T-0.1 - Act respecting the Québec sales tax

Section 255.0.1 Disposition versions

2015-10-21

255.0.1. If a registrant (other than an individual or a partnership) that is a municipality or a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle of a person designated to be a municipality for the purposes of that subdivision 5 that is not designated municipal property of the person) that, immediately before the particular time, was capital property of the registrant, the registrant may, despite sections 203 to 206, paragraph 1 of section 240 and sections 241 and 248, claim an input tax refund for that period equal to the lesser of

(1)  the amount determined by the formula

A × (B - C) / B; and

(2)  an amount equal to the tax that is payable in respect of the taxable supply or that would be so payable but for sections 75.1 and 80.

For the purposes of the formula in the first paragraph,

(1)  A is the basic tax content of the vehicle at the particular time;

(2)  B is the total of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the vehicle by the registrant and the tax payable by the registrant in respect of improvements to the vehicle acquired or brought into Québec by the registrant after the property was last acquired or brought into Québec; and

(3)  C is the total of all input tax refunds that the registrant is entitled to claim in respect of any tax included in the total described in subparagraph 2.

2015, c. 21, s. 672.