T-0.1 - Act respecting the Québec sales tax

Section 327.4 Disposition versions

2022-06-08

327.4. The rules set out in the second paragraph apply if

(1)  a particular registrant makes a particular taxable supply in Québec of particular corporeal movable property by way of sale to a particular non-resident person that is not a consumer of the particular property; and

(2)  the particular registrant or another registrant has physical possession of the particular property at the particular time at which the particular property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply and retains physical possession of the particular property after the particular time

(a)  solely for the purpose of transferring physical possession of the particular property to the particular non-resident person, a person (in this section referred to as a “subsequent purchaser”) that subsequently acquires ownership of the particular property or a person designated by the particular non-resident person or a subsequent purchaser,

(b)  for the purpose of making another taxable supply in Québec of a commercial service in respect of the particular property to the particular non-resident person or a subsequent purchaser,

(c)  for the purpose of making another taxable supply in Québec of a service of manufacturing or producing other corporeal movable property to the particular non-resident person or to another non-resident person, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property

i.  is transformed or incorporated into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or

ii.  is directly consumed or used in the manufacture or production of the other property,

(d)  for the purpose of making another taxable supply in Québec of a commercial service in respect of other corporeal movable property (other than property of a person that is resident in Québec) to the particular non-resident person or to another non-resident person, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property

i.  is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or

ii.  is directly consumed or used in the provision of the commercial service, or

(e)  where section 327.6.2 does not apply in respect of the particular taxable supply, as the recipient of another supply of the particular property made by the particular non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of a subsequent purchaser.

The rules to which the first paragraph refers are as follows:

(1)  where the particular registrant has physical possession of the particular property at the particular time,

(a)  for the purposes of this Title, the particular taxable supply is deemed to have been made outside Québec,

(b)  if any of subparagraphs a to d of subparagraph 2 of the first paragraph applies, the particular registrant is deemed for the purposes of this division

i.  except if subparagraph ii applies, to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Québec to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, or

ii.  if subparagraph b of subparagraph 2 of the first paragraph applies and the other taxable supply referred to in that subparagraph b is to be made to the particular non-resident person or to a non-resident subsequent purchaser that is not a consumer of the particular property or if subparagraph c or d of subparagraph 2 of the first paragraph applies, to have acquired, at the particular time, physical possession of the particular property for the purpose referred to in any of subparagraphs b to d of subparagraph 2 of the first paragraph, and

(c)  if subparagraph e of subparagraph 2 of the first paragraph applies, for the purposes of this division and of any of sections 18, 18.0.1.1 and 18.0.1.2,

i.  the particular registrant is deemed to have acquired physical possession of the particular property, as the recipient of the other supply referred to in that subparagraph e, from another person that is a registrant,

ii.  that acquisition of physical possession of the particular property is deemed to have occurred at the time when, and at the place where, the particular property is delivered or made available to the particular registrant under the agreement for that other supply, and

iii.  the particular registrant is deemed to have given to the other person referred to in subparagraph i the certificate described in subparagraph 4 of the first paragraph of section 327.2 in respect of that acquisition of physical possession of the particular property; and

(2)  where another registrant has physical possession of the particular property at the particular time, for the purposes of this division and of any of sections 18, 18.0.1.1 and 18.0.1.2,

(a)  if subparagraph a of subparagraph 2 of the first paragraph applies and the other registrant gives to the particular registrant a certificate that contains the information set out in subparagraph 4 of the first paragraph of section 327.2 in respect of the particular property,

i.  the particular registrant is deemed to have caused, at the particular time, physical possession of the particular property to be transferred at a place in Québec to the other registrant,

ii.  the other registrant is deemed to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Québec to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, and

iii.  the certificate is deemed to be a certificate described in subparagraph 4 of the first paragraph of section 327.2 in respect of the transfer referred to in subparagraph i and the acquisition referred to in subparagraph ii,

(b)  if any of subparagraphs b to d of subparagraph 2 of the first paragraph applies,

i.  the particular registrant is deemed to have caused physical possession of the particular property to be transferred at a place in Québec to the other registrant,

ii.  the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant for the purpose referred to in any of those subparagraphs b to d, and

iii.  the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the particular time or at the time specified in the third paragraph, as the case may be, and

(c)  if subparagraph e of subparagraph 2 of the first paragraph applies,

i.  the particular registrant is deemed to have caused physical possession of the particular property to be transferred to the other registrant,

ii.  the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant as the recipient of the other supply referred to in that subparagraph e, and

iii.  the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the time when, and at the place where, the particular property is delivered or made available to the other registrant under the agreement for that other supply.

The time to which subparagraph iii of subparagraph b of subparagraph 2 of the second paragraph refers is, if subparagraph b of subparagraph 2 of the first paragraph applies and the other taxable supply referred to in that subparagraph b is to be made to a subsequent purchaser that is registered under Division I of Chapter VIII, the time at which the particular property is delivered or made available to the subsequent purchaser.

1995, c. 1, s. 293; 2021, c. 14, s. 230; 2022, c. 23, s. 191.

2021-06-02

327.4. The rules set out in the second paragraph apply if

(1)  a particular registrant makes a particular taxable supply in Québec of particular corporeal movable property by way of sale to a particular non-resident person that is not a consumer of the particular property; and

(2)  the particular registrant or another registrant has physical possession of the particular property at the particular time at which the particular property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply and retains physical possession of the particular property after the particular time

(a)  solely for the purpose of transferring physical possession of the particular property to the particular non-resident person, a person (in this section referred to as a “subsequent purchaser”) that subsequently acquires ownership of the particular property or a person designated by the particular non-resident person or a subsequent purchaser,

(b)  for the purpose of making another taxable supply in Québec of a commercial service in respect of the particular property to the particular non-resident person or a subsequent purchaser,

(c)  for the purpose of making another taxable supply in Québec of a service of manufacturing or producing other corporeal movable property to the particular non-resident person or to another non-resident person, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property

i.  is transformed or incorporated into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or

ii.  is directly consumed or used in the manufacture or production of the other property,

(d)  for the purpose of making another taxable supply in Québec of a commercial service in respect of other corporeal movable property (other than property of a person that is resident in Québec) to the particular non-resident person or to another non-resident person, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property

i.  is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or

ii.  is directly consumed or used in the provision of the commercial service, or

(e)  where section 327.6.2 does not apply in respect of the particular taxable supply, as the recipient of another supply of the particular property made by the particular non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of a subsequent purchaser.

The rules to which the first paragraph refers are as follows:

(1)  where the particular registrant has physical possession of the particular property at the particular time,

(a)  for the purposes of this Title, the particular taxable supply is deemed to have been made outside Québec,

(b)  if any of subparagraphs a to d of subparagraph 2 of the first paragraph applies, the particular registrant is deemed for the purposes of this division

i.  except if subparagraph ii applies, to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Québec to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, or

ii.  if subparagraph b of subparagraph 2 of the first paragraph applies and the other taxable supply referred to in that subparagraph b is to be made to the particular non-resident person or to a non-resident subsequent purchaser that is not a consumer of the particular property or if subparagraph c or d of subparagraph 2 of the first paragraph applies, to have acquired, at the particular time, physical possession of the particular property for the purpose referred to in any of subparagraphs b to d of subparagraph 2 of the first paragraph, and

(c)  if subparagraph e of subparagraph 2 of the first paragraph applies, for the purposes of this division and of section 18,

i.  the particular registrant is deemed to have acquired physical possession of the particular property, as the recipient of the other supply referred to in that subparagraph e, from another person that is a registrant,

ii.  that acquisition of physical possession of the particular property is deemed to have occurred at the time when, and at the place where, the particular property is delivered or made available to the particular registrant under the agreement for that other supply, and

iii.  the particular registrant is deemed to have given to the other person referred to in subparagraph i the certificate described in subparagraph 4 of the first paragraph of section 327.2 in respect of that acquisition of physical possession of the particular property; and

(2)  where another registrant has physical possession of the particular property at the particular time, for the purposes of this division and of section 18,

(a)  if subparagraph a of subparagraph 2 of the first paragraph applies and the other registrant gives to the particular registrant a certificate that contains the information set out in subparagraph 4 of the first paragraph of section 327.2 in respect of the particular property,

i.  the particular registrant is deemed to have caused, at the particular time, physical possession of the particular property to be transferred at a place in Québec to the other registrant,

ii.  the other registrant is deemed to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Québec to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, and

iii.  the certificate is deemed to be a certificate described in subparagraph 4 of the first paragraph of section 327.2 in respect of the transfer referred to in subparagraph i and the acquisition referred to in subparagraph ii,

(b)  if any of subparagraphs b to d of subparagraph 2 of the first paragraph applies,

i.  the particular registrant is deemed to have caused physical possession of the particular property to be transferred at a place in Québec to the other registrant,

ii.  the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant for the purpose referred to in any of those subparagraphs b to d, and

iii.  the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the particular time or at the time specified in the third paragraph, as the case may be, and

(c)  if subparagraph e of subparagraph 2 of the first paragraph applies,

i.  the particular registrant is deemed to have caused physical possession of the particular property to be transferred to the other registrant,

ii.  the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant as the recipient of the other supply referred to in that subparagraph e, and

iii.  the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the time when, and at the place where, the particular property is delivered or made available to the other registrant under the agreement for that other supply.

The time to which subparagraph iii of subparagraph b of subparagraph 2 of the second paragraph refers is, if subparagraph b of subparagraph 2 of the first paragraph applies and the other taxable supply referred to in that subparagraph b is to be made to a subsequent purchaser that is registered under Division I of Chapter VIII, the time at which the particular property is delivered or made available to the subsequent purchaser.

1995, c. 1, s. 293; 2021, c. 14, s. 230.

1995-01-30

327.4. For the purposes of this division and of subparagraph 3 of the first paragraph of section 18, where a particular registrant at any time transfers ownership of corporeal movable property to a non-resident person under an agreement for the supply of the property and the particular registrant, or another registrant who has physical possession of the property at that time and who gives the particular registrant a certificate described in subparagraph 3 of the first paragraph of section 327.2, retains physical possession of the property after that time for the purpose referred to in the second paragraph, the following rules apply:

(1)  where the particular registrant so retains physical possession of the property after that time, the particular registrant is deemed to have transferred physical possession of the property at that time to another registrant, to have obtained a certificate of the other registrant described in subparagraph 3 of the first paragraph of section 327.2 and to have acquired physical possession of the property at that time for the purpose referred to in the second paragraph; and

(2)  where another registrant so retains physical possession of the property after that time, the particular registrant is deemed to have transferred physical possession of the property at that time to the other registrant and the other registrant is deemed to have acquired physical possession of the property at that time for the purpose referred to in the second paragraph.

The purpose, referred to in the first paragraph, for which the particular registrant or the other registrant retains physical possession of the property is

(1)  transferring physical possession of the property to the non-resident person, a person (in this paragraph referred to as a “subsequent purchaser”) who subsequently acquires ownership of the property or a person designated by the non-resident person or a subsequent purchaser,

(2)  making a supply of a commercial service in respect of the property to the non-resident person or a subsequent purchaser, or

(3)  consumption, use or supply by that registrant under an agreement for a supply of the property by way of sale or lease to that registrant by the non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of the non-resident person or of the subsequent purchaser.

1995, c. 1, s. 293.