T-0.1 - Act respecting the Québec sales tax

Section 327.6.6 Disposition versions

2023-03-15

327.6.6. For the purposes of sections 327 to 327.6.5, substitute corporeal movable property is deemed to be the original corporeal movable property if

(1)  one of the following conditions is met:

(a)  a registrant acquires physical possession of the original corporeal movable property for the purpose of making a supply of a service of manufacturing or producing corporeal movable property (in this subparagraph referred to as the “manufactured property”) and the substitute corporeal movable property is used or consumed by being

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

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

(b)  the following conditions are met:

i.  a registrant acquires physical possession of the original corporeal movable property for the purpose of making a supply of a commercial service in respect of that property,

ii.  if the commercial service is not a storage service, a service identical to the commercial service is performed in respect of the substitute corporeal movable property,

iii.  the registrant causes physical possession of the substitute corporeal movable property to be transferred to another person under the agreement for the supply, and

iv.  if the substitute corporeal movable property is a continuous transmission commodity, it is not being transferred to the other person by means of a wire, pipeline or other conduit, or

(c)  a registrant acquires physical possession of the original corporeal movable property for the purpose of making a supply of a commercial service in respect of corporeal movable property (in this subparagraph referred to as the “serviced property”) that is neither the original corporeal movable property nor the substitute corporeal movable property and the substitute corporeal movable property is used or consumed by being

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

ii.  directly consumed or used in the provision of the commercial service; and

(2)  the properties of the original corporeal movable property are essentially identical to the properties of the substitute corporeal movable property and the original corporeal movable property and the substitute corporeal movable property

(a)  are of the same class or kind of property,

(b)  are in the same measure and state, and

(c)  are interchangeable for commercial purposes.

2023, c. 2, s. 89.