T-0.1 - Act respecting the Québec sales tax

Section 297.7.1 Disposition versions

1995-12-15

297.7.1. Where, at any time when an approval granted by the Minister under section 297.1.4 in respect of a distributor of a direct seller is in effect, the distributor makes in Québec a taxable supply by way of sale, other than a zero-rated supply, of an exclusive product of the direct seller to an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under section 297.1.4 is in effect at that time or becomes effective immediately after that time, the following rules apply:

(1)  the supply is deemed to have been made for consideration, that becomes due and is paid at the particular time that is the earlier of the time when any part of the consideration for the supply becomes due and the time when any part of that consideration is paid, equal to the suggested retail price of the product at the time the supply is made;

(2)  tax is deemed not to be payable by the contractor in respect of the supply;

(3)  the contractor is not entitled to any rebate under sections 400 to 402.0.2 in respect of the supply; and

(4)  in determining the net tax of the distributor for the reporting period of the distributor that includes the particular time, there shall be added an amount equal to tax calculated on the suggested retail price of the product at the time the supply is made.

1995, c. 63, s. 394.