T-0.1 - Act respecting the Québec sales tax

Section 297.5 Disposition versions

1995-12-15

297.5. Subject to the second paragraph, where, at any time when an approval granted by the Minister under section 297.1.3 in respect of a direct seller is in effect, a particular independent sales contractor of the direct seller, other than a distributor in respect of whom an approval granted under section 297.1.4 is in effect at that time or becomes effective immediately after that time, makes in Québec a particular taxable supply by way of sale, other than a zero-rated supply, of an exclusive product of the direct seller, the following rules apply:

(1)  if the recipient of the particular taxable supply is another independent sales contractor of the direct seller, the particular taxable supply is deemed, except for the purposes of section 297.1 and sections 297.2 to 297.7, not to have been made by the particular contractor and not to have been received by the other contractor; and

(2)  if the recipient of the particular taxable supply is a person other than the direct seller or another independent sales contractor of the direct seller,

(a)  the particular taxable supply is deemed, except for the purposes of sections 297.1, 297.7 and 297.11, to be a taxable supply made by the direct seller, and not by the particular contractor, for consideration equal to the lesser of the actual consideration for the supply and the suggested retail price of the product at the time the particular taxable supply is made,

(b)  any tax in respect of the particular taxable supply that is collected by the particular contractor is deemed to have been collected on behalf of the direct seller, and

(c)  tax in respect of the particular taxable supply shall not be included in determining the net tax of the direct seller for any reporting period.

This section applies where section 297.2 applied in respect of a supply of an exclusive product made at an earlier time or where section 297.7.5 applied at an earlier time in respect of the exclusive product.

1994, c. 22, s. 519; 1995, c. 63, s. 391.

1994-06-17

297.5. Where an independent sales contractor of a direct seller makes in Québec a taxable supply by way of sale, other than a zero-rated supply, of an exclusive product of the direct seller to a purchaser and has paid the amount under section 297.2 or 297.3 in respect of the acquisition of the product to a collection officer, the following rules apply:

(1)  if the contractor is not a registrant, sections 437 and 470 do not apply; and

(2)  if the contractor is a registrant, the tax collected or that becomes collectible by the contractor in respect of the supply shall not be included in determining the net tax of the contractor.

1994, c. 22, s. 519.