T-0.1 - Act respecting the Québec sales tax

Section 350.23.1 Disposition versions

2020-09-24

350.23.1. For the purposes of this division,

“added property” that is in the possession of a person means corporeal movable property or software that the person incorporates into, attaches to, combines or assembles with, or uses to pack, other property that is not property of the person held otherwise than for sale by the person;

“base value” of property that a person brings into Québec or obtains physical possession of in Québec means

(1)  if the person brings the property into Québec, the value of the property within the meaning of the second paragraph of section 17, or within the meaning that would be assigned by that paragraph but for the third paragraph of that section; and

(2)  in any other case, the fair market value of the property at the time the person obtains physical possession of it in Québec;

“basic service” means any of the following services performed at any time in respect of goods, to the extent that, if the goods were held in a bonded warehouse at that time, it would be feasible, given the stage of processing of the goods at that time, to perform that service in the bonded warehouse and it would be permissible to do so according to the Customs Bonded Warehouses Regulations made under the Customs Tariff (S.C. 1997, c. 36):

(1)  disassembling or reassembling, if the goods have been assembled or disassembled for packing, handling or transportation purposes;

(2)  displaying;

(3)  inspecting;

(4)   labelling;

(5)  packing;

(6)  removing, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods;

(7)  storing;

(8)  testing; or

(9)  any of the following that do not materially alter the characteristics of the goods:

(a)  cleaning,

(b)  complying with any applicable law of Canada or of Québec,

(c)  diluting,

(d)  normal maintenance and servicing,

(e)  preserving,

(f)  separating defective goods from prime quality goods,

(g)  sorting or grading, and

(h)  trimming, filing, slitting or cutting;

“customer’s good” in respect of a particular person means corporeal movable property of another person that the particular person brings into Québec, or obtains physical possession of in Québec, for the purpose of supplying a service or added property in respect of the corporeal movable property;

“domestic inventory” of a person means corporeal movable property that the person acquires in Québec or brings into Québec, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person;

“finished inventory” of a person means property of the person, other than capital property of the person, that is in the state at which it is intended to be sold by the person, or to be used by the person as added property, in the course of a business carried on by the person;

“labelling” includes marking, tagging and ticketing;

“packing” includes unpacking, repacking, packaging and repackaging;

“processing” includes adjusting, altering, assembling and a basic service;

“shipping revenue” of a particular person for a fiscal year means the total of all amounts each of which is consideration, included in determining the specified total revenue of the person for the fiscal year, for

(1)  a supply by way of sale of an item of domestic inventory of the person that is made outside Québec or referred to in Division V of Chapter IV, other than a supply referred to in any of sections 180.1, 181, 189, 191.2 and 191.3.1;

(2)  a supply by way of sale of added property acquired by the person for the purpose of processing in Québec property where that property, or the product resulting from that processing, as the case may be, is shipped outside Québec, after that processing is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by another person except to the extent reasonably necessary or incidental to the transportation of that property or that product; or

(3)  a supply of a service of processing, storing or distributing corporeal movable property of another person if the property, or all the products resulting from that processing, as the case may be, are shipped outside Québec, after the processing in Québec, if any, by the particular person is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by any other person except to the extent reasonably necessary or incidental to the transportation of that property or those products;

“shipping revenue percentage” of a person for a fiscal year means the proportion expressed as a percentage that the person’s shipping revenue for the fiscal year is of the person’s specified total revenue for the fiscal year;

“specified total revenue” of a person for a fiscal year means the total of all amounts each of which is consideration, included in determining the income from a business of the person for the fiscal year, for a supply made by the person, or that would be made by the person but for any provision of this Title that deems the supply to be made by another person, other than

(1)  a supply of a service in respect of property that the person neither brings into Québec nor obtains physical possession of in Québec for the purpose of providing the service;

(2)  a supply by way of sale of property that the person acquired for the purpose of selling it, or selling other property to which the property has been added or with which the property has been combined, for consideration but that is neither acquired in Québec nor brought into Québec by the person;

(3)  a supply by way of sale of added property that the person acquired for the purpose of processing corporeal movable property that the person neither brings into Québec nor obtains physical possession of in Québec; and

(4)  a supply by way of sale of capital property of the person;

“substantial alteration of property” by a person, in a fiscal year of the person, means

(1)  manufacturing or producing, or engaging another person to manufacture or produce, property other than capital property of the person at any time in the fiscal year in the course of a business carried on by the person; or

(2)  any processing undertaken by or for the person during the fiscal year to bring property of the person to a state at which the property or the product of that processing is finished inventory of the person, if

(a)  the person’s percentage value added attributable to non-basic services in respect of finished inventory of the person for the fiscal year exceeds 10%, and

(b)  the person’s percentage total value added in respect of finished inventory of the person for the fiscal year exceeds 20%.

2003, c. 2, s. 335; 2015, c. 21, s. 695; I.N. 2020-10-20.

2015-10-21

350.23.1. For the purposes of this division,

“added property” that is in the possession of a person means corporeal movable property or software that the person incorporates into, attaches to, combines or assembles with, or uses to pack, other property that is not property of the person held otherwise than for sale by the person;

“base value” of property that a person brings into Québec or obtains physical possession of in Québec means

(1)  if the person brings the property into Québec, the value of the property within the meaning of the second paragraph of section 17, or within the meaning that would be assigned by that paragraph but for the third paragraph of that section; and

(2)  in any other case, the fair market value of the property at the time the person obtains physical possession of it in Québec;

“basic service” means any of the following services performed at any time in respect of goods, to the extent that, if the goods were held in a bonded warehouse at that time, it would be feasible, given the stage of processing of the goods at that time, to perform that service in the bonded warehouse and it would be permissible to do so according to the Customs Bonded Warehouses Regulations made under the Customs Tariff (Revised Statutes of Canada, 1985, chapter 41, 3rd Supplement):

(1)  disassembling or reassembling, if the goods have been assembled or disassembled for packing, handling or transportation purposes;

(2)  displaying;

(3)  inspecting;

(4)   labelling;

(5)  packing;

(6)  removing, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods;

(7)  storing;

(8)  testing; or

(9)  any of the following that do not materially alter the characteristics of the goods:

(a)  cleaning,

(b)  complying with any applicable law of Canada or of Québec,

(c)  diluting,

(d)  normal maintenance and servicing,

(e)  preserving,

(f)  separating defective goods from prime quality goods,

(g)  sorting or grading, and

(h)  trimming, filing, slitting or cutting;

“customer’s good” in respect of a particular person means corporeal movable property of another person that the particular person brings into Québec, or obtains physical possession of in Québec, for the purpose of supplying a service or added property in respect of the corporeal movable property;

“domestic inventory” of a person means corporeal movable property that the person acquires in Québec or brings into Québec, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person;

“finished inventory” of a person means property of the person, other than capital property of the person, that is in the state at which it is intended to be sold by the person, or to be used by the person as added property, in the course of a business carried on by the person;

“labelling” includes marking, tagging and ticketing;

“packing” includes unpacking, repacking, packaging and repackaging;

“processing” includes adjusting, altering, assembling and a basic service;

“shipping revenue” of a particular person for a fiscal year means the total of all amounts each of which is consideration, included in determining the specified total revenue of the person for the fiscal year, for

(1)  a supply by way of sale of an item of domestic inventory of the person that is made outside Québec or referred to in Division V of Chapter IV, other than a supply referred to in any of sections 180.1, 181, 189, 191.2 and 191.3.1;

(2)  a supply by way of sale of added property acquired by the person for the purpose of processing in Québec property where that property, or the product resulting from that processing, as the case may be, is shipped outside Québec, after that processing is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by another person except to the extent reasonably necessary or incidental to the transportation of that property or that product; or

(3)  a supply of a service of processing, storing or distributing corporeal movable property of another person if the property, or all the products resulting from that processing, as the case may be, are shipped outside Québec, after the processing in Québec, if any, by the particular person is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by any other person except to the extent reasonably necessary or incidental to the transportation of that property or those products;

“shipping revenue percentage” of a person for a fiscal year means the proportion expressed as a percentage that the person’s shipping revenue for the fiscal year is of the person’s specified total revenue for the fiscal year;

“specified total revenue” of a person for a fiscal year means the total of all amounts each of which is consideration, included in determining the income from a business of the person for the fiscal year, for a supply made by the person, or that would be made by the person but for any provision of this Title that deems the supply to be made by another person, other than

(1)  a supply of a service in respect of property that the person neither brings into Québec nor obtains physical possession of in Québec for the purpose of providing the service;

(2)  a supply by way of sale of property that the person acquired for the purpose of selling it, or selling other property to which the property has been added or with which the property has been combined, for consideration but that is neither acquired in Québec nor brought into Québec by the person;

(3)  a supply by way of sale of added property that the person acquired for the purpose of processing corporeal movable property that the person neither brings into Québec nor obtains physical possession of in Québec; and

(4)  a supply by way of sale of capital property of the person;

“substantial alteration of property” by a person, in a fiscal year of the person, means

(1)  manufacturing or producing, or engaging another person to manufacture or produce, property other than capital property of the person at any time in the fiscal year in the course of a business carried on by the person; or

(2)  any processing undertaken by or for the person during the fiscal year to bring property of the person to a state at which the property or the product of that processing is finished inventory of the person, if

(a)  the person’s percentage value added attributable to non-basic services in respect of finished inventory of the person for the fiscal year exceeds 10%, and

(b)  the person’s percentage total value added in respect of finished inventory of the person for the fiscal year exceeds 20%.

2003, c. 2, s. 335; 2015, c. 21, s. 695.

2003-07-03

350.23.1. For the purposes of this division,

“added property” that is in the possession of a person means corporeal movable property or software that the person incorporates into, attaches to, combines or assembles with, or uses to pack, other property that is not property of the person held otherwise than for sale by the person;

“base value” of property that a person brings into Québec or obtains physical possession of in Québec means

(1)  if the person brings the property into Québec, the value of the property within the meaning of the second paragraph of section 17, or within the meaning that would be assigned by that paragraph but for the third paragraph of that section; and

(2)  in any other case, the fair market value of the property at the time the person obtains physical possession of it in Québec;

“basic service” means any of the following services performed at any time in respect of goods, to the extent that, if the goods were held in a bonded warehouse at that time, it would be feasible, given the stage of processing of the goods at that time, to perform that service in the bonded warehouse and it would be permissible to do so according to the Customs Bonded Warehouses Regulations made under the Customs Tariff (Revised Statutes of Canada, 1985, chapter 41, 3rd Supplement):

(1)  disassembling or reassembling, if the goods have been assembled or disassembled for packing, handling or transportation purposes;

(2)  displaying;

(3)  inspecting;

(4)   labelling;

(5)  packing;

(6)  removing, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods;

(7)  storing;

(8)  testing; or

(9)  any of the following that do not materially alter the characteristics of the goods:

(a)  cleaning,

(b)  complying with any applicable law of Canada or of Québec,

(c)  diluting,

(d)  normal maintenance and servicing,

(e)  preserving,

(f)  separating defective goods from prime quality goods,

(g)  sorting or grading, and

(h)  trimming, filing, slitting or cutting;

“customer’s good” in respect of a particular person means corporeal movable property of another person that the particular person brings into Québec, or obtains physical possession of in Québec, for the purpose of supplying a service or added property in respect of the corporeal movable property;

“domestic inventory” of a person means corporeal movable property that the person acquires in Québec or brings into Québec, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person;

“finished inventory” of a person means property of the person, other than capital property of the person, that is in the state at which it is intended to be sold by the person, or to be used by the person as added property, in the course of a business carried on by the person;

“fiscal year” of a person has the meaning assigned by section 458.1;

“labelling” includes marking, tagging and ticketing;

“packing” includes unpacking, repacking, packaging and repackaging;

“processing” includes adjusting, altering, assembling and a basic service;

“shipping revenue” of a particular person for a fiscal year means the total of all amounts each of which is consideration, included in determining the specified total revenue of the person for the fiscal year, for

(1)  a supply by way of sale of an item of domestic inventory of the person that is made outside Québec or referred to in Division V of Chapter IV, other than a supply referred to in any of sections 180.1, 181, 189, 191.2 and 191.3.1;

(2)  a supply by way of sale of added property acquired by the person for the purpose of processing in Québec property where that property, or the product resulting from that processing, as the case may be, is shipped outside Québec, after that processing is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by another person except to the extent reasonably necessary or incidental to the transportation of that property or that product; or

(3)  a supply of a service of processing, storing or distributing corporeal movable property of another person if the property, or all the products resulting from that processing, as the case may be, are shipped outside Québec, after the processing in Québec, if any, by the particular person is complete, without being consumed, used, transformed or further processed, manufactured or produced in Québec by any other person except to the extent reasonably necessary or incidental to the transportation of that property or those products;

“shipping revenue percentage” of a person for a fiscal year means the proportion expressed as a percentage that the person’s shipping revenue for the fiscal year is of the person’s specified total revenue for the fiscal year;

“specified total revenue” of a person for a fiscal year means the total of all amounts each of which is consideration, included in determining the income from a business of the person for the fiscal year, for a supply made by the person, or that would be made by the person but for any provision of this Title that deems the supply to be made by another person, other than

(1)  a supply of a service in respect of property that the person neither brings into Québec nor obtains physical possession of in Québec for the purpose of providing the service;

(2)  a supply by way of sale of property that the person acquired for the purpose of selling it, or selling other property to which the property has been added or with which the property has been combined, for consideration but that is neither acquired in Québec nor brought into Québec by the person;

(3)  a supply by way of sale of added property that the person acquired for the purpose of processing corporeal movable property that the person neither brings into Québec nor obtains physical possession of in Québec; and

(4)  a supply by way of sale of capital property of the person;

“substantial alteration of property” by a person, in a fiscal year of the person, means

(1)  manufacturing or producing, or engaging another person to manufacture or produce, property other than capital property of the person at any time in the fiscal year in the course of a business carried on by the person; or

(2)  any processing undertaken by or for the person during the fiscal year to bring property of the person to a state at which the property or the product of that processing is finished inventory of the person, if

(a)  the person’s percentage value added attributable to non-basic services in respect of finished inventory of the person for the fiscal year exceeds 10%, and

(b)  the person’s percentage total value added in respect of finished inventory of the person for the fiscal year exceeds 20%.

2003, c. 2, s. 335.