T-0.1 - Act respecting the Québec sales tax

Section 191.3.1 Disposition versions

2001-12-20

191.3.1. The following supplies are zero-rated supplies:

(1)  a supply of a continuous transmission commodity made by a supplier (in this section referred to as the “first seller”) to a person (in this section referred to as the “first buyer”) who is not registered under Division I of Chapter VIII, if

(a)  the first buyer makes a supply of the commodity to a registrant and delivers it in Québec to the registrant,

(b)  all or part of the consideration for the first buyer’s supply of the commodity to the registrant is property of the same class or kind delivered to the first buyer outside Québec,

(c)  after the commodity is delivered to the first buyer and before the first buyer delivers it to the registrant,

i.  the first buyer does not use the commodity except, in the case of natural gas, to the extent that it is used by a carrier as fuel or compressor gas to transport the gas by pipeline, and

ii.  the commodity is not, except to the extent reasonably necessary or incidental to its transportation, further processed, transformed or altered other than, in the case of natural gas, to recover natural gas liquids or ethane from the gas at a straddle plant,

(d)  after the first seller’s supply is made and before the registrant receives delivery of the commodity, the commodity is not transported by any means other than a wire, pipeline or other conduit, and

(e)  the first seller maintains evidence satisfactory to the Minister of the first buyer’s supply of the commodity to the registrant; and

(2)  a supply of any service, supplied by the registrant to the first buyer, of arranging for or effecting the exchange of the commodity for the property of the same class or kind, if the first buyer is a person not resident in Québec.

2001, c. 53, s. 310.