T-0.1 - Act respecting the Québec sales tax

Section 327.6.4 Disposition versions

2022-06-08

327.6.4. For the purposes of this division and of any of sections 18, 18.0.1.1 and 18.0.1.2, the rules set out in the second paragraph apply if

(1)  a registrant (in this section referred to as the “lessee”) is the recipient of a particular taxable supply of corporeal movable property made by way of lease, licence or similar arrangement by a particular non-resident person;

(2)  another registrant acquires physical possession of the property at a particular time for the purpose of making a taxable supply in Québec of a commercial service in respect of the property to the particular non-resident person or to another non-resident person; and

(3)  the other registrant retains physical possession of the property during a part of the particular period during which possession or use of the property is provided to the lessee under the arrangement.

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

(1)  where a third person other than the lessee causes physical possession of the property to be transferred to the other registrant at the particular time, where the particular time is during the particular period and where the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in subparagraphs 2 and 3 of the first paragraph,

(a)  the third person is deemed not to have caused that transfer of physical possession of the property, and

(b)  the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the other registrant at the place where the other registrant acquires physical possession of the property; and

(2)  where the other registrant causes, at a later time that is after the particular time but during the particular period, physical possession of the property to be transferred at a particular place to a third person other than the lessee and the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in subparagraphs 2 and 3 of the first paragraph,

(a)  the other registrant is deemed to have caused, at the later time, physical possession of the property to be transferred to the lessee at the particular place,

(b)  the lessee is deemed to have acquired physical possession of the property as the recipient of the particular taxable supply at the later time and at the place where the property is delivered or made available to the lessee under the arrangement, and

(c)  the other registrant is deemed not to have caused physical possession of the property to be transferred to the third person, and the third person is deemed not to have acquired physical possession of the property.

2021, c. 14, s. 232; 2022, c. 23, s. 194.

2021-06-02

327.6.4. For the purposes of this division and of section 18, the rules set out in the second paragraph apply if

(1)  a registrant (in this section referred to as the “lessee”) is the recipient of a particular taxable supply of corporeal movable property made by way of lease, licence or similar arrangement by a particular non-resident person;

(2)  another registrant acquires physical possession of the property at a particular time for the purpose of making a taxable supply in Québec of a commercial service in respect of the property to the particular non-resident person or to another non-resident person; and

(3)  the other registrant retains physical possession of the property during a part of the particular period during which possession or use of the property is provided to the lessee under the arrangement.

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

(1)  where a third person other than the lessee causes physical possession of the property to be transferred to the other registrant at the particular time, where the particular time is during the particular period and where the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in subparagraphs 2 and 3 of the first paragraph,

(a)  the third person is deemed not to have caused that transfer of physical possession of the property, and

(b)  the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the other registrant at the place where the other registrant acquires physical possession of the property; and

(2)  where the other registrant causes, at a later time that is after the particular time but during the particular period, physical possession of the property to be transferred at a particular place to a third person other than the lessee and the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in subparagraphs 2 and 3 of the first paragraph,

(a)  the other registrant is deemed to have caused, at the later time, physical possession of the property to be transferred to the lessee at the particular place,

(b)  the lessee is deemed to have acquired physical possession of the property as the recipient of the particular taxable supply at the later time and at the place where the property is delivered or made available to the lessee under the arrangement, and

(c)  the other registrant is deemed not to have caused physical possession of the property to be transferred to the third person, and the third person is deemed not to have acquired physical possession of the property.

2021, c. 14, s. 232.