T-0.1 - Act respecting the Québec sales tax

Section 73 Disposition versions

1994-06-17

73. (Repealed).

1991, c. 67, s. 73; 1993, c. 19, s. 179; 1994, c. 22, s. 403.

1993-06-15

73. Where a supplier makes, in Québec, a taxable supply or a non-taxable supply of property or a service, other than a zero-rated supply, and a particular person acquires the property or service either from the supplier or from another person and is, at any time, paid a rebate by the supplier in respect of the property or service,

(1)  where the supply by the supplier was made at a time when the supplier was a registrant, for the purpose of determining an input tax refund, the supplier is deemed

(a)  to have received a taxable supply of a service for use exclusively in the course of a commercial activity of the supplier; and

(b)  to have paid, at that time, tax in respect of the supply equal to the amount obtained by multiplying the amount of the rebate by the tax fraction relating to the property or service in respect of which the rebate is paid;

(2)  where the particular person is a registrant who is entitled to claim an input tax refund or a rebate of tax under Division I of Chapter VII in respect of the acquisition of the property or service, the particular person is deemed,

(a)  to have made a taxable supply of a service; and

(b)  to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula

                         BŠ                    A x --- x D.Š                         C

For the purposes of this formula,

(1)  A is the tax fraction relating to the property or service in respect of which the rebate is paid;

(2)  B is the input tax refund or the rebate of tax under Division I of Chapter VII of the particular person in respect of the acquisition of the property or service;

(3)  C is the total tax payable by the particular person in respect of the acquisition of the property or service by the particular person; and

(4)  D is the amount of the rebate paid to the particular person by the supplier.

However, where a rebate in respect of a non-taxable supply is paid to a particular person who is a registrant, subparagraph 1 of the first paragraph does not apply.

1991, c. 67, s. 73; 1993, c. 19, s. 179.

1992-07-01

73. Where a supplier makes, in Québec, a taxable supply or a non-taxable supply of property or a service, other than a zero-rated supply, and a particular person acquires the property or service either from the supplier or from another person and is, at any time, paid a rebate by the supplier in respect of the property or service,

(1)  where the supply by the supplier was made at a time when the supplier was a registrant, for the purpose of determining an input tax refund, the supplier is deemed

(a)  to have received a taxable supply of a service for use exclusively in the course of a commercial activity of the supplier; and

(b)  to have paid, at that time, tax in respect of the supply equal to the tax fraction of the amount of the rebate;

(2)  where the particular person is a registrant who is entitled to claim an input tax refund or a rebate of tax under Division I of Chapter VII in respect of the acquisition of the property or service, the particular person is deemed,

(a)  to have made a taxable supply of a service; and

(b)  to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula

                         BŠ                    A x --- x D.Š                         C

For the purposes of this formula,

(1)  A is the tax fraction;

(2)  B is the input tax refund or the rebate of tax under Division I of Chapter VII of the particular person in respect of the acquisition of the property or service;

(3)  C is the total tax payable by the particular person in respect of the acquisition of the property or service by the particular person; and

(4)  D is the amount of the rebate paid to the particular person by the supplier.

However, where a rebate in respect of a non-taxable supply is paid to a particular person who is a registrant, subparagraph 1 of the first paragraph does not apply.

1991, c. 67, s. 73.