T-0.1 - Act respecting the Québec sales tax

Section 191.3.3 Disposition versions

2001-12-20

191.3.3. A supply made by a person to a recipient not resident in Québec who is not registered under Division I of Chapter VIII of a service of storing natural gas for a period, or of taking up surplus natural gas of the recipient for a period, and returning the gas to the recipient at the end of the period is a zero-rated supply if

(1)  at the end of the period, the gas is to be delivered to the recipient to be shipped outside Québec;

(2)  at the end of the period, where the gas is exported outside Canada, the recipient holds a valid licence or order for the shipment of the natural gas issued under the National Energy Board Act (Revised Statutes of Canada, 1985, chapter N-6); and

(3)  it is not the case that, at or before the latest time at which tax in respect of the supply would have become payable if the supply had not been a zero-rated supply, the person knew or could reasonably be expected to have known either that

(a)  the recipient would not ship the gas outside Québec as soon after the end of the period as is reasonable, having regard to the circumstances surrounding the shipment outside Québec and, where applicable, to the normal business practice of the recipient, or

(b)  the gas would not be shipped outside Québec

i.  in the same measure as was stored or taken up except for any loss due to its use by a carrier as fuel or compressor gas for transporting the gas by pipeline, and

ii.  in the same state except to the extent of any processing or alteration reasonably necessary or incidental to its transportation or necessary to recover natural gas liquids or ethane from the gas at a straddle plant.

2001, c. 53, s. 310.