T-0.1 - Act respecting the Québec sales tax

Section 297.0.21 Disposition versions

2011-06-06

297.0.21. If a registrant that is a network seller in respect of which an approval granted under section 297.0.7 is in effect and that, in the course of commercial activities of the registrant, has acquired, manufactured or produced property (other than a select product of the network seller), or has acquired or performed a service, appropriates the property or service, at any time, for the benefit of any of the sales representatives of the network seller or of an individual related to the sales representative (otherwise than by way of a supply made for consideration equal to the fair market value of the property or service), and the sales representative or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, the registrant shall be deemed

(1)  to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and

(2)  to have collected, at that time, tax in respect of the supply, unless the supply is an exempt supply, calculated on that consideration.

This section does not apply to property or a service appropriated by a registrant that was not entitled to claim an input tax refund in respect of the property or service because of section 203 or 206.

2011, c. 6, s. 254.