the mandatary, and the mandatary is deemed to have received that supply from the mandator, for consideration, paid at the earliest of those times, equal to the amount determined by this formula

A - B.

For the purposes of this formula,

(1)  A is the total of the consideration for the supply of the property to the recipient and the tax payable in respect of that supply; and

(2)  B is the total of the consideration that would be determined in respect of the supply of a service relating to the supply to the recipient that, but for this section and subsection 1.1 of section 177 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), would be made by the mandatary to the mandator and the tax calculated on that consideration that would be payable by the mandator but for this section and subsection 1.1 of section 177 of that Act.

1994, c. 22, s. 388; 1995, c. 1, s. 259; 1995, c. 63, s. 315.

1995-01-30

41.1. Where a registrant (in this section referred to as the “mandatary”), acting as mandatary of a person (in this section referred to as the “mandator”) in the course of a commercial activity of the mandatary, makes a supply, other than a non-taxable supply, of movable property, otherwise than by auction, on behalf of the mandator, in the case where the mandator is not required to collect tax in respect of the supply and the mandatary does not disclose to the recipient in writing that the mandatary is making the supply on behalf of another person who is not required to collect tax in respect of the supply, the following rules apply:

(1)  the mandator is deemed not to have made the supply to the recipient;

(2)  the mandatary is deemed to have made the supply to the recipient;

(3)  the mandatary is deemed not to have made a supply to the mandator of a service relating to the supply to the recipient; and

(4)   where at one or more times the mandatary remits to, or credits in favour of, the mandator an amount on account of the supply to the recipient, the mandator is deemed to have made a supply of the property to the mandatary, and the mandatary is deemed to have received that supply from the mandator, for consideration, paid at the earliest of those times, equal to the amount determined by this formula

A – B.

For the purposes of this formula,

(1)  A is the total of the consideration for the supply of the property to the recipient and the tax payable in respect of that supply; and

(2)  B is the total of the consideration that would be determined in respect of the supply of a service relating to the supply to the recipient that, but for this section and subsection 1.1 of section 177 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), would be made by the mandatary to the mandator and the tax calculated on that consideration that would be payable by the mandator but for this section and subsection 1.1 of section 177 of that Act.

1994, c. 22, s. 388; 1995, c. 1, s. 259.

1994-06-17

41.1. Where a registrant (in this section referred to as the “mandatary”), acting as mandatary of a person (in this section referred to as the “mandator”) in the course of a commercial activity of the mandatary, makes a supply, other than a non-taxable supply, of movable property, otherwise than by auction, on behalf of the mandator, in the case where the mandator is not required to collect tax in respect of the supply and the mandatary does not disclose to the recipient in writing that the mandatary is making the supply on behalf of another person who is not required to collect tax in respect of the supply, the following rules apply:

(1)  the mandator is deemed not to have made the supply to the recipient;

(2)  the mandatary is deemed to have made the supply to the recipient;

(3)  the mandatary is deemed not to have made a supply to the mandator of a service relating to the supply to the recipient; and

(4)  where at one or more times the mandatary remits to, or credits in favour of, the mandator an amount on account of the supply to the recipient, the mandator is deemed to have made a supply of the property to the mandatary, and the mandatary is deemed to have received that supply from the mandator, for consideration, paid at the earliest of those times, equal to

(a)  where the rate of the tax applicable in respect of the supply of the property is 8 %, the amount determined by the formula

                 (A - B/2) x 1.08, and

(b)  where the rate of the tax applicable in respect of the supply of the property is 4 %, the amount determined by the formula

                    (A - B) x 1.04.

For the purposes of these formulas,

(1)  A is the consideration for the supply of the property to the recipient; and

(2)  B is the consideration that would be determined in respect of the supply of a service relating to the supply to the recipient that, but for this section and subsection 1.1 of section 177 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), would be made by the mandatary to the mandator.

1994, c. 22, s. 388.