T-0.1 - Act respecting the Québec sales tax

Section 327.1 Disposition versions

2021-06-02

327.1. The rules set out in the second paragraph apply if

(1)  a registrant

(a)  makes a taxable supply in Québec of particular corporeal movable property by way of sale to a non-resident person,

(b)  makes a taxable supply in Québec of a service of manufacturing or producing particular corporeal movable property to a non-resident person,

(c)  acquires physical possession of particular corporeal movable property (other than property of a person that is resident in Québec) for the purpose of making a taxable supply in Québec of a commercial service in respect of the particular property to a non-resident person, or

(d)  acquires—as the recipient of a supply of particular corporeal movable property made by way of lease, licence or similar arrangement by a non-resident person—physical possession of the particular property and either

i.  gives a certificate described in subparagraph 4 of the first paragraph of section 327.2 in respect of the acquisition of physical possession of the particular property, or

ii.  claims an input tax refund in respect of tax that is deemed to have been paid by the registrant under subparagraph 1 of the first paragraph of section 327.7 in respect of the particular property;

(2)  the registrant, at a particular time, causes physical possession of the particular property to be transferred, at a place in Québec, to a third person (in this section referred to as the “consignee”) or to the non-resident person; and

(3)  the non-resident person is not a consumer of the particular property.

The rules to which the first paragraph refers are as follows:

(1)  the registrant is deemed to have made a taxable supply in Québec of the particular property to the non-resident person and the non-resident person is deemed to have received the taxable supply from the registrant;

(2)  the taxable supply is deemed to have been made for consideration, that becomes due and is paid at the particular time, equal to

(a)  except where subparagraph b applies, the fair market value of the particular property at the particular time, and

(b)  where the registrant has caused physical possession of the particular property to be transferred to a consignee that is acquiring physical possession of the particular property as the recipient of a supply made by the non-resident person by way of sale for no consideration, nil; and

(3)  the registrant is deemed not to have made the taxable supply referred to in any of subparagraphs a to c of subparagraph 1 of the first paragraph in respect of the particular property to the non-resident person, unless that supply is a supply of a service of storing the particular property.

1995, c. 1, s. 293; 1995, c. 63, s. 412; 1997, c. 85, s. 616; 2021, c. 14, s. 228.

1997-12-19

327.1. Where a registrant, under an agreement between the registrant and a non-resident person, makes a taxable supply in Québec of corporeal movable property by way of sale, or a taxable supply in Québec of a service of manufacturing or producing corporeal movable property, to the non-resident person, or acquires physical possession of corporeal movable property, other than property of a person who is resident in Québec or is registered under Division I of Chapter VIII, for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person and where, under the agreement, the registrant at any time causes physical possession of the property to be transferred, at a place in Québec, to a third person (in this section referred to as the “consignee”) or to the non-resident person, the following rules apply:

(1)  the registrant is deemed to have made to the non-resident person, and the non-resident person is deemed to have received from the registrant, a taxable supply of the property which is deemed to have been made for consideration, that becomes due and is paid at that time, equal to

(a)  where the registrant has caused physical possession of the property to be transferred to a consignee to whom the non-resident person has supplied the property for no consideration, nil, and

(b)  in any other case, the fair market value of the property at that time; and

(2)  where the registrant made a supply of a service of manufacturing or producing the property or of a commercial service in respect of the property to the non-resident person, except in the case of a supply of a service of storing or shipping the property, the registrant is deemed not to have made that supply of the service.

This section does not apply if the non-resident person is a consumer of the property or service supplied by the registrant under the agreement.

1995, c. 1, s. 293; 1995, c. 63, s. 412; 1997, c. 85, s. 616.

1995-12-15

327.1. Where a registrant, under an agreement between the registrant and a non-resident person, makes a taxable supply in Québec of corporeal movable property by way of sale, or a taxable supply in Québec of a service of manufacturing or producing corporeal movable property, to the non-resident person, or acquires physical possession of corporeal movable property, other than property of a person who is resident in Québec, for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person and where, under the agreement, the registrant at any time causes physical possession of the property to be transferred, at a place in Québec, to a third person (in this section referred to as the “consignee”) or to the non-resident person, the following rules apply:

(1)  the registrant is deemed to have made to the non-resident person, and the non-resident person is deemed to have received from the registrant, a taxable supply of the property for consideration, that becomes due and is paid at that time, equal to

(a)  where the registrant has caused physical possession of the property to be transferred to a consignee and no supply of the property is made to the consignee for consideration, nil,

(b)  where the registrant has caused physical possession of the property to be transferred to a consignee and a supply of the property is made to the consignee for consideration, the total of

i.  the fair market value of the property at that time, and

ii.  where the registrant supplied a service in respect of the property to the non-resident person and the consideration for the supply is not included in the fair market value of the property determined under subparagraph i, the consideration for the supply of the service in respect of the property, and

(c)  where the registrant has caused physical possession of the property to be transferred to the non-resident person or a consignee, the total of

i.  the fair market value of the property at that time, and

ii.  where the registrant supplied a service in respect of the property to the non-resident person and the consideration for the supply is not included in the fair market value of the property determined under subparagraph i, that consideration; and

(2)  where the registrant made a supply of a service of manufacturing or producing the property or of a commercial service in respect of the property to the non-resident person, the registrant is deemed not to have made that supply of the service.

This section does not apply if the non-resident person is a consumer of the property or service supplied by the registrant under the agreement.

1995, c. 1, s. 293; 1995, c. 63, s. 412.

1995-01-30

327.1. Where a registrant, under an agreement between the registrant and a non-resident person, makes a taxable supply in Québec of corporeal movable property by way of sale, or a taxable supply in Québec of a service of manufacturing or producing corporeal movable property, to the non-resident person, or acquires physical possession of corporeal movable property, other than property of a person who is resident in Québec, for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person and where, under the agreement, the registrant at any time causes physical possession of the property to be transferred, at a place in Québec, to a third person (in this section referred to as the “consignee”) or to the non-resident person, the following rules apply:

(1)  the registrant is deemed to have made to the non-resident person, and the non-resident person is deemed to have received from the registrant, a taxable supply of the property for consideration, that becomes due and is paid at that time, equal to

(a)  where the registrant has caused physical possession of the property to be transferred to a consignee and no supply of the property is made to the consignee for consideration, nil,

(b)  where the registrant has caused physical possession of the property to be transferred to a consignee and a supply of the property is made to the consignee for consideration, the total of

i.  the fair market value of the property at that time, and

ii.  where the registrant supplied a service in respect of the property to the non-resident person and the consideration for the supply is not included in the fair market value of the property determined under subparagraph i, the consideration for the supply of the service in respect of the property, and

(c)  where the registrant has caused physical possession of the property to be transferred to the non-resident person or a consignee, the total of

i.  the fair market value of the property at that time, and

ii.  where the registrant supplied a service in respect of the property to the non-resident person and the consideration for the supply is not included in the fair market value of the property determined under subparagraph i, that consideration; and

(2)  where the registrant made a supply of a service of manufacturing or producing the property or of a commercial service in respect of the property to the non-resident person, the registrant is deemed not to have made that supply of the service.

This section does not apply if the non-resident person is a consumer of the property or service supplied by the registrant under the agreement or if the property or service is a prescribed property or service supplied in prescribed circumstances.

1995, c. 1, s. 293.