T-0.1 - Act respecting the Québec sales tax

Section 75.5 Disposition versions

2009-05-15

75.5. If a supplier and a recipient make a joint election referred to in section 75.4 in respect of a qualifying supply made at a particular time, the following rules apply:

(1)  no tax is payable in respect of the supply of a property or service made under the agreement for the qualifying supply other than

(a)  a taxable supply of a service that is to be rendered by the supplier,

(b)  a taxable supply of a service unless paragraph 1 of section 75 applies to the qualifying supply,

(c)  a taxable supply of property by way of lease, licence or similar arrangement,

(d)  if the recipient is not a registrant, a taxable supply by way of sale of an immovable,

(e)  a taxable supply of a property or service, if the property or service was previously supplied under an agreement for a qualifying supply and, because of this section, no tax was payable in respect of that previous supply of a property or service, or

(f)  a taxable supply of incorporeal movable property, other than capital property, if the percentage determined by the following formula is greater than 10%:

A − B;

(2)  if, but for this section, tax would have been payable by the recipient, otherwise than because of section 20.1, in respect of a supply of property made under the agreement for the qualifying supply that is capital property of the supplier that the recipient acquired for use as capital property, the recipient is deemed to have acquired the property for use exclusively in the course of commercial activities of the recipient;

(3)  if, despite this section, tax would not have been payable by the recipient, or would so have been because of section 20.1, in respect of a supply of property made under the agreement for the qualifying supply that is capital property of the supplier that the recipient acquired for use as capital property, the recipient is deemed to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and

(4)  if the recipient acquires, under the agreement for the qualifying supply, property of the supplier that was used by the supplier immediately before the particular time otherwise than as capital property and, but for this section, tax would have been payable by the recipient, otherwise than because of section 20.1, in respect of the supply of the property, the recipient is deemed to have acquired the property for consumption, use or supply in the course of commercial activities of the recipient and otherwise than as capital property.

For the purposes of the formula in subparagraph f of subparagraph 1 of the first paragraph,

(1)  A is the extent, expressed as a percentage of the total use of the property by the supplier, to which the supplier used the property in commercial activities of the supplier immediately before the particular time; and

(2)  B is the extent, expressed as a percentage of the total use of the property by the recipient, to which the recipient used the property in commercial activities of the recipient immediately after the particular time.

2009, c. 5, s. 602.