© Éditeur officiel du Québec
Updated to 1 April 2016
This document has official status.


chapter T-0.1

An Act respecting the Québec sales tax

TITLE I 
QUÉBEC SALES TAX

CHAPTER I 
DEFINITIONS AND INTERPRETATION

DIVISION I 
DEFINITIONS

1. For the purposes of this Title and the regulations made under it, unless the context indicates otherwise,

admission means a right of entry or access to, or attendance at, a place of amusement, a seminar, an activity or an event;

administrator of a pooled registered pension plan has the meaning assigned to “administrator” by the first paragraph of section 965.0.19 of the Taxation Act (chapter I-3);

amount means money, property or a service, expressed in terms of the amount of money or the value in terms of money of the property or service;

asset management service means a service (other than a prescribed service) rendered by a particular person in respect of the assets or liabilities of another person that is a service of

 (a) managing or administering the assets or liabilities, irrespective of the level of discretionary authority the particular person has to manage some or all of the assets or liabilities,

 (b) providing research, analysis, advice or reports in respect of the assets or liabilities,

 (c) determining which assets or liabilities are to be acquired or disposed of, or

 (d) acting to realize performance targets or other objectives in respect of the assets or liabilities;

bank means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act (R.S.C. 1985, c. B-1);

basic tax content, at a particular time, of property of a person means the amount determined by the formula


(A − B) × C,


where

 (1) A is the total of

(a)  the tax that was payable by the person in respect of the last acquisition or bringing into Québec of the property by the person,

(b)  the tax that would have been payable by the person in respect of the last bringing into Québec of the property by the person but for the fact that the person was a registrant, that the property was brought into Québec by the person for consumption or use exclusively in the course of commercial activities of the person and that the person would have been entitled to claim an input tax refund had the person paid the tax in respect of the bringing in,

(c)  the tax that would have been payable by the person in respect of the last bringing into Québec of the property by the person but for the fact that the property was brought into Québec for supply,

(d)  the tax that was payable by the person in respect of an improvement to the property acquired, or brought into Québec, by the person after the property was last acquired or brought into Québec by the person,

(e)  the tax that would have been payable by the person in respect of the bringing into Québec of an improvement to the property but for the fact that the person was a registrant, that the improvement was brought into Québec by the person for consumption or use exclusively in the course of commercial activities of the person and that the person would have been entitled to claim an input tax refund had the person paid the tax in respect of the bringing in after the property was last acquired or brought into Québec by the person,

(f)  the tax under section 16 that would have been payable by the person in respect of the last acquisition of the property by the person or in respect of an improvement to the property acquired by the person after the property was last acquired or brought into Québec by the person, but for sections 54.1, 75.1, 75.3 to 75.9 — in the case of property acquired under an agreement for a qualifying supply that was not, immediately before that acquisition, capital property of the supplier — and 80, or the fact that the property or improvement was acquired by the person for consumption, use or supply exclusively in the course of commercial activities,

(g)  the tax under section 18 or section 18.0.1 that would have been payable by the person in respect of the last acquisition of the property by the person, and the tax under section 18 or section 18.0.1 that would have been payable by the person in respect of an improvement to the property acquired by the person after the property was last acquired or brought into Québec by the person, but for the fact that the person had acquired the property or improvement for consumption, use or supply exclusively in the course of commercial activities of the person, and

(h)  the total of all amounts each of which is determined by the formula


D × E × F/G,


where

(i)  D is an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 1 of section 165 of the Excise Tax Act (R.S.C. 1985, c. E-15) or section 212 or 218 of that Act, in relation to the property, referred to in any of subparagraphs i to iii of the description of A in paragraph a of the definition of “basic tax content” in subsection 1 of section 123 of that Act, that became payable, or would have so become payable in the circumstances described in that subparagraph, by the person while the person was a selected listed financial institution, or while the person would have been such a financial institution for the purposes of that Act if Québec were a participating province, within the meaning of that subsection 1,

(ii)  E is the percentage referred to in subparagraph 3 of the second paragraph of section 433.16 for the person's taxation year that includes the time the amount referred to in subparagraph i so became payable, or would have so become payable, or the percentage taken into account in determining the value of A in the formula in the first paragraph of section 433.16.2 for the reporting period that includes that time,

(iii)  F is the tax rate specified in the first paragraph of section 16, and

(iv)  G is the tax rate specified in subsection 1 of section 165 of the Excise Tax Act;

 (2) B is the total of

(a)  all taxes referred to in any of subparagraphs a to g of paragraph 1 that the person was exempt from paying under any other Act or law,

(a.1)  all taxes (other than tax referred to in subparagraph a) under the first paragraph of section 16 or 17 referred to in any of subparagraphs a to g of paragraph 1 that became payable by the person, or would have so become payable in the circumstances described in that subparagraph, while the person was a selected listed financial institution,

(b)  all amounts (other than input tax refunds and amounts referred to in subparagraphs a and a.1) in respect of tax referred to in subparagraphs a and d of paragraph 1 that the person was entitled to recover by way of rebate, refund or otherwise under this or any other Act or law or would have been entitled to recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and

(c)  all amounts (other than input tax refunds and amounts referred to in subparagraphs a and a.1) in respect of tax referred to in subparagraphs b, c and e to g of paragraph 1 that the person would have been entitled to recover by way of rebate, refund or otherwise under this or any other Act or law or would have been entitled to recover if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities; and

 (3) C is the lesser of 1 and


H/I,


where

(1)   H is the fair market value of the property at the particular time, and

(2)  I is the total of

(a)  the value of the consideration for the last supply of the property to the person or, where the property was last brought into Québec by the person, the value of the property within the meaning of section 17, and

(b)  where the person acquires, or brings into Québec, an improvement to the property after the property was last acquired or brought in, the total of all amounts each of which is the value of the consideration for the supply to the person of such an improvement or, if the improvement is property that was brought into Québec by the person, the value of the property within the meaning of section 17;

builder of a residential complex or of an addition to a multiple unit residential complex means a person who

 (1) at a time when the person has an interest in the immovable on which the complex is situated, carries on or engages another person to carry on for the person

(a)  in the case of an addition to a multiple unit residential complex, the construction of the addition,

(b)  (subparagraph repealed);

(c)  in any other case, the construction or substantial renovation of the complex,

 (2) acquires an interest in the complex at a time when

(a)  in the case of an addition to a multiple unit residential complex, the addition is under construction, and

(b)  in any other case, the complex is under construction or substantial renovation,

 (3) in the case of a mobile home or floating home, makes a supply of the home before the home has been used or occupied by any individual as a place of residence,

 (4) acquires an interest in the complex for the primary purpose of making one or more supplies of the complex or parts thereof or interests therein by way of sale, or making one or more supplies of the complex or parts thereof by way of lease, licence or similar arrangement to persons other than to individuals who are acquiring the complex or parts otherwise than in the course of a business or an adventure or concern in the nature of trade

(a)  in the case of a complex held in co-ownership or residential unit held in co-ownership at a time when the declaration of co-ownership relating to the residential complex is not yet entered in the land register, or

(b)  in any case, before the complex has been occupied by an individual as a place of residence or lodging, or

 (5) in any case, is deemed under section 220 to be a builder of the complex;

however, builder does not include

 (6) an individual described in paragraph 1, 2 or 4 who otherwise than in the course of a business or an adventure or concern in the nature of trade,

(a)  carries on the construction or substantial renovation of the complex,

(b)  engages another person to carry on the construction or substantial renovation of the complex for the individual, or

(c)  acquires the complex or an interest in it,

 (7) an individual described in paragraph 3 who makes a supply of a mobile home or floating home otherwise than in the course of a business or an adventure or concern in the nature of trade, or

 (8) a person described in any of paragraphs 1 to 3 whose only interest in the complex is a right to purchase the complex or an interest in it from a builder of the complex;

business includes a profession, calling, trade, manufacture or undertaking of any kind whatever, whether the activity or undertaking is engaged in for profit or not, and any activity engaged in on a regular or continuous basis that involves the supply of property by way of lease, licence or similar arrangement, but does not include an office or employment;

calendar quarter means a period of three months beginning on the first day of January, April, July or October in each calendar year;

capital property, in respect of a person, means property that is, or that would be if the person were a taxpayer under the Taxation Act (chapter I-3), capital property of the person within the meaning of that Act, other than property described in Class 12, 14 or 44 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1);

carrier means a person who supplies a freight transportation service within the meaning of section 193;

charity means a registered charity or a registered Canadian amateur athletic association, within the meaning assigned by section 1 of the Taxation Act, but does not include a public institution;

closely related group has the meaning assigned by section 330;

commercial activity of a person means

 (1) a business carried on by the person, other than a business carried on without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals, except to the extent to which the business involves the making of exempt supplies by the person,

 (2) an adventure or concern of the person in the nature of trade, other than an adventure or concern engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals, except to the extent to which the adventure or concern involves the making of exempt supplies by the person, and

 (3) the making of a supply, other than an exempt supply, by the person of an immovable of the person, including anything done by the person in the course of or in connection with the making of the supply;

commercial service, in respect of corporeal movable property, means any service in respect of the property other than a service of shipping the property supplied by a carrier and a financial service;

complex held in co-ownership means a residential complex that contains more than one residential unit held in co-ownership;

consideration includes any amount that is payable for a supply by operation of law;

consumer of property or a service means an individual who acquires, or brings into Québec, the property or service at his expense for his personal consumption, use or enjoyment or the personal consumption, use or enjoyment of any other individual, but does not include an individual who acquires, or brings into Québec, the property or service for consumption, use or supply in the course of the commercial activities of the individual or other activities in the course of which the individual makes exempt supplies;

continuous transmission commodity means electricity, crude oil, natural gas, or any corporeal movable property, that is transportable by means of a wire, pipeline or other conduit;

convention means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is

 (1) to provide any type of amusement, entertainment or recreation,

 (2) to conduct contests or games of chance, or

 (3) to transact the business of the convenor or attendees

(a)  in the course of a trade show that is open to the general public, or

(b)  otherwise than in the course of a trade show;

convention facility means an immovable that is acquired by way of lease, licence or similar arrangement by the sponsor or organizer of a convention for use exclusively as the site for the convention;

cooperative corporation means a cooperative housing corporation and any other cooperative corporation within the meaning of subsection 2 of section 136 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

cooperative housing corporation means a corporation that was incorporated, by or under the laws of Québec, another province, the Northwest Territories, the Yukon Territory, Nunavut or Canada, providing for the establishment of the corporation or respecting the establishment of cooperative corporations, for the purpose of making supplies by way of lease, licence or similar arrangement of residential units to its members for the purpose of their occupancy as places of residence for individuals where

 (1) the statutes by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members require that the activities of the corporation be engaged in at or near cost after providing for reasonable reserves and hold forth the prospect that surplus funds arising from those activities will be distributed among its members in proportion to patronage,

 (2) none of its members, except other cooperative corporations, have more than one vote in the conduct of the affairs of the corporation, and

 (3) at least 90% of its members are individuals or other cooperative corporations and at least 90% of its shares are held by such persons;

credit note means a credit note issued under section 449;

credit union has the meaning assigned by section 797 of the Taxation Act to the expression savings and credit union and also includes a deposit insurance corporation described in paragraph b of section 804 of that Act;

debit note means a debit note issued under section 449;

debt security means a right to be paid money and includes a deposit of money, but does not include a lease, licence or similar arrangement for the use of, or the right to use, property other than a financial instrument;

designated municipal property has the meaning assigned by subsection 1 of section 123 of the Excise Tax Act;

direct cost of a supply of corporeal movable property or a service means the total of all amounts each of which is the consideration paid or payable by the supplier

 (1) for the property or service if it was purchased by the supplier for the purpose of making a supply by way of sale of the property or service, or

 (2) for an article or material, other than capital property of the supplier, that was purchased by the supplier, to the extent that the article or material is to be incorporated into or is to form a constituent or component part of the property, or is to be consumed or expended directly in the process of manufacturing, producing, processing or packaging the property;

and, for the purposes of this definition, the following rules apply:

(1)  the consideration paid or payable by the supplier for property or a service is determined by taking into account any tax imposed under this Title that is payable by the supplier in respect of the acquisition or bringing into Québec of the property or service by the supplier, excluding the portion of tax, other than tax that became payable by the supplier at a time when the supplier was a registrant that is recovered or recoverable by the supplier;

(2)  that consideration is determined without taking into account the portion of the duty, fee or tax referred to in section 52 that is recovered or recoverable by the supplier; and

(3)  that consideration is determined by taking into account the tax imposed under Part IX of the Excise Tax Act;

distributed investment plan means an investment plan within the meaning of section 433.15.1 that is

 (1) a corporation, other than a pension entity, exempt from tax under paragraph c.2 of section 998 of the Taxation Act;

 (2) an investment corporation within the meaning of section 1 of the Taxation Act;

 (3) a mortgage investment corporation within the meaning of section 1 of the Taxation Act;

 (4) a mutual fund corporation within the meaning of section 1 of the Taxation Act;

 (5) a mutual fund trust within the meaning of section 1 of the Taxation Act;

 (6) a non-resident-owned investment corporation within the meaning of section 1 of the Taxation Act;

 (7) a segregated fund of an insurer; or

 (8) a unit trust within the meaning of section 1 of the Taxation Act;

document includes money, a security, a record and a supporting document;

employee includes an officer;

employer, in relation to an officer, means the person from whom the officer receives remuneration;

equity security means a share of the capital stock of a corporation or any interest in or right to such a share;

exchange-traded series of a stratified investment plan means a series of the plan, any unit of which is listed or traded on a stock exchange or other public market;

excisable goods means beer or malt liquor, within the meaning of section 4 of the Excise Act (R.S.C. 1985, c. E-14), and spirits, wine and tobacco products, within the meaning of section 2 of the Excise Act, 2001 (S.C. 2002, c. 22);

exclusive means, in the case of a person who is not a financial institution, all or substantially all of the consumption, use or supply of a property or a service and, in the case of a financial institution, all of the consumption, use or supply of the property or service;

exempt supply means a supply described in Chapter III;

financial institution throughout a taxation year means a person who is

 (1) a listed financial institution at any time in that taxation year, or

 (2) a financial institution,

(a)  within the meaning of paragraph b of subsection 1 of section 149 of the Excise Tax Act, or

(b)  within the meaning of paragraph c of subsection 1 of section 149 of that Act;

financial instrument means

 (1) a debt security,

 (2) an equity security,

 (3) an insurance policy,

 (4) an interest in a trust, a partnership or a succession, or any right in respect of such an interest,

 (5) a precious metal,

 (6) a contract or an option for the future supply of a commodity, where the contract or option is traded on a recognized commodity exchange,

 (7) a prescribed instrument,

 (8) an acceptance, a guarantee or an indemnity in respect of an instrument described in paragraph 1, 2, 4, 5 or 7, or

 (9) a contract or an option for the future supply of money or of an instrument described in any of paragraphs 1 to 8;

financial service, which does not include the operations and services described in paragraphs 14 to 20, means

 (1) the exchange, issue, payment, receipt or transfer of money, whether effected by the exchange of currency, by crediting or debiting accounts or otherwise;

 (2) the operation or maintenance of a charge, chequing, deposit, savings, loan or other account;

 (3) the borrowing or lending of a financial instrument;

 (4) the acceptance, allotment, issue, endorsement, variation, granting, repayment, renewal, processing or transfer of ownership of a financial instrument;

 (5) the variation, provision, receipt or release of an acceptance, a guarantee or an indemnity in respect of a financial instrument;

 (6) the payment or receipt of money as benefits, principal, dividends, other than patronage dividends, interest or any similar payment or receipt of money in respect of a financial instrument;

 (6.1) the payment or receipt of an amount in full or partial satisfaction of a claim arising under an insurance policy;

 (7) the making of any advance, the granting of any credit or the lending of money;

 (8) the underwriting of a financial instrument;

 (9) any service provided pursuant to the terms and conditions of any agreement relating to the payment of amounts for which a credit card voucher or charge card voucher has been issued;

 (10) the service of investigating and recommending the compensation in satisfaction of a claim where

(a)  the claim is made under a marine insurance policy, or

(b)  the claim is made under an insurance policy that is not in the nature of accident or sickness or life insurance and

(i)  the service is supplied by an insurer or by a person who is licensed under the laws of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut to provide such a service, or

(ii)  the service is supplied to an insurer or a group of insurers by a person who would be required to be so licensed but for the fact that the person is relieved from that requirement under the laws of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut;

 (10.1) the service of providing an insurer or a person who supplies a service referred to in paragraph 10 with an appraisal of the damage caused to property, or in the case of a loss of property, the value of the property, where the supplier of the appraisal inspects the property, or in the case of a loss of the property, the last-known place where the property was situated before the loss;

 (11) any supply deemed under section 39 or 297.0.2.1 to be a supply of a financial service;

 (12) the agreeing to provide, or the arranging for, a service that is

(a)  referred to in any of paragraphs 1 to 9, and

(b)  not referred to in any of paragraphs 14 to 20;

 (13) a prescribed service;

 (14) the payment or receipt of money as consideration for the supply of property other than a financial instrument or of a service other than a financial service;

 (15) the payment or receipt of money in settlement of a claim (other than a claim under an insurance policy) under a warranty, guarantee or similar arrangement in respect of property other than a financial instrument or a service other than a financial service;

 (16) the service of providing advice, other than a service referred to in paragraph 10 or 10.1;

 (17) where the supplier is a person who provides management or administrative services to an investment plan, a corporation, partnership or trust the principal activity of which is the investing of funds, the provision to the investment plan, corporation, partnership or trust of

(a)  a management or administrative service, or

(b)  any other service, other than a prescribed service;

 (17.1) an asset management service;

 (18) a professional service provided by an actuary, advocate, accountant or notary in the course of a professional practice;

 (18.1) the arranging for the transfer of ownership of shares of a cooperative housing corporation;

 (18.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on a security given for, the debt, but does not include a service that consists solely of accepting from a person, other than the particular person, a payment of all or part of an account unless

(a)  under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on a security given for the account, or

(b)  the principal business of the person rendering the service is the collection of debt;

 (18.3) a service (other than a prescribed service) of managing credit that is in respect of credit cards, charge cards, credit accounts, charge accounts, loan accounts or accounts in respect of any advance and is provided to a person granting, or potentially granting, credit in respect of those cards or accounts, including a service provided to the person of

(a)  checking, evaluating or authorizing credit,

(b)  making decisions on behalf of the person in relation to a grant, or an application for a grant, of credit,

(c)  creating or maintaining records for the person in relation to a grant, or an application for a grant, of credit or in relation to the cards or accounts, or

(d)  monitoring another person's payment record or dealing with payments made, or to be made, by the other person;

 (18.4) a service (other than a prescribed service) that is preparatory to the provision or the potential provision of a service referred to in any of paragraphs 1 to 9 and 12, or that is provided in conjunction with a service referred to in any of those paragraphs, and that is

(a)  a service of collecting, collating or providing information, or

(b)  a market research, product design, document preparation, document processing, customer assistance, promotional or advertising service or a similar service;

 (18.5) property (other than a financial instrument or prescribed property) that is delivered or made available to a person in conjunction with the rendering by the person of a service referred to in any of paragraphs 1 to 9 and 12;

 (19) any service the supply of which is deemed under this Title to be a taxable supply; or

 (20) a prescribed service;

fiscal month of a person at a particular time means, if the person is a registrant under Part IX of the Excise Tax Act, the fiscal month of the person for the purposes of Part IX of that Act at that time or, in any other case, the period defined as such under sections 458.1.2, 458.2 and 458.2.1;

fiscal quarter of a person at a particular time means, if the person is a registrant under Part IX of the Excise Tax Act, the fiscal quarter of the person for the purposes of Part IX of that Act at that time or, in any other case, the period defined as such under sections 458.1.1, 458.2 and 458.2.1;

fiscal year of a person, at a particular time, means

 (1) where subdivision IV of subdivision 0.1 of Division IV of Chapter VIII applies in respect of the person, the period determined under that subdivision IV;

 (2) in any other case,

(a)  if the person is a registrant under Part IX of the Excise Tax Act, the person's fiscal year for the purposes of Part IX of that Act at that time,

(b)  if subparagraph a does not apply to the person and the person has made an election under section 458.4 that is in effect, the period that the person elected to be the fiscal year of the person,

(c)  if subparagraph a does not apply to the person and the fiscal year of the person is determined in accordance with section 458.2, the fiscal year determined in accordance with that section, and

(d)  in all other cases, the taxation year of the person within the meaning of Part IX of the Excise Tax Act;

floating home means a structure that is composed of a floating platform and a building designed to be occupied as a place of residence for individuals that is permanently affixed to the platform, but does not include any freestanding appliances or furniture sold with the structure or any structure that has means of, or is capable of being readily adapted for, self-propulsion;

foreign convention means a convention

 (1) at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to persons not resident in Canada, and

 (2) the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are not resident in Canada;

game of chance means a lottery or other scheme under which prizes or winnings are awarded by way of chance only or by way of a mixture of chance and other factors where the result depends more on chance than on the other factors;

government means the Gouvernement du Québec, the government of another province, the Northwest Territories, the Yukon Territory, Nunavut or Canada;

hospital authority means a public institution, within the meaning of the Act respecting health services and social services (chapter S-4.2) or within the meaning of the Act respecting health services and social services for Cree Native persons (chapter S-5), that operates a hospital centre, or an organization that operates a public hospital located in Québec and that is designated by the Minister of National Revenue as a hospital authority;

immovable includes

 (1) a lease pertaining to an immovable;

 (2) a mobile home;

 (3) a floating home; and

 (4) a leasehold or other proprietary interest in a mobile home or a floating home;

improvement, in respect of property of a person, means any property or service supplied to, or property brought into Québec by, the person for the purpose of improving the property, to the extent that the consideration paid or payable by the person for the property or service or the value of the property brought in is, or would be if the person were a taxpayer within the meaning of the Taxation Act, included in determining the cost or, in the case of property that is capital property of the person, the adjusted cost base to the person of the property for the purposes of that Act;

individual means a natural person;

insurance policy means a policy of insurance that is issued, or a contract of insurance that is entered into, by an insurer and a policy or contract in the nature of accident or sickness insurance, whether or not the policy is issued, or the contract is entered into, by an insurer, and also includes

 (1) a policy of reinsurance issued by an insurer,

 (2) an annuity contract entered into by an insurer, or a contract entered into by an insurer that would be an annuity contract except that the payments under the contract

(a)  are payable on a periodic basis at intervals that are shorter or longer than one year, or

(b)  vary in amount depending on the value of a specified group of assets or on changes in interest rates, and

 (3) a contract entered into by an insurer all or part of the insurer's reserves for which vary in amount depending on the value of a specified group of assets;

however, insurance policy does not include a warranty in respect of the quality, fitness or performance of corporeal property, where the warranty is supplied to a person who acquires the property otherwise than for resale;

 (4) a bid, performance, maintenance or payment bond issued in respect of a construction contract;

insurer means a person who is authorized under the laws of Québec, another province, the Northwest Territories, the Yukon Territory, Nunavut or Canada to carry on an insurance business in Canada or under the laws of another jurisdiction to carry on an insurance business in that other jurisdiction;

inter vivos trust means a trust other than a testamentary trust;

investment plan means

 (1) a trust governed by any of the following plans, trusts, arrangement or fund, within the meaning of the Taxation Act or the Regulation respecting the Taxation Act:

(a)  a registered pension plan,

(a.1)  a pooled registered pension plan,

(b)  a profit sharing plan,

(c)  a registered supplementary unemployment benefit plan,

(d)  a registered retirement savings plan,

(e)  a deferred profit sharing plan,

(f)  a registered education savings plan,

(g)  an employee benefit plan,

(h)  an employee trust,

(i)  a mutual fund trust,

(j)  a unit trust,

(k)  a retirement compensation arrangement, or

(l)  a registered income fund;

 (2) the following corporations within the meaning of the said Act:

(a)  an investment corporation,

(b)  a mortgage investment corporation,

(c)  a mutual fund corporation, or

(d)  a non-resident owned investment corporation;

 (3) a corporation exempt from tax under the said Act by reason of paragraphs c.1 and c.2 of section 998 and section 998.1 of the said Act;

 (4) a pooled fund trust within the meaning of the Excise Tax Act; and

 (5) a prescribed person, or a person of a prescribed class, but only where the person would be a selected listed financial institution for a reporting period in a fiscal year that ends in a taxation year of the person if the person were included in paragraph 9 of the definition of listed financial institution during the taxation year and the preceding taxation year of the person;

invoice includes a statement of account, a bill and any other similar record or supporting document, regardless of its form or characteristics, and a cash register slip or receipt;

listed financial institution throughout a taxation year means a person who is, at any time in the year,

 (1) a bank,

 (2) a corporation that is authorized under the laws of Québec, another province, the Northwest Territories, the Yukon Territory, Nunavut or Canada to carry on in Canada the business of offering to the public its services as a trustee,

 (3) a person whose principal business is as a dealer or trader in, or as a broker or salesperson of, financial instruments or money,

 (4) a credit union,

 (5) an insurer or any other person whose principal business is providing insurance under insurance policies,

 (6) a segregated fund of an insurer,

 (7) the Canada Deposit Insurance Corporation,

 (8) a person whose principal business is the lending of money or the purchasing of debt securities or a combination thereof,

 (9) an investment plan,

 (10) a person providing services referred to in section 39, or

 (11) a corporation deemed under section 297.0.2.6 to be a financial institution;

management or administrative service includes an asset management service;

membership includes a right granted by a particular person that entitles another person to services that are provided by, or to the use of facilities that are operated by, the particular person and that are not available, or are not available to the same extent or for the same charge, to a person to whom such a right has not been granted, and also includes such a right that is conditional on the acquisition or ownership of a share, bond or other security;

mineral includes petroleum, natural gas and related hydrocarbons, sand, gravel, ammonite gemstone, bituminous sands, calcium chloride, coal, kaolin, oil shale and silica;

mobile home means a building, the manufacture and assembly of which is completed or substantially completed, that is equipped with complete heating, electrical and plumbing facilities and that is designed to be moved to a site for installation on a foundation and connection to service facilities and to be occupied as a place of residence, but does not include any travel trailer, motor home, camping trailer or other vehicle or trailer designed for recreational use;

money includes any currency, cheque, promissory note, letter of credit, draft, traveller's cheque, bill of exchange, postal note, money order, postal remittance and other similar instrument, whether Canadian or foreign, but does not include currency the fair market value of which exceeds its stated value as legal tender in the country of issuance or currency that is supplied or held for its numismatic value;

month means a period beginning on a particular day in a calendar month and ending

 (1) on the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or

 (2) where the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;

motor vehicle means a self-propelled road vehicle having a net mass of less than 4,000 kg, with four or more wheels and designed essentially for transporting persons or property by road;

multiple unit residential complex means a residential complex that contains more than one residential unit, but does not include a complex held in co-ownership;

municipality includes

 (1) a metropolitan community, the Kativik Regional Government or any other incorporated municipal body however designated, and

 (2) such other local authority as

(a)  the Minister of Revenue may determine to be a municipality for the purposes of this Title, or

(b)  the Minister of National Revenue has determined, before 1 January 2014, to be a municipality under paragraph b of the definition of “municipality” in subsection 1 of section 123 of the Excise Tax Act, unless that determination has been revoked;

mutual insurance federation means a corporation each member of which is a mutual insurance corporation that is required, under an Act of the Legislature of Québec, to be a member of the corporation, but does not include a corporation the main purpose of which is

 (1) related to automobile insurance,

 (2) to provide compensation to insurance policy holders of, or claimants on, insolvent insurers, or

 (3) to establish and manage a guarantee fund, cash reserve fund, mutual aid fund or similar fund for the benefit of its members and to provide financial assistance with regard to losses sustained on the winding-up or dissolution of its members;

mutual insurance group means a group that consists of

 (1) a mutual insurance federation and its members,

 (2) where the members of the mutual insurance federation are the sole investors in an investment fund, that fund, and

 (3) where there exists a mutual reinsurance corporation each member of which is a member of the mutual insurance federation and is not entitled to obtain reinsurance from any other reinsurance corporation, that mutual reinsurance corporation;

net mass means

 (1) in the case of a new motor vehicle, the mass of the vehicle indicated by the manufacturer at the time of shipping;

 (2) in the case of a used motor vehicle, the mass indicated on the last registration certificate issued in respect of the vehicle;

non-profit organization means a person, other than an individual, a succession, a trust, a charity, a public institution, a municipality or a government, that was organized and is operated solely for a purpose other than profit, no part of the income of which is payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder is a club or an association the primary purpose of which is the promotion of amateur athletics in Canada;

non-stratified investment plan means a distributed investment plan that is not a stratified investment plan;

office has the meaning assigned by section 1 of the Taxation Act, but does not include

 (1) the position of trustee in bankruptcy,

 (2) the position of receiver, including the position of a receiver within the meaning assigned by the second paragraph of section 310, or

 (3) the position of trustee of a trust or personal representative of a deceased individual where the person who acts in that capacity is entitled to an amount for doing so that is included, for the purposes of that Act, in computing the person's income or, where the person is an individual, the person's income from a business;

officer means a person who holds an office;

organizer of a convention means a person who acquires the convention facility or related convention supplies and who organizes the convention for another person who is the sponsor of the convention;

participating employer of a pension plan means

 (1) in the case of a registered pension plan, an employer that has made, or is required to make, contributions to the pension plan in respect of the employer's employees or former employees, or payments under the pension plan to the employer's employees or former employees, and includes an employer prescribed for the purposes of the definition of “participating employer” in subsection 1 of section 147.1 of the Income Tax Act; and

 (2) in the case of a pooled registered pension plan, an employer that

(a)  has made, or is required to make, contributions to the pension plan in respect of all or a class of its employees or former employees, or

(b)  has remitted, or is required to remit, to the administrator of the pension plan contributions made by members (within the meaning assigned by the first paragraph of section 965.0.19 of the Taxation Act) of the pension plan under a contract with the administrator in respect of all or a class of its employees;

passenger vehicle has the meaning assigned by section 1 of the Taxation Act;

patronage dividend means an amount that is deductible under sections 786 to 796 of the Taxation Act in computing, for the purposes of that Act, the income of the person paying the amount;

pension entity of a pension plan means a person that is

 (1) a person referred to in paragraph 1 of the definition of “pension plan”;

 (2) a corporation referred to in paragraph 2 of the definition of “pension plan”; or

 (3) a prescribed person;

pension plan means a registered pension plan or a pooled registered pension plan that

 (1) governs a person that is a trust or that is deemed to be a trust for the purposes of the Taxation Act;

 (2) is a plan in respect of which a corporation

(a)  is incorporated and operated either

(i)  solely for the administration of the registered pension plan, or

(ii)  for the administration of the registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement, within the meaning of section 1 of the Taxation Act, where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan, and

(b)  in the case of a registered pension plan, is accepted by the Minister of National Revenue under subparagraph ii of paragraph o.1 of subsection 1 of section 149 of the Income Tax Act as a funding medium for the purposes of the registration of the registered pension plan, and;

(c)  in the case of a pooled registered pension plan, is a corporation that is described in paragraph o.2 of subsection 1 of section 149 of the Income Tax Act, and all of the shares, and rights to acquire shares, of the capital stock of which are owned, at all times since the date on which it was incorporated, by the plan; or

 (3) is a plan in respect of which a person is prescribed for the purposes of the definition of “pension entity”;

permanent establishment, in respect of a particular person, means

 (1) a fixed place of business of the particular person, including a place of management, a branch, an office, a factory, a workshop, a mine, an oil or gas well, timberland, a quarry or any other place of extraction of natural resources, through which the particular person makes supplies, or

 (2) a fixed place of business of another person, other than a broker, general commission agent or other independent agent acting in the ordinary course of business, who is acting in Québec on behalf of the particular person and through whom the particular person makes supplies in the ordinary course of business;

person means a corporation, trust, individual, partnership or succession or a body that is an association, club, commission, union or other organization of any kind;

personal representative, of a deceased individual or the succession of a deceased individual, means the liquidator of the individual's succession or any person who is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the succession;

personal trust means

 (1) a testamentary trust, or

 (2) an inter vivos trust that is a personal trust, within the meaning of section 1 of the Taxation Act, all the beneficiaries, other than contingent beneficiaries, of which are individuals and all the contingent beneficiaries, if any, of which are individuals, charities or public institutions;

place of amusement means any premises or place, whether or not enclosed, at or in any part of which is staged or held any slide show, film, sound and light or similar presentation, any artistic, literary, musical, theatrical or other exhibition, performance or entertainment, any circus, fair, menagerie, rodeo or similar event, or any race, game of chance, athletic contest or other contest or game, and also includes a museum, historical site, zoo, wildlife or other park, place where bets are placed and any place, structure, apparatus, machine or device the purpose of which is to provide any type of amusement or recreation;

plan member of an investment plan that is a private investment plan or a pension entity of a pension plan means an individual who has a right, either immediate or in the future and either absolute or contingent, to receive benefits under,

 (1) in the case of an employee life and health trust, within the meaning of section 1 of the Taxation Act, the investment plan;

 (2) in the case of a pension entity of a pension plan, the pension plan; and

 (3) in any other case, the deferred profit sharing plan, the employee benefit plan, the employee trust, the profit sharing plan, the registered supplementary unemployment benefit plan or the retirement compensation arrangement, within the meaning assigned to those expressions by section 1 of the Taxation Act, as the case may be, that governs the investment plan;

pleasure vehicle has the meaning assigned by section 1 of the Fuel Tax Act (chapter T-1);

pooled registered pension plan has the meaning assigned by paragraph 1 of the definition of “investment plan”;

precious metal means a bar, ingot, coin or wafer that is composed of gold, silver or platinum the purity level of which is at least 99.5% in the case of gold and platinum and at least 99.9% in the case of silver;

private investment plan means an investment plan, within the meaning of section 433.15.1, other than a distributed investment plan or a pension entity;

property does not include money;

provincial investment plan has the meaning assigned by section 433.15.1;

provincial series has the meaning assigned by section 433.15.1;

public college means

 (1) a college governed by the General and Vocational Colleges Act (chapter C-29);

 (2) an institution that is accredited for purposes of subsidies for providing educational services at the college level under the Act respecting private education (chapter E-9.1);

 (3) an organization that operates a post-secondary college or post-secondary technical institute, situated in Québec,

(a)  that receives from a government or a municipality funds that are paid for the purpose of assisting the organization in ongoing provision of educational services to the general public, and

(b)  the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education;

public institution means a registered charity, within the meaning of section 1 of the Taxation Act, that is a school authority, a public college, a university, a hospital authority or a local authority determined under paragraph 2 of the definition of municipality in this section to be a municipality;

public sector body means a government or a public service body;

public service body means a non-profit organization, a charity, a municipality, a school authority, a hospital authority, a public college or a university;

recipient of a supply of property or a service means

 (1) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration,

 (2) where paragraph 1 does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and

 (3) where no consideration is payable for the supply,

(a)  in the case of a supply of property by way of sale, the person to whom the property is delivered or made available,

(b)  in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and

(c)  in the case of a supply of a service, the person to whom the service is rendered,

and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply;

registered pension plan has the meaning assigned by paragraph 1 of the definition of “investment plan”;

registrant means a person who is registered, or who is required to be registered, under Division I of Chapter VIII;

related convention supplies means property or services acquired or brought into Québec by a person exclusively for consumption, use or supply by the person in connection with a convention, but does not include

 (1) transportation services, other than a chartered service acquired by the person solely for the purpose of transporting attendees of the convention between any of the convention facilities, places of lodging of the attendees or transportation terminals,

 (2) entertainment,

 (3) except for the purposes of sections 357.2 to 357.5, property or services that are food or beverages or are supplied to the person under a contract for catering, or

 (4) property or services supplied by the person in connection with the convention for consideration that is separate from the consideration for the admission to the convention, unless the recipient of the supply is acquiring the property or service exclusively for consumption or use in the course of promoting, at the convention, property or services supplied by, or a business of, the recipient;

reporting period of a person means the reporting period of the person as determined under sections 458.6 to 467;

residential complex means

 (1) that part of a building in which one or more residential units are located, together with

(a)  that part of any common areas and other appurtenances to the building and the land contiguous to the building that is reasonably necessary for the use and enjoyment of the building as a place of residence for individuals, and

(b)  that proportion of the land subjacent to the building that that part of the building in which one or more residential units are located is of the whole building,

 (2) that part of a building, together with that proportion of any common areas and other appurtenances to the building and the land subjacent or contiguous to the building that is attributable to the unit and that is reasonably necessary for its use and enjoyment as a place of residence for individuals, that is

(a)  the whole or part of a semi-detached house, rowhouse unit, residential unit held in co-ownership or other similar premises that is, or is intended to be, a separate parcel or other division of an immovable owned, or intended to be owned, apart from any other unit in the building, and

(b)  a residential unit, and

 (3) the whole of a building described in paragraph 1, or the whole of a premises described in subparagraph a of paragraph 2, that is owned by or has been supplied by way of sale to an individual and that is used primarily as a place of residence of the individual, an individual related to the individual or a former spouse of the individual, together with

(a)  in the case of a building described in paragraph 1, any appurtenances to the building, the land subjacent to the building and that part of the land contiguous to the building, that are reasonably necessary for the use and enjoyment of the building, and

(b)  in the case of a premises described in subparagraph a of paragraph 2, that part of any common areas and other appurtenances to the building and the land subjacent or contiguous to the building that is attributable to the unit and that is reasonably necessary for the use and enjoyment of the unit,

 (4) a mobile home, together with any appurtenances to the home and, where the home is affixed to land, other than a site in a residential trailer park, for the purpose of its use and enjoyment as a place of residence for individuals, the land subjacent or contiguous to the home that is attributable to the home and is reasonably necessary for that purpose, and

 (5) a floating home;

however, residential complex does not include

 (6) a building, or that part of a building, that is an inn, a hotel, a motel, a boarding house or other similar premises, or the land and appurtenances attributable to the building or part, where

(a)  the building or part is not described in paragraph 3, and

(b)  all or substantially all of the supplies of residential units in the building or part by way of lease, licence or similar arrangement are, or are expected to be, for periods of continuous possession or use of less than 60 days;

residential trailer park of a person means

 (1) the land that is included in a trailer park of the person or, where the person has two or more trailer parks that are immediately contiguous to each other, the land that is included in those contiguous trailer parks, and any buildings, fixtures and other appurtenances to the land that are reasonably necessary

(a)  for the use and enjoyment of sites in the trailer parks by individuals

(i)  residing in mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or

(ii)  occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or

(b)  for the purpose of engaging in the business of supplying those sites by way of lease, licence or similar arrangement;

however, residential trailer park does not include such land and appurtenances or any part of them unless the land encompasses at least two sites and

 (2) all or substantially all of the sites in the trailer parks are supplied, or are intended to be supplied, by way of lease, licence or similar arrangement under which continuous possession or use of a site is provided

(a)  for a period of at least one month, in the case of a mobile home or other residential unit, and

(b)  for a period of at least 12 months, in the case of a travel trailer, motor home or similar vehicle or trailer that is not a residential unit, and

 (3) if the sites were occupied by mobile homes, they would be suitable for use by individuals as places of residence throughout the year;

residential unit means the whole or part of a residential unit held in co-ownership, detached house, semi-detached house, rowhouse unit, mobile home, floating home, apartment, a room or suite in an inn, a hotel, a motel, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals, or the whole or part of any other similar premises, that

 (1) is occupied by an individual as a place of residence or lodging,

 (2) is supplied by way of lease, licence or similar arrangement for the occupancy thereof as a place of residence or lodging for individuals,

 (3) is vacant, but was last occupied or supplied as a place of residence or lodging for individuals, or

 (4) has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals;

residential unit held in co-ownership means a residential complex that is, or is intended to be, a bounded space in a building described as a distinct entity on the declaration of co-ownership entered in the land register and includes any interest in land pertaining to ownership of the entity;

retail sale of a motor vehicle means

 (1) the sale of a motor vehicle to a person who receives it for any other purpose than to again make a supply of it by way of sale, otherwise than by way of gift, or by way of lease under an agreement under which continuous possession or use of the vehicle is provided to a person for a period of at least one year;

 (2) the sale of a new motor vehicle to a person who receives it to again make a supply of it by way of sale, otherwise than by way of gift, and who acquires it through a mandatary for the purpose of shipping the vehicle outside Québec;

road vehicle has the meaning assigned by section 4 of the Highway Safety Code (chapter C-24.2);

sale, in respect of property, includes, but for the purposes of subparagraph 2 of the second paragraph of section 17, any transfer of the ownership of the property and any transfer of the possession of the property under an agreement to transfer ownership of the property;

school authority means a school board or an institution providing educational services at the elementary or secondary level that is governed by the Act respecting private education;

secured creditor means

 (1) a particular person who has a security interest in the property of another person; or

 (2) a person who acts on behalf of the particular person with respect to the security interest and includes

(a)  a trustee appointed under a trust deed relating to a security interest,

(b)  a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,

(c)  a sequestrator, or

(d)  any other person performing a function similar to that of a person referred to in any of subparagraphs a to c;

security interest means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a security, hypothec, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for;

segregated fund of an insurer means a specified group of properties that are held in respect of insurance policies all or part of the reserves for which vary in amount depending on the fair market value of the properties;

selected listed financial institution has the meaning assigned by section 433.15.1;

self-contained domestic establishment has the meaning assigned by section 1 of the Taxation Act;

series means

 (1) in respect of a trust, a class of units of the trust; and

 (2) in respect of a corporation, a class of the capital stock of the corporation that has not been issued in one or more series, or a series of a class of the capital stock of the corporation that has been issued in one or more series;

service means anything other than property, money and anything that is supplied to an employer by a person who is or agrees to become an employee of the employer in the course of or in relation to his office or employment;

short-term accommodation means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or other similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, where the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of sections 357.2 to 357.5,

 (1) includes any type of overnight shelter (other than shelter on a train, trailer, boat or structure that has means of, or is capable of being readily adapted for, self-propulsion) when supplied as part of a tour package, within the meaning assigned by section 63, that also includes food and the services of a guide, and

 (2) does not include a residential complex or unit when it

(a)  is supplied to the recipient under a timeshare arrangement, or

(b)  is included in that part of a tour package that is not the taxable portion of the tour package, within the meaning assigned to those expressions by section 63;

single unit residential complex means a residential complex that contains only one residential unit, but does not include a residential unit held in co-ownership;

small supplier means a person who, at any time, is a small supplier

 (1) under sections 294 to 297, unless the person is not, at that time, a small supplier under section 148 of the Excise Tax Act, or

 (2) under sections 297.0.1 and 297.0.2, unless the person is not, at that time, a small supplier under section 148.1 of the Excise Tax Act;

specified corporeal movable property means property that is, or is an interest in,

 (1) a drawing, a print, an etching, a sculpture, a painting or other similar work of art,

 (2) jewellery,

 (3) a rare folio, manuscript or book,

 (4) a stamp,

 (5) a coin, or

 (6) prescribed movable property;

sponsor of a convention means the person who convenes the convention and supplies admissions to it;

straddle plant means a natural gas processing plant devoted primarily to the recovery of natural gas liquids or ethane from natural gas that is transported by pipeline to the plant by a common carrier of natural gas;

stratified investment plan means a distributed investment plan whose units are issued in two or more series;

substantial renovation of a residential complex means the renovation or alteration of the whole or that part of a building described in any of paragraphs 1 to 5 of the definition of “residential complex” in which one or more residential units are located to such an extent that all or substantially all of the building or part, as the case may be, other than the foundation, external walls, interior supporting walls, floors, roof, staircases and, in the case of that part of a building described in paragraph 2 of that definition, the common areas and other appurtenances, that existed immediately before the renovation or alteration was begun has been removed or replaced if, after completion of the renovation or alteration, the building or part, as the case may be, is, or forms part of, a residential complex;

Superintendent means the Superintendent of Financial Institutions appointed in accordance with the Office of the Superintendent of Financial Institutions Act (R.S.C. 1985, c. 18 (3rd Suppl.));

supplier, in respect of a supply, means the person making the supply;

supply means the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, lease, gift or alienation;

tax means tax payable under this Title;

taxable supply means a supply that is made in the course of a commercial activity;

taxation year of a person means

 (1) where the person is a taxpayer within the meaning of the Taxation Act, other than an unincorporated person exempt in accordance with Book VIII of that Act from tax under Part I of that Act, the taxation year of the person for the purposes of that Act,

 (1.1) where the person is a partnership described in subparagraph ii of subparagraph b of the second paragraph of section 7 of that Act, the fiscal period of the person's business, determined under section 7 of that Act, and

 (2) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation other than a professional corporation within the meaning of section 1 of that Act;

taxi business means a business carried on in Québec of transporting passengers by taxi for fares that are regulated by the Act respecting transportation services by taxi (chapter S-6.01);

telecommunication means any transmission, emission or reception of signs, signals, writing, images, sounds or intelligence of any nature by any wire, cable, radio, optical or other electromagnetic system, or by any similar technical system;

telecommunication service means

 (1) the service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system, or

 (2) making available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred to in paragraph 1;

telecommunications facility means any facility, apparatus or other thing, including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof, that is used or is capable of being used for telecommunications;

testamentary trust has the meaning assigned by section 1 of the Taxation Act;

trailer park of a person means a piece of land that is owned by or leased to the person and that is exclusively composed of

 (1) one or more sites each of which is, or is intended to be, supplied by the person by way of lease, licence or similar arrangement to the owner, lessee or person in occupation or possession of a mobile home, or a travel trailer, motor home or similar vehicle or trailer, situated or to be situated on the site, and

 (2) other land that is reasonably necessary

(a)  for the use and enjoyment of the sites by individuals

(i)  residing in mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or

(ii)  occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or

(b)  for the purpose of engaging in the business of supplying the sites by way of lease, licence or similar arrangement;

unit means

 (1)  in respect of a trust, a unit of the trust;

 (2) in respect of a series of a trust, a unit of the trust of that series;

 (3) in respect of a corporation, a share of the capital stock of the corporation;

 (4) in respect of a series of a corporation, a share of the capital stock of the corporation of that series; and

 (5) in respect of a segregated fund of an insurer, an interest of a person, other than the insurer, in the segregated fund;

university means

 (1) an educational institution at the university level within the meaning of the Act respecting educational institutions at the university level (chapter E-14.1), or

 (2) a recognized degree-granting institution situated in Québec or an organization situated in Québec that operates a research body of, or a college affiliated with, such an institution;

used corporeal movable property means corporeal movable property that has been used in Québec;

zero-rated supply means a supply described in Chapter IV.

1991, c. 67, s. 1; 1992, c. 21, s. 372; 1993, c. 19, s. 167; 1992, c. 68, s. 156, s. 157; 1994, c. 22, s. 364; 1995, c. 1, s. 247; 1994, c. 23, s. 23; 1995, c. 63, s. 299; 1997, c. 3, s. 115; 1997, c. 14, s. 329; 1997, c. 31, s. 146; 1997, c. 85, s. 418; 1998, c. 16, s. 309; 1999, c. 83, s. 333; 1999, c. 14, s. 30; 2000, c. 25, s. 26; 2000, c. 56, s. 218; 2001, c. 51, s. 258; 2001, c. 53, s. 272; 2002, c. 9, s. 151; 2003, c. 2, s. 307; 2002, c. 45, s. 621; 2004, c. 37, s. 90; 2005, c. 1, s. 347; 2005, c. 38, s. 362; 2007, c. 12, s. 317; 2009, c. 5, s. 595; 2011, c. 6, s. 232; 2011, c. 34, s. 140; 2012, c. 28, s. 29; 2013, c. 10, s. 216; 2015, c. 21, s. 615; 2015, c. 36, s. 201.

DIVISION II 
INTERPRETATION

1.1. For the purposes of this Title and the regulations, a legal person, whether or not established for pecuniary gain, is designated by the word “corporation”.

1997, c. 3, s. 116.

1.2. For the purposes of this Title and the regulations made thereunder, any reference to the spouse of an individual or to marriage shall be interpreted as if the rules set out in section 2.2.1 of the Taxation Act (chapter I-3) applied, with the necessary modifications.

2005, c. 1, s. 348.

2. Except as otherwise provided in this Title, where an amount or a number is required under this Title to be determined or calculated by or in accordance with an algebraic formula, if the amount or number when so determined or calculated would, but for this section, be a negative amount or number, it is deemed to be nil.

1991, c. 67, s. 2.

3. Related persons are deemed not to deal with each other at arm's length and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm's length.

Persons are related to each other if, by reason of sections 17 and 19 to 21 of the Taxation Act (chapter I-3), they are related to each other for the purposes of that Act.

1991, c. 67, s. 3.

4. A member of a partnership is deemed to be related to the partnership.

1991, c. 67, s. 4.

5. A corporation is associated with another corporation if, by reason of sections 21.4 and 21.20 to 21.25 of the Taxation Act (chapter I-3), the corporation is associated with the other corporation for the purposes of that Act.

1991, c. 67, s. 5.

6. A person other than a corporation is associated with a corporation if the latter is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with the others.

1991, c. 67, s. 6.

7. A person is associated with a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be if the partnership had profits.

1991, c. 67, s. 7.

8. A person is associated with a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

1991, c. 67, s. 8.

9. A person is associated with another person if each of them is associated with the same third person.

1991, c. 67, s. 9.

10. The following rules apply in respect of a segregated fund of an insurer:

 (1) the segregated fund is deemed to be a trust that is a separate person from the insurer and that does not deal at arm's length with the insurer;

 (2) the insurer is deemed to be a trustee of the trust;

 (3) the activities of the segregated fund are deemed to be activities of the trust and not activities of the insurer.

1991, c. 67, s. 10.

10.1. Where, at any time, an amount, other than an amount in respect of tax under this Title, is deducted from the segregated fund of an insurer, the following rules apply:

 (1) if the amount is in respect of property or a service that the fund is, because of the application of this Title other than this section, considered to have acquired from the insurer, that supply shall be deemed to be a taxable supply, other than a zero-rated supply, and the amount shall be deemed to be consideration for that supply that becomes due at that time; and

 (2) if the amount is not in respect of property or a service that the fund is, because of the application of this Title other than this section, considered to have acquired either from the insurer or another person, the insurer shall be deemed to have made, and the fund shall be deemed to have received, at that time, a taxable supply, other than a zero-rated supply, of a service, and the amount shall be deemed to be consideration for the supply that becomes due at that time.

The first paragraph does not apply to an amount deducted from a segregated fund of an insurer if

 (1) the amount is a distribution of income, a payment of a benefit, or the amount of a redemption, in respect of an interest of another person in the fund; or

 (2) the amount is a prescribed amount.

2001, c. 53, s. 273.

11. A person is deemed to be resident in Québec at any time if,

 (1) in the case of a corporation, the corporation is incorporated or continued in Québec and not continued elsewhere;

 (2) in the case of an association, a club, a body or a partnership, or a branch thereof, the member, or a majority of the members, having management and control thereof is or are resident in Québec at that time;

 (3) in the case of an association of employees, it is carrying on activities as such in Québec and has a local union or branch in Québec at that time;

 (4) in the case of an individual, the individual is deemed under any of paragraphs b to f of section 8 of the Taxation Act (chapter I-3) to be resident in Québec at that time.

1991, c. 67, s. 11; 1997, c. 85, s. 419.

11.1. Except for the purpose of determining the place of residence of an individual in the individual's capacity as a consumer and except for the purposes of Division V of Chapter IV, a person is deemed to be resident in Québec if the person is resident in Canada and has a permanent establishment in Québec.

For the purposes of Division V of Chapter IV, a person who is not resident in Québec but who is resident in Canada and has a permanent establishment in Québec is deemed to be resident in Québec, but only in respect of activities carried on by the person through that establishment.

1997, c. 85, s. 420; 1999, c. 83, s. 306; 2001, c. 51, s. 259.

11.1.1. A person resident in Québec who has a permanent establishment outside Québec but within Canada is deemed not to be resident in Québec, but only in respect of activities carried on by the person through that establishment.

1999, c. 83, s. 307.

11.2. For the purposes of sections 11.1, 11.1.1 and 22.2 to 22.30, “permanent establishment” of a person means

 (1) in the case of an individual, the succession of a deceased individual or a trust that carries on a business, within the meaning of section 1 of the Taxation Act (chapter I-3), an establishment, within the meaning of the first paragraph of section 12 or section 13 or 15 of the Taxation Act, of the person;

 (2) in the case of a corporation that carries on a business, within the meaning of section 1 of the Taxation Act, an establishment, within the meaning of the first paragraph of section 12 or any of sections 13 to 16.0.1 of the Taxation Act;

 (3) in the case of a particular partnership,

(a)  an establishment, within the meaning of the first paragraph of section 12 or section 13 or 15 of the Taxation Act, of a member that is an individual, the succession of a deceased individual or a trust where the establishment relates to a business, within the meaning of section 1 of the Taxation Act, carried on through the partnership,

(b)  an establishment, within the meaning of the first paragraph of section 12 or any of sections 13 to 16.0.1 of the Taxation Act, of a member that is a corporation where the establishment relates to a business, within the meaning of section 1 of the Taxation Act, carried on by the particular partnership, or

(c)  a permanent establishment, within the meaning of this section, of a member that is a partnership where the establishment relates to a business, within the meaning of section 1 of the Taxation Act, carried on by the particular partnership; and

 (4) in any other case, a place that would be an establishment, within the meaning of the first paragraph of section 12 or any of sections 13 to 16.0.1 of the Taxation Act, of the person if the person were a corporation and its activities were a business for the purposes of that Act.

1997, c. 85, s. 420; 1999, c. 83, s. 308; 2013, c. 10, s. 217.

11.3. For the purposes of section 11.1, when it applies for the purposes of sections 18.0.1.1, 18.0.1.2, 26.3 and 26.4, a financial institution that is a stratified investment plan with one or more provincial series as regards Québec is deemed to have a permanent establishment in Québec.

For the purposes of section 11.1, when it applies for the purposes of sections 18.0.1.1, 18.0.1.2, 26.3 and 26.4, a financial institution that is a provincial investment plan as regards Québec is deemed to have a permanent establishment in Québec.

2015, c. 21, s. 616.

12. A person not resident in Canada who has a permanent establishment in Québec is deemed to be resident in Québec, but only in respect of activities carried on by the person through that establishment.

1991, c. 67, s. 12; 1997, c. 85, s. 421.

12.1. Subject to section 12, where, under section 11.1.1 of the Taxation Act (chapter I-3), a corporation is deemed for the purposes of that Act to be resident in a country other than Canada throughout a taxation year of the corporation and not to be resident in Canada at any time in the year, the corporation is deemed to be resident in that other country throughout the year and not to be resident in Canada at any time in the year.

1994, c. 22, s. 365.

13. A person resident in Québec who has a permanent establishment outside Canada is deemed not to be resident in Québec, but only in respect of activities carried on by the person through that establishment.

1991, c. 67, s. 13; 1997, c. 85, s. 421.

14. For the purposes of section 351, a person resident in Canada who has a permanent establishment outside Canada is deemed not to be resident in Canada, but only in respect of activities carried on by the person through that establishment.

1991, c. 67, s. 14.

14.1. A person not resident in Québec is deemed to be resident in Canada at any time if the person is deemed to be resident in Canada at that time under the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15).

1995, c. 63, s. 300.

15. The fair market value of property or a service supplied to a person is determined without reference to any tax excluded by section 52 from the consideration for the supply.

1991, c. 67, s. 15.

15.1. In applying the definition of basic tax content in section 1 at any time subsequent to 31 December 2012, in relation to a person's property, any amount of tax that became payable before 1 January 2013 is not taken into consideration where

 (1) the property is referred to in the fifth paragraph of section 255.1 or in section 259.1 or 262.1; or

 (2) the property was held by the person immediately before 1 January 2013 and the person's registration is cancelled as of that date in accordance with section 417.0.1.

2012, c. 28, s. 30.

CHAPTER II 
TAXATION

DIVISION I 
IMPOSITION OF TAX

§ 1. —  Taxable supply made in Québec
1994, c. 22, s. 366.

16. Every recipient of a taxable supply made in Québec shall pay to the Minister of Revenue a tax in respect of the supply calculated at the rate of 9.975% on the value of the consideration for the supply.

However, the rate of the tax in respect of a taxable supply that is a zero-rated supply is 0%.

1991, c. 67, s. 16; 1993, c. 19, s. 168; 1994, c. 22, s. 367; 1995, c. 1, s. 248; 1997, c. 85, s. 422; 2010, c. 5, s. 206; 2011, c. 6, s. 233; 2012, c. 28, s. 31.

16.1. Every recipient of a zero-rated supply of a product mentioned in paragraph 1.1 of section 177 who begins, at any time, to use the product to make wine or beer shall, immediately after that time, pay to the Minister a tax in respect of the product calculated at the rate of 9.975% of the value of the consideration for the supply.

This section does not apply in respect of a product that a registrant begins to use exclusively in the course of his commercial activities and in respect of which the registrant would be entitled to claim an input tax refund had he paid the tax provided for in the first paragraph in respect of the product.

1997, c. 14, s. 330; 1997, c. 85, s. 423; 2010, c. 5, s. 207; 2011, c. 6, s. 234; 2012, c. 28, s. 32.

§ 2. —  Bringing into Québec of corporeal property
1994, c. 22, s. 368.

17. Every person who brings into Québec corporeal property for consumption or use in Québec by the person or at the person's expense by another person or for supply in Québec for consideration where the person is a small supplier who is not a registrant or, in the case of a road vehicle, a person who is not registered under Division I of Chapter VIII shall, immediately after the bringing into Québec of the property, pay to the Minister a tax in respect of that property, calculated at the rate of 9.975% on the value of the property.

For the purposes of the first paragraph, the value of the property means

 (1) in the case of property produced by the person outside Québec but in Canada and brought into Québec within 12 months after it is produced, the cost price of the property;

 (2) in the case of property, other than a road vehicle referred to in subparagraph 2.1, supplied to the person outside Québec by way of sale and consumed or used in Québec within 12 months after it is supplied, the value of the consideration for the supply;

 (2.1) in the case of a used road vehicle supplied to the person outside Québec by way of sale that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the person,

(a)  where the vehicle is used in Québec within 12 months after the supply, the value of the consideration for the supply or, if the supply is made for no consideration or for consideration less than the estimated value of the vehicle, that estimated value, and

(b)  where the vehicle is not used in Québec within 12 months after the supply, the estimated value of the vehicle;

 (2.2) in the case of property supplied by way of sale outside Québec to a person who is a small supplier, other than a registrant, and who brings the property into Québec for supply in Québec for consideration,

(a)  if the property is property other than a used road vehicle referred to in subparagraph b, the value of the consideration, and

(b)  if the property is a used road vehicle that must be registered under the Highway Safety Code following an application by the person, the value of the consideration for the supply to the person or, where the supply is made without consideration or for consideration less than the estimated value of the vehicle, that estimated value;

 (3) in the case of property supplied to the person by way of lease, licence or similar arrangement outside Québec, the value of the consideration for the supply that can reasonably be attributed to the right of enjoyment of the property in Québec;

 (4) in any other case, the fair market value of the property.

Notwithstanding the second paragraph, the value of property brought into Québec in prescribed circumstances shall be determined in the prescribed manner.

The first paragraph does not apply in respect of

 (1) corporeal property, where tax under section 16 is payable in respect of the supply of the property;

 (2) goods to which section 81 applies;

 (3) (subparagraph repealed);

 (4) corporeal property brought into Québec by a registrant for exclusive consumption or use in the course of the commercial activities of the registrant and in respect of which the registrant would, if he had paid tax under the first paragraph in respect of the property, be entitled to apply for an input tax refund;

 (5) corporeal property that was brought into Québec by a person and that comes from Canada outside Québec, if the total of all amounts, each of which is an amount of tax that, but for this subparagraph and subparagraph 8 of the third paragraph of section 18.0.1, would become payable by the person under the first paragraph or the first paragraph of section 18.0.1, is $35 or less in the calendar month that includes the day on which the property was brought into Québec;

 (6) corporeal property that a person that is a pension entity of a pension plan brings into Québec and that comes from Canada outside Québec, as a consequence of a particular supply of the property by a participating employer of the pension plan where

(a)  the amount determined by the formula in subparagraph 3 of the first paragraph of section 289.5 in respect of a supply of that property that is deemed to have been made by the participating employer under subparagraph 1 of the first paragraph of section 289.5 is greater than zero, or

(b)  the amount determined by the formula in subparagraph 3 of the first paragraph of section 289.6 in respect of any supply of an employer resource that is deemed to have been made by the participating employer under subparagraph 1 of the first paragraph of section 289.6, consumed or used for the purpose of making the particular supply, is greater than zero.

A person who brings corporeal property into Québec includes any person who causes such property to be brought into Québec.

1991, c. 67, s. 17; 1993, c. 19, s. 169; 1995, c. 1, s. 249; 1995, c. 63, s. 301; 1997, c. 85, s. 424; 2001, c. 51, s. 260; 2010, c. 5, s. 208; 2011, c. 34, s. 141; 2011, c. 6, s. 235; 2012, c. 28, s. 33; 2015, c. 21, s. 617.

17.0.1. For the purposes of subparagraph 2.1 and subparagraph b of subparagraph 2.2 of the second paragraph of section 17, the estimated value of a road vehicle is

 (1) in the case of a vehicle for which the average wholesale price is listed in the most recent edition, on the first day of the month in which the vehicle is brought into Québec, of the Guide d'Évaluation Hebdo (Automobiles et Camions Légers) published by Hebdo Mag Inc., that price less an amount of $500;

 (1.1) (paragraph repealed);

 (2) in the case of a vehicle for which an average wholesale price is listed in the most recent edition, on the first day of the month preceding the month in which the vehicle is brought into Québec, of the Canadian Motorcycle Dealers Blue Book published by All Seasons Publications Ltd., that price less an amount of $500;

 (3) in the case of a vehicle for which an average wholesale price is listed in the most recent edition, on the first day of the month preceding the month in which the vehicle is brought into Québec, of the Canadian ATV, Snowmobile & Watercraft Dealers Blue Book published by All Seasons Publications Ltd., that price less an amount of $500; and

 (4) in any other case, the value of the vehicle prescribed by the Minister.

1995, c. 1, s. 250; 1995, c. 63, s. 302; 1997, c. 14, s. 331; 2000, c. 39, s. 280.

17.0.2. Where subparagraph a of subparagraph 2.1 or subparagraph b of subparagraph 2.2 of the second paragraph of section 17 applies in respect of a road vehicle that is damaged or that shows unusual wear at the time it is supplied to a person, that is brought into Québec by the person immediately after that time and immediately after the bringing of the vehicle into Québec, the person provides the Minister or a person prescribed for the purposes of section 473 with a written estimate of the vehicle or of the repairs to be carried out in respect of the vehicle, that meets the requirements of the third paragraph of section 55.0.3, the value of the vehicle that corresponds to the estimated value of the vehicle described in section 17.0.1 may be reduced by an amount equal to

 (1) the amount by which that value exceeds the value of the vehicle stated in the written estimate; or

 (2) the amount by which the value stated in the written estimate of the repairs to be carried out in respect of the vehicle exceeds $500.

1995, c. 1, s. 250; 1995, c. 63, s. 303; 2004, c. 21, s. 527; 2005, c. 23, s. 273.

17.1. For the purposes of section 17, where a person brings into Québec a road vehicle (in this section referred to as the “road vehicle brought”) that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the person and which the person acquired by way of a supply made outside Québec by a supplier of another jurisdiction, the value of the vehicle on which the tax under the said section must be calculated shall be reduced by any credit granted by the supplier for another road vehicle he accepted in full or partial consideration for the supply of the road vehicle brought, where the following conditions are met:

 (1) the person owned the road vehicle thus given in exchange and paid, in respect of the vehicle, tax under this Act or the tax prescribed by Chapter II of the Retail Sales Tax Act (chapter I-1), or any tax of the same nature levied by another jurisdiction, other than the tax payable under Part IX of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15);

 (2) the road vehicle thus given in exchange was a used vehicle and, where tax was paid in respect of that vehicle, the person is not entitled to a rebate of the tax so paid;

 (3) the jurisdiction in which the supply of the road vehicle brought was made grants the same tax abatement to persons resident or carrying on a business in its territory;

 (4) (paragraph repealed);

 (5) the person is a large business or is not required to collect the tax payable under Part IX of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) in respect of a road vehicle so given in exchange.

For the purposes of this section, “large business” has the meaning assigned by sections 551 to 551.4 of the Act to amend the Taxation Act, the Act respecting the Québec sales tax and other legislative provisions (1995, chapter 63).

1993, c. 19, s. 170; 1995, c. 63, s. 304; 1999, c. 83, s. 309; 2002, c. 9, s. 152.

17.2. (Repealed).

1993, c. 19, s. 170; 1995, c. 63, s. 305.

17.3. (Repealed).

1993, c. 19, s. 170; 1995, c. 1, s. 251; 1995, c. 63, s. 306.

17.4. Notwithstanding section 17, no tax is payable in respect of corporeal property brought into Québec for consumption, use or supply as supplies related to a convention where the property is brought into Québec by the sponsor of a foreign convention or the organizer of such a convention who is not registered under Division I of Chapter VIII.

1994, c. 22, s. 369.

17.4.1. If, but for this section, tax under section 17 would become payable by a person in respect of corporeal property that comes from Canada outside Québec and that the person brings into Québec when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that

 (1) is a prescribed amount of tax for the purposes of subparagraph a of subparagraph 6 of the second paragraph of section 433.16 or subparagraph a of subparagraph 4 of the second paragraph of section 433.16.2; or

 (2) is in respect of a property acquired otherwise than for consumption, use or supply in the course of an endeavour, within the meaning assigned by section 42.0.1, of the person.

2012, c. 28, s. 34; 2015, c. 21, s. 618.

17.5. Subject to section 404, a person is entitled to a rebate of tax paid under section 17 in respect of the bringing into Québec of corporeal property from outside Canada where

 (1) the person paid tax in respect of the property acquired by the person on consignment, approval or other similar terms;

 (2) the property is, within 60 days after its release within the meaning of the Customs Act (Revised Statutes of Canada, 1985, chapter 1, 2nd Supplement) but before it is used or consumed otherwise than on a trial basis, shipped outside Québec by the person for the purpose of returning it to the supplier and is not damaged after its release and before its shipping; and

 (3) within two years after the day the tax was paid, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the tax.

1994, c. 22, s. 369; 1997, c. 85, s. 425.

17.6. Subject to section 404, a person is entitled to a rebate of tax paid under section 17 in respect of the bringing into Québec of corporeal property from Canada but outside Québec where

 (1) the person paid tax in respect of the property acquired by the person on consignment, approval or other similar terms;

 (2) the property is, within 60 days after its being brought into Québec but before it is used or consumed otherwise than on a trial basis, shipped outside Québec by the person for the purpose of returning it to the supplier and is not damaged after its being brought into Québec and before its shipping; and

 (3) within two years after the day the tax was paid, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the tax.

1994, c. 22, s. 369; 1997, c. 85, s. 426.

17.7. Subject to section 404, an individual is entitled to a rebate of tax paid under section 17 in respect of the bringing into Québec of a pleasure boat for the purpose of storing it during the winter where

 (1) the individual paid tax in respect of the bringing into Québec of the pleasure boat;

 (2) the pleasure boat is taken or shipped outside Québec within a reasonable period of time after the winter storage;

 (3) within four years after the date on which the pleasure boat was taken or shipped outside Québec, the individual files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the tax; and

 (4) the application for a rebate is filed with proof establishing that the individual paid tax in respect of the pleasure boat and that the pleasure boat was shipped or taken outside Québec after the winter storage.

1997, c. 14, s. 332.

§ 3. —  Taxable supply made outside Québec or by a non-resident person who is not registered and other supplies
1994, c. 22, s. 369; 1995, c. 1, s. 252; 2003, c. 2, s. 308.

18. Every recipient of a taxable supply, except a zero-rated supply (other than the zero-rated supply included in paragraph 2.1 or in any of sections 179.1, 179.2 and 191.3.2), or a supply included in any of sections 18.0.1, 18.0.1.1 and 18.0.1.2, shall pay to the Minister a tax in respect of the supply calculated at the rate of 9.975% on the value of the consideration for the supply if the supply is

 (1) a supply, other than a prescribed supply, of a service made outside Québec to a person who is resident in Québec, other than a supply of a service that is

(a)  acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Québec by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Québec,

(b)  consumed by an individual exclusively outside Québec, other than a training service the supply of which is made to a person who is not a consumer,

(c)  in respect of an immovable situated outside Québec,

(d)  a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of corporeal movable property that is

(i)  situated outside Québec at the time the service is performed, or

(ii)  shipped outside Québec as soon after the service is performed as is reasonable having regard to the circumstances surrounding the shipping outside Québec and is not consumed, used or supplied in Québec after the service is performed and before the shipping outside Québec of the property,

(e)  a transportation service, other than a freight transportation service the supply of which is referred to in section 24.2, or

(f)  a service rendered in connection with criminal, civil or administrative litigation outside Québec, other than a service rendered before the commencement of such litigation;

 (2) a supply, other than a prescribed supply, of incorporeal movable property made outside Québec to a person who is resident in Québec, other than a supply of property that

(a)  is acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Québec by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Québec,

(b)  may not be used in Québec, or

(c)  relates to an immovable situated outside Québec, to a service to be performed wholly outside Québec or to corporeal movable property situated outside Québec;

 (2.1) a supply made in Québec of incorporeal movable property that is a zero-rated supply only because it is included in section 188 or 188.1, other than

(a)  a supply that is made to a consumer of the property, or

(b)  a supply of incorporeal movable property that is acquired for consumption, use or supply exclusively in the course of commercial activities of the recipient of the supply or activities that are engaged in exclusively outside Québec by the recipient of the supply and that are not part of a business or an adventure or concern in the nature of trade engaged in by that recipient in Québec;

 (3) a supply, other than a prescribed supply, of corporeal movable property made by a person not resident in Québec who is not registered under Division I of Chapter VIII to a recipient who is a registrant where

(a)  physical possession of the property is transferred to the recipient in Québec by another registrant who has

(i)  made in Québec a supply by way of sale of the property or a supply of a service of manufacturing or producing the property to a person not resident in Québec, or

(ii)  acquired physical possession of the property in order to make a supply of a commercial service in respect of the property to a person not resident in Québec,

(b)  the recipient gives to the other registrant a certificate of the recipient referred to in subparagraph 3 of the first paragraph of section 327.2, and

(c)  the property

(i)  is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient, or

(ii)  (subparagraph repealed),

(iii)  is a passenger vehicle which the recipient acquires for use in Québec as capital property in the course of commercial activities of the recipient and in respect of which the capital cost to the recipient exceeds the amount deemed under paragraph d.3 or d.4 of section 99 of the Taxation Act (chapter I-3) to be the capital cost of the passenger vehicle to the recipient for the purposes of the said Act;

 (4) a supply, other than a prescribed supply, of corporeal movable property made at a particular time by a person not resident in Québec who is not registered under Division I of Chapter VIII to a particular recipient resident in Québec where

(a)  the property is delivered or made available, in Québec, to the particular recipient and the particular recipient is not a registrant who is acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the particular recipient, and

(b)  the person not resident in Québec has previously made a taxable supply of the property by way of lease, licence or similar arrangement to a registrant with whom the person was not dealing at arm's length or who was related to the particular recipient, and

(i)  the property was delivered or made available, in Québec, to the registrant,

(ii)  the registrant was entitled to claim an input tax refund in respect of the property or was not required to pay tax under this section in respect of the supply solely because he had acquired the property for consumption, use or supply exclusively in the course of commercial activities of the registrant, and

(iii)  the supply was the last supply made by the person not resident in Québec to a registrant before the particular time;

 (5) a supply of a continuous transmission commodity, if the supply is deemed under section 23 to be made outside Québec to a registrant by a person who was the recipient of a supply of the commodity that was a zero-rated supply included in section 191.3.1 or that would, but for subparagraph e of paragraph 1 of that section, have been included in that section, and the registrant is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the registrant;

 (6) a supply, included in section 191.3.2, of a continuous transmission commodity that is neither shipped outside Québec, as described in subparagraph 1 of the first paragraph of that section, nor supplied, as described in subparagraph 2 of the first paragraph of that section, by the recipient and the recipient is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the recipient;

 (7) a supply of property that is a zero-rated supply only because it is included in section 179.1, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient and

(a)  an authorization granted to the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, or

(b)  the recipient does not ship the property outside Québec in the circumstances described in paragraphs 2 to 4 of section 179;

 (8) a supply of property that is a zero-rated supply only because it is included in section 179.2, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient and

(a)  an authorization granted to the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, or

(b)  the recipient is not acquiring the property for use or supply as domestic inventory or as added property, as those expressions are defined in section 350.23.1; or

 (9) a supply deemed to be acquired by a qualifying taxpayer, within the meaning of section 26.2, under section 26.3 or 26.4.

1991, c. 67, s. 18; 1993, c. 19, s. 171; 1994, c. 22, s. 370; 1995, c. 1, s. 357; 1995, c. 1, s. 253; 1995, c. 63, s. 307; 1997, c. 85, s. 427; 2001, c. 53, s. 274; 2003, c. 2, s. 309; 2009, c. 5, s. 596; 2009, c. 15, s. 482; 2010, c. 5, s. 209; 2011, c. 6, s. 236; 2012, c. 28, s. 35; 2015, c. 21, s. 619.

18.0.1. Every person who is resident in Québec and is the recipient of a taxable supply of incorporeal movable property or a service made outside Québec, otherwise than by reason of section 23 or 24.2, but within Canada, other than a supply included in section 18.0.1.1 or 18.0.1.2, that is acquired by the person for consumption, use or supply to an extent of at least 10% in Québec shall pay to the Minister, each time consideration, or a part thereof, for the supply becomes due or is paid without having become due, a tax in respect of the supply equal to the amount determined by the formula


A × B × C.


For the purposes of this formula,

 (1) A is 9.975%;

 (2) B is the value of the consideration or a part thereof that is paid or becomes due at that time; and

 (3) C is the extent, expressed as a percentage, to which the person acquired the property or service for consumption, use or supply in Québec.

No tax is payable in respect of

 (1) a supply of property or a service to a registrant, other than a registrant whose net tax is determined under sections 433.1 to 433.15 or under a regulatory provision made under section 434, who acquired the property or service for consumption, use or supply exclusively in the course of commercial activities of the registrant;

 (2) a zero-rated supply;

 (3) a supply of a service, other than a custodial or nominee service in respect of securities or precious metals of the person, in respect of corporeal movable property that is shipped outside Québec as soon after the service is performed as is reasonable having regard to the circumstances surrounding the shipment outside Québec and is not consumed, used or supplied in Québec after the service is performed and before the property is shipped outside Québec;

 (4) a supply of a service rendered in connection with criminal, civil or administrative litigation outside Québec, other than a service rendered before the commencement of such litigation;

 (5) a supply of a transportation service;

 (6) a supply of a telecommunication service;

 (7) a prescribed supply of property or a service where the property or service is acquired by the recipient of the supply in prescribed circumstances, in accordance with such terms and conditions as may be prescribed;

 (8) a supply of a property or a service, if the total of all amounts, each of which is an amount of tax that, but for this subparagraph and subparagraph 5 of the fourth paragraph of section 17, would become payable by the person under the first paragraph or the first paragraph of section 17, is $35 or less in the calendar month that includes the time when all or part of the consideration for the supply becomes due or is paid without having become due; or

 (9) a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan where

(a)  the amount determined by the formula in subparagraph 3 of the first paragraph of section 289.5 in respect of a supply of the property or service that is deemed to have been made by the participating employer under subparagraph 1 of the first paragraph of section 289.5, is greater than zero, or

(b)  the amount determined by the formula in subparagraph 3 of the first paragraph of section 289.6 in respect of any supply of an employer resource that is deemed to have been made by the participating employer under subparagraph 1 of the first paragraph of section 289.6, consumed or used for the purpose of making the particular supply, is greater than zero.

For the purposes of the first paragraph, a supply is made in Canada if it is deemed to be made in Canada under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15).

1997, c. 85, s. 428; 2001, c. 53, s. 275; 2010, c. 5, s. 210; 2011, c. 1, s. 121; 2011, c. 34, s. 142; 2011, c. 6, s. 237; 2012, c. 28, s. 36; 2015, c. 21, s. 620.

18.0.1.1. Every person that is resident in Québec, is a stratified investment plan with one or more provincial series as regards Québec and is the recipient of a taxable supply of incorporeal movable property or a service made outside Québec, where the property or service is consumed, used or supplied in the course of activities relating to one or more provincial series of the investment plan as regards Québec, shall pay to the Minister, at each time all or part of the consideration for the supply becomes due or is paid without having become due, a tax in respect of the supply equal to the amount determined by the formula


A × B × C.


For the purposes of the formula in the first paragraph,

 (1) A is  9,975%;

 (2) B is the value of all or part of the consideration that is paid or becomes due at that time; and

 (3) C is the percentage that corresponds to the aggregate of all percentages each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan as regards Québec, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations made under the Excise Tax Act (R.S.C 1985, c. E-15).

No tax is payable under the first paragraph by a person that is a stratified investment plan with one or more provincial series as regards Québec in respect of a taxable supply of an incorporeal movable property or a service if the quotient (expressed as a percentage) obtained by dividing the total of all amounts each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan as regards Québec, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations by the total of all amounts each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan as regards any province, as determined in accordance with that section 51, is less than 10%.

Despite the first paragraph, no tax is payable by a person under this section in respect of a taxable supply of an incorporeal movable property or a service made outside Québec but within Canada if

 (1) the supply is described in subparagraph 9 of the third paragraph of section 18.0.1; or

 (2) the person is not a selected listed financial institution.

For the purposes of this section, "province" has the meaning assigned by section 433.15.1.

2015, c. 21, s. 621.

18.0.1.2. Every person that is resident in Québec, is a provincial investment plan as regards Québec and is the recipient of a taxable supply of an incorporeal movable property or a service made outside Québec shall pay to the Minister, where the property or service is consumed, used or supplied in the course of the investment plan's activities, at each time all or part of the consideration for the supply becomes due or is paid without having become due, a tax in respect of the supply calculated at the rate of 9.975% on the value of all or part of the consideration that is paid or becomes due at that time.

Despite the first paragraph, no tax is payable under this section in respect of a taxable supply of an incorporeal movable property or a service made outside Québec but within Canada and described in subparagraph 9 of the third paragraph of section 18.0.1.

2015, c. 21, s. 621.

18.0.2. Subject to the second paragraph, tax under sections 18 and 18.0.1 that is determined on all or part of the consideration for a supply that becomes payable at any time, or is paid at any time without having become due, becomes payable at that time.

Tax under section 18, in respect of a supply deemed to be acquired by a qualifying taxpayer, within the meaning of section 26.2, in a specified year, within the meaning of section 26.2, of the qualifying taxpayer under section 26.3 or 26.4, that is determined for the specified year becomes payable by the qualifying taxpayer on

 (1) if the specified year is a taxation year of the qualifying taxpayer for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) and the qualifying taxpayer is required under Division I of Part I of that Act to file with the Minister of National Revenue a fiscal return for the specified year, the day on which the qualifying taxpayer is required to file a fiscal return under Part I of that Act for that taxation year; and

 (2) in any other case, the day that is six months after the end of the specified year.

1997, c. 85, s. 428; 2012, c. 28, s. 37.

18.0.3. If, but for this paragraph, tax under section 18 would become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that

 (1) is a prescribed amount of tax for the purposes of subparagraph a of subparagraph 6 of the second paragraph of section 433.16 or subparagraph a of subparagraph 4 of the second paragraph of section 433.16.2;

 (2) is in respect of a supply relating to a property or a service acquired otherwise than for consumption, use or supply in the course of an endeavour, within the meaning assigned by section 42.0.1, of the person; or

 (3) is a prescribed amount of tax.

If, but for this paragraph, tax under section 18.0.1 would become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that is described in subparagraph 1 or 2 of the first paragraph.

2012, c. 28, s. 38; 2015, c. 21, s. 622.

§ 4. —   Repealed, 1995, c. 63, s. 308.
1995, c. 1, s. 254; 1995, c. 63, s. 308.

18.1. (Repealed).

1995, c. 1, s. 254; 1995, c. 63, s. 308.

DIVISION II 
SUPPLY AND COMMERCIAL ACTIVITY

§ 1. —  Supply

I. —  Rules relating to a supply

19. (Repealed).

1991, c. 67, s. 19; 1995, c. 63, s. 309.

20. (Repealed).

1991, c. 67, s. 20; 1995, c. 63, s. 310.

20.1. A supply made otherwise than in the course of a commercial activity of a road vehicle that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the supply is deemed to be a taxable supply.

1993, c. 19, s. 172; 1995, c. 63, s. 311.

II. —  Presumptions respecting place of supply

21. (Repealed).

1991, c. 67, s. 21; 1994, c. 22, s. 371; 1995, c. 1, s. 255; 1997, c. 85, s. 429.

22. (Repealed).

1991, c. 67, s. 22; 1997, c. 85, s. 429.

22.1. (Repealed).

1994, c. 22, s. 372; 1997, c. 85, s. 429.

1 —  
Definitions and interpretation
1997, c. 85, s. 430.

22.2. For the purposes of this subdivision II,

lease interval, in respect of a supply by way of lease, licence or similar arrangement, has the meaning assigned by section 32.2;

province means a province of Canada and includes

 (1) the Northwest Territories;

 (2) the Yukon Territory;

 (2.1) Nunavut;

 (3) the Nova Scotia offshore area within the meaning of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28), to the extent that that area is a participating province within the meaning assigned by subsection 1 of section 123 of the Excise Tax Act (R.S.C. 1985, c. E-15);

 (4) the Newfoundland offshore area, within the meaning of the Canada-Newfoundland Atlantic Accord Implementation Act (S.C. 1987, c. 3), to the extent that that area is a participating province within the meaning assigned by subsection 1 of section 123 of the Excise Tax Act.

1997, c. 85, s. 430; 2003, c. 2, s. 310; 2011, c. 1, s. 122; 2015, c. 21, s. 623.

22.3. For the purposes of sections 22.2 to 22.30, a floating home, and a mobile home that is not affixed to land are each deemed to be corporeal movable property and not immovables.

1997, c. 85, s. 430.

22.4. For the purposes of sections 22.2 to 22.30, where an agreement for the supply of property or a service is entered into but the property is not delivered to the recipient or the service is not performed, the property is deemed to have been delivered, or the service is deemed to have been performed, where the property or service was to be delivered or performed, as the case may be, under the terms of the agreement.

1997, c. 85, s. 430.

22.5. Where, for the purpose of determining, under sections 22.2 to 22.30, if a supply is made in Québec, reference is made to the ordinary location of property and, from time to time, the supplier and the recipient mutually agree upon what is to be the ordinary location of the property at a particular time, that location is deemed, for the purposes of sections 22.2 to 22.30, to be the ordinary location of that property at the particular time.

1997, c. 85, s. 430.

22.6. Sections 22.7 to 22.30 apply subject to sections 23, 24.2, 327.2 and 327.3.

1997, c. 85, s. 430.

2 —  
Corporeal movable property
1997, c. 85, s. 430.

22.7. A supply of corporeal movable property by way of sale is deemed to be made in Québec if the property is delivered in Québec to the recipient of the supply.

1997, c. 85, s. 430.

22.8. A supply of corporeal movable property otherwise than by way of sale is deemed to be made in Québec if

 (1) in the case of a supply made under an agreement under which continuous possession or use of the property is provided for a period of not more than three months, the property is delivered in Québec to the recipient of the supply; and

 (2) in any other case,

(a)  where the property is a road vehicle, it is required, at the time the supply is made, to be registered under the Highway Safety Code (chapter C-24.2),

(b)  where the property is not a road vehicle, the ordinary location of the property, as determined at the time the supply is made, is in Québec, and

(c)  (subparagraph repealed);

(i)  property that is a specified motor vehicle within the meaning of subsection 1 of section 123 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) that is required, at the time the supply is made, to be registered under the laws of another province relating to the registration of motor vehicles, or

(ii)  property, other than a specified motor vehicle referred to in subparagraph i, the ordinary location of which, as determined at the time the supply is made, is in another province.

Notwithstanding the first paragraph, a supply of corporeal movable property otherwise than by way of sale is deemed to be made outside Québec if possession or use of the property is given or made available outside Canada to the recipient.

1997, c. 85, s. 430; 1998, c. 16, s. 310; 2015, c. 21, s. 624.

22.9. Property is deemed to be delivered

 (1) in Québec where the supplier

(a)  ships the property to a destination in Québec that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient to ship the property to such a destination, or

(b)  sends the property by mail or courier to an address in Québec; and

 (2) outside Québec where the supplier

(a)  ships the property to a destination in another province that is specified in the contract for carriage of the property or transfers possession of the property to a common carrier or consignee that the supplier has retained on behalf of the recipient to ship the property to such a destination, or

(b)  sends the property by mail or courier to an address in another province.

The first paragraph does not apply where the property is corporeal movable property supplied by way of sale that is, or is to be, delivered outside Canada to the recipient.

1997, c. 85, s. 430; 2001, c. 51, s. 261.

22.9.1. For the purposes of section 22.8, if a supply of corporeal movable property is made by way of lease, licence or similar arrangement,

 (1) where the supply is made under an arrangement under which continuous possession or use of the property is provided for a period of not more than three months and the property is delivered in Québec to the recipient, the property is deemed to be delivered in Québec for each of the supplies which, because of section 32.2, is deemed to be made;

 (2) (paragraph repealed);

 (3) where possession or use of the property is given or made available outside Canada to the recipient, possession or use of the property is deemed to be given or made available outside Canada to the recipient for each of the supplies which, because of section 32.2, is deemed to be made.

2001, c. 53, s. 276; 2015, c. 21, s. 625.

3 —  
Incorporeal movable property
1997, c. 85, s. 430.

22.10. For the purposes of sections 22.11.1 and 22.11.2,

Canadian rights in respect of an incorporeal movable property means that part of the property that can be used in Canada;

specified location of a supplier means

 (1) the supplier's permanent establishment; or

 (2) a vending machine.

1997, c. 85, s. 430; 2011, c. 1, s. 123.

22.10.1. Sections 22.11.1 to 22.11.4 do not apply to an incorporeal movable property to which any of sections 22.21 to 22.27 applies.

2011, c. 1, s. 124.

22.11. (Repealed).

1997, c. 85, s. 430; 2011, c. 1, s. 125.

22.11.1. A supply of an incorporeal movable property (other than an incorporeal movable property that relates to an immovable or to a corporeal movable property) in respect of which the Canadian rights can only be used primarily in Québec is deemed to be made in Québec.

2011, c. 1, s. 126.

22.11.2. A supply of an incorporeal movable property (other than an incorporeal movable property that relates to an immovable or to a corporeal movable property) in respect of which the Canadian rights can be used otherwise than only primarily in Québec and otherwise than only primarily outside Québec is deemed to be made in Québec if,

 (1) in the case of a supply for which the value of the consideration is $300 or less that is made through a specified location of the supplier in Québec and in the presence of an individual who is, or who acts on behalf of, the recipient, the incorporeal movable property can be used in Québec; and

 (2) in the case of a supply that is not deemed under paragraph 1 to be made in Québec, the following conditions are satisfied:

(a)  in the ordinary course of the supplier's business, the supplier obtains an address (in this paragraph referred to as the “particular address”) that is

(i)  if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address obtained by the supplier,

(ii)  if the supplier obtains more than one address described in subparagraph i, the address described in that subparagraph that is most closely connected with the supply, or

(iii)  in any other case, the address in Canada of the recipient that is most closely connected with the supply,

(b)  the particular address is in Québec, and

(c)  the incorporeal movable property can be used in Québec.

2011, c. 1, s. 126.

22.11.3. A supply of an incorporeal movable property that relates to an immovable is deemed to be made in Québec if the immovable that is situated in Canada is situated primarily in Québec.

2011, c. 1, s. 126.

22.11.4. A supply of an incorporeal movable property that relates to a corporeal movable property is deemed to be made in Québec if the corporeal movable property that is ordinarily situated in Canada is ordinarily situated primarily in Québec.

2011, c. 1, s. 126.

4 —  
Immovable
1997, c. 85, s. 430.

22.12. A supply of an immovable is deemed to be made in Québec if the immovable is situated in Québec.

1997, c. 85, s. 430.

22.13. (Repealed).

1997, c. 85, s. 430; 2011, c. 1, s. 127.

5 —  
Service
1997, c. 85, s. 430.

22.14. For the purposes of sections 22.15.0.2 and 22.15.0.4 to 22.15.0.6, Canadian element of a service means the portion of the service that is performed in Canada.

1997, c. 85, s. 430; 2011, c. 1, s. 128.

22.14.1. Sections 22.15.0.1 to 22.15.0.6 do not apply to a service to which any of sections 22.18 to 22.27 applies.

2011, c. 1, s. 129.

22.15. (Repealed).

1997, c. 85, s. 430; 1998, c. 16, s. 310; 2011, c. 1, s. 130.

22.15.0.1. Subject to sections 22.15.0.3 to 22.15.0.6, a supply of a service is deemed to be made in Québec if, in the ordinary course of the supplier's business, the supplier obtains an address in Québec that is

 (1) if the supplier obtains only one address that is a home or a business address in Canada of the recipient, the home or business address obtained by the supplier;

 (2) if the supplier obtains more than one address described in subparagraph 1, the address described in that subparagraph that is most closely connected with the supply; or

 (3) in any other case, the address in Canada of the recipient that is most closely connected with the supply.

The first paragraph does not apply in the case of a supply of a service performed wholly outside Canada.

2011, c. 1, s. 131; 2015, c. 21, s. 626.

22.15.0.2. Subject to section 22.15.0.1 and sections 22.15.0.3 to 22.15.0.6, a supply of a service is deemed to be made in Québec if the Canadian element of the service is performed primarily in Québec.

The first paragraph does not apply in the ordinary course of the supplier's business, if the supplier obtains an address in Canada of the recipient.

2011, c. 1, s. 131; 2015, c. 21, s. 627.

22.15.0.3. A supply of a service in relation to an immovable is deemed to be made in Québec if the immovable that is situated in Canada is situated primarily in Québec.

2011, c. 1, s. 131.

22.15.0.4. If a person makes a supply of a service in relation to a corporeal movable property that is situated in Québec at the particular time when the Canadian element of the service begins to be performed and, at all times when the Canadian element of the service is performed, the corporeal movable property remains in Québec, the supply is deemed to be made in Québec if the corporeal movable property is situated primarily in Québec at the particular time.

2011, c. 1, s. 131.

22.15.0.5. If a person makes a supply of a service in relation to a corporeal movable property that is situated in Québec or in another province at the particular time when the Canadian element of the service begins to be performed and, at any time during the period when the Canadian element of the service is performed, the corporeal movable property does not remain in Québec or in the province in which it was situated at the particular time, the supply is deemed to be made in Québec if the corporeal movable property is situated primarily in Québec at any time when the service is performed and if the Canadian element of the service is performed primarily in Québec.

2011, c. 1, s. 131.

22.15.0.6. A supply of a service (other than an advisory, consulting or professional service) all or substantially all of which is performed in the presence of the individual to whom it is rendered is deemed to be made in Québec if the Canadian element of the service is performed primarily in Québec.

2011, c. 1, s. 131.

22.15.1. (Repealed).

2001, c. 53, s. 277; 2015, c. 21, s. 628.

22.15.2. For the purposes of this subdivision, where section 32.3 applies in respect of the supply of a service, except in respect of a telecommunication service, the supply is deemed to be made outside Québec if all of the supplies of the service are deemed to be made outside Canada for the purposes of Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) under paragraph d of subsection 2 of section 136.1 of that Act.

2015, c. 21, s. 629.

6 —  
Transportation service
1997, c. 85, s. 430.

22.16. For the purposes of this section and sections 22.17.1 to 22.19,

continuous journey has the meaning assigned by section 193;

destination of a freight transportation service means the place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper;

freight transportation service has the meaning assigned by section 193;

leg of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes;

origin of a continuous journey has the meaning assigned by section 193;

stopover, in respect of a continuous journey, has the meaning assigned by section 193 except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey;

termination of a continuous journey has the meaning assigned by section 193.

1997, c. 85, s. 430; 2011, c. 1, s. 132; 2015, c. 21, s. 630.

22.17. (Repealed).

1997, c. 85, s. 430; 2011, c. 1, s. 133.

22.17.1. A supply of a passenger transportation service is deemed to be made in Québec if the passenger transportation service

 (1) is part of a continuous journey in respect of which there is a ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

(a)  the origin is a place in Québec, and

(b)  the termination and all stopovers in respect of the continuous journey are in Canada;

 (2) is part of a continuous journey in respect of which there is no ticket or voucher, issued in respect of the particular passenger transportation service included in the continuous journey that is provided first, specifying the origin of the continuous journey and

(a)  the passenger transportation service included in the continuous journey that is provided first cannot begin otherwise than in Québec, and

(b)  the termination and all stopovers in respect of the continuous journey are in Canada; or

 (3) is not part of a continuous journey and

(a)  the passenger transportation service begins in Québec, and

(b)  the passenger transportation service ends in Canada.

2011, c. 1, s. 134.

22.17.2. If, at the time when a supply of an incorporeal movable property that is a passenger transportation pass or a similar property allowing an individual to obtain one or more passenger transportation services is made, the supplier can determine that each passenger transportation service could not begin otherwise than in Québec and would terminate in Canada, the supply of the incorporeal movable property is deemed to be made in Québec.

2011, c. 1, s. 134.

22.17.3. If a supply of a property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and the property or service is delivered, performed or made available on board the conveyance during any leg of the journey that begins in Québec and ends in Québec, the supply is deemed to be made in Québec.

2011, c. 1, s. 134.

22.18. A supply of any of the following services by a person, in connection with the supply by that person of a passenger transportation service, is deemed to be made in Québec if the supply of the passenger transportation service is made in Québec:

 (1) a service of transporting an individual's baggage; and

 (2) a service of supervising an unaccompanied child.

1997, c. 85, s. 430; 2001, c. 53, s. 278.

22.18.1. A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service is deemed to be made in Québec if the supply of the passenger transportation service would be made in Québec if it were completed in accordance with the agreement relating to that supply.

2001, c. 53, s. 279.

22.19. Subject to sections 22.21 to 22.24, a supply of a freight transportation service is deemed to be made in Québec if the destination of the service is in Québec.

1997, c. 85, s. 430.

22.20. (Repealed).

1997, c. 85, s. 430; 2015, c. 21, s. 631.

7 —  
Postal service
1997, c. 85, s. 430.

22.21. For the purposes of this section and sections 22.22 to 22.24,

permit imprint means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any business reply indicia or item bearing that indicia;

postage stamp means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint or any business reply indicia or item bearing that indicia.

1997, c. 85, s. 430.

22.22. A supply of a postage stamp or a postage-paid card, package or similar item, other than an item bearing a business reply indicia, that is authorized by the Canada Post Corporation is deemed to be made in Québec if the supplier delivers the stamp or item in Québec to the recipient of the supply and, where the stamp or item is used as evidence of the payment of postage for a mail delivery service, the supply of the service is deemed to be made in Québec, unless

 (1) the supply of the service is made pursuant to a bill of lading; or

 (2) the consideration for the supply of the service is $5 or more and the address to which the mail is sent is not in Québec.

1997, c. 85, s. 430; 2012, c. 28, s. 39.

22.23. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation is evidenced by a postage meter impression printed by a meter, the supply of the service is deemed to be made in Québec if the ordinary location of the meter, as determined at the time the recipient of the supply pays an amount to the Corporation for the purpose of paying that postage, is in Québec, unless the supply is made pursuant to a bill of lading.

1997, c. 85, s. 430.

22.24. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation otherwise than pursuant to a bill of lading is evidenced by a permit imprint, the supply of the service is deemed to be made in Québec if the recipient of the supply deposits the mail in Québec with the Corporation in accordance with the agreement between the recipient and the Corporation authorizing the use of the permit imprint.

1997, c. 85, s. 430.

8 —  
Telecommunication service
1997, c. 85, s. 430.

22.25. For the purposes of section 22.26, the billing location for a telecommunication service supplied to a recipient is in Québec if

 (1) where the consideration paid or payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to a telecommunications facility that is used or is available for use by the recipient to obtain telecommunication services, that telecommunications facility is ordinarily located in Québec; and

 (2) in any other case, the telecommunications facility used to initiate the service is located in Québec.

1997, c. 85, s. 430.

22.26. A supply of a telecommunication service, other than a service referred to in section 22.27, is deemed to be made in Québec if,

 (1) in the case of a telecommunication service of making telecommunications facilities available to a person,

(a)  all of those facilities are ordinarily located in Québec,

(b)  part of the facilities is ordinarily located in Québec and the other part thereof is ordinarily located outside Canada, or

(c)  where not all of the telecommunications facilities are ordinarily located in Québec, any part of the facilities is ordinarily located in another province and

(i)  the invoice for the supply of the service is sent to an address in Québec, or

(ii)  in any other case, no tax of the same nature as the tax payable under this Title is imposed on the person by the other province in respect of the supply of the service or, if such tax is imposed by that province, the person is entitled to obtain a rebate thereof; or

 (2) in any other case,

(a)  the telecommunication is emitted and received in Québec,

(b)  the telecommunication is emitted or received in Québec and the billing location for the service is in Québec, or

(c)  the telecommunication is emitted in Québec and is received outside Québec and

(i)  where the telecommunication is received outside Canada, the billing location is in another province, or

(ii)  where the telecommunication is received in another province, the billing location is not in that province.

1997, c. 85, s. 430; 2002, c. 9, s. 153.

22.27. A supply of a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel, within the meaning of section 32.6, for transmitting telecommunications between a place in Québec and a place outside Québec but within Canada is deemed to be made in Québec.

1997, c. 85, s. 430.

9 —  
Deemed supply and prescribed supply
1997, c. 85, s. 430.

22.28. Notwithstanding sections 22.7 to 22.27, a supply of property that is deemed under any of sections 207 to 210.4, 238.1, 285 to 287.3, 298, 300, 320, 323.1, 325 and 337.2 to 341.9 to have been made or received at any time is deemed to be made in Québec if the property is situated in Québec at that time.

1997, c. 85, s. 430; 2001, c. 51, s. 262.

22.29. Notwithstanding sections 22.7 to 22.27, a supply of property or a service is deemed to be made in Québec if the supply is deemed to be made in Québec under another provision of this Title or a provision of the Regulation respecting the Québec sales tax (chapter T-0.1, r. 2).

1997, c. 85, s. 430.

22.30. Notwithstanding sections 22.7 to 22.27, a prescribed supply of property or a service is deemed to be made in Québec.

1997, c. 85, s. 430.

22.31. Notwithstanding sections 22.14 to 22.27, a supply of a service is deemed to be made outside Québec if it is a supply of a prescribed service.

1997, c. 85, s. 430; 2011, c. 1, s. 135.

10 —  
Special rules
1997, c. 85, s. 430.

22.32. A supply that is not deemed to be made in Québec under sections 22.7 to 22.24 and 22.28 to 22.30 is deemed to be made outside Québec.

1997, c. 85, s. 430.

22.32.1. A supply made in Québec by way of sale of a road vehicle is deemed to be made outside Québec if the supplier maintains evidence satisfactory to the Minister that, on or before the day that is seven days after the day on which the vehicle was delivered in Québec to the recipient of the supply, the vehicle was registered, otherwise than temporarily, under the laws of another province relating to the registration of vehicles by or on behalf of the recipient.

This section does not apply in respect of

 (1) a supply by way of retail sale of a motor vehicle other than a supply made following the exercise by the recipient of a right to acquire the vehicle, conferred on the recipient under an agreement in writing for the lease of the vehicle entered into with the supplier;

 (2) a supply under section 20.1; and

 (3) a supply made by a small supplier who is not a registrant, in the course of a commercial activity, of a road vehicle that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the supply.

2015, c. 21, s. 632.

23. A supply of movable property or a service made in Québec by a person who is not resident in Québec is deemed to be made outside Québec, unless

 (1) the supply is made in the course of a business carried on in Québec;

 (2) at the time the supply is made, the person is registered under Division I of Chapter VIII; or

 (3) the supply is the supply of an admission in respect of an activity, a seminar, an event or a place of amusement where the non-resident person did not acquire the admission from another person.

1991, c. 67, s. 23.

23.1. A supply of a property referred to in section 144 of the Excise Tax Act (R.S.C. 1985, c. E-15) that has not been released, within the meaning of the Customs Act (R.S.C. 1985, c. 1 (2nd Suppl.)), before being delivered to the recipient in Québec, is deemed to be made outside Québec.

For the purposes of section 17, the property referred to in the first paragraph is deemed to have been brought into Québec at the time of its release within the meaning of the Customs Act.

2012, c. 28, s. 40.

24. (Repealed).

1991, c. 67, s. 24; 1994, c. 22, s. 373.

24.1. Notwithstanding sections 22.32 and 23, a supply of prescribed corporeal movable property made by a person who is registered under Division I of Chapter VIII is deemed to be made in Québec if the property is sent, by mail or courier, to the recipient of the supply at an address in Québec.

1994, c. 22, s. 374; 1997, c. 85, s. 431.

24.2. The following are deemed made outside Québec:

 (1) a supply of a freight transportation service in respect of the transportation of corporeal movable property from a place in Canada outside Québec to a place in Québec;

 (2) a supply of a freight transportation service in respect of the transportation of corporeal movable property between two places in Québec where the service is part of a continuous freight movement, within the meaning of section 193, from a place in Canada outside Québec to a place in Québec and where the supplier of the service maintains documentary evidence satisfactory to the Minister that the service is part of a continuous freight movement from a place in Canada outside Québec to a place in Québec.

1994, c. 22, s. 374; 1997, c. 85, s. 432.

24.3. Except for the purposes of sections 182, 191.3.3 and 191.3.4, a continuous transmission commodity that is transported by means of a wire, pipeline or other conduit is deemed not to be shipped outside Québec or brought into Québec in the course of that transportation or further transportation if the commodity is transported

 (1) outside Québec in the course of, and solely for the purpose of, being delivered by that means from a place in Québec to another place in Québec;

 (2) in Québec in the course of, and solely for the purpose of, being delivered by that means from a place outside Québec to another place outside Québec;

 (3) from a place in Québec to a place outside Québec where it is stored or taken up as surplus for a period until further transported by that means to a place in Québec in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation; or

 (4) from a place outside Québec to a place in Québec where it is stored or taken up as surplus for a period until further transported by that means to a place outside Québec in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation.

2001, c. 53, s. 280.

III. —  Other presumptions

1 —  
General provisions
1994, c. 22, s. 375.

25. Where a person carries on a business through a permanent establishment of the person in Québec and through another permanent establishment of the person outside Québec,

 (1) any transfer of movable property or rendering of a service by the permanent establishment in Québec to the permanent establishment outside Québec is deemed to be a supply of the property or service; and

 (2) in respect of that supply, the permanent establishments are deemed to be separate persons who deal with each other at arm's length.

1991, c. 67, s. 25.

26. For the purposes of section 18.0.1, where a person carries on a business through a permanent establishment of the person in Québec and through another permanent establishment outside Québec,

 (1) any transfer of movable property or rendering of a service by one permanent establishment to the other permanent establishment is deemed to be a supply of the property or service;

 (2) in respect of that supply, the permanent establishments are deemed to be separate persons who deal with each other at arm's length;

 (3) the value of the consideration for that supply is deemed to be equal to the fair market value of the supply at the time the property is so transferred or the service is so rendered; and

 (4) the consideration for that supply is deemed to have become due and to have been paid, by the permanent establishment (in this paragraph referred to as “the recipient”) to which the property was transferred or the service was rendered, to the other permanent establishment at the end of the taxation year of the recipient in which the property was transferred or the service was rendered.

1991, c. 67, s. 26; 1994, c. 22, s. 376; 1997, c. 85, s. 433; 2012, c. 8, s. 265.

26.0.1. For the purposes of this section and sections 26.0.2 to 26.0.5,

incorporeal capital of a specified person means any of the following that is consumed or used by the specified person in the process of creating or developing incorporeal movable property:

 (1) all or part of a labour activity of the specified person;

 (2) all or part of property (other than incorporeal movable property described in paragraph 1 of the definition of incorporeal resource); or

 (3) all or part of a service;

incorporeal resource of a specified person means

 (1) all or part of incorporeal movable property supplied to, or created or developed by, the specified person that is not support capital of the specified person;

 (2) incorporeal capital of the specified person; or

 (3) any combination of the items referred to in paragraphs 1 and 2;

labour activity of a specified person means anything done by an employee of the specified person in the course of, or in relation to, the office or employment of the employee;

support capital of a specified person means all or part of incorporeal movable property that is consumed or used by the specified person in the process of creating or developing property (other than incorporeal movable property) or in supporting, assisting or furthering a labour activity of the specified person;

support resource of a specified person means

 (1) all or part of property (other than incorporeal movable property) supplied to, or created or developed by, the specified person that is not incorporeal capital of the specified person;

 (2) all or part of a service supplied to the specified person that is not incorporeal capital of the specified person;

 (3) all or part of a labour activity of the specified person that is not incorporeal capital of the specified person;

 (4) support capital of the specified person; or

 (5) any combination of the items referred to in paragraphs 1 to 4.

For the purposes of the first paragraph, employee includes an individual who agrees to become an employee.

2012, c. 8, s. 266.

26.0.2. For the purposes of sections 26.0.1 and 26.0.3 to 26.0.5, the following rules apply:

 (1) a person (other than a financial institution) is a specified person throughout a taxation year of the person if the person

(a)  carries on, at any time in the taxation year, a business through a permanent establishment of the person outside Canada, and

(b)  carries on, at any time in the taxation year, a business through a permanent establishment of the person in Québec; and

 (2) a business of a person is a specified business of the person throughout a taxation year of the person if the business is carried on, at any time in the taxation year, in Québec through a permanent establishment of the person.

2012, c. 8, s. 266; 2012, c. 28, s. 41.

26.0.3. For the purposes of sections 26.0.4 and 26.0.5, internal use of a support resource, or of an incorporeal resource, of a specified person occurs during a taxation year of the specified person if

 (1) the specified person at any time in the taxation year uses outside Canada any part of the resource in relation to the carrying on of a specified business of the specified person; or

 (2) the specified person is permitted under the Taxation Act (chapter I-3), or would be so permitted if that Act applied to the specified person, to allocate for the taxation year, as an amount in respect of a specified business of the specified person,

(a)  any part of an outlay made, or expense incurred, by the specified person in respect of any part of the resource, or

(b)  any part of an allowance, or allocation for a reserve, in respect of any part of an outlay or expense referred to in subparagraph a.

2012, c. 8, s. 266.

26.0.4. If internal use of a support resource of a specified person occurs during a taxation year of the specified person, the following rules apply:

 (1) for the purposes of section 18,

(a)  the specified person is deemed

(i)  to have rendered, during the taxation year, a service of internally using the support resource at a permanent establishment of the specified person outside Canada in the course of carrying on a specified business of the specified person, and to be the person to whom the service was rendered,

(ii)  to be the recipient of a supply made outside Canada of the service, and

(iii)  to be, in the case of a specified person not resident in Québec, resident in Québec,

(b)  the supply is deemed not to be a supply of a service that is in respect of

(i)  an immovable situated outside Québec, or

(ii)  corporeal movable property that is situated outside Québec at the time the service is performed,

(c)  the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the support resource referred to in section 26.0.3

(i)  if the part is only referred to in paragraph 1 of section 26.0.3, at the time referred to in that paragraph, and

(ii)  in any other case, on the last day of the taxation year of the specified person, and

(d)  the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and

 (2) for the purpose of determining an input tax refund of the specified person, the specified person is deemed to have acquired the service for the same purpose as that for which the part of the support resource referred to in section 26.0.3 was acquired, consumed or used by the specified person.

2012, c. 8, s. 266.

26.0.5. If internal use of an incorporeal resource of a specified person occurs during a taxation year of the specified person, the following rules apply:

 (1) for the purposes of section 18,

(a)  the specified person is deemed

(i)  to have made available, during the taxation year, at a permanent establishment of the specified person outside Canada incorporeal movable property in the course of carrying on a specified business of the specified person and to be the person to whom the incorporeal movable property was made available,

(ii)  to be the recipient of a supply made outside Canada of the incorporeal movable property, and

(iii)  to be, in the case of a specified person not resident in Québec, resident in Québec,

(b)  the supply is deemed not to be a supply of property that relates to an immovable situated outside Québec, to a service to be performed wholly outside Québec or to corporeal movable property situated outside Québec,

(c)  the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the incorporeal resource referred to in section 26.0.3

(i)  if the part is only referred to in paragraph 1 of section 26.0.3, at the time referred to in that paragraph, and

(ii)  in any other case, on the last day of the taxation year of the specified person, and

(d)  the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and

 (2) for the purpose of determining an input tax refund of the specified person, the specified person is deemed to have acquired the property for the same purpose as that for which the part of the incorporeal resource referred to in section 26.0.3 was acquired, consumed or used by the specified person.

2012, c. 8, s. 266.

26.1. For the purposes of sections 25 to 26.0.5, permanent establishment has the meaning assigned by section 11.2 where a person is resident in Québec otherwise than by reason of section 12.

1997, c. 85, s. 434; 2012, c. 8, s. 267.

26.2. For the purposes of this section and sections 26.3 to 26.5,

external charge has the meaning assigned by section 217 of the Excise Tax Act (R.S.C. 1985, c. E-15);

province has the meaning assigned by section 433.15.1;

qualifying consideration has the meaning assigned by section 217 of the Excise Tax Act;

qualifying establishment means a permanent establishment within the meaning of subsection 1 of section 123 of the Excise Tax Act or within the meaning of subsection 2 of section 132.1 of that Act;

qualifying service means any service or anything done by an employee in relation to the office or employment of the employee;

qualifying taxpayer has the meaning assigned by subsection 1 of section 217.1 of the Excise Tax Act;

specified year of a person means

 (1) in the case of a person that is described in paragraph 1 or 1.1 of the definition of taxation year in section 1, the taxation year of the person;

 (2) in the case of a person that is a registrant, other than a person described in paragraph 1, the fiscal year of the person; and

 (3) in any other case, the calendar year.

For the purposes of the definition of qualifying service in the first paragraph, an employee includes an individual who agrees to become an employee.

Despite the first paragraph, where the qualifying taxpayer is a selected listed financial institution that is a stratified investment plan, a non-stratified investment plan or an investment plan that is a pension entity of a pension plan or a private investment plan, but is not a selected listed financial institution for the purposes of Part IX of the Excise Tax Act throughout a reporting period in a particular fiscal year, and where an election made under the first paragraph of section 433.19.15 in relation to a series of the qualifying taxpayer or under the second or third paragraph of that section is in effect throughout the particular fiscal year, “external charge” and “qualifying consideration” have the meaning that would be assigned to those expressions by section 217 of the Excise Tax Act if no reference were made to paragraph c of any of subsections 3, 4 and 5 of section 225.4 of that Act, as the case may be.

2012, c. 28, s. 42; 2015, c. 21, s. 633.

26.3. A qualifying taxpayer that is resident in Québec and that made an election under subsection 1 of section 217.2 of the Excise Tax Act (R.S.C. 1985, c. E-15) is deemed to be the recipient of a taxable supply in a specified year of the qualifying taxpayer, provided that the election is in effect for the purposes of that Act for the specified year; the value of the consideration for that taxable supply is deemed to be equal to the amount determined by the formula


A + B.


For the purposes of the formula in the first paragraph,

 (1) A is the total of all amounts each of which is the product obtained by multiplying an amount that is an internal charge for the specified year and that is greater than zero by

(a)  in the case of a stratified investment plan with one or more provincial series, the aggregate of all amounts each of which is the percentage that is the extent to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the investment plan relating to a provincial series of the investment plan as regards Québec, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations made under the Excise Tax Act;

(b)  in the case of a provincial investment plan as regards Québec, 100%;

(c)  the case of a provincial investment plan as regards a province other than Québec, 0%; and

(d)  in any other case, the percentage that is the extent to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in Québec; and

 (2) B is the total of all amounts each of which is the product obtained by multiplying an amount that is an external charge for the specified year and that is greater than zero by

(a)  in the case of a stratified investment plan with one or more provincial series, the aggregate of all amounts each of which is the percentage that is the extent to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the external charge is attributable, in carrying on, engaging in or conducting an activity of the investment plan relating to a provincial series of the investment plan as regards Québec, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations;

(b)  in the case of a provincial investment plan as regards Québec, 100%;

(c)  in the case of a provincial investment plan as regards a province other than Québec, 0%; and

(d)  in any other case, the percentage that is the extent to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in Québec.

For the purposes of this section, an amount in respect of which the conditions of subsection 4 of section 217.1 of the Excise Tax Act are met is an amount that is an internal charge.

2012, c. 28, s. 42; 2015, c. 21, s. 634.

26.4. A qualifying taxpayer that is resident in Québec and to which section 26.3 does not apply for a specified year of the qualifying taxpayer is deemed to be the recipient of a taxable supply, in the specified year, the value of the consideration for which is deemed to be equal to the total of all amounts each of which is the product obtained by multiplying an amount in respect of qualifying consideration for the specified year that is greater than zero by

 (1) in the case of a stratified investment plan with one or more provincial series, the aggregate of all amounts each of which is the percentage that is the extent to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the investment plan relating to a provincial series of the investment plan as regards Québec, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations made under the Excise Tax Act (R.S.C. 1985, c. E-15);

 (2) in the case of a provincial investment plan as regards Québec, 100%;

 (3) in the case of a provincial investment plan as regards a province other than Québec, 0%; and

 (4) in any other case, the percentage that is the extent to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of a qualifying service or of property to which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in Québec.

2012, c. 28, s. 42; 2015, c. 21, s. 635.

26.5. Despite sections 11 and 11.1 and for the purposes of sections 26.3 and 26.4, a qualifying taxpayer is deemed to be resident in Québec at a particular time if, at that time,

 (1) the qualifying taxpayer has a qualifying establishment in Québec; or

 (2) the qualifying taxpayer is resident in Canada and is

(a)  a corporation incorporated or continued under the legislation of Québec and not continued elsewhere,

(b)  a club, an association, an unincorporated organization, a partnership, or a branch of one of them, in respect of which a majority of the members having management and control of it are resident in Québec, or

(c)  a trust, carrying on activities as a trust in Québec, that has an office or branch in Québec.

2012, c. 28, s. 42.

27. Where an agreement is entered into to provide property or a service,

 (1) the entering into of the agreement is deemed to be a supply of the property or service made at the time the agreement is entered into; and

 (2) any provision of property or a service under the agreement is deemed to be part of the supply referred to in paragraph 1 and not a separate supply.

1991, c. 67, s. 27.

28. Where, under an agreement entered into in respect of a debt or obligation, a person transfers property or an interest in property for the purpose of securing payment of the debt or performance of the obligation, the transfer is deemed not to be a supply.

Where, on payment of the debt or performance of the obligation or the extinguishing of the debt or obligation, the property or interest is retransferred, the retransfer of the property or interest is deemed not to be a supply.

1991, c. 67, s. 28.

29. Where a public sector body makes a supply of a service, or a supply of the use by way of licence of a copyright, trade-mark, trade-name or other similar property of the body, to a person who is the sponsor of an activity of the body for use by the person exclusively in publicizing the person's business, the supply by the body of the service or the use of the property is deemed not to be a supply.

This section does not apply where it may reasonably be regarded that the consideration for the supply is primarily for a service of advertising by means of radio or television or in a newspaper, magazine or other publication published periodically, or for a prescribed service.

1991, c. 67, s. 29; 1997, c. 85, s. 435.

29.1. Where a supply is made by the Gouvernement du Québec or any of its departments to a prescribed mandatary, or by such a mandatary to the Government, to any of its departments or to another prescribed mandatary, the supply is deemed not to be a supply.

2012, c. 28, s. 43.

30. A supply, by way of lease, licence or similar arrangement, of the use or right to use an immovable or corporeal movable property is deemed to be a supply of an immovable or corporeal movable property, as the case may be.

1991, c. 67, s. 30.

30.0.1. A supply of movable property delivered electronically is deemed to be a supply of incorporeal movable property.

2002, c. 9, s. 154.

30.1. (Repealed).

1993, c. 19, s. 173; 1995, c. 63, s. 312.

31. Where a supply of an immovable includes the provision of a property described in subparagraph 1 of the second paragraph and a property described in subparagraph 2 of that paragraph,

 (1) the property described in subparagraph 1 of the second paragraph and the property described in subparagraph 2 of that paragraph are each deemed to be a separate property;

 (2) the provision of the property described in subparagraph 1 of the second paragraph is deemed to be a supply separate from the provision of the property described in subparagraph 2 of that paragraph; and

 (3) neither supply is incidental to the other.

The property referred to in the first paragraph is

 (1) an immovable that is

(a)  a residential complex,

(b)  land, a building or part of a building that forms or is reasonably expected to form part of a residential complex, or

(c)  a residential trailer park; or

 (2) another immovable that is not part of an immovable referred to in subparagraph 1.

1991, c. 67, s. 31; 1994, c. 22, s. 377; 1997, c. 85, s. 436.

31.1. (Repealed).

1994, c. 22, s. 378; 1997, c. 85, s. 437.

32. Where a builder of an addition to a multiple unit residential complex makes a supply of the complex or an interest in it by way of sale that, but for this section, would be a taxable supply and, but for the construction of the addition, would be an exempt supply described in section 97,

 (1) the addition and the remainder of the complex are each deemed to be a separate property;

 (2) the sale of the addition or interest in it is deemed to be a supply separate from the sale of the remainder of the complex or interest in it; and

 (3) neither supply is incidental to the other.

1991, c. 67, s. 32; 1994, c. 22, s. 379.

32.1. Where a person who has increased the area of land included in a residential trailer park of the person (in this section referred to as the “additional area”) makes a supply of the park or an interest in it that, but for this section, would be a taxable supply and, but for the additional area, would be an exempt supply described in section 97.3,

 (1) the additional area and the remainder of the park are each deemed to be a separate property;

 (2) the sale of the additional area or the interest therein is deemed to be a supply separate from the sale of the remainder of the park or the interest in the park; and

 (3) neither supply is incidental to the other.

1994, c. 22, s. 380.

32.2. Where a supply of property is made by way of lease, licence or similar arrangement to a person for consideration that includes a payment that is attributable to a period (in this section referred to as the “lease interval”) that is the whole or a part of the period during which possession or use of the property is provided under the arrangement,

 (1) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the property for the lease interval;

 (2) the supply of the property for the lease interval is deemed to be made on the earliest of

(a)  the first day of the lease interval,

(b)  the day on which the payment that is attributable to the lease interval becomes due, and

(c)  the day on which the payment that is attributable to the lease interval is made; and

 (3) the payment that is attributable to the lease interval is deemed to be consideration payable in respect of the supply of the property for the lease interval.

1997, c. 85, s. 438.

32.2.1. If a recipient of a supply by way of lease, licence or similar arrangement of corporeal movable property exercises an option to purchase the property that is provided for under the arrangement and the recipient begins to have possession of the property under the agreement of purchase and sale of the property at the same time and place as the recipient ceases to have possession of the property as lessee or licensee under the arrangement, that time and place is deemed to be the time and place at which the property is delivered to the recipient in respect of the supply by way of sale of the property to the recipient.

2001, c. 53, s. 281.

32.3. Where a supply of a service is made to a person for consideration that includes a payment that is attributable to a period (in this section referred to as the “billing period”) that is the whole or a part of the period during which the service is or is to be rendered under the agreement for the supply,

 (1) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the service for the billing period;

 (2) the supply of the service for the billing period is deemed to be made on the earliest of

(a)  the first day of the billing period,

(b)  the day on which the payment that is attributable to the billing period becomes due, and

(c)  the day on which the payment that is attributable to the billing period is made; and

 (3) the payment that is attributable to the billing period is deemed to be consideration payable in respect of the supply of the service for the billing period.

1997, c. 85, s. 438.

32.4. Where a taxable supply of an immovable includes the provision of an immovable of which part is situated in Québec and another part is situated outside Québec but within Canada, for the purpose of determining whether a taxable supply of the immovable is made in Québec and determining the tax payable, if any, under section 16 in respect of the supply,

 (1) the provision of the part of the immovable that is situated in Québec and the provision of the part of the immovable that is situated outside Québec are each deemed to be a separate taxable supply made for separate consideration; and

 (2) the supply of the part of the immovable that is situated in Québec is deemed to be made for consideration equal to the portion of the total consideration for all of the immovable that may reasonably be attributed to that part.

1997, c. 85, s. 438.

32.5. For the purpose of determining the tax payable under section 16 in respect of a supply of a freight transportation service, within the meaning of section 193, that includes the provision of a service of transporting particular corporeal movable property to a destination in Québec and other corporeal movable property to a destination outside Québec but within Canada and determining whether the supply of the service is made in Québec,

 (1) the provision of the service of transporting the particular property and the provision of the service of transporting the other property are each deemed to be a separate supply made for separate consideration; and

 (2) the supply of the service of transporting the particular property is deemed to be made for consideration equal to the portion of the total consideration that may reasonably be attributed to the transportation of the particular property.

1997, c. 85, s. 438.

32.6.  For the purposes of section 32.7, telecommunications channel means a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication but does not include a satellite channel.

1997, c. 85, s. 438.

32.7. Where a person supplies a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel for transmitting telecommunications between a place in Québec and a place outside Québec but within Canada, the consideration for the supply of the service is deemed to be equal to the amount determined by the formula


(A / B) × C.


For the purposes of this formula,

 (1) A is the distance over which the telecommunications would be transmitted in Québec if the telecommunications were transmitted solely by means of cable and related telecommunications facilities located in Canada that connected, in a direct line, the transmitters for emitting and receiving the telecommunications;

 (2) B is the distance over which the telecommunications would be transmitted in Canada if the telecommunications were transmitted solely by such means; and

 (3) C is the total consideration paid or payable by the recipient for the sole access to the telecommunications channel.

1997, c. 85, s. 438.

33. Where corporeal movable property is supplied in a covering or container that is usual for that class of property, the covering or container is deemed to form part of the property so supplied.

1991, c. 67, s. 33.

34. Where a particular property or service is supplied together with any other property or service for a single consideration, and it may reasonably be regarded that the provision of the other property or service is incidental to the provision of the particular property or service, the other property or service is deemed to form part of the particular property or service so supplied.

1991, c. 67, s. 34; 1993, c. 19, s. 174; 1995, c. 1, s. 256.

34.1. (Repealed).

1993, c. 19, s. 175; 1995, c. 63, s. 313.

34.2. (Repealed).

1993, c. 19, s. 175; 1994, c. 22, s. 381; 1995, c. 63, s. 313.

34.3. (Repealed).

1993, c. 19, s. 175; 1995, c. 1, s. 257.

34.4. (Repealed).

1994, c. 22, s. 382; 1995, c. 1, s. 358.

35. Where one or more financial services are supplied together with one or more other services that are not financial services, or with properties that are not capital properties of the supplier, for a single consideration, the supply of each of the services and properties is deemed to be a supply of a financial service if

 (1) the financial services are related to the other services or the properties, as the case may be;

 (2) it is the usual practice of the supplier to supply those or similar services, or those or similar properties and services, together in the ordinary course of the business of the supplier; and

 (3) the total of all amounts each of which would be the consideration for a financial service so supplied if that financial service had been supplied separately, is greater than 50% of the total of all amounts each of which would be the consideration for a service or property so supplied if that service or property had been supplied separately.

1991, c. 67, s. 35; 1994, c. 22, s. 383; 2012, c. 28, s. 44.

36. Where a person makes a supply of a share, bond or other security that represents capital stock or debt of a particular organization, and ownership of the security by the recipient of the supply is a condition of the recipient's, or another person's, obtaining a membership, or a right to acquire a membership, in the particular organization or in another organization that is related to the particular organization, the supply of the security is deemed to be a supply of a membership and not a supply of a financial service.

A share in a credit union or in a cooperative corporation the main purpose of which is not to provide recreational, sporting or dining facilities is not a security for the purposes of the first paragraph.

1991, c. 67, s. 36; 1994, c. 22, s. 384; 1997, c. 3, s. 117.

37. (Repealed).

1991, c. 67, s. 37; 1994, c. 22, s. 385.

38. (Repealed).

1991, c. 67, s. 38; 1994, c. 22, s. 385.

39. Notwithstanding section 35, where a discounter within the meaning of the Tax Rebate Discounting Act (Revised Statutes of Canada, 1985, chapter T-3) pays an amount to a person to acquire from that person a right to a refund of tax within the meaning of that Act,

 (1) the discounter is deemed to have made a taxable supply of a service for consideration equal to the lesser of $30 and 2/3 of the amount by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right; and

 (2) the discounter is deemed to have made a separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph 1.

1991, c. 67, s. 39.

39.1. For the purposes of section 39.2, feed means

 (1) grain or seed that is described in paragraph 2 of section 178 and used as feed for farm livestock that is ordinarily raised or kept to produce, or to be used as, food for human consumption or to produce wool;

 (2) feed that is a complete feed, supplement, macro-premix, micro-premix or mineral feed, other than a trace mineral salt feed, the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Division IV of Chapter IV; and

 (3) by-products of the food processing industry and plant or animal products, the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Division IV of Chapter IV.

1994, c. 22, s. 386; 1995, c. 1, s. 258.

39.2. Where, in the course of operating a feedlot that is a farming business within the meaning of the Taxation Act (chapter I-3), a person makes a supply of a service and the consideration for the supply (in this section referred to as the “total charge”) includes a particular amount that is identified in the invoice or agreement in writing for the supply as being attributable to feed,

 (1) the provision of the feed is deemed to be a supply separate from the supply of the service and not to be incidental to the provision of any other property or service;

 (2) the portion, not exceeding 90%, of the total charge that is reasonably attributable to the feed and is included in the particular amount is deemed to be the consideration for the supply of the feed; and

 (3) the difference between the total charge and the consideration for the supply of the feed is deemed to be the consideration for the supply of the service.

1994, c. 22, s. 386.

39.3. For the purposes of sections 39.3 to 41,

estimated reserves of minerals means the estimated quantities of minerals that geological and engineering data demonstrate, with reasonable certainty, to be recoverable under existing economic and operating conditions;

farm-out agreement means an agreement referred to in section 39.4;

natural resource right means

 (1) a right to exploit a mineral deposit;

 (2) a right to explore for a mineral deposit;

 (3) a right of entry or user relating to a right referred to in paragraph 1 or 2; or

 (4) a right to an amount computed by reference to the production, including profit, from, or to the value of production from, a mineral deposit;

specified mining or well-site equipment, in relation to the exploration or development of unproven property under a farm-out agreement, means

 (1) equipment, installations and structures for use at a mine site in the production of minerals from the mine and not in the milling, smelting, refining or other processing of the minerals after production; and

 (2) equipment, installations and structures for use at a well site in the production of minerals from the well, including a heater, dehydrator or other well-site facility for the initial treatment of substances produced from the well to prepare such production for transportation but excluding

(a)  any equipment, installation, structure or facility that serves or is intended to serve a well that has not been drilled in the course of the exploration or development under that agreement, and

(b)  any equipment, installation, structure or facility for use in the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products;

unproven property means an immovable for which estimated reserves of minerals have not been established.

2001, c. 53, s. 282.

39.4. If, under an agreement in writing between a person (in this section referred to as the “farmor”) and another person (in this section referred to as the “farmee”), the farmor transfers to the farmee particular natural resource rights, or portions of them, relating to unproven property in consideration or part consideration for the farmee undertaking the exploration of the property for mineral deposits, providing information, or the right to it, gathered from the exploration and, subject to any conditions that may be provided in the agreement, developing the property for the production of minerals, the following rules apply:

 (1) the value, as consideration, of any property or service given by the farmor to the farmee under the agreement is deemed to be nil to the extent that the property or service is given as consideration for any of the following (each of which is referred to in this section as the “farmee's contribution”):

(a)  the undertaking of that exploration or development,

(b)  the provision of that information, or the right to it, and

(c)  any transfer under the agreement by the farmee to the farmor of any interest in specified mining or well-site equipment that is used by the farmee exclusively in that exploration or development;

 (2) the value of the farmee's contribution as consideration for any property or service given by the farmor to the farmee under the agreement is deemed to be nil; and

 (3) if part of the consideration given by the farmor for the farmee's contribution is property or a service (each of which is referred to in this paragraph as the “farmor's additional contribution”) that is not a natural resource right relating to unproven property,

(a)  the farmee is deemed to have made, at the place at which the unproven property is situated, a taxable supply of a service to the farmor separate from any supply by the farmee under the agreement and that service is deemed to be consideration for the farmor's additional contribution,

(b)   the value of that service and the value of the farmor's additional contribution as consideration for the supply of that service are each deemed to be equal to the fair market value of the farmor's additional contribution determined at the time (in this paragraph referred to as the “time of transfer”) that

(i)  if the farmor's additional contribution is a service, performance of the service commences, and

(ii)  in any other case, ownership of the farmor's additional contribution is transferred to the farmee,

(c)  all of the consideration for the farmor's additional contribution and the consideration for the service deemed to have been supplied by the farmee are deemed to become due at the time of transfer, and

(d)  if, in addition to the farmee's contribution, the farmee supplies to the farmor other property or services, other than the service deemed under subparagraph a to have been supplied, for which part of the consideration is the farmor's additional contribution, the value of the consideration for the supply of the other property or services is deemed to be equal to the amount by which the value of that consideration, determined without reference to this subparagraph, exceeds the fair market value of the farmor's additional contribution.

2001, c. 53, s. 282.

40. The supply of the following rights is deemed not to be a supply:

 (1) any right to exploit any mineral deposits, peat bogs or deposits of peat or any forestry, fishery or water resources;

 (2)  any right to explore relating to the deposits, peat bogs or resources referred to in subparagraph 1;

 (3) any right of entry or user relating to a right referred to in subparagraph 1 or 2;

 (4) any right to an amount computed by reference to the production, including profit, from, or to an amount computed by reference to the value of production from, the deposits, peat bogs or resources referred to in subparagraph 1; or

 (5) a right to enter or use land to generate or evaluate the feasibility of generating electricity from the sun or wind.

Any consideration paid or due, or any fee or royalty charged or reserved, in respect of a right referred to in the first paragraph is deemed not to be consideration for the right.

1991, c. 67, s. 40; 1994, c. 22, s. 387; 2009, c. 15, s. 483.

41. Section 40 does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, to a right of entry or user relating to the products, minerals or peat, or to a right described in subparagraph 5 of the first paragraph of that section, if the supply is made

 (1) to a consumer; or

 (2) to a person who is not a registrant and who acquires the right in the course of a business of the person to make supplies of the products, minerals or peat or of electricity to consumers.

1991, c. 67, s. 41; 1994, c. 22, s. 387; 2009, c. 15, s. 484.

2 —  
Mandatary
1994, c. 22, s. 388.

41.0.1. Where a registrant, in the course of a commercial activity of the registrant, acts as mandatary in making a supply, otherwise than by auction, on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph 1 of section 41.1 and the registrant and the person jointly elect in prescribed form containing prescribed information, the following rules apply:

 (1) the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purpose of

(a)  determining the net tax of the registrant and of the person, and

(b)  applying sections 447 to 450 and section 20 of the Tax Administration Act (chapter A-6.002);

 (2) the registrant and the person are solidarily liable for all obligations that arise from the application of this Title because of

(a)  the tax becoming collectible,

(b)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to the supply,

(c)  the registrant claiming, in respect of the supply, an amount as a deduction under sections 443.1 to 446.1 or sections 447 to 450 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,

(d)  a failure to pay, in the manner and within the time specified in this Title, the amount of any underpayment of net tax by the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to a claim referred to in subparagraph c,

(e)  a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under sections 443.1 to 446.1, or

(f)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to an amount required under section 446 to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph e; and

 (3) the threshold amounts of the registrant and of the person under sections 462 and 462.1 must be determined as if all or part of the consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.

1995, c. 63, s. 314; 1997, c. 85, s. 439; 2009, c. 5, s. 597; 2010, c. 31, s. 175.

41.0.2. If a registrant acts as mandatary of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as mandatary in making the supply, the registrant is deemed to have acted as mandatary of the supplier in making the supply for the purposes of

 (1) section 41.0.1; and

 (2) if an election under section 41.0.1 is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that section has been made.

2009, c. 5, s. 598.

41.0.3. A registrant and a supplier who have made an election under section 41.0.1 may, in the prescribed form containing prescribed information, jointly revoke the election in respect of a supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Title, not to have been made in respect of that supply.

2009, c. 5, s. 598.

41.1. Where a person (in this section referred to as the mandator) makes a supply, other than an exempt or zero-rated supply, of corporeal movable property to a recipient, otherwise than by auction, in the case where the mandator is not required to collect tax in respect of the supply except as provided in this section and a registrant (in this section referred to as the mandatary), in the course of a commercial activity of the mandatary, acts as mandatary in making the supply on behalf of the mandator, the following rules apply:

 (1) where the mandator is a registrant and the property was last used, or acquired for consumption or use, by the mandator in an endeavour of the mandator, within the meaning of section 42.0.1, and the mandator and the mandatary jointly elect in writing, the supply of the property to the recipient is deemed to be a taxable supply for the following purposes:

(a)  all purposes of this Title, other than determining whether the mandator may claim an input tax refund in respect of property or services acquired or brought into Québec by the mandator for consumption or use in making the supply to the recipient, and

(b)  the purpose of determining whether the mandator may claim an input tax refund in respect of a service supplied by the mandatary relating to the supply of the property to the recipient; and

 (2) in any other case, the supply of the property to the recipient is deemed to be a taxable supply made by the mandatary and not by the mandator, and the mandatary is deemed, except for the purposes of section 327.7, not to have made a supply to the mandator of a service relating to the supply of the property to the recipient.

1994, c. 22, s. 388; 1995, c. 1, s. 259; 1995, c. 63, s. 315; 1997, c. 85, s. 439.

41.2. Where a registrant (in this section referred to as the auctioneer), acting as auctioneer and mandatary for another person (in this section referred to as the mandator) in the course of a commercial activity of the auctioneer, makes, on behalf of the mandator, a supply by auction of movable corporeal property to a recipient, the supply is deemed to be a taxable supply made by the auctioneer and not by the mandator, and the auctioneer is deemed, except for the purposes of section 327.7, not to have made a supply to the mandator of a service relating to the supply of the property to the recipient.

1994, c. 22, s. 388; 1995, c. 63, s. 316; 1997, c. 85, s. 439.

41.2.1. Where a registrant (in this section referred to as the auctioneer), on a particular day, makes a particular supply by auction of prescribed property on behalf of another registrant (in this section referred to as the mandator) and, but for section 41.2, that supply would be a taxable supply made by the mandator, section 41.2 does not apply to the particular supply or to any supply made by the auctioneer to the mandator of a service relating to the particular supply where

 (1) the auctioneer and the mandator jointly elect in prescribed form containing prescribed information in respect of the particular supply; and

 (2) all or substantially all of the consideration for supplies made by auction on the particular day by the auctioneer on behalf of the mandator is attributable to supplies of prescribed property in respect of which the auctioneer and the mandator have elected under this section.

1997, c. 85, s. 440.

41.3. (Repealed).

1994, c. 22, s. 388; 1995, c. 63, s. 317; 1997, c. 85, s. 441.

41.4. (Repealed).

1994, c. 22, s. 388; 1995, c. 1, s. 260; 1995, c. 63, s. 318; 1997, c. 85, s. 441.

41.5. (Repealed).

1994, c. 22, s. 388; 1995, c. 63, s. 319; 1997, c. 85, s. 441.

41.6. Except for sections 294 to 297, 462 and 462.1, where a prescribed registrant, acting in the course of a commercial activity, makes a supply on behalf of another person of incorporeal movable property in respect of a product of an author, performing artist, painter, sculptor or other artist, the following rules apply:

 (1) the other person is deemed not to have made the supply to the recipient;

 (2) the registrant is deemed to have made the supply to the recipient; and

 (3) the registrant is deemed not to have made a supply to the other person of a service in relation to the supply to the recipient.

1994, c. 22, s. 388; 1997, c. 85, s. 442.

§ 3. —  Collecting bodies and collective societies

41.7. In this subdivision 3,

collecting body has the meaning assigned by section 79 of the Copyright Act (R.S.C. 1985, c. C-42);

collective society means a collective society, within the meaning of section 2 of the Copyright Act, that is a registrant;

eligible author has the meaning assigned by section 79 of the Copyright Act;

eligible maker has the meaning assigned by section 79 of the Copyright Act;

eligible performer has the meaning assigned by section 79 of the Copyright Act.

2015, c. 21, s. 636.

41.8. Where a collecting body or a collective society makes a taxable supply to a person that is an eligible author, eligible maker, eligible performer or a collective society and the supply includes a service of collecting or distributing the levy payable under section 82 of the Copyright Act (R.S.C. 1985, c. C-42), the value of the consideration for the supply is, for the purpose of determining tax payable in respect of the supply, deemed to be equal to the amount determined by the formula


A - B.


For the purposes of the formula in the first paragraph,

 (1) A is the value of that consideration as otherwise determined for the purposes of this Title; and

 (2) B is the part of the value of the consideration referred to in paragraph 1 that is exclusively attributable to the service.

2015, c. 21, s. 636.

§ 2. —  Commercial activity

42. (Repealed).

1991, c. 67, s. 42; 1994, c. 22, s. 389.

42.0.1. For the purposes of sections 42.0.2 to 42.0.9, endeavour of a person means

 (1) a business of the person;

 (2) an adventure or concern of the person in the nature of trade; or

 (3) the making of a supply by the person of an immovable of the person, including anything done by the person in the course of or in connection with the making of the supply.

1995, c. 1, s. 261; 1997, c. 85, s. 443.

42.0.1.1. For the purposes of sections 42.0.1.2 to 42.0.5, consideration does not include nominal consideration.

1997, c. 85, s. 444.

42.0.1.2. For the purposes of sections 42.0.1 to 42.0.9, where an amount is not consideration for a supply and is a grant, subsidy, forgivable loan or other assistance in the form of money and the assistance may reasonably be considered to be provided for the purpose of funding an activity of the registrant that involves the making of taxable supplies for no consideration, the amount is deemed to be consideration for those supplies where it is received by the registrant from a person who is

 (1) a government, a municipality or a band within the meaning of section 2 of the Indian Act (Revised Statutes of Canada, 1985, chapter I-5);

 (2) a corporation that is controlled by a person referred to in paragraph 1 and one of the main purposes of which is to provide such assistance; or

 (3) a trust, board, commission or other body that is established by a person referred to in paragraph 1 or 2 and one of the main purposes of which is to provide such assistance.

1997, c. 85, s. 444.

42.0.2. Where a person acquires or brings into Québec property or a service for consumption or use in the course of an endeavour of the person, the person is deemed to have acquired or brought into Québec the property or service for consumption or use in the course of commercial activities of the person, to the extent that the property or service is acquired or brought into Québec by the person for the purpose of making taxable supplies for consideration in the course of that endeavour.

1995, c. 1, s. 261; 1995, c. 63, s. 320; 1997, c. 85, s. 445.

42.0.3. Where a person acquires or brings into Québec property or a service for consumption or use in the course of an endeavour of the person, the person is deemed to have acquired or brought into Québec the property or service for consumption or use otherwise than in the course of commercial activities of the person, to the extent that the property or service is acquired or brought into Québec by the person

 (1) for the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration; or

 (2) for a purpose other than the making of supplies in the course of that endeavour.

1995, c. 1, s. 261; 1995, c. 63, s. 321; 1997, c. 85, s. 446.

42.0.4. Where a person consumes or uses property or a service in the course of an endeavour of the person, that consumption or use is deemed to be in the course of commercial activities of the person, to the extent that the consumption or use is for the purpose of making taxable supplies for consideration in the course of that endeavour.

1995, c. 1, s. 261; 1995, c. 63, s. 322; 1997, c. 85, s. 447.

42.0.5. Where a person consumes or uses property or a service in the course of an endeavour of the person, that consumption or use is deemed to be otherwise than in the course of commercial activities of the person, to the extent that the consumption or use is

 (1) for the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration; or

 (2) for a purpose other than the making of supplies in the course of that endeavour.

1995, c. 1, s. 261; 1995, c. 63, s. 323; 1997, c. 85, s. 448.

42.0.6. Where a supplier makes a taxable supply (in this section referred to as a “free supply”) of property or a service for no consideration or nominal consideration in the course of a particular endeavour of the supplier and it can reasonably be regarded that among the purposes (in this section referred to as the “specified purposes”) for which the free supply is made is the purpose of facilitating, furthering or promoting the acquisition, consumption or use of other property or services by any other person, or an endeavour of any person, the following rules apply:

 (1) for the purposes of sections 42.0.2 and 42.0.3, the supplier is deemed to have acquired or brought into Québec a particular property or service for use in the course of the particular endeavour, and for the specified purposes and not for the purpose of making the free supply, to the extent that the supplier acquired or brought into Québec the particular property or service for the purpose of making the free supply of that property or service or for consumption or use in the course of making the free supply; and

 (2) for the purposes of sections 42.0.4 and 42.0.5, the supplier is deemed to have consumed or used a particular property or service for the specified purposes and not for the purpose of making the free supply, to the extent that he consumed or used the particular property or service for the purpose of making the free supply.

1995, c. 1, s. 261; 1995, c. 63, s. 324.

42.0.7. Subject to sections 42.0.10 to 42.0.24, the methods used by a person in a fiscal year to determine the extent to which properties or services are acquired or brought into Québec by the person for the purpose of making taxable supplies for consideration or for other purposes and the extent to which the consumption or use of properties or services is for the purpose of making taxable supplies for consideration or for other purposes must be fair and reasonable and must be used consistently by the person throughout the year.

1995, c. 1, s. 261; 1995, c. 63, s. 325; 1997, c. 85, s. 449; 2012, c. 28, s. 45; 2015, c. 21, s. 637.

42.0.8. Where under a particular provision of this Title, other than sections 42.0.2 to 42.0.6, certain facts or circumstances are deemed to exist, and that deeming is dependent, in whole or in part, on the particular circumstance that property or a service is or was acquired or brought into Québec for consumption or use, or consumed or used, to a certain extent in the course of, or otherwise than in the course of, commercial activities or other activities, the following rules apply:

 (1) for the purpose of determining whether the particular circumstance exists, that certain extent shall be determined under sections 42.0.2 to 42.0.5; and

 (2) where it is determined that the particular circumstance exists and all other circumstances necessary for the particular provision to apply exist, the deeming by the particular provision applies notwithstanding sections 42.0.2 to 42.0.5.

1995, c. 1, s. 261.

42.0.9. Where under a provision of this Title, the consideration for a supply is deemed not to be consideration for the supply, a supply is deemed to be made for no consideration or a supply is deemed not to have been made by a person, that deeming does not apply for the purposes of sections 42.0.1 to 42.0.6.

1995, c. 1, s. 261.

42.0.10. For the purposes of this section and sections 42.0.11 to 42.0.24,

business input means an excluded input, an exclusive input or a residual input;

direct attribution method means a method, conforming to criteria, rules, terms and conditions specified by the Minister of National Revenue, of determining in the most direct manner the operative extent and the procurative extent of a property or a service;

direct input means a property or a service, other than an excluded input, an exclusive input or a non-attributable input;

excluded input of a person means

 (1) a property that is for use by the person as capital property;

 (2) a property or a service that is acquired or brought into Québec by the person for use as an improvement to a property described in paragraph 1; or

 (3) a prescribed property or service;

exclusive input of a person means a property or a service (other than an excluded input) that is acquired or brought into Québec by the person for consumption or use directly and exclusively for the purpose of making a taxable supply for consideration or directly and exclusively for purposes other than making a taxable supply for consideration;

non-attributable input of a person means a property or a service that is

 (1) not an excluded input or an exclusive input of the person;

 (2) acquired or brought into Québec by the person; and

 (3) not attributable to the making of any particular supply by the person;

operative extent of a property or a service means, as the case may be, the extent to which the consumption or use of the property or service is for the purpose of making a taxable supply for consideration or the extent to which the consumption or use of the property or service is for purposes other than making a taxable supply for consideration;

procurative extent of a property or a service means, as the case may be, the extent to which the property or service is acquired or brought into Québec for the purpose of making a taxable supply for consideration or the extent to which the property or service is acquired or brought into Québec for purposes other than making a taxable supply for consideration;

qualifying institution for a particular fiscal year means a person that meets the conditions set out in the definition of qualifying institution in subsection 1 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15);

residual input means a direct input or a non-attributable input;

specified method means a method, conforming to criteria, rules, terms and conditions specified by the Minister of National Revenue, of determining the operative extent and the procurative extent of a property or a service.

2012, c. 28, s. 46.

42.0.11. For the purposes of sections 42.0.10 and 42.0.12 to 42.0.24, the following rules apply:

 (1) a consideration does not include a nominal consideration; and

 (2) a person is deemed to be a financial institution of a prescribed class throughout a fiscal year of the person if the person is a financial institution of that class at any time in the fiscal year.

2012, c. 28, s. 46.

42.0.12. The following rules apply in respect of an exclusive input of a financial institution:

 (1) if the exclusive input is acquired or brought into Québec for consumption or use directly and exclusively for the purpose of making a taxable supply for consideration, the financial institution is deemed to have acquired or brought into Québec the exclusive input for consumption or use exclusively in the course of commercial activities of the financial institution; and

 (2) if the exclusive input is acquired or brought into Québec for consumption or use directly and exclusively for purposes other than that mentioned in paragraph 1, the financial institution is deemed to have acquired or brought into Québec the exclusive input for consumption or use exclusively otherwise than in the course of commercial activities of the financial institution.

2012, c. 28, s. 46.

42.0.13. If a financial institution is a qualifying institution for any of its fiscal years, the following rules apply for the fiscal year in respect of a residual input:

 (1) the extent to which the consumption or use of the residual input is for the purpose of making a taxable supply for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;

 (2) the extent to which the consumption or use of the residual input is for purposes other than that mentioned in paragraph 1 is deemed to be equal to the amount by which 100% exceeds the prescribed percentage for the prescribed class of the financial institution;

 (3) the extent to which the residual input is acquired or brought into Québec by the financial institution for the purpose of making a taxable supply for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;

 (4) the extent to which the residual input is acquired or brought into Québec by the financial institution for purposes other than that mentioned in paragraph 3 is deemed to be equal to the amount by which 100% exceeds the prescribed percentage for the prescribed class of the financial institution; and

 (5) for the purpose of determining an input tax refund in respect of the residual input, the value of B in the formula in the first paragraph of section 199 is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution.

2012, c. 28, s. 46.

42.0.14. Subject to the second paragraph, if a person is a financial institution (other than a qualifying institution) of a prescribed class throughout any of the person's fiscal years and the person made an election under subsection 9 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) for the fiscal year, the following rules apply for the fiscal year in respect of each residual input of the person:

 (1) the extent to which the consumption or use of the residual input is for the purpose of making a taxable supply for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;

 (2) the extent to which the consumption or use of the residual input is for purposes other than that mentioned in subparagraph 1 is deemed to be equal to the amount by which 100% exceeds the prescribed percentage for the prescribed class of the financial institution;

 (3) the extent to which the residual input is acquired or brought into Québec by the financial institution for the purpose of making a taxable supply for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;

 (4) the extent to which the residual input is acquired or brought into Québec by the financial institution for purposes other than that mentioned in subparagraph 3 is deemed to be equal to the amount by which 100% exceeds the prescribed percentage for the prescribed class of the financial institution; and

 (5) for the purpose of determining an input tax refund in respect of the residual input, the value of B in the formula in the first paragraph of section 199 is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution.

The election referred to in the first paragraph in respect of a fiscal year of the person ceases to have effect at the beginning of the fiscal year and is deemed never to have been made for the purposes of this Title if, under subsection 30 of section 141.02 of the Excise Tax Act, the election ceases to have effect at the beginning of the fiscal year and is deemed never to have been made for the purposes of Part IX of that Act.

2012, c. 28, s. 46.

42.0.15. If a financial institution (other than a qualifying institution) has not made the election referred to in section 42.0.14 in respect of any of its fiscal years, the financial institution shall use a specified method to determine for the fiscal year the operative extent and the procurative extent of each of its non-attributable inputs.

Despite the first paragraph, if a financial institution (other than a qualifying institution) has not made the election referred to in section 42.0.14 in respect of any of its fiscal years and no specified method applies during the fiscal year to a particular non-attributable input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular non-attributable input.

The specified method used by a financial institution in accordance with the first paragraph, or the other attribution method used by the financial institution in accordance with the second paragraph, to determine the operative extent and the procurative extent of a non-attributable input for any of its fiscal years must be the same as that used, if applicable, by the financial institution for the fiscal year in respect of the non-attributable input in accordance with subsection 10 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) or subsection 11 of that section, as the case may be.

2012, c. 28, s. 46.

42.0.16. If a financial institution (other than a qualifying institution) has not made the election referred to in section 42.0.14 in respect of any of its fiscal years, the financial institution shall use a direct attribution method to determine for the fiscal year the operative extent and the procurative extent of each of its direct inputs.

Despite the first paragraph, if a financial institution (other than a qualifying institution) has not made the election referred to in section 42.0.14 in respect of any of its fiscal years and no direct attribution method applies during the fiscal year to a particular direct input of the financial institution, the financial institution shall use another attribution method to determine in the most direct manner for the fiscal year the operative extent and the procurative extent of the particular direct input.

The direct attribution method used by a financial institution in accordance with the first paragraph, or the other attribution method used by the financial institution in accordance with the second paragraph, to determine the operative extent and the procurative extent of a direct input for any of its fiscal years must be the same as that used, if applicable, by the financial institution for the fiscal year in respect of the direct input in accordance with subsection 12 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) or subsection 13 of that section, as the case may be.

2012, c. 28, s. 46.

42.0.17. A financial institution shall use a specified method to determine for any of its fiscal years the operative extent and the procurative extent of each of its excluded inputs.

Despite the first paragraph, if no specified method applies during any of the fiscal years of a financial institution to a particular excluded input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular excluded input.

The specified method used by a financial institution in accordance with the first paragraph, or the other attribution method used by the financial institution in accordance with the second paragraph, to determine the operative extent and the procurative extent of an excluded input for any of its fiscal years must be the same as that used, if applicable, by the financial institution for the fiscal year in respect of the excluded input in accordance with subsection 14 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) or subsection 15 of that section, as the case may be.

2012, c. 28, s. 46.

42.0.18. Any method that a financial institution is required in accordance with any of sections 42.0.15 to 42.0.17 to use in respect of any of its fiscal years must be

 (1) fair and reasonable;

 (2) used consistently by the financial institution throughout the fiscal year; and

 (3) subject to section 42.0.19, determined by the financial institution no later than the day on which the financial institution is required to file the return provided for in Division IV of Chapter VIII for the first reporting period in the fiscal year.

2012, c. 28, s. 46.

42.0.19. Any method used by a financial institution in accordance with any of sections 42.0.15 to 42.0.17 in respect of any of its fiscal years may not, after the day on which the financial institution is required to file the return provided for in Division IV of Chapter VIII for the first reporting period in the fiscal year, be altered or substituted with another method for the fiscal year, unless the Minister consents to the alteration or substitution.

Where the Minister of National Revenue consents, in accordance with subsection 17 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15), that a method used by a financial institution for any of its fiscal years be altered or substituted with another method for the fiscal year, the Minister is deemed to consent to the alteration or substitution.

2012, c. 28, s. 46.

42.0.20. Where, in accordance with subsection 20 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15), the Minister of National Revenue has authorized the use of particular methods in respect of the fiscal year of a person, the following rules apply:

 (1) to determine the operative extent and the procurative extent of each of the person's business inputs, the particular methods must be used consistently by the person throughout the fiscal year and as specified in the application filed for that purpose with the Minister of National Revenue under subsection 18 of section 141.02 of the Excise Tax Act; and

 (2) sections 42.0.12 to 42.0.17 do not apply for the fiscal year in respect of the person's business inputs.

The authorization referred to in the first paragraph in respect of a fiscal year of the person ceases to have effect at the beginning of the fiscal year and is deemed never to have been granted for the purposes of this Title if, under subsection 23 of section 141.02 of the Excise Tax Act, the authorization ceases to have effect at the beginning of the fiscal year and is deemed never to have been granted for the purposes of Part IX of that Act.

2012, c. 28, s. 46.

42.0.21. Despite sections 42.0.12, 42.0.13 and 42.0.17, where a person has made an election under subsection 27 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) for a fiscal year to use particular methods described in an application filed by the person under subsection 18 of section 141.02 of that Act to determine the operative extent and the procurative extent of each of the business inputs of the person, and where the conditions of subsections 27 and 28 of section 141.02 of that Act are met, the particular methods must be used for the fiscal period.

The election referred to in the first paragraph in respect of a fiscal year of the person ceases to have effect at the beginning of the fiscal year and is deemed never to have been made for the purposes of this Title if, under subsection 30 of section 141.02 of the Excise Tax Act, the election ceases to be in force at the beginning of the fiscal year and is deemed never to have been made for the purposes of Part IX of that Act.

2012, c. 28, s. 46.

42.0.22. For the purposes of an appeal brought by a financial institution under the Tax Administration Act (chapter A-6.002) and pertaining to an assessment under this Title for a reporting period in a fiscal year in respect of an issue relating to the determination, under any of sections 42.0.15 to 42.0.17, 42.0.20 and 42.0.21, of the operative extent or the procurative extent of a business input, the burden of establishing the following facts is on the financial institution:

 (1) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with the first paragraph of section 42.0.15 or 42.0.17, the financial institution used a specified method consistently throughout the fiscal year;

 (2) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with the second paragraph of section 42.0.15 or 42.0.17, no specified method applied to the business input and the other attribution method used by the financial institution was fair and reasonable and used consistently by the financial institution throughout the fiscal year;

 (3) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with the first paragraph of section 42.0.16, the financial institution used a direct attribution method consistently throughout the fiscal year;

 (4) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with the second paragraph of section 42.0.16, no direct attribution method applied to the business input and the other attribution method used by the financial institution was fair and reasonable and used consistently by the financial institution throughout the fiscal year;

 (5) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with section 42.0.20, the particular methods referred to in that section were used consistently by the financial institution, and as specified in the application referred to in subparagraph 1 of the first paragraph of section 42.0.20, throughout the fiscal year; and

 (6) in the case of the determination of the operative extent or the procurative extent of the business input in accordance with section 42.0.21, the particular methods referred to in that section are fair and reasonable, were used consistently by the financial institution, and as specified in the application referred to in the first paragraph of section 42.0.21, throughout the fiscal year, and, where the Minister of National Revenue has provided modifications to those methods under paragraph e of subsection 27 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15), the modified methods are not fair and reasonable for the purposes of that determination.

2012, c. 28, s. 46.

42.0.23. Despite sections 42.0.15 to 42.0.17, if under subsection 32 of section 141.02 of the Excise Tax Act (R.S.C. 1985, c. E-15) the Minister of National Revenue directed a financial institution to use another method to determine, for a particular fiscal year or any subsequent fiscal year, the operative extent and the procurative extent of a business input, the other method must also be used by the financial institution in respect of that business input for such a fiscal year.

2012, c. 28, s. 46; 2015, c. 36, s. 202.

42.0.24. If a financial institution is required to use another method because of section 42.0.23 in respect of a business input for a fiscal year, the Minister assesses the net tax of the financial institution for a reporting period included in the fiscal year and the financial institution appeals the assessment in respect of an issue relating to the application of that section, the following rules apply:

 (1) the burden of proving that the other method is fair and reasonable is on the Minister; and

 (2) if a court of last resort determines that the other method is not fair and reasonable, section 42.0.23 may not be applied to require the financial institution to use a particular method for the fiscal year in respect of the business input.

2012, c. 28, s. 46.

42.1. A person is deemed to have made a supply of movable property in the course of a commercial activity where the person makes a supply, other than an exempt supply, of movable property that

 (1) was last acquired or brought into Québec by the person for consumption or use in the course of the person's commercial activities;

 (2) was consumed or used by the person in the course of a commercial activity of the person after it was last acquired or brought into Québec by the person;

 (3) was manufactured or produced by the person in the course of a commercial activity of the person or for consumption or use in the course of a commercial activity of the person, and was not deemed to have been acquired by the person; or

 (4) was manufactured or produced by the person and consumed or used in the course of a commercial activity of the person, and was not deemed to have been acquired by the person.

1994, c. 22, s. 390.

42.2. A person is deemed to have made a supply of movable property otherwise than in the course of commercial activities where the person makes a supply, other than a supply made by way of lease, licence or similar arrangement in the course of a business of the person, of movable property that

 (1) was last acquired or brought into Québec by the person exclusively for consumption or use in the course of activities of the person that are not commercial activities and was not consumed or used by the person in the course of commercial activities of the person after it was last acquired or brought into Québec by the person; or

 (2) was manufactured or produced by the person in the course of activities of the person that are not commercial activities exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not consumed or used in the course of a commercial activity of the person and was not deemed to have been acquired by the person.

1994, c. 22, s. 390.

42.3. A person is deemed to have made a supply of movable property or a service in the course of commercial activities of the person where the person makes a supply by way of sale of movable property or a service that was acquired, brought into Québec, manufactured or produced by the person exclusively for the purpose of making a supply of that property or service by way of sale in the course of a business of the person or in the course of an adventure or concern of the person in the nature of trade, except where

 (1) the supply is an exempt supply;

 (2) section 42.4 applies in respect of the supply; or

 (3) the person is an individual or a partnership, all of the members of which are individuals, who carries on the business or engages in the adventure or concern without a reasonable expectation of profit.

1994, c. 22, s. 390.

42.4. Where a person makes a supply by way of sale of movable property or a service that was acquired, brought into Québec, manufactured or produced by the person exclusively for the purpose of making an exempt supply of the property or service by way of sale, the person is deemed to have made the supply otherwise than in the course of commercial activities.

1994, c. 22, s. 390.

42.5. To the extent that a person does anything, other than make a supply, in connection with the acquisition, establishment, disposition or termination of a commercial activity of the person, the person is deemed to have done that thing in the course of commercial activities of the person.

1994, c. 22, s. 390.

42.6. To the extent that a person does anything, other than make a supply, in connection with the acquisition, establishment, disposition or termination of an activity of the person that is not a commercial activity, the person is deemed to have done that thing otherwise than in the course of commercial activities.

1994, c. 22, s. 390.

42.6.1. Despite sections 42.1 to 42.6, a supply (other than an exempt supply) made by way of sale of movable property of a municipality is deemed to have been made in the course of its commercial activities.

2015, c. 21, s. 638.

42.6.2. Despite sections 42.1 to 42.6, a supply (other than an exempt supply) made by way of sale of movable property of a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.

2015, c. 21, s. 638.

42.7. (Repealed).

1995, c. 63, s. 326; 2012, c. 28, s. 47.

43. Where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of the person's commercial activities, all of the consumption or use of the property or service by the person is deemed to be in the course of those activities.

1991, c. 67, s. 43; 1994, c. 22, s. 391; 2012, c. 28, s. 48.

44. Where substantially all of the consumption or use for which a person, other than a financial institution, acquired or brought into Québec property or a service is in the course of the person's commercial activities, all of the consumption or use for which the person acquired or brought the property or service is deemed to be in the course of those activities.

1991, c. 67, s. 44; 1994, c. 22, s. 391; 2012, c. 28, s. 48.

45. Where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of particular activities of the person that are not commercial activities, all of the consumption or use is deemed to be in the course of those particular activities.

1991, c. 67, s. 45; 1994, c. 22, s. 391; 2012, c. 28, s. 48.

46. Where substantially all of the consumption or use for which a person, other than a financial institution, acquired or brought into Québec property or a service is in the course of particular activities of the person that are not commercial activities, all of the consumption or use for which the person acquired or brought the property or service is deemed to be in the course of those particular activities.

1991, c. 67, s. 46; 1994, c. 22, s. 391; 2012, c. 28, s. 48.

47. For the purposes of sections 43 to 46, where an immovable includes a residential complex and another part that is not part of the residential complex,

 (1) the residential complex is deemed to be a property separate from the other part; and

 (2) where property or a service is acquired or brought into Québec for consumption or use in relation to the immovable, sections 43 to 46 apply to the property or service only to the extent that it is acquired or brought into Québec for consumption or use in relation to the part that is not part of the residential complex.

1991, c. 67, s. 47; 1994, c. 22, s. 391; 1997, c. 85, s. 450.

48. The following supplies, when made for consideration by a government or municipality or a board, commission or other body established by a government or municipality are, for greater certainty, deemed to be made in the course of a commercial activity, except where the supply is an exempt supply:

 (1) a supply of a service of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner;

 (2) a supply to a consumer of a right to hunt or fish;

 (3) a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, where the supply is made to

(a)  a consumer, or

(b)  a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals or peat to consumers;

 (4) a supply of a licence, permit, quota or similar right in respect of the bringing into Québec of alcoholic beverages; and

 (5) a supply of a right to enter, to have access to or to use property of the government, municipality or other body.

1991, c. 67, s. 48; 1994, c. 22, s. 392.

48.1. The following supplies, when made by a sponsor of a foreign convention, are deemed to have been made otherwise than in the course of a commercial activity of the sponsor:

 (1) a supply of an admission to the convention;

 (2) a supply by way of lease, licence or similar arrangement of an immovable for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of a business of, or of property or services supplied by, the recipient; and

 (3) a supply of related convention supplies to the recipient of the supply referred to in paragraph 2.

1994, c. 22, s. 393.

49. (Repealed).

1991, c. 67, s. 49; 1994, c. 22, s. 394; 1995, c. 1, s. 262.

50. (Repealed).

1991, c. 67, s. 50; 1997, c. 85, s. 451.

DIVISION III 
CONSIDERATION

51. The value of the consideration, or any part thereof, for a supply is deemed to be equal,

 (1) where the consideration or that part is expressed in money, to the amount of the money; and

 (2) where the consideration or that part is expressed otherwise than in money, to the fair market value of the consideration or that part at the time the supply was made.

1991, c. 67, s. 51.

51.1. (Repealed).

1994, c. 22, s. 395; 1995, c. 63, s. 327; 1997, c. 85, s. 452.

52. For the purposes of this section, “provincial levy” means a duty, fee or tax imposed under an Act of the Legislature of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut in respect of the supply, consumption or use of property or a service.

The consideration for a supply of property or a service includes

 (1) any duty, fee or tax imposed under an Act of Canada, other than tax imposed under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15), that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the production, importation into Canada, consumption or use of the property or service;

 (2) any provincial levy that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the consumption or use of the property or service, other than tax payable under this Title and the prescribed duties, fees or taxes payable by the recipient;

 (3) any other amount that is collectible by the supplier under an Act of the Legislature of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut that is equal to, or is collectible on account of or in lieu of, a provincial levy, except where the amount is payable by the recipient and the provincial levy is a prescribed duty, fee or tax.

If, under Title I, a person is deemed to be the recipient of a supply in respect of which another person would, but for that deeming, be the recipient, a reference in this section to the recipient of the supply shall be read as a reference to that other person.

1991, c. 67, s. 52; 2001, c. 53, s. 283; 2003, c. 2, s. 311; 2012, c. 28, s. 49.

52.1. (Repealed).

1993, c. 19, s. 176; 1995, c. 63, s. 328; 1997, c. 85, s. 453.

53. The second paragraph shall apply where

 (1) consideration is paid for a supply and other consideration is paid for one or more other supplies or matters; and

 (2) the consideration for one of the supplies or matters exceeds the consideration that would be reasonable if the other supply were not made or the other matter were not provided.

The consideration for each of the supplies and matters is deemed to be that part of the total of all amounts, each of which is consideration for one of those supplies or matters, that may reasonably be attributed to each of those supplies and matters.

1991, c. 67, s. 53.

54. The value of the consideration or a part of the consideration for a supply of property of a particular class or kind is deemed to be nil where

 (1) the consideration or that part of the consideration for the supply of the property is property of that class or kind; and

 (2) both the supplier and the recipient are registrants; and

 (3) the property is acquired by the recipient and the consideration or that part thereof is acquired by the supplier as inventory for use exclusively in commercial activities of the recipient or supplier, as the case may be.

1991, c. 67, s. 54.

54.1. Where, at the time a supplier makes a supply of corporeal movable property to a recipient, the supplier accepts, in full or partial consideration for the supply, other property (in this section and in section 54.2 referred to as the trade-in) that is used corporeal movable property or a leasehold interest therein and is acquired for consumption, use or supply in the course of a commercial activity of the supplier, and the recipient is not required to collect the tax in respect of the supply of the trade-in otherwise than by reason of the application of subparagraph 3 of the second paragraph of section 422 or the trade-in is a road vehicle in respect of which the recipient is not entitled to claim an input tax refund as a consequence of being a large business, the value of the consideration for the supply made by the supplier is deemed to be equal to the amount by which the value of the consideration for that supply, as otherwise determined, exceeds

 (1) except where paragraph 2 applies, the amount credited to the recipient in respect of the trade-in; and

 (2) where the supplier and the recipient are not dealing with each other at arm's length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership thereof is transferred to the supplier, that fair market value.

For the purposes of this section and section 54.2, “large business” has the meaning assigned by sections 551 to 551.4 of the Act to amend the Taxation Act, the Act respecting the Québec sales tax and other legislative provisions (1995, chapter 63).

1997, c. 85, s. 454; 2002, c. 9, s. 155.

54.1.1. If a person (in this section and sections 54.1.2 to 54.1.5 referred to as the “lessee”) makes a supply by way of sale of corporeal movable property to another person (in this section referred to as the “lessor”), the lessee is not required to collect tax in respect of that supply and the lessor immediately makes a taxable supply of the property by way of lease to the lessee under an agreement (in this section and sections 54.1.2 to 54.1.5 referred to as the “original leaseback agreement”), the value of the consideration for a supply of the property by way of lease that, at a particular time, becomes due or is paid without having become due under a particular agreement that is the original leaseback agreement or a subsequent lease in respect of that agreement, is deemed to be equal to the amount determined by the formula


A − B.


For the purposes of this formula,

 (1) A is the value of the consideration as otherwise determined; and

 (2) B is the amount (in this section referred to as the “purchase credit”) that is equal to the lesser of

(a)  the value of A, and

(b)  the amount determined by the formula


C / D, or


(c)  if there is no unused total purchase credit within the meaning of subparagraph 1 of the third paragraph, zero.

For the purposes of the formula in subparagraph b of subparagraph 2 of the second paragraph,

 (1) C is the amount (in this section and section 54.1.5 referred to as the “unused total purchase credit”) by which the consideration for the supply by way of sale exceeds the total of all amounts each of which is the purchase credit that was determined in calculating the amount deemed under this section to be the value of any consideration that, before the particular time, became due or was paid without having become due under the original leaseback agreement or a subsequent lease in respect of that agreement; and

 (2) D is the specified number of remaining lease payments under the particular agreement at the particular time.

2001, c. 53, s. 284.

54.1.2. For the purposes of section 54.1.1, “specified number of remaining lease payments”, at a particular time, in respect of a particular agreement for the supply of property by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement, is the amount determined by the formula


A − B.


For the purposes of this formula,

 (1) A is the total number of payments that the lessee was obligated to make as consideration for the supplies of the property by way of lease under the particular agreement based on the terms of that agreement at the time it was entered into; and

 (2) B is the total number of payments referred to in subparagraph 1 that, before the particular time, became due or were paid by the lessee.

2001, c. 53, s. 284.

54.1.3. For the purposes of sections 54.1.1 to 54.1.5, “subsequent lease”, in respect of an original leaseback agreement for the supply of property by way of lease to a lessee, means

 (1) an agreement for the supply of the property by way of lease that constitutes a new agreement between the lessee and an assignee of the rights and obligations of the person who is the supplier under the original leaseback agreement or under an agreement referred to in this paragraph or paragraph 2; or

 (2) an agreement for the supply of the property by way of lease to the lessee that succeeds, as a new agreement, either the original leaseback agreement or a particular agreement referred to in paragraph 1 or in this paragraph upon a renewal or variation of that original leaseback agreement or particular agreement.

2001, c. 53, s. 284.

54.1.4. For the purposes of sections 54.1.1, 54.1.2 and 54.1.5, where a supplier agrees, at any time, to renew, vary, terminate, otherwise than upon the exercise of an option to purchase, or assign a particular agreement for the supply of property by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement and the renewal, variation, termination or assignment does not constitute a novation of the particular agreement but has the effect of changing the number of payments that the lessee is obligated to make for supplies by way of lease of the property under the particular agreement, the following rules apply:

 (1) the supplier and lessee are deemed to have, at that time, entered into a subsequent lease in respect of the original leaseback agreement; and

 (2) all supplies by way of lease for which consideration becomes due, or is paid without having become due, at or after the time the renewal, variation, termination or assignment takes effect that would, but for this section, be made under the particular agreement are deemed to be made under that subsequent lease and not under the particular agreement.

2001, c. 53, s. 284.

54.1.5. Except for a purpose contemplated in paragraph 1 of section 54.2, if a supply of property by way of sale is made to a lessee on the exercise by the lessee of an option to purchase the property provided for in an original leaseback agreement entered into by the lessee in respect of the property, or in a subsequent lease in respect of that agreement, to which section 54.1.1 applied, and immediately before the earliest time at which the consideration for the supply becomes due or is paid without having become due, there is an unused total purchase credit in respect of the property, the following rules apply:

 (1) the value of the consideration for the supply is deemed to be equal to the amount determined by the formula


A − B; and


 (2) section 54.1.1 does not apply to any consideration that, after that earliest time, becomes due or is paid without having become due for any supply of the property by way of lease that was made under the original leaseback agreement or under a subsequent lease in respect of that agreement.

For the purposes of this formula,

 (1) A is the value of the consideration for the supply as otherwise determined; and

 (2)  B is that unused total purchase credit.

2001, c. 53, s. 284.

54.1.6. For the purposes of sections 54.1.1 to 54.1.5, if a person makes a supply of property by way of sale to a recipient with whom the person is not dealing at arm's length and the consideration for the supply exceeds the fair market value of the property at the time ownership of the property is transferred to the recipient, the consideration for the supply is deemed to be equal to that fair market value.

2001, c. 53, s. 284.

54.2. Sections 54.1 and 54.1.1 do not apply

 (1) for the purpose of determining, for the purposes of any provision of this Title, whether the value of consideration for a supply of property equals, exceeds or is less than another amount specified in another provision;

 (2) for the purposes of sections 294, 295, 297, 462 and 462.1; or

 (3) to any supply of a trade-in that is a zero-rated supply, other than a zero-rated supply under section 197.2 made by a small supplier who is not a registrant or by a large business that is not entitled to claim an input tax refund in respect of the trade-in as a consequence of being a large business, a supply made outside Québec or a supply in respect of which no tax is payable because of paragraph 1 of section 75.1 or section 334;

 (4) (paragraph repealed).

1997, c. 85, s. 454; 2001, c. 51, s. 263; 2002, c. 9, s. 156; 2003, c. 9, s. 456; 2005, c. 38, s. 363.

54.3. If natural gas is transported by pipeline to a straddle plant at which natural gas liquids or ethane (each of which is referred to in this section as “natural gas liquids”) is recovered from the natural gas, the residue gas is returned to the pipeline after the recovery along with other natural gas (in this section referred to as “make-up gas”) that is supplied solely to make up for the loss of energy content due to the recovery, and the consideration or a part of the consideration for any supply of the natural gas liquids, or the right to recover the liquids, or any supply of make-up gas is, in the case of a supply of natural gas liquids or the right to recover the liquids, the make-up gas, and, in the case of a supply of make-up gas, the natural gas liquids or the right to recover the liquids, the value of that consideration or part, as the case may be, is deemed to be nil.

2001, c. 53, s. 285.

55. Where a supply of property or a service is made between persons not dealing with each other at arm's length for no consideration or for consideration less than the fair market value of the property or service at the time the supply is made, and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,

 (1) if no consideration is paid for the supply, the supply is deemed to be made for consideration, paid at that time, of a value equal to the fair market value of the property or service at that time; and

 (2) if consideration is paid for the supply, the value of the consideration is deemed to be equal to the fair market value of the property or service at that time.

This section does not apply in respect of

 (1) a supply of property or a service made by a person where

(a)  an amount is deemed under section 290 to be the total consideration for the supply, or

(b)  in the absence of the first paragraph,

(i)  the person, because of section 203 or 206, would not be entitled to claim an input tax refund in respect of the acquisition or bringing into Québec of the property or service by the person,

(ii)  section 286 would apply to the supply, or

(iii)  the supply would be an exempt supply referred to in Division V.1 or VI of Chapter III; or

 (2) a supply by way of sale, other than by way of gift, of a used road vehicle made between related individuals.

1991, c. 67, s. 55; 1993, c. 19, s. 177; 1994, c. 22, s. 396; 1995, c. 63, s. 329; 1997, c. 85, s. 455; 2002, c. 9, s. 157.

55.0.1. Where a taxable supply by way of sale of a used road vehicle that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the vehicle is made for no consideration or for consideration less than the estimated value of the vehicle, the following rules apply:

 (1) if no consideration is paid for the supply, the supply is deemed to be made for consideration, paid at that time, of a value equal to the estimated value of the vehicle; and

 (2) if the consideration for the supply is less than the estimated value of the vehicle, the value of the consideration is deemed to be equal to that estimated value.

This section does not apply in respect of

 (1) a supply of a road vehicle made following the exercise by the recipient of a right to acquire the vehicle, conferred on the recipient under an agreement in writing for the lease of the vehicle entered into by the recipient and the supplier;

 (2) a supply of a road vehicle deemed to be made or received for no consideration or for consideration equal to the fair market value of the vehicle;

 (3) a supply of a road vehicle in respect of which tax is deemed to be collected or paid; or

 (4) a supply of a road vehicle made between individuals related to each other otherwise than by way of gift.

1995, c. 1, s. 263; 2002, c. 9, s. 158.

55.0.2. For the purposes of section 55.0.1, the estimated value of a road vehicle is

 (1) in the case of a vehicle for which the average wholesale price is listed in the most recent edition, on the first day of the month in which the vehicle is supplied, of the Guide d'Évaluation Hebdo (Automobiles et Camions Légers) published by Hebdo Mag Inc., that price less an amount of $500;

 (1.1) (paragraph repealed);

 (2) in the case of a vehicle for which an average wholesale price is listed in the most recent edition, on the first day of the month preceding the month in which the vehicle is supplied, of the Canadian Motorcycle Dealers Blue Book published by All Seasons Publications Ltd., that price less an amount of $500;

 (3) in the case of a vehicle for which an average wholesale price is listed in the most recent edition, on the first day of the month preceding the month in which the vehicle is supplied, of the Canadian ATV, Snowmobile & Watercraft Dealers Blue Book published by All Seasons Publications Ltd., that price less an amount of $500; and

 (4) in any other case, the value of the vehicle prescribed by the Minister.

1995, c. 1, s. 263; 1995, c. 63, s. 330; 1997, c. 14, s. 333; 2000, c. 39, s. 281.

55.0.3. Where section 55.0.1 applies to the supply of a road vehicle that is damaged or shows unusual wear and at the time of the supply the recipient provides the person mentioned in the second paragraph with a written estimate of the vehicle or of the repairs to be carried out in respect of the vehicle, the estimated value of the vehicle described in section 55.0.2 may be reduced by an amount equal to

 (1) the amount by which that value exceeds the value of the vehicle stated in the written estimate; or

 (2) the amount by which the value stated in the written estimate of the repairs to be carried out in respect of the vehicle exceeds $500.

The person referred to in the first paragraph is

 (1) in the case of a supply under section 20.1, the Minister or a person prescribed for the purposes of section 473.1;

 (2) in the case of a supply of a motor vehicle by way of retail sale, the supplier of the vehicle and, as the case may be, the Minister or a person prescribed for the purposes of section 473.1.1; and

 (3) in any other case, the supplier of the vehicle.

The written estimate must be made by a person who has been issued a certificate of professional qualification as an estimator of automobile damage by the Groupement des assureurs automobiles, established by the Automobile Insurance Act (chapter A-25), in the course of the person's professional practice within a certified appraisal centre or an establishment accredited by the Groupement.

1995, c. 1, s. 263; 1995, c. 63, s. 331; 2001, c. 51, s. 264; 2004, c. 21, s. 528; 2005, c. 23, s. 274.

55.1. The Minister may determine the value of the consideration for the taxable supply of property or a service on which the tax must be calculated if either

 (1) the supply is not a supply in respect of which section 55 or 55.0.1 applies, or would apply, but for the second paragraph of those sections, and if

(a)  the supply is made for no consideration, or

(b)  the value of the consideration for the supply of the property or service is less than the fair market value of the property or service; or

 (2) the consideration for the supply of the property or service

(a)  is not shown on the invoice or on any other document recording the supply, or

(b)  is combined with the consideration for any other supply that is not a taxable supply other than a zero-rated supply.

1993, c. 19, s. 178; 2002, c. 9, s. 159.

56. Where the consideration for a supply is expressed in a foreign currency, the value of the consideration shall be computed on the basis of the value of that foreign currency in Canadian currency on the day the tax is payable, or on such other day as is acceptable to the Minister.

1991, c. 67, s. 56.

57. Where corporeal movable property or services are supplied and the amount of consideration for the supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice or an additional amount is charged to the recipient by the supplier if the amount of the consideration is not paid within a reasonable period specified in the invoice, the consideration due is deemed to be the amount of consideration shown in the invoice.

1991, c. 67, s. 57.

58. (Repealed).

1991, c. 67, s. 58; 1994, c. 22, s. 397; 1997, c. 85, s. 456.

58.1. (Repealed).

1994, c. 22, s. 398; 1997, c. 85, s. 456.

58.2. (Repealed).

1994, c. 22, s. 398; 1997, c. 85, s. 456.

58.3. Where an individual, because of membership in a trade union or association referred to in paragraph 1 of section 172, participates in activities of the union or association and, as a consequence, is unable to perform duties, under a contract of employment, for the individual's employer during a period during which the individual would, were it not for the individual's participation in those activities, be obligated to provide such services, and the union or association pays an amount to the employer as compensation for expenses incurred by the employer as a consequence of the individual's participation in those activities or for remuneration or benefits given by the employer to the individual in respect of that period, the amount is deemed not to be consideration for a supply.

1994, c. 22, s. 398.

59. (Repealed).

1991, c. 67, s. 59; 1994, c. 22, s. 399.

60. Where a particular person bets an amount on a game of chance, a race or other event, the following rules apply:

 (1) the person with whom the bet is placed is deemed to have made a supply of a service to the particular person;

 (2) where the bet is placed in Québec, that supply is deemed to have been made in Québec; and

 (3) the consideration for that supply is deemed to be equal to the amount obtained by multiplying the amount by which the total amount in respect of the bet that is given by the particular person to the person with whom the bet is placed, including any amount given as or on account of tax imposed on the particular person under this Title, exceeds the tax imposed on the particular person under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) by 100/109.975.

1991, c. 67, s. 60; 1997, c. 85, s. 457; 2010, c. 5, s. 211; 2011, c. 6, s. 238; 2012, c. 28, s. 50.

61. (Repealed).

1991, c. 67, s. 61; 1995, c. 63, s. 332; 1997, c. 85, s. 458.

62. Where a competitor in a competitive event contributes an amount to the prizes to be given to competitors in the event, the contribution is deemed not to be consideration for a supply.

This section does not apply in respect of a contribution, made as part of the fee or charge paid by the competitor in a competitive event for the right or privilege of participating in the event, that is not separately identified as a contribution to the prizes.

1991, c. 67, s. 62.

62.1. An amount that is paid as or on account of demurrage, or by one railway corporation to another railway corporation as or on account of a penalty for failure to return rolling stock within a stipulated time, is deemed not to be consideration for a supply.

1994, c. 22, s. 400.

63. For the purposes of this section and sections 64 to 67,

base fraction, at a particular time, of a tour package means the proportion that the part of the amount that would be charged by the first supplier of the package for a supply at that time of the package that is, at that time, reasonably attributable to the taxable portion of the package is of the amount that would be charged by the first supplier of the package for a supply at that time of the package;

first supplier of a tour package means the person who first supplies the package in Québec;

initial taxable percentage of a tour package means the proportion, at the time the first supplier of the package determines the amount to be charged by that supplier for a supply of the package, that the part of that amount that is, at that time, reasonably attributable to the taxable portion of the package is of that amount;

taxable percentage, at a particular time, of a tour package means

 (1) where the difference between the base fraction at that time of the package and the initial taxable percentage of the package or the base fraction of the package at an earlier time is more than 10%, the base fraction of the package at the particular time, and

 (2) in any other case, the initial taxable percentage of the package;

taxable portion of a tour package means all property and services included in the tour package and in respect of which tax under section 16 would be payable if the property or service were supplied otherwise than as part of a tour package;

tour package means a combination of two or more services, or of property and services, that includes transportation services, accommodation, a right to use a campground or trailer park, or guide or interpreter services, where the property and services are supplied together for an all-inclusive price.

1991, c. 67, s. 63; 1995, c. 63, s. 333.

64. The consideration for a supply of the taxable portion of a tour package, where the supply is made by the first supplier of the package, is deemed to be the amount determined by the formula


A × B.


For the purposes of this formula,

 (1) A is the taxable percentage of the package at the time the supply is made; and

 (2) B is the total consideration for the entire tour package.

1991, c. 67, s. 64.

65. The consideration for a supply of the taxable portion of a tour package, where the supply is made by any person other than the first supplier of the package, is deemed to be the amount determined by the formula


A × B.


For the purposes of this formula,

 (1) A is the percentage that the consideration for the supply to the person of the taxable portion of the package is of the total consideration paid or payable by the person for the entire tour package; and

 (2) B is the total consideration paid or payable to the person for the entire tour package.

1991, c. 67, s. 65.

66. The provision of the part of the tour package that is the taxable portion of the package is deemed to be a separate supply from the provision of the remaining part of the package and neither supply is deemed to be incidental to the other.

1991, c. 67, s. 66.

67. (Repealed).

1991, c. 67, s. 67; 1995, c. 63, s. 334.

DIVISION IV 
SPECIFIC RULES RESPECTING TAXATION

§ 1. —  Rules respecting calculation

68. Where a person makes a taxable supply and the consideration, or a part thereof, for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part thereof, as the case may be, shall not be included in calculating the tax payable in respect of the supply.

This section does not apply in respect of

 (1) a supply of an immovable by way of sale;

 (2) a supply of a road vehicle that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the supply;

 (3) a supply by way of sale of movable property by a municipality that is capital property of the municipality; or

 (4) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII that is capital property of the person.

1991, c. 67, s. 68; 1995, c. 63, s. 335; 2015, c. 21, s. 639.

69. Where tax that is at any time payable under section 16 in respect of one or more supplies included in an agreement, invoice or receipt is an amount that includes a fraction of a cent, the fraction,

 (1) if less than half of a cent, may be disregarded; and

 (2) if equal to or greater than half of a cent, is deemed to be an amount equal to one cent.

1991, c. 67, s. 69; 1997, c. 85, s. 459.

69.1. Where the consideration for a supply of a telecommunication service is paid by depositing coins in a coin-operated telephone and the tax payable is equal to a fraction of $0.05 or to the total of a multiple of $0.05 and a fraction of $0.05, the fraction

 (1) if less than $0.025, may be disregarded; and

 (2) if equal to or greater than $0.025, is deemed to be an amount equal to $0.05.

1994, c. 22, s. 401; 1997, c. 85, s. 460.

69.2. (Repealed).

1994, c. 22, s. 401; 1995, c. 63, s. 336.

69.3. (Repealed).

1995, c. 1, s. 264; 1997, c. 85, s. 461; 2007, c. 12, s. 318.

69.3.1. If a registrant ordinarily uses a cash register to determine the tax payable by a recipient in respect of a taxable supply made by the registrant to the recipient and the cash register does not permit the determination of the tax by multiplying the value of the consideration for the supply by 9.975%, or 14.975% if the registrant determines a total amount made up of both the tax provided for in this Title and the tax provided for in Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15), the following rules apply:

 (1) the registrant may, by means of the cash register, determine the tax payable by multiplying the value of the consideration by 9.97%; and

 (2) the registrant may, by means of the cash register, determine the total amount made up of both the tax provided for in this Title and the tax provided for in Part IX of the Excise Tax Act by multiplying the value of the consideration by 14.97%.

2009, c. 5, s. 599; 2010, c. 5, s. 212; 2011, c. 6, s. 239; 2012, c. 28, s. 51.

69.4. (Repealed).

1995, c. 1, s. 264; 2007, c. 12, s. 318.

69.4.1. Every registrant who applies the rules set out in section 69.3.1 in circumstances other than those described in that section shall incur a penalty of 1% of the tax collected in the period during which the irregularity continues.

2009, c. 5, s. 600.

69.5. Where the consideration for a supply of corporeal movable property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of $0.25 or less as the total consideration for the supply and the corporeal movable property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero.

For the purposes of the first paragraph, a supply of a right to use the device is deemed to be a supply of a service rendered through the operation of the device.

1997, c. 85, s. 462; 2009, c. 5, s. 601.

69.6. Where two or more taxable supplies are included in an invoice, agreement or receipt, the tax payable under section 16 in respect of those supplies, calculated on the consideration for those supplies that is indicated in the invoice, agreement or receipt, may be calculated on the total of that consideration.

1997, c. 85, s. 462.

70. (Repealed).

1991, c. 67, s. 70; 1994, c. 22, s. 402.

71. Where a supply is made, and the consideration therefor is paid, by means of a coin-operated device, the following rules apply:

 (1) the recipient is deemed to have received the supply, paid the consideration for the supply, and paid any tax payable in respect of the supply, on the day the consideration for the supply is inserted into the device;

 (2) the supplier is deemed to have made the supply, received the consideration for the supply, and collected any tax payable in respect of the supply, on the day the consideration for the supply is removed from the device.

1991, c. 67, s. 71.

72. (Repealed).

1991, c. 67, s. 72; 1994, c. 22, s. 403.

73. (Repealed).

1991, c. 67, s. 73; 1993, c. 19, s. 179; 1994, c. 22, s. 403.

74. (Repealed).

1991, c. 67, s. 74; 1994, c. 22, s. 403.

§ 2. —  Supplies not subject to taxation

75. Where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, and, under the agreement for the supply, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business,

 (1) the supplier is deemed to have made a separate supply of each property and service that is supplied under the agreement for consideration equal to that part of the consideration for the supply of the business or part that can reasonably be attributed to that property or service; and

 (2) except where the supplier is a registrant and the recipient is not a registrant, the supplier and the recipient may make a joint election in prescribed form containing prescribed information to have section 75.1 apply to those supplies.

1991, c. 67, s. 75; 1993, c. 19, s. 180; 1994, c. 22, s. 404.

75.1. Where a supplier and a recipient make an election under section 75 and the recipient, if a registrant, files the election with the Minister not later than the day on or before which the return under Chapter VIII is required to be filed for the recipient's first reporting period in which tax would, but for this section, have become payable in respect of the supply of any property or service made under the agreement for the supply of the business or part of the business to which the election applies, or on such later day as the Minister may determine on application of the recipient,

 (1) no tax is payable in respect of a supply of any property or service made under the agreement other than

(a)  a taxable supply of a service that is to be rendered by the supplier,

(b)  a taxable supply of property by way of lease, licence or similar arrangement,

(c)  where the recipient is not a registrant, a taxable supply by way of sale of an immovable, and

(d)  (subparagraph repealed);

 (2) where, but for this section, tax would have been payable by the recipient, otherwise than by reason of section 20.1, in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient; and

 (3) where, notwithstanding this section, tax would not have been payable by the recipient or would have been payable by the recipient under section 20.1 in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities.

1994, c. 22, s. 405; 1995, c. 63, s. 337.

75.2. Where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, and part of the consideration for the supply can reasonably be attributed to goodwill of the business or part, that part of the consideration shall not be included in calculating the tax payable in respect of the supply.

1994, c. 22, s. 405.

75.3. For the purposes of this section and sections 75.4 to 75.9,

authorized foreign bank has the meaning assigned by section 2 of the Bank Act (Revised Statutes of Canada, 1985, chapter B-1);

foreign bank branch means a branch within the meaning of paragraph b of the definition of branch in section 2 of the Bank Act;

qualifying supply means a supply of a property or service that is made in Québec under an agreement for the supply, other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into, and

 (1) that is made by a corporation resident in Québec related to the recipient;

 (2) that is made after 27 June 1999, and before

(a)  if the Superintendent makes an order under subsection 1 of section 534 of the Bank Act in respect of the recipient after 22 June 2007 but before 22 June 2008, the day that is one year after the day on which the Superintendent makes the order, and

(b)  in any other case, 22 June 2008; and

 (3) that is received by a recipient that

(a)  is a person not resident in Canada,

(b)  is, or has filed an application with the Superintendent for an order under subsection 1 of section 524 of the Bank Act to become, an authorized foreign bank, and

(c)  acquired the property or service for consumption, use or supply by the recipient for the purposes of the establishment and commencement of business in Québec by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank.

2009, c. 5, s. 602.

75.4. If a supplier and a recipient of a qualifying supply make a joint election in accordance with section 75.9 in respect of the qualifying supply, the following rules apply:

 (1) the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service that is supplied under the agreement for the qualifying supply for consideration equal to that portion of the consideration for the qualifying supply that can reasonably be attributed to the property or service;

 (2) the portion of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of incorporeal movable property unless section 75.2 applies to the qualifying supply; and

 (3) sections 75.5 to 75.8 apply to the supply of each property and service that is supplied under the agreement for the qualifying supply.

2009, c. 5, s. 602.

75.5. If a supplier and a recipient make a joint election referred to in section 75.4 in respect of a qualifying supply made at a particular time, the following rules apply:

 (1) no tax is payable in respect of the supply of a property or service made under the agreement for the qualifying supply other than

(a)  a taxable supply of a service that is to be rendered by the supplier,

(b)  a taxable supply of a service unless paragraph 1 of section 75 applies to the qualifying supply,

(c)  a taxable supply of property by way of lease, licence or similar arrangement,

(d)  if the recipient is not a registrant, a taxable supply by way of sale of an immovable,

(e)  a taxable supply of a property or service, if the property or service was previously supplied under an agreement for a qualifying supply and, because of this section, no tax was payable in respect of that previous supply of a property or service, or

(f)  a taxable supply of incorporeal movable property, other than capital property, if the percentage determined by the following formula is greater than 10%:


A − B;


 (2) if, but for this section, tax would have been payable by the recipient, otherwise than because of section 20.1, in respect of a supply of property made under the agreement for the qualifying supply that is capital property of the supplier that the recipient acquired for use as capital property, the recipient is deemed to have acquired the property for use exclusively in the course of commercial activities of the recipient;

 (3) if, despite this section, tax would not have been payable by the recipient, or would so have been because of section 20.1, in respect of a supply of property made under the agreement for the qualifying supply that is capital property of the supplier that the recipient acquired for use as capital property, the recipient is deemed to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and

 (4) if the recipient acquires, under the agreement for the qualifying supply, property of the supplier that was used by the supplier immediately before the particular time otherwise than as capital property and, but for this section, tax would have been payable by the recipient, otherwise than because of section 20.1, in respect of the supply of the property, the recipient is deemed to have acquired the property for consumption, use or supply in the course of commercial activities of the recipient and otherwise than as capital property.

For the purposes of the formula in subparagraph f of subparagraph 1 of the first paragraph,

 (1) A is the extent, expressed as a percentage of the total use of the property by the supplier, to which the supplier used the property in commercial activities of the supplier immediately before the particular time; and

 (2) B is the extent, expressed as a percentage of the total use of the property by the recipient, to which the recipient used the property in commercial activities of the recipient immediately after the particular time.

2009, c. 5, s. 602.

75.6. If a supplier and a recipient make a joint election referred to in section 75.4 in respect of a qualifying supply and, under the agreement for the qualifying supply, the supplier makes a supply of property that is, immediately before the time the qualifying supply is made, a capital property of the supplier and, because of section 75.5, no tax is payable in respect of the supply of the property, the basic tax content of the property of the recipient at any time is to be determined by applying the following rules:

 (1) if the last acquisition of the property by the recipient is the acquisition of the property by the recipient at the time the qualifying supply is made, any reference in the definition of “basic tax content” in section 1 to the last acquisition or bringing into Québec of the property by the person is to be read as a reference to the last acquisition or bringing into Québec of the property by the supplier; and

 (2) if the last supply to the recipient of the property is the supply to the recipient of the property at the time the qualifying supply is made, the reference in the definition of basic tax content in section 1 to the last supply of the property to the person is to be read as a reference to the last supply of the property to the supplier.

2009, c. 5, s. 602.

75.7. If a supplier and a recipient make a joint election referred to in section 75.4 in respect of a qualifying supply made before 17 November 2005 under an agreement for the qualifying supply and tax is paid by the recipient in respect of a property or service supplied under the agreement for the qualifying supply despite no tax being payable in respect of that supply because of section 75.5, the tax is deemed, except for the purposes of section 75.6 and despite section 75.5, to have been payable by the recipient in respect of the supply of the property or service and the recipient may deduct, in determining the net tax of the recipient for the reporting period in which the election is filed with the Minister, the total of all amounts each of which is an amount determined by the formula


A − B.


For the purposes of the formula,

 (1) A is the amount of tax paid, although no tax is payable because of section 75.5, by the recipient in respect of the supply of the property or service made under the agreement for the qualifying supply; and

 (2) B is the total of

(a)  all amounts each of which is an input tax refund that the recipient was entitled to claim in respect of the property or service supplied under the agreement for the qualifying supply,

(b)  all amounts each of which is an amount, other than an amount determined under this section, that may be deducted by the recipient under this Title in determining the net tax of the recipient for a reporting period in respect of the property or service supplied under the agreement for the qualifying supply, and

(c)  all amounts, other than amounts referred to in subparagraphs a and b, in respect of the tax paid that may be otherwise recovered by way of rebate or refund or otherwise by the recipient in respect of the property or service supplied under the agreement for the qualifying supply.

2009, c. 5, s. 602.

75.8. If a supplier and a recipient make a joint election referred to in section 75.4 in respect of a qualifying supply, section 25 of the Tax Administration Act (chapter A-6.002) applies to any assessment or reassessment of an amount payable by the recipient in respect of the supply of a property or service made under the agreement for the qualifying supply.

However, the Minister has until the day that is four years after the later of the following days to make an assessment or reassessment solely for the purpose of taking into account any tax, net tax or any other amount payable by the recipient or remittable by the supplier in respect of the supply of a property or service made under the agreement for the qualifying supply:

 (1) the day on which the election referred to in section 75.4 is filed with the Minister; and

 (2) the day on which the qualifying supply is made.

2009, c. 5, s. 602; 2010, c. 31, s. 175.

75.9. A joint election referred to in section 75.4 made by a supplier and a recipient in respect of a qualifying supply is valid only if

 (1) the recipient files the election with the Minister in the prescribed form containing prescribed information not later than the particular day that is the latest of

(a)  if the recipient is

(i)  a registrant at the time the qualifying supply is made, the day on which the return under Chapter VIII is required to be filed for the recipient's reporting period in which tax would, but for this section and sections 75.3 to 75.8, have become payable in respect of the supply of a property or service made under the agreement for the qualifying supply, or

(ii)  not a registrant at the time the qualifying supply is made, the day that is one month after the end of the recipient's reporting period in which tax would, but for this section and sections 75.3 to 75.8, have become payable in respect of the supply of a property or service made under the agreement for the qualifying supply,

(b)  22 June 2008, and

(c)  the day that the Minister may determine on application of the recipient;

 (2) the qualifying supply is made on or before the day that is one year after the day on which the recipient received for the first time a qualifying supply in respect of which an election referred to in section 75.4 has been made; and

 (3) on or before the day on which the election referred to in section 75.4 is filed with the Minister in respect of the qualifying supply, the recipient has not made an election referred to in section 75.1 in respect of the qualifying supply.

2009, c. 5, s. 602.

76. Where two or more corporations are merged or amalgamated to form a new corporation, otherwise than as the result of the acquisition of the property of one corporation by another corporation pursuant to the purchase of the property by the other corporation, or as the result of the distribution of the property to the other corporation on the winding-up of the corporation,

 (1) except as otherwise provided in this Title, the new corporation is deemed to be a separate person from each of the merged or amalgamated corporations;

 (2) for the purposes of sections 444, 446 and 462 to 462.1.1, for the purpose of applying the provisions of this Title in respect of property or a service acquired or brought into Québec by a merged or amalgamated corporation, and for prescribed purposes and provisions, the new corporation is deemed to be the same corporation as, and a continuation of, each merged or amalgamated corporation; and

 (3) the transfer of any property by a merged or amalgamated corporation to the new corporation as a consequence of the merger or amalgamation is deemed not to be a supply.

1991, c. 67, s. 76; 1994, c. 22, s. 406; 1995, c. 63, s. 338; 2001, c. 53, s. 286.

77. Where at any time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation,

 (1) for the purposes of sections 444, 446 and 462 to 462.1.1, for the purpose of applying the provisions of this Title in respect of property or a service acquired or brought into Québec by the other corporation as a consequence of the winding-up, and for prescribed purposes and provisions, the other corporation is deemed to be the same corporation as, and a continuation of, the particular corporation; and

 (2) the transfer of any property to the other corporation as a consequence of the winding-up is deemed not to be a supply.

1991, c. 67, s. 77; 1994, c. 22, s. 407; 1995, c. 63, s. 339; 2001, c. 53, s. 287.

78. (Repealed).

1991, c. 67, s. 78; 1997, c. 3, s. 118; 1997, c. 85, s. 463.

79. (Repealed).

1991, c. 67, s. 79; 1997, c. 3, s. 119; 1997, c. 85, s. 463.

79.1. No tax is payable in respect of the supply of a road vehicle of a deceased individual, which road vehicle must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the vehicle, if the supply is made by the succession of the individual in accordance with the individual's will or the laws relating to the transmission of property on death or in settlement of rights arising out of the individual's marriage.

1993, c. 19, s. 181; 1997, c. 85, s. 464; 2002, c. 6, s. 214; 2005, c. 1, s. 349.

80. No tax is payable in respect of the supply of property of a deceased individual made by the succession of the individual where

 (1) immediately before death, the individual held the property for consumption, use or supply in the course of a business carried on immediately before the individual's death;

 (2) the succession of the individual makes a supply of the property, in accordance with the individual's will or the laws relating to the transmission of property on death, to another individual who is a beneficiary of the individual's succession and a registrant;

 (3) the property is received for consumption, use or supply in the course of commercial activities of the other individual; and

 (4) the succession and the other individual make a joint election for the purposes of this section.

The other individual is deemed to have acquired the property for use exclusively in commercial activities of the individual.

1991, c. 67, s. 80; 1994, c. 22, s. 408; 1997, c. 85, s. 465.

80.1. No tax is payable in respect of the supply by way of gift of a road vehicle that must be registered under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the vehicle, where the supply is made between related individuals.

Similarly, no tax is payable in respect of the supply of such a road vehicle where the supply is made between individuals in settlement of rights arising out of their marriage.

1993, c. 19, s. 182; 1995, c. 1, s. 265; 1997, c. 85, s. 466; 2002, c. 6, s. 215; 2005, c. 1, s. 350.

80.1.1. (Repealed).

1995, c. 1, s. 266; 1995, c. 63, s. 340; 2015, c. 21, s. 640.

80.1.2. No tax is payable in respect of a supply by way of sale of a used road vehicle made between two corporations, other than business corporations, in connection with a transfer under a law of rights and obligations.

2002, c. 9, s. 160.

80.2. (Repealed).

1993, c. 19, s. 182; 1995, c. 63, s. 341.

80.3. Where a sponsor of a convention makes a taxable supply by way of lease, licence or similar arrangement to a person not resident in Québec of an immovable that is acquired by the person exclusively for use as a site for the promotion, at the convention, of a business of, or of property or services supplied by, the person, no tax is payable in respect of that supply to the person or in respect of any supply by the sponsor to the person of property or services that are acquired by the person for consumption or use as related convention supplies in respect of the convention.

1994, c. 22, s. 409.

§ 3. —  Goods not subject to taxation brought into Québec

81. The goods to which subparagraph 2 of the fourth paragraph of section 17 refers are the following:

 (1) goods referred to in section 1 of Schedule VII to the Excise Tax Act (R.S.C. 1985, c. E-15);

 (2) goods from Canada outside Québec that would be goods to which, with the necessary modifications, paragraph 1 applies if they were from outside Canada, but not including goods that would be classified under tariff item No. 9804.10.00, 9804.20.00, 9804.30.00, 9804.40.00, 9805.00.00 or 9807.00.00 of the schedule to the Customs Tariff (S.C. 1997, c. 36);

 (2.1) goods from Canada outside Québec, if

(a)  the goods are brought into Québec by

(i)  an individual who was formerly resident in Québec and is, at the time the goods are brought into Québec, returning to resume residence in Québec after being resident in another province, the Northwest Territories, the Yukon Territory or Nunavut for a period of not less than one year,

(ii)  an individual who is resident in Québec and is, at the time the goods are brought into Québec, returning after being absent from Québec for a period of not less than one year, or

(iii)  an individual who is, at the time the goods are brought into Québec, entering Québec with the intention of establishing a residence for a period of not less than 12 months (other than a person who enters Canada in order to reside in Canada for the purpose of employment for a temporary period not exceeding 36 months or for the purpose of studying at an educational institution), and

(b)  the goods brought into Québec are for the individual's household or personal use and were owned by and in the possession of the individual before the time they were brought into Québec, provided that, where the goods were owned by and in the possession of the individual for less than 31 days before the time they were brought into Québec, the individual paid a tax of the same nature as the tax payable under this Title that is imposed by the province or territory from which the goods were brought and the individual is not entitled to claim a rebate or a refund of that tax;

 (3) medals, trophies and other prizes, not including usual merchantable goods, that are won outside Québec in competitions, that are bestowed, received or accepted outside Québec or that are donated by persons outside Québec, for heroic deeds, valour or distinction;

 (4) printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is brought into Québec

(a)  by or on the order of a government outside Québec or by an agency or representative of such a government, or

(b)  by a board of trade, chamber of commerce, municipal or automobile association or similar organization to which it was supplied for no consideration, other than shipping and handling charges;

 (5) goods that are brought into Québec by a charity or a public institution and that have been donated to the charity or institution;

 (6) goods that are brought into Québec by a particular person if the goods are supplied to the particular person by a person not resident in Québec for no consideration, other than shipping and handling charges, as replacement parts or as replacement property under a warranty;

 (6.1) goods that are brought into Québec solely for the purpose of fulfilling an obligation under a warranty to repair or replace the goods if defective, where replacement goods are supplied for no additional consideration, other than shipping and handling charges, and shipped outside Québec without being consumed or used in Québec except to the extent reasonably necessary or incidental to the transportation of the goods;

 (7) goods to the supply of which any of Divisions I, II, III or IV of Chapter IV, except paragraph 3.1 of section 178, paragraph 2 of section 198 or section 198.1 or 198.2 applies;

 (7.1) a motor vehicle acquired by way of a supply made outside Québec in circumstances in which the vehicle, had it been acquired by way of a supply made in Québec in the same circumstances, would have been acquired by way of a zero-rated supply under section 197.2;

 (8) goods, other than prescribed goods, that are sent to the recipient of the supply of the goods at an address in Québec by mail or courier, that are from outside Canada and the value of which is not more than $20;

 (8.1) goods that are prescribed property for the purposes of section 24.1 and that are sent, by mail or courier, to the recipient of the supply of the goods at an address in Québec, where the supplier is registered under Division I of Chapter VIII at the time the goods are brought into Québec;

 (9) prescribed goods brought into Québec in prescribed circumstances, under prescribed terms and conditions;

 (10) containers to which section 9 of Schedule VII to the Excise Tax Act applies or to which that section could so apply but for the fact that the goods are from Canada outside Québec;

 (11) money, certificates or other documents evidencing a right that is a financial instrument;

 (12) goods from Canada outside Québec that are supplied to a person by lease, licence or similar arrangement under which continuous possession or use of the goods is provided for a period of more than three months in circumstances in which tax under subsection 1 of section 165 of the Excise Tax Act is payable by the person in respect of the supply;

 (13) a mobile home or floating home that has been used or occupied in Québec as a place of residence for individuals;

 (14) grain, seeds or mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis brought into Québec and coming from outside Canada, if

(a)  in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food;

(b)  in the case of viable grain or seeds, they are included in the definition of “industrial hemp” in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act (S.C. 1996, c. 19); and

(c)  the bringing into Québec is made in accordance with the Controlled Drugs and Substances Act, if applicable; and

 (15) goods from Canada outside Québec to the supply of which paragraph 3.1 of section 178 applies.

1991, c. 67, s. 81; 1993, c. 19, s. 183; 1994, c. 22, s. 410; 1995, c. 1, s. 267; 1995, c. 63, s. 342; 1997, c. 85, s. 467; 2001, c. 51, s. 265; 2001, c. 53, s. 288; 2003, c. 2, s. 312; 2009, c. 5, s. 603; 2012, c. 28, s. 52; 2015, c. 21, s. 641.

DIVISION V 
SPECIFIC RULES RESPECTING TIME OF TAXATION

82. Tax under section 16 in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due.

1991, c. 67, s. 82.

82.1. Notwithstanding section 82, tax under section 16 in respect of a supply referred to in section 20.1 is payable at the time the supply is made.

1993, c. 19, s. 184.

82.2. Notwithstanding section 82, tax under section 16 in respect of the supply of a motor vehicle by way of retail sale, other than a supply under section 20.1, is payable at the time of the registration of the vehicle under the Highway Safety Code (chapter C-24.2) following an application by the recipient of the supply.

Notwithstanding the first paragraph, tax is payable at the time the motor vehicle is delivered to the recipient if the vehicle is not registered within 15 days after that time.

2001, c. 51, s. 266.

83. The consideration, or a part thereof, for a taxable supply is deemed to become due on the earliest of

 (1) the earlier of the day the supplier first issues an invoice in respect of the supply for that consideration or part and the date of that invoice,

 (2) the day the supplier would, but for an undue delay, have issued an invoice in respect of the supply for that consideration or part, and

 (3) the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing.

Notwithstanding the first paragraph, where property is supplied by way of lease, licence or similar arrangement under an agreement in writing, the consideration, or any part thereof, for the supply is deemed to become due on the day the recipient is required to pay the consideration or part to the supplier pursuant to the agreement.

1991, c. 67, s. 83.

84. Where consideration that is not money is given or required to be given, the consideration that is given or required to be given is deemed to be paid or required to be paid, as the case may be.

1991, c. 67, s. 84.

85. Notwithstanding section 82, where consideration for a taxable supply is paid or becomes due on more than one day, tax under section 16 in respect of the supply is payable on each day that is the earlier of the day a part of the consideration is paid and the day that part becomes due.

The tax that is payable on each such day shall be calculated on the value of the part of the consideration that is paid or becomes due, as the case may be, on that day.

1991, c. 67, s. 85.

86. Notwithstanding sections 82 and 85, where all or any part of the consideration for a taxable supply has not been paid or become due on or before the last day of the calendar month immediately following the first calendar month in which,

 (1) where the supply is of corporeal movable property by way of sale, other than a supply described in paragraph 2 or 3, the ownership or possession of the property is transferred to the recipient,

 (2) where the supply is of corporeal movable property by way of sale under which the supplier delivers the property to the recipient on approval, consignment, or other similar terms, the recipient acquires ownership of the property or makes a supply of it to any person, other than the supplier, or

 (3) where the supply is under an agreement in writing for the construction, renovation or alteration of, or repair to any immovable or any ship or other marine vessel, and it may reasonably be expected that the construction, renovation, alteration or repair will require more than three months to complete, the construction, renovation, alteration or repair is substantially completed,

tax under section 16 in respect of the supply, calculated on the value of that consideration or part, as the case may be, is payable on that day.

1991, c. 67, s. 86; 1995, c. 63, s. 343.

87. Section 86 does not apply in respect of a supply of water, electricity, natural gas, steam or any other property where the property is delivered to the recipient on a continuous basis by means of a wire, pipeline or other conduit and the supplier invoices the recipient in respect of that supply on a regular or periodic basis.

1991, c. 67, s. 87.

88. Tax under section 16 in respect of a taxable supply of immovable property by way of sale is payable on the earlier of the day ownership of the property is transferred to the recipient and the day possession of the property is transferred to the recipient under the agreement for the supply.

Notwithstanding the first paragraph, in the case of a supply of a residential unit held in co-ownership, where possession of the unit is transferred, after 30 June 1992 and before the declaration of co-ownership relating to the complex in which the unit is situated is entered in the land register, to the recipient under the agreement for the supply, the tax is payable on the earlier of the day ownership of the unit is transferred to the recipient and the day that is 60 days after the day the declaration of co-ownership is entered in the land register.

This section applies notwithstanding sections 82 and 85.

1991, c. 67, s. 88; 1997, c. 3, s. 135.

89. Where under section 86 or 88 tax is payable on a particular day and the value of the consideration, or any part thereof, for the taxable supply is not ascertainable on that day,

 (1) tax calculated on the value of the consideration or part, as the case may be, that is ascertainable on that day is payable on that day; and

 (2) tax calculated on the value of the consideration or part, as the case may be, that is not ascertainable on that day is payable on the day the value becomes ascertainable.

1991, c. 67, s. 89.

90. Notwithstanding sections 82, 85, 86, 88 and 89, where the recipient of a taxable supply retains, pursuant to an Act of the Legislature of Québec, another province, the Northwest Territories, the Yukon Territory, Nunavut or of the Parliament of Canada, or pursuant to an agreement in writing for the construction, renovation or alteration of, or repair to, any immovable or any ship or other marine vessel, a part of the consideration for the supply pending full and satisfactory performance of the supply, or any part thereof, tax under section 16 calculated on the value of that part of the consideration, is payable on the earlier of the day that part is paid and the day it becomes payable.

1991, c. 67, s. 90; 2003, c. 2, s. 313.

91. For the purposes of sections 82, 82.2, 85 to 90 and 92, where a supply of any combination of service, movable property or immovable property (each of which is in this section referred to as an “element”) is made and the consideration for each element is not separately identified,

 (1) where the value of a particular element can reasonably be regarded as exceeding the value of each of the other elements, the supply of all of the elements is deemed to be a supply only of the particular element; and

 (2) in any other case, the supply of all of the elements is deemed, where one of the elements is immovable property, to be a supply only of immovable property, and in any other case, to be a supply only of a service.

1991, c. 67, s. 91; 2001, c. 51, s. 267.

92. For the purposes of sections 82, 82.2 and 85 to 91, a deposit, whether refundable or not, given in respect of a supply shall not be considered as consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.

This section does not apply in respect of a deposit relating to a covering or container to which section 33 applies.

1991, c. 67, s. 92; 2001, c. 51, s. 268.

CHAPTER III 
EXEMPT SUPPLY

DIVISION I 
IMMOVABLE

93. (Repealed).

1991, c. 67, s. 93; 1997, c. 85, s. 468.

94. A supply by way of sale of a residential complex or an interest in a residential complex made by a person who is not a builder of the complex or, if the residential complex is a multiple unit residential complex, an addition to the complex, is exempt, unless

 (1) the person claimed an input tax refund in respect of the last acquisition by the person of the residential complex or in respect of an improvement to the complex acquired or brought into Québec by the person after the complex was last acquired by the person; or

 (2) the recipient is registered under Division I of Chapter VIII and

(a)  the recipient made a taxable supply by way of sale (in this section referred to as the “prior supply”) of the residential complex or interest in that complex to a prior recipient who is the person or, if the person is a personal trust other than a testamentary trust, the settlor of the trust or, in the case of a testamentary trust that arose as a result of the death of an individual, the deceased individual,

(b)  the prior supply is the last supply by way of sale of the residential complex or interest to the prior recipient,

(c)  the supply is not made more than one year after the day that is the day on which the prior recipient acquired the interest, or that is the earlier of the day on which the prior recipient acquired ownership of the residential complex and the day on which the prior recipient acquired possession of the complex, under the agreement for the prior supply,

(d)  the residential complex has not been occupied as a place of residence or lodging after the construction or last substantial renovation of the complex was substantially completed,

(e)  the supply is made pursuant to a right or obligation of the recipient to purchase the residential complex or interest that is provided for under the agreement for the prior supply, and

(f)  the recipient makes an election under this section jointly with the person in prescribed form containing prescribed information that is filed with the Minister with the recipient's return in which the recipient is required to report the tax in respect of the supply.

1991, c. 67, s. 94; 1994, c. 22, s. 411; 2003, c. 2, s. 314.

95. A supply by way of sale of a residential complex or an interest therein made by an individual who is a builder of the complex or, where the complex is a multiple unit residential complex, an addition thereto is exempt, if

 (1) at any time after the construction or substantial renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence of the individual, an individual related to the individual or a former spouse of the individual; and

 (2) the complex is not used primarily for any other purpose after the construction or substantial renovation is substantially completed and before that time.

The first paragraph does not apply if the individual claimed an input tax refund in respect of the last acquisition by the individual of the immovable included in the residential complex or in respect of the acquisition or bringing into Québec by the individual, after the immovable was last acquired by the individual, of an improvement to the immovable.

1991, c. 67, s. 95; 1994, c. 22, s. 411.

96. A supply by way of sale of a single unit residential complex (in this section referred to as the “complex”) or a residential unit held in co-ownership (in this section referred to as the “unit”) or an interest in the complex or unit made by a builder of the complex or unit is exempt where,

 (1) in the case of a unit situated in a residential complex (in this section referred to as the “premises”) that was converted by the builder from use as a multiple unit residential complex to use as a complex held in co-ownership, the builder received an exempt supply of the premises by way of sale or was deemed under section 225 to have received a taxable supply of the premises by way of sale, and that supply was the last supply of the premises made by way of sale to the builder; or

 (2) in any case, the builder received an exempt supply of the complex or unit by way of sale or was deemed under section 223 or 224 to have received a taxable supply of the complex or unit by way of sale, and that supply was the last supply of the complex or unit made by way of sale to the builder.

The first paragraph does not apply if,

 (1) after the complex, unit or premises were last acquired by the builder, the builder carried on, or engaged another person to carry on for the builder, the substantial renovation of the complex, unit or premises; or

 (2) the builder claimed an input tax refund in respect of the last acquisition by the builder of the complex, unit or premises or in respect of the acquisition or bringing into Québec by the builder, after the complex, unit or premises were last acquired by the builder, of an improvement to the complex, unit or premises.

1991, c. 67, s. 96; 1994, c. 22, s. 411.

97. A supply by way of sale of a multiple unit residential complex or an interest therein made by a person who is a builder of the complex or an addition thereto is exempt where

 (1) in the case of a person who is a builder of the complex, the person received an exempt supply of the complex by way of sale, or was deemed under section 225 to have received a taxable supply of the complex by way of sale, and that supply was the last supply of the complex made by way of sale to the person; and

 (2) in the case of a person who is a builder of an addition to the complex, the person received an exempt supply of the addition by way of sale, or was deemed under section 226 to have received a taxable supply of the addition by way of sale, and that supply was the last supply of the addition made by way of sale to the person.

The first paragraph does not apply if,

 (1) after the complex was last supplied to the person, the person carried on, or engaged another person to carry on for the person, the substantial renovation of the complex; or

 (2) the person claimed an input tax refund in respect of the last acquisition by the person of the complex or an addition thereto or in respect of the acquisition or bringing into Québec by the person, after the complex was last acquired by the person, of an improvement to the complex, other than an input tax refund in respect of the construction of an addition to the complex.

1991, c. 67, s. 97; 1994, c. 22, s. 411.

97.1. A supply by way of sale of a building, or that part of a building, in which one or more residential units are located, or an interest in such a building or part, is exempt where

 (1) both immediately before and immediately after the earlier of the time ownership of the building, part or interest is transferred to the recipient of the supply (in this section referred to as the “purchaser”) and the time possession thereof is transferred to the purchaser under the agreement for the supply, the building or part forms part of a residential complex; and

 (2) immediately after the earlier of the time ownership of the building, part or interest is transferred to the purchaser and the time possession thereof is transferred to the purchaser under the agreement for the supply, the purchaser is a recipient described in subparagraph a of subparagraph 1 of the first paragraph of section 100 of an exempt supply, described by subparagraph 1 of the first paragraph of that section, of the land included in the complex.

1994, c. 22, s. 412.

97.2. A supply by way of sale of land that forms part of a residential complex or an interest in such land is exempt where

 (1) immediately before the earlier of the time ownership thereof is transferred to the recipient of the supply and the time possession thereof is transferred to the recipient of the supply under the agreement for the supply, the land is subject to a lease, licence or similar arrangement by which a supply that is an exempt supply described by subparagraph 1 of the first paragraph of section 100 was made; and

 (2) if a supply by way of sale were made of the residential complex immediately before that earlier time, the supply would be an exempt supply described in any of sections 94 to 97.

1994, c. 22, s. 412.

97.3. A supply of a residential trailer park or an interest therein made by a person is exempt where

 (1) the person received an exempt supply, described by this section, of the park or was deemed under section 222.2, 243, 258 or 261 to have received a taxable supply of the land included in the park as a consequence of using the land for purposes of the park, and that supply was the last supply of the park made by way of sale to the person; and

 (2) if the person increased the area of land included in the park (in this section referred to as the “additional area”), the person received an exempt supply, described by this section, of the additional area or was deemed under section 222.3, 243, 258 or 261 to have made a taxable supply of the additional area as a consequence of using the additional area for purposes of the park, and that supply was the last supply of the additional area made by way of sale to the person.

The first paragraph does not apply if the person claimed an input tax refund in respect of the last acquisition by the person of the park or an additional area thereof or in respect of the acquisition or bringing into Québec by the person, after the park was last acquired by the person, of an improvement to the park, other than an input tax refund in respect of an improvement to an additional area that was acquired or brought into Québec by the person before the additional area was last acquired by the person.

1994, c. 22, s. 412.

98. A supply is exempt where the supply is

 (1) of a residential complex or a residential unit in a residential complex by way of lease, licence or similar arrangement for the purpose of its occupation as a place of residence or lodging by an individual, where the period throughout which continuous occupation of the complex or unit is given to the same individual under the arrangement is at least one month; or

 (2) of a residential unit by way of lease, licence or similar arrangement for the purpose of its occupation as a place of residence or lodging by an individual, where the consideration for the supply does not exceed $20 for each day of occupation.

1991, c. 67, s. 98; 1994, c. 22, s. 413; 1997, c. 85, s. 469.

99. A supply of property is exempt if the property is land, a building, or the part of a building, that consists solely of residential units, and the supply is made by way of lease, licence or similar arrangement to a recipient (in this section referred to as the “lessee”) for a lease interval (within the meaning assigned by section 32.2) throughout which the lessee or a sub-lessee makes, or holds the property for the purpose of making, one or more supplies of the property, parts of the property or leases, licences or similar arrangements in respect of the property or parts of it and all or substantially all of those supplies are

 (1) exempt supplies described by section 98 or 100; or

 (2) supplies that are made, or are reasonably expected to be made, to other lessees or sub-lessees described in this section.

1991, c. 67, s. 99; 1994, c. 22, s. 413; 1997, c. 85, s. 470; 2001, c. 53, s. 289; 2009, c. 15, s. 486.

99.0.1. A supply made by way of lease, licence or similar arrangement of property is exempt if the property is a residential complex or is land, a building or the part of a building, that forms or is reasonably expected to form part of a residential complex, and if the supply is made to a recipient (in this section referred to as the “lessee”) for a lease interval (within the meaning assigned by section 32.2) throughout which all or substantially all of the property is

 (1) supplied, or is held for the purpose of being supplied, in one or more supplies, by the lessee or a sub-lessee for the purpose of the occupancy of the property or parts of the property by individuals as a place of residence or lodging and all or substantially all of the supplies of the property or parts of the property are exempt supplies described in section 98; or

 (2) used, or held for the purpose of being used, by the lessee or a sub-lessee in the course of making exempt supplies and, as part of one or more exempt supplies, possession or use of all or substantially all of the residential units situated in the property is given under a lease, licence or similar arrangement for the purpose of their occupancy by an individual as a place of residence.

2009, c. 15, s. 487.

99.1. A supply of meals made by a person who is making a supply, described by paragraph 1 of section 98, of a residential complex or unit is exempt where the meals are provided, to the occupant of the complex or unit, in the complex or unit or in the residential complex in which the unit is located under an arrangement whereby at least 10 meals per week are supplied for a single consideration determined before any meal is provided under the arrangement.

1994, c. 22, s. 414.

100. A supply is exempt where the supply is

 (1) of land, other than a site in a residential trailer park, by way of lease, licence or similar arrangement under which continuous possession or occupation of the land is provided for a period of at least one month, made to

(a)  the owner, lessee or person in occupation or possession of a residential unit that is or is to be affixed to the land for the purpose of its use and enjoyment as a place of residence for individuals, or

(b)  a person who is acquiring possession of the land for the purpose of constructing a residential complex on it in the course of a commercial activity;

 (2) of a site in a residential trailer park, by way of lease, licence or similar arrangement under which continuous possession or occupation of the site is provided for a period of at least one month, made to the owner, lessee or person in occupation or possession of

(a)  a mobile home situated or to be situated on the site, or

(b)  a travel trailer, motor home or similar vehicle or trailer situated or to be situated on the site; or

 (3) of a lease, licence or similar arrangement referred to in subparagraph 1 or 2 by way of assignment.

The first paragraph does not apply to a supply of land on which the residential unit, mobile home, travel trailer, motor home or similar vehicle or trailer is or is to be affixed or situated, or any land contiguous to it, that is not reasonably necessary for the use and enjoyment of the unit, home, vehicle or trailer as a place of residence for individuals.

1991, c. 67, s. 100; 1994, c. 22, s. 415; 1997, c. 85, s. 471.

101. A supply by way of sale of a parking space that is the subject of a declaration of co-ownership entered in the land register made by a supplier to a person is exempt if

 (1) the supplier, at the same time or as part of the same supply, makes a supply, included in any of sections 94 to 96, by way of sale to the person of a residential unit held in co-ownership described by that declaration; and

 (2) the space was, at any time, supplied to the supplier by way of sale and the supplier did not, after that time, claim an input tax refund in respect of an improvement to the space.

1991, c. 67, s. 101; 1994, c. 22, s. 415; 1997, c. 85, s. 472; 2001, c. 53, s. 290.

101.1. A supply of a parking space by way of lease, licence or similar arrangement under which any such space is made available throughout a period of at least one month, is exempt where the supply is

 (1) made to a person (in this paragraph referred to as an “occupier”) who is a lessee or person in occupation or possession of a single unit residential complex, a residential unit in a multiple unit residential complex or a site in a residential trailer park where

(a)  the space forms part of the residential complex or residential trailer park, as the case may be, or

(b)  the supplier of the space is an owner or occupier of the single unit residential complex, residential unit or site, as the case may be, and the use of the space is incidental to the use and enjoyment of the complex, unit or site, as the case may be, as a place of residence for individuals;

 (2) made to the owner, lessee or person in occupation or possession of a residential unit held in co-ownership described by a declaration of co-ownership entered in the land register if the space is the subject of that declaration; or

 (3) made by a supplier to the owner, lessee or person in occupation or possession of a floating home where the home is moored to mooring facilities or a wharf under an agreement with the supplier for a supply that is an exempt supply described in section 106.2 and the use of the space is incidental to the use and enjoyment of the home as a place of residence for individuals.

1994, c. 22, s. 416; 1997, c. 85, s. 473; 2001, c. 53, s. 291.

101.1.1. For the purposes of section 102, settlor, in relation to a testamentary trust constituted by reason of the death of an individual, means that individual.

1997, c. 85, s. 474.

102. A supply of an immovable by way of sale made by an individual or a personal trust is exempt, except where the supply is

 (1) a supply of an immovable that is, immediately before the time ownership or possession of the property is transferred to the recipient of the supply under the agreement for the supply, capital property used primarily

(a)  in a business carried on by the individual or trust with a reasonable expectation of profit, or

(b)  where the individual or trust is a registrant,

(i)  in making a taxable supply of the immovable by way of lease, licence or similar arrangement, or

(ii)  in any combination of the uses described in subparagraph a and subparagraph i;

 (2) a supply of an immovable made

(a)  in the course of a business of the individual or trust, or

(b)  in the course of an adventure or concern in the nature of trade of the individual or trust, where the individual or trust has filed an election with and as prescribed by the Minister for that purpose in prescribed form containing prescribed information;

 (2.1) a supply of a part of a parcel of land, which parcel the individual, trust or settlor of a testamentary trust subdivided or severed into parts, except where

(a)  the parcel was subdivided or severed into two parts and the individual, trust or settlor of a testamentary trust did not subdivide or sever that parcel from another parcel of land, or

(b)  the recipient of the supply is an individual who is related to, or is a former spouse of, the individual or settlor of a testamentary trust and is acquiring the part for the personal use and enjoyment of the recipient;

 (3) a supply deemed under any of sections 256 to 262 to have been made;

 (4) a supply of a residential complex or an interest in a residential complex; or

 (5) a particular supply to a recipient who is registered under Division I of Chapter VIII and who has made an election under this subparagraph jointly with the individual or trust in prescribed form containing prescribed information and filed with the Minister with the recipient's return in which the recipient is required to report the tax in respect of the supply, if

(a)  the recipient made a taxable supply by way of sale (in this section referred to as the “prior supply”) of the immovable to a person (in this section referred to as the “prior recipient”) who is the individual, trust or settlor of the trust and that supply is the last supply by way of sale of the immovable to the prior recipient,

(b)  the day the particular supply is made is not more than one year after the particular day that is the earlier of the day on which, under the agreement for the prior supply, the prior recipient acquired ownership of the immovable and the day the prior recipient acquired possession of the immovable, and

(c)  the particular supply is made pursuant to a right or obligation of the recipient to purchase the immovable that is provided for under the agreement for the prior supply.

For the purposes of subparagraph 2.1 of the first paragraph, a part of a parcel of land that the individual, trust or settlor of a testamentary trust supplies to a person who has the right to acquire it by expropriation, and the remainder of that parcel, are deemed not to have been subdivided or severed from each other by the individual, trust or settlor of a testamentary trust, as the case may be.

1991, c. 67, s. 102; 1994, c. 22, s. 417; 1997, c. 85, s. 475; 2003, c. 2, s. 315.

103. A supply of farmland by way of sale made by an individual to another individual who is related to or who is a former spouse of the individual, is exempt where

 (1) the farmland was used at any time by the individual in a commercial activity that is the business of farming;

 (2) the farmland was not used, immediately before the time ownership of the property is transferred under the supply, by the individual in a commercial activity other than the business of farming; and

 (3) the other individual is acquiring the farmland for the personal use and enjoyment of the other individual or any individual related thereto.

1991, c. 67, s. 103.

104. A supply by an individual of farmland, deemed under section 221 or 261 to have been made, is exempt where

 (1) the farmland was used at any time by the individual in a commercial activity that is the business of farming;

 (2) the farmland was not used, immediately before the supply is deemed to have been made, by the individual in a commercial activity other than the business of farming; and

 (3) the farmland, immediately after the time the supply is deemed to have been made, is for the personal use and enjoyment of the individual or of an individual related to him.

1991, c. 67, s. 104.

105. A supply of farmland by way of sale made by a person that is a partnership, trust or corporation to a particular individual, an individual related to or a former spouse of the particular individual, is exempt where

 (1) immediately before the time ownership of the property is transferred under the supply,

(a)  all or substantially all of the property of the person is used in a commercial activity that is the business of farming;

(b)  the particular individual is a member of the partnership, a beneficiary of the trust or a shareholder of or related to the corporation, as the case may be; and

(c)  the particular individual, the spouse of the particular individual or a child, within the meaning of paragraph d of section 451 of the Taxation Act (chapter I-3), of the particular individual is actively engaged in the business of the person; and

 (2) immediately after the time ownership of the property is transferred under the supply, the farmland is for the personal use and enjoyment of the individual to whom the supply was made or of an individual related thereto.

1991, c. 67, s. 105.

106. A supply of property or a service, made by a corporation or syndicate established upon the registration in the land register of a declaration of co-ownership, to the owner or lessee of a residential unit held in co-ownership described by that declaration, is exempt if the property or service relates to the occupancy or use of the unit.

1991, c. 67, s. 106; 2001, c. 53, s. 292.

106.1. A supply of property or a service made by a cooperative housing corporation to a person who, because the person is a shareholder of the corporation or a lessee or sub-lessee of a shareholder of the corporation, is entitled to occupy or use a residential unit in a residential complex administered or owned by the corporation, where the supply relates to the occupation or use of a residential unit in the complex, is exempt.

1994, c. 22, s. 418.

106.2. A supply, made to a person who is the owner, lessee or person in occupation or possession of a floating home, of a right to use mooring facilities or a wharf for a period of at least one month in connection with the use and enjoyment of the home as a place of residence for individuals, is exempt.

1994, c. 22, s. 418.

106.3. A supply to a consumer of the right to use a washing machine or clothes-dryer that is located in a common area of a residential complex is exempt.

1997, c. 85, s. 476.

106.4. A supply by way of lease, licence or similar arrangement of that part of the common area of a residential complex that is used as a laundry, made to a person who so acquires the property for use in the course of making supplies described in section 106.3, is exempt.

1997, c. 85, s. 476.

107. For the purposes of sections 96, 97, 97.2 and 97.3, sections 222.2, 222.3 and 223 to 231.1 are deemed to have been in force at all times.

1991, c. 67, s. 107; 1994, c. 22, s. 419.

DIVISION II 
HEALTH CARE SERVICE

108. In this division,

cosmetic service supply means a supply of property or a service that is made for cosmetic purposes and not for medical or reconstructive purposes;

health care institution means

 (1) a centre operated by an institution, within the meaning of the Act respecting health services and social services (chapter S-4.2) or within the meaning of the Act respecting health services and social services for Cree Native persons (chapter S-5), for the purpose of providing health or hospital care, acute or chronic care or rehabilitative care, or any other institution operated for the purpose of providing such care;

 (1.1) a centre referred to in paragraph 1 that is primarily for persons with mental health problems, or any other institution primarily for persons with mental health problems;

 (2) a facility, or part thereof, operated for the purpose of providing residents of the facility who have limited physical or mental capacity for self-supervision and self-care with

(a)  nursing and personal care under the direction or supervision of qualified medical and nursing care staff or other personal and supervisory care, other than domestic services of an ordinary household nature, according to the individual requirements of the residents,

(b)  assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the residents, and

(c)  meals and accommodation;

home care service means a household or personal care service, such as bathing, feeding, assistance with dressing or medication, cleaning, laundering, meal preparation and child care, if the service is rendered to an individual who, due to age, infirmity or disability, requires assistance;

institutional health care service means any of the following when provided in a health care institution:

 (1) a laboratory, radiological or other diagnostic service;

 (2) a medication, biological substance or related preparation when administered, or a medical or surgical prosthesis when installed, in the facility in conjunction with the supply of a service or property included in any of paragraphs 1 and 3 to 7;

 (3) the use of an operating room, case room or anaesthetic facilities, including necessary equipment or supplies;

 (4) medical or surgical equipment or supplies

(a)  used by the operator of the institution in providing a service included in any of paragraphs 1 to 3 and 5 to 7, or

(b)  supplied to a patient or resident of the institution otherwise than by way of sale;

 (5) the use of occupational therapy, physiotherapy or radiotherapy facilities;

 (6) lodging;

 (7) a meal other than one served in a restaurant, cafeteria or similar place where meals are served;

 (8) a service rendered by a person remunerated for that purpose by the operator of the institution;

medical practitioner means a physician within the meaning of the Medical Act (chapter M-9) or a dentist within the meaning of the Dental Act (chapter D-3) and includes a person who is entitled under the laws of another province, the Northwest Territories, the Yukon Territory or Nunavut to practise the profession of medicine or dentistry;

practitioner means a person who practices the profession of acupuncture, audiology, chiropody, chiropractic, dietetics, midwifery, naturopathy as a naturopathic doctor, occupational therapy, optometry, osteopathy, physiotherapy, podiatry, psychology or speech-language pathology in Québec and who

 (1) where the person is required to be licensed or otherwise authorized to practise that profession in Québec, is so licensed or otherwise authorized;

 (2) where the person is not required to be so licensed or otherwise authorized, has qualifications equivalent to those necessary to be licensed or otherwise authorized to practise in another province, the Northwest Territories, the Yukon Territory or Nunavut;

 (3) (paragraph repealed);

qualifying health care supply means a supply of a property or service that is made for the purpose of

 (1) maintaining health;

 (2) preventing disease;

 (3) treating, relieving or remediating an injury, illness, disorder or disability;

 (4) assisting (otherwise than financially) an individual in coping with an injury, illness, disorder or disability; or

 (5) providing palliative health care.

1991, c. 67, s. 108; 1992, c. 21, s. 373, s. 375; 1994, c. 22, s. 420; 1995, c. 1, s. 270; 1994, c. 23, s. 23; 1995, c. 63, s. 344; 1997, c. 85, s. 477; 2001, c. 53, s. 293; 2003, c. 2, s. 316; 2005, c. 1, s. 351; 2009, c. 5, s. 604; 2011, c. 6, s. 240; 2015, c. 21, s. 642; 2015, c. 24, s. 169.

108.1. For the purposes of this division, other than section 116, a cosmetic service supply and a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes are deemed not to be included in this division.

2011, c. 6, s. 241.

108.2. For the purposes of this division, other than sections 116 and 118 to 119.2, a supply that is not a qualifying health care supply is deemed not to be included in this division.

2015, c. 21, s. 643.

109. A supply of an institutional health care service made by the operator of a health care institution, when rendered to a patient or resident, is exempt.

1991, c. 67, s. 109; 1992, c. 21, s. 375; 2001, c. 53, s. 294; 2011, c. 6, s. 242.

110. A supply by way of lease of medical equipment or supplies, made by the operator of a health care institution to a consumer on the written order of a medical practitioner, is exempt.

1991, c. 67, s. 110; 1992, c. 21, s. 375; 2009, c. 15, s. 488.

111. A supply of an ambulance service made by a person who carries on the business of supplying ambulance services is exempt.

However, such a supply does not include a supply of an air ambulance service referred to in section 197.1.

1991, c. 67, s. 111; 1997, c. 85, s. 478.

112. A supply of a consultative, diagnostic, treatment or other health care service that is rendered by a medical practitioner to an individual is exempt.

1991, c. 67, s. 112; 2007, c. 12, s. 319; 2009, c. 15, s. 489; 2011, c. 6, s. 243.

113. A supply of a nursing service rendered to an individual by a nurse or a nursing assistant is exempt if the service is rendered within a nurse-patient relationship.

1991, c. 67, s. 113; 1992, c. 21, s. 375; 1997, c. 85, s. 479; 2009, c. 15, s. 490.

114. A supply of an acupuncture, audiological, chiropodic, chiropractic, midwifery, naturopathic, occupational therapy, optometric, osteopathic, physiotherapy, podiatric, psychological or speech-language pathology service is exempt if the service is rendered to an individual by a practitioner of the service.

1991, c. 67, s. 114; 1997, c. 85, s. 480; 2001, c. 53, s. 295; 2009, c. 5, s. 605; 2009, c. 15, s. 491; 2015, c. 24, s. 170.

114.1. A supply of a dietetic service rendered by a practitioner of the service is exempt if

 (1) the service is rendered to an individual;

 (2) the supply is made to a public sector body; or

 (3) the supply is made to the operator of a health care institution.

1997, c. 85, s. 481; 2009, c. 15, s. 492.

114.2. A supply of a service rendered in the practise of the profession of social work is exempt in the case where

 (1) the service is rendered to an individual within a professional-client relationship between the particular individual who renders the service and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another individual to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and

 (2) the particular individual is licensed or otherwise certified to practise the profession of social work in Québec.

2009, c. 5, s. 606; 2009, c. 15, s. 493.

114.3. A supply of a service (other than a service described in paragraph 3 of section 174) rendered in the practice of the profession of pharmacy by a particular individual is exempt if

 (1) the service is rendered by the particular individual within a pharmacist-patient relationship between the particular individual and another individual and is provided for the promotion of the health of the other individual or for the prevention or treatment of a disease, disorder or dysfunction of the other individual; and

 (2) the particular individual is entitled under the laws of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut to practise the profession of pharmacy.

2015, c. 21, s. 644.

115. A supply of a dental hygienist service is exempt.

1991, c. 67, s. 115.

116. A supply, other than a zero-rated supply, of any property or service is exempt to the extent that the consideration for the supply is payable or reimbursed by the Gouvernement du Québec pursuant to the Health Insurance Act (chapter A-29) or the Act respecting the Régie de l'assurance maladie du Québec (chapter R-5) or by the government of another province, the Northwest Territories, the Yukon Territory or Nunavut under a health care plan established for the insured persons of that province or territory under an Act of the legislature of that province or territory.

1991, c. 67, s. 116; 1995, c. 1, s. 271; 1999, c. 89, s. 53; 2003, c. 2, s. 317.

117. A supply of a diagnostic, treatment or other health care service rendered to an individual is exempt if the service is a prescribed service and the supply is made on the order of

 (1) a medical practitioner or a practitioner;

 (2) a nurse authorized under the laws of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut to order such a service if the order is made within a nurse-patient relationship; or

 (3) a person who is authorized under the laws of Québec, another province, the Northwest Territories, the Yukon Territory or Nunavut to practise the profession of pharmacy and to order such a service, if the order is made within a pharmacist-patient relationship.

1991, c. 67, s. 117; 2009, c. 15, s. 494; 2015, c. 21, s. 645.

118. A supply of food and beverages, including the services of a caterer, made to an operator of a health care institution under a contract to provide on a regular basis meals for the patients or residents of the institution is exempt.

1991, c. 67, s. 118; 1992, c. 21, s. 375.

119. (Repealed).

1991, c. 67, s. 119; 1997, c. 85, s. 482.

119.1. A supply of a home care service that is rendered to an individual in the individual's place of residence, whether the recipient of the supply is the individual or any other person, is exempt where

 (1) the supplier is a government;

 (2) the supplier is a municipality;

 (3) a government, municipality or organization administering a government or municipal program in respect of home care services pays an amount

(a)  to the supplier in respect of the supply, or

(b)  to any person for the purpose of the acquisition of the service; or

 (4) another supply of a home care service rendered to the individual is made in the circumstances described in paragraph 1, 2 or 3.

1994, c. 22, s. 421; 1995, c. 1, s. 272; 2015, c. 21, s. 646.

119.2. A supply (other than a zero-rated supply or a prescribed supply) of a training service or of a service of designing a training plan is exempt if

 (1) the training is specially designed to assist individuals with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects and is given or, in the case of a service of designing a training plan, is to be given to a particular individual with the disorder or disability or to another individual who provides personal care or supervision to the particular individual otherwise than in a professional capacity; and

 (2) any of the following conditions is met:

(a)  a person acting in the capacity of a practitioner, medical practitioner, social worker or nurse, and in the course of a professional-client relationship between the person and the particular individual, has certified in writing that the training is or, in the case of a service of designing a training plan, will be an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects,

(b)  a prescribed person, or a member of a prescribed class of persons, has, subject to prescribed circumstances or conditions, certified in writing that the training is or, in the case of a service of designing a training plan, will be an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects, or

(c)  the supplier

(i)  is a government,

(ii)  is paid an amount to make the supply by a government or organization administering a government program targeted at assisting individuals with a disorder or disability, or

(iii)  receives evidence satisfactory to the Minister that, for the purpose of the acquisition of the service, an amount has been paid or is payable to a person by a government or organization administering a government program targeted at assisting individuals with a disorder or disability.

For the purposes of this section, a training service or a service of designing a training plan does not include training that is similar to the training ordinarily given to individuals who

 (1) do not have a disorder or disability; and

 (2) do not provide personal care or supervision to an individual with a disorder or disability.

2009, c. 15, s. 495; 2015, c. 24, s. 171.

DIVISION III 
EDUCATIONAL SERVICE

120. In this division,

elementary or secondary school student means an individual who is enrolled for

 (1) educational services at the elementary level provided by a school authority;

 (2) educational services at the secondary level provided by a school authority or for services equivalent to such services;

regulatory body means a body constituted or empowered by an Act of the Legislature of Québec to regulate the practice of a profession or trade in Québec by setting standards of knowledge or proficiency for practitioners of a profession or trade;

vocational school means an institution established and operated primarily to provide students with correspondence courses, or instruction in courses, that develop or enhance students' occupational skills.

1991, c. 67, s. 120; 1994, c. 22, s. 422; 1997, c. 85, s. 483.

121. A supply made by a school authority that consists in providing individuals with educational services primarily for elementary or secondary school students is exempt.

1991, c. 67, s. 121.

122. A supply of food, beverages, a service or an admission made by a school authority primarily to elementary or secondary school students during the course of an extra-curricular activity organized under the authority and responsibility of the school authority is exempt.

This section does not apply to food or beverages prescribed for the purposes of section 131 or food or beverages supplied through a vending machine.

1991, c. 67, s. 122; 1997, c. 85, s. 484.

123. A supply made by a school authority of a service performed by an elementary or secondary school student or by an instructor of an elementary or secondary school student in the course of the student's program of studies is exempt.

1991, c. 67, s. 123.

124. A supply of a service of transporting elementary or secondary school students to or from a school of a school authority is exempt, if the supply is made by a school authority to a person who is not a school authority.

1991, c. 67, s. 124; 2002, c. 9, s. 161.

125. The following supplies, made by a professional association, public college, vocational school, government, regulatory body or university are exempt:

 (1) a supply that consists in providing an individual with an educational service leading to, or for the purpose of maintaining or upgrading, a professional accreditation or professional title recognized by the regulatory body;

 (2) a supply that consists in administering an examination or a supply of a certificate in respect of an educational service, a professional accreditation or a professional title referred to in subparagraph 1.

This section does not apply if the supplier has made an election under this section in prescribed form containing prescribed information.

1991, c. 67, s. 125; 1994, c. 22, s. 423.

126. A supply made by a school authority, public college or university that consists in providing an individual with, or administering an examination in respect of, an educational service for which credit may be obtained toward a diploma is exempt.

1991, c. 67, s. 126.

126.1. A supply of a service or membership the consideration for which is required to be paid by the recipient of a supply because the recipient receives the supply included in section 126 is exempt.

1994, c. 22, s. 424.

127. A supply, other than a zero-rated supply, made by a government, school authority, vocational school, public college or university that consists in providing an individual with, or administering an examination in respect of, an educational service leading to a certificate, diploma, permit or similar document, or a class or rating in respect of a licence or permit, that attests to the competence of an individual to practise a trade or vocation is exempt.

This section does not apply where the supplier has made an election under this section in prescribed form containing prescribed information.

1991, c. 67, s. 127; 1994, c. 22, s. 425; 1997, c. 85, s. 485; 2003, c. 2, s. 318.

128. The following supplies are exempt:

 (1) a supply of an educational service that consists in instructing an individual in a course that either follows a program of studies at the elementary or secondary level established or approved by the Minister of Education, Recreation and Sports or is approved for credit at the elementary or secondary level by the Minister;

 (2) a supply of an educational service that consists in instructing an individual in a course that is a prescribed equivalent of a course described in paragraph 1;

 (3) a supply of an educational service that consists in instructing an individual in a prerequisite course the successful completion of which is mandatory for admittance into a course described in paragraph 1 or 2.

1991, c. 67, s. 128; 1993, c. 51, s. 72; 1994, c. 16, s. 50; 1994, c. 22, s. 425; 1999, c. 83, s. 310; 2005, c. 1, s. 352; 2005, c. 28, s. 195.

129. (Repealed).

1991, c. 67, s. 129; 1993, c. 51, s. 72; 1994, c. 16, s. 50; 1994, c. 22, s. 426.

130. A supply of an educational service that consists in instructing individuals in, or administering examinations in respect of, language courses that form part of a program of second-language instruction in either English or French is exempt, where the supply is made by a school authority, vocational school, public college or university or in the course of a business established and operated primarily to provide instruction in languages.

1991, c. 67, s. 130; 2001, c. 53, s. 296.

131. A supply of food or beverages made in an elementary or secondary school cafeteria primarily to students of the school is exempt, except where the supply is for a reception, meeting, party or similar private event.

This section does not apply to prescribed food or beverages or food or beverages supplied through a vending machine.

1991, c. 67, s. 131.

132. A supply of a meal to a student enrolled at a university or public college is exempt where the meal is provided under a plan that is for a period of at least one month and under which the student purchases from the supplier for a single consideration only the right to receive at a restaurant or cafeteria at the university or college at least 10 meals weekly throughout the period.

1991, c. 67, s. 132; 1997, c. 85, s. 486.

133. A supply of food or beverages, including catering services, made to a school authority, public college or university under a contract to provide food or beverages either to students under a plan referred to in section 132 or in an elementary or secondary school cafeteria primarily to students of the school is exempt.

This section does not apply to the extent that the food, beverages or service are provided for a reception, conference or other special occasion or event.

1991, c. 67, s. 133.

134. A supply of movable property made by way of lease by a school authority to an elementary or secondary school student is exempt.

1991, c. 67, s. 134.

135. A supply made by a school authority, public college or university of an educational service that consists in instructing individuals in, or administering an examination in respect of, a course is exempt where the service is part of a program that consists of two or more courses and is subject to the review of, and is approved by, the school authority, college or university.

This section does not apply to courses in sports, games, hobbies or other recreational pursuits that are designed to be taken primarily for recreational purposes.

1991, c. 67, s. 135; 1994, c. 22, s. 427.

DIVISION IV 
CHILD AND PERSONAL CARE SERVICE

136. A supply of a child care service, the primary purpose of which is to provide care and supervision to children 14 years of age or under for periods normally less than 24 hours per day is exempt.

However, the supply does not include a supply of a service of supervising an unaccompanied child made by a person in connection with a taxable supply by that person of a passenger transportation service.

1991, c. 67, s. 136; 2001, c. 53, s. 297.

137. A supply of a service of providing care and supervision and a place of residence for children or disabled or underprivileged individuals in an institution operated by the supplier for the purpose of providing such services is exempt.

1991, c. 67, s. 137; 1992, c. 21, s. 375; 1994, c. 22, s. 428.

137.1. A supply of a service of providing care and supervision to a person with limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability is an exempt supply if the service is rendered primarily at an establishment of the supplier.

2001, c. 53, s. 298.

DIVISION V 
LEGAL AID SERVICE

138. A supply of a professional legal aid service provided under a legal aid program authorized by the Gouvernement du Québec and made by a corporation responsible for administering legal aid under the Act respecting legal aid and the provision of certain other legal services (chapter A-14) is exempt.

1991, c. 67, s. 138; 2010, c. 12, s. 34.

DIVISION V.1 
CHARITIES
1997, c. 85, s. 487.

138.1. A supply made by a charity of any property or service is exempt, except a supply of

 (1) property or a service referred to in Chapter IV;

 (2) property or a service, other than a supply that is deemed to have been made under section 60 or that is deemed only under section 32.2 or section 32.3 to have been made, where the supply is deemed under this Title to have been made by the charity;

 (3) movable property, other than property that was acquired, manufactured or produced by the charity for the purpose of making a supply by way of sale of the property and property supplied by way of lease, licence or similar arrangement in conjunction with an exempt supply by way of lease, licence or similar arrangement by the charity of immovable property, where, immediately before the time tax would first become payable in respect of the supply if it were a taxable supply, that property is used, otherwise than in making the supply, in commercial activities of the charity or, in the case of capital property, primarily in such activities;

 (4) corporeal movable property (other than property supplied by way of lease, licence or similar arrangement in conjunction with the exempt supply of an immovable by way of lease, licence or similar arrangement) that was acquired, manufactured or produced by the charity for the purpose of making a supply of the property and was neither donated to the charity nor used by another person before its acquisition by the charity, or any service supplied by the charity in respect of such property, other than such property or such a service supplied under a contract for catering;

 (4.1) a specified service as defined in section 350.17.1 if the supply is made to a registrant at a time when a designation of the charity under sections 350.17.1 to 350.17.4 is in effect;

 (5) an admission in respect of a place of amusement unless the maximum consideration for a supply by the charity of such an admission does not exceed one dollar;

 (6) a service involving, or a membership or other right entitling a person to, instruction or supervision in any recreational or athletic activity except where

(a)  it could reasonably be expected, given the nature of the activity or the degree of relevant skill or ability required for participation in it, that such services, memberships or rights supplied by the charity would be provided primarily to children 14 years of age or under and the services are not supplied as part of, membership is not in, or the right is not in respect of, a program involving overnight supervision throughout a substantial portion of the program, or

(b)  such services, memberships or rights supplied by the charity are intended to be provided primarily to individuals who are underprivileged or who have a disability;

 (7) a membership, other than a membership described in subparagraphs a and b of paragraph 6, where the membership

(a)  entitles the member to an admission in respect of a place of amusement the supply of which, were it made separately from the supply of the membership, would be a taxable supply, or to a discount on the value of consideration for a supply of such an admission, except where the value of the admission or discount is insignificant in relation to the consideration for the membership, or

(b)  includes a right to participate in a recreational or athletic activity, or use facilities, at a place of amusement, except where the value of the right is insignificant in relation to the consideration for the membership;

 (8) services of performing artists in a performance where the supply is made to a person who makes taxable supplies of admissions in respect of the performance;

 (9) a right, other than an admission, to play or participate in a game of chance where the charity is a prescribed person or the game is a prescribed game of chance;

 (10) a residential complex, or an interest therein, where the supply is made by way of sale;

 (11) an immovable where the supply is made by way of sale to an individual or a personal trust, other than a supply of an immovable on which is situated a structure that was used by the charity as an office or in the course of commercial activities or of making exempt supplies;

 (12) an immovable where the supply is made by way of sale and, immediately before the time tax would first become payable in respect of the supply if it were a taxable supply, the immovable is used, otherwise than in making the supply, primarily in commercial activities of the charity;

 (13) an immovable in respect of which an election under section 272 is in effect at the time tax would become payable in respect of the supply if it were a taxable supply;

 (14) designated municipal property, if the charity is a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII; or

 (15) a parking space if

(a)  the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the charity;

(b)  at the time the supply is made, it is reasonable to expect that the specified parking area (as defined in section 139) in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a property of, or a facility or establishment operated by, a particular person that is a municipality, a school authority, a hospital authority, a public college or a university; and

(c)  any of the following conditions is met:

(i)  under the governing documents of the charity, the charity is expected to use a significant part of its income or assets for the benefit of one or more of the particular persons referred to in subparagraph b;

(ii)  the charity and any particular person referred to in subparagraph b have entered into one or more agreements with each other or with other persons in respect of the use by the individuals referred to in that subparagraph of parking spaces in the specified parking area (as defined in section 139) in relation to the supply, or

(iii)  any particular person referred to in subparagraph b performs any function or activity in respect of supplies by the charity of parking spaces in the specified parking area (as defined in section 139) in relation to the supply.

1997, c. 85, s. 487; 2001, c. 53, s. 299; 2003, c. 2, s. 319; 2009, c. 5, s. 607; 2015, c. 21, s. 647.

138.2. A supply made by a charity of an admission to a fund-raising dinner, ball, concert, show or like fund-raising activity is exempt where part of the consideration for the supply may reasonably be regarded as an amount that is donated to charity and in respect of which a receipt referred to in section 712 or 752.0.10.3 of the Taxation Act (chapter I-3) may be issued or could be issued if the recipient of the supply were an individual.

1997, c. 85, s. 487.

138.3. A supply by way of sale of movable property or a service made by a charity in the course of a fund-raising activity is exempt, but does not include

 (1) a supply of any property or service where the charity makes supplies of such property or services in the course of that activity on a regular or continuous basis throughout the year or a significant portion of the year;

 (2) a supply of any property or service where the agreement for the supply entitles the recipient to receive from the charity property or services on a regular or continuous basis throughout the year or a significant portion of the year;

 (3) a supply of property or a service referred to in any of paragraphs 1 to 3 or 9 of section 138.1; or

 (4) a supply of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance.

1997, c. 85, s. 487.

138.4. A supply made by a charity of food or beverages to seniors, underprivileged individuals or individuals with a disability under a program established and operated for the purpose of providing prepared food to such individuals in their places of residence and any supply of food or beverages made to the charity for the purposes of the program are exempt.

1997, c. 85, s. 487.

138.5. A supply made by a charity of any property or service is exempt if all or substantially all of the supplies of the property or service by the charity are made for no consideration, but not including a supply of

 (1) blood or blood derivatives; or

 (2) a parking space if the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the charity.

1997, c. 85, s. 487; 2015, c. 21, s. 648.

138.6. A supply by way of sale made by a charity to a recipient of corporeal movable property (other than capital property of the charity or, if the charity is a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII, designated municipal property), or of a service purchased by the charity for the purpose of making a supply by way of sale of the service, is exempt if the total charge for the supply is equal to the usual charge by the charity for such supplies to such recipients and

 (1) if the charity does not charge the recipient any amount as tax in respect of the supply, the total charge for the supply does not, and could not reasonably be expected to, exceed the direct cost of the supply; and

 (2) if the charity charges the recipient an amount as tax in respect of the supply, the consideration for the supply does not, and could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to tax imposed under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) and without reference to any tax that became payable under this Title at a time when the charity was a registrant.

1997, c. 85, s. 487; 2001, c. 53, s. 300; 2012, c. 28, s. 53; 2015, c. 21, s. 649.

138.6.1. A supply made by a charity of food, beverages or short-term accommodation is exempt if the supply is made in the course of an activity the purpose of which is to relieve poverty, suffering or distress of individuals and is not fund-raising.

2001, c. 53, s. 301.

138.7. A supply made by a charity of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance is exempt where

 (1) the administrative function and the other functions performed in operating the game and taking the bets are performed exclusively by volunteers; and

 (2) in the case of a bingo or casino, the game is not conducted in premises or at a place, including any temporary structure, that is used primarily for the purpose of conducting gambling activities.

1997, c. 85, s. 487.

138.8. A supply (other than a supply by way of sale) of a parking space in a parking lot made by a charity is exempt if

 (1) at the time the supply is made, either

(a)  all of the parking spaces in the specified parking area (as defined in section 139) in relation to the supply are reserved for use by individuals who are accessing a hospital centre, or

(b)  it is reasonable to expect that the specified parking area (as defined in section 139) in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a hospital centre;

 (2) it is not the case that

(a)  all or substantially all of the parking spaces in the specified parking area (as defined in section 139) in relation to the supply are reserved for use by persons other than individuals accessing a hospital centre otherwise than in a professional capacity,

(b)  the supply or the amount of the consideration for the supply is conditional on the parking space being used by a person other than an individual accessing a hospital centre otherwise than in a professional capacity, or

(c)  the agreement for the supply is entered into in advance and, under the terms of the agreement for the supply, use of a parking space in the specified parking area (as defined in section 139) in relation to the supply is made available for a total period of time that is more than 24 hours and the use is to be by a person other than an individual accessing a hospital centre otherwise than in a professional capacity; and

 (3) no election made by the charity under section 272 is in effect, in respect of the property on which the parking space is situated, at the time tax under this Title would become payable in respect of the supply if it were a taxable supply.

2015, c. 21, s. 650.

DIVISION VI 
PUBLIC SECTOR BODY

139. In this division,

authorized party means a party, including any regional or local association of the party, a candidate or a referendum committee governed by an Act of the Legislature of Québec or of the Parliament of Canada that imposes requirements relating to election finances or referendum expenses;

designated activity of an organization means an activity in respect of which the organization is designated to be a municipality for the purposes of section 165 or 166 or subdivision 5 of Division I of Chapter VII;

designated body of the Gouvernement du Québec means a body that is established by the Gouvernement du Québec and designated to be a municipality for the purposes of sections 383 to 397;

local municipality of a regional municipality means a municipality that has jurisdiction over an area that forms part of the territory of the regional municipality;

municipal body means a municipality or a designated body of the Gouvernement du Québec;

municipal transit service means a public passenger transportation service, other than a charter service or a service that is part of a tour, that is supplied by a transit authority all or substantially all of whose supplies are of public passenger transportation services provided within and in the vicinity of the territory of a municipality;

para-municipal organization of a municipal body means an organization, other than a government, of the municipal body and that

 (1) where the municipal body is a municipality,

(a)  is designated to be a municipality for the purposes of section 165 or 166 or subdivision 5 of Division I of Chapter VII, or

(b)  is established by the municipal body and is a municipality by reason of paragraph 2 of the definition of “municipality” in section 1; or

 (2) where the municipal body is a designated body of the Gouvernement du Québec, is a municipality by reason of paragraph 2 of the definition of “municipality” in section 1;

public sector body does not include a charity;

public service body does not include a charity;

regional municipality means a municipality that has general jurisdiction over the territory of more than one local municipality within the meaning of the Act respecting municipal territorial organization (chapter O-9);

specified parking space in relation to a supply of a parking space, means all of the parking spaces that could be chosen for use in parking under the agreement for the supply of the parking space if all of those parking spaces were vacant and none were reserved for specific users;

transit authority means

 (1) a division, department or agency of a government, a municipality or a school authority, the primary purpose of which is to supply public passenger transportation services;

 (2) a non-profit organization that

(a)  receives funding from a government, municipality or school authority to support the supply of public passenger transportation services; or

(b)  that is established and operated for the purpose of providing public passenger transportation services to disabled individuals.

1991, c. 67, s. 139; 1994, c. 22, s. 429; 1996, c. 2, s. 952; 1997, c. 85, s. 488; 2005, c. 38, s. 364; 2015, c. 21, s. 651.

140. (Repealed).

1991, c. 67, s. 140; 1997, c. 85, s. 489.

140.1. For the purposes of the definition of “para-municipal organization” in section 139, such an organization is the organization of a municipal body if

 (1) all or substantially all of the shares of the organization are owned by the municipal body or all or substantially all of the assets held by the organization are owned by the municipal body or are assets the disposition of which is controlled by the municipal body so that, in the event of a winding-up of the organization, those assets are vested in the municipal body; or

 (2) the organization is required to submit to the municipal body the periodic operating and, where applicable, capital budget of the organization for approval and a majority of the members of the governing body of the organization are appointed by the municipal body.

1994, c. 22, s. 430.

141. A supply made by a public institution of movable property or a service is exempt, except a supply of

 (1) property or a service provided for in Chapter IV;

 (2) property or a service, other than a supply that is deemed only under section 32.2 or section 32.3 to have been made, where the supply is deemed under this Title to have been made by the institution;

 (3) property, other than capital property of the institution or property that was acquired, manufactured or produced by the institution for the purpose of making a supply of the property, where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used, otherwise than in making the supply, in the course of commercial activities of the institution;

 (4) capital property of the institution where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used, otherwise than in making the supply, primarily in commercial activities of the institution;

 (5) corporeal property that was acquired, manufactured or produced by the institution for the purpose of making a supply of the property and was neither donated to the institution nor used by another person before its acquisition by the institution, or any service supplied by the institution in respect of such property, other than such property or such a service supplied by the institution under a contract for catering;

 (6) property made by way of lease, licence or similar arrangement in conjunction with a supply of an immovable referred to in paragraph 6 of section 168;

 (7) property or a service made by the institution under a contract for catering, for an event or occasion sponsored or arranged by another person who contracts with the institution for such supply;

 (8) a membership where the membership

(a)  entitles the member to supplies of admissions in respect of a place of amusement that would be taxable supplies if they were made separately from the supply of the membership, or to discounts on the value of consideration for such supplies, except where the value of the supplies or discount is insignificant in relation to the consideration for the membership; or

(b)  includes a right to participate in a recreational or athletic activity, or use facilities, at a place of amusement, except where the value of the right is insignificant in relation to the consideration for the membership;

 (9) services of performing artists in a performance where the supply is made to a person who makes taxable supplies of admissions in respect of the performance;

 (10) a service involving, or a membership or other right entitling a person to, supervision or instruction in any recreational or athletic activity;

 (11) a right to play or participate in a game of chance;

 (12) a service of instructing individuals in, or administering examinations in respect of, any course where the supply is made by a vocational school, as defined in section 120, or a school authority, public college or university;

 (13) an admission in respect of

(a)  a place of amusement,

(b)  a seminar, conference or similar event where the supply is made by a public college or a university,

(c)  any fund-raising event; or

 (13.1) property or a service made by a municipality;

 (13.2) designated municipal property, if the institution is a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII;

 (14) property or a service that

(a)  is a cosmetic service supply (as defined in section 108) or a supply, in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes, and

(b)  would be included in Division II of this chapter, but for sections 108.1 and 108.2, or in Division II of Chapter IV, but for section 175.2; or

 (15) property or a service that

(a)  is not a qualifying health care supply (as defined in section 108), and

(b)  would be described in any of sections 109 to 115 and 117 if Division II of this chapter were read without reference to sections 108.1 and 108.2.

1991, c. 67, s. 141; 1993, c. 19, s. 185; 1994, c. 22, s. 431; 1995, c. 1, s. 273; 1997, c. 85, s. 490; 2003, c. 2, s. 320; 2011, c. 6, s. 244; 2015, c. 21, s. 652.

142. (Repealed).

1991, c. 67, s. 142; 1997, c. 85, s. 491.

143. (Repealed).

1991, c. 67, s. 143; 1994, c. 22, s. 432; 1997, c. 85, s. 491.

143.1. A supply made by a public institution of an admission to a fund-raising dinner, ball, concert, show or like fund-raising activity is exempt where part of the consideration for the supply may reasonably be regarded as an amount that is donated to the institution and in respect of which a receipt referred to in section 712 or 752.0.10.3 of the Taxation Act (chapter I-3) may be issued or could be issued if the recipient of the supply were an individual.

1997, c. 85, s. 492.

143.2. A supply by way of sale of movable property or a service made by a public institution in the course of a fund-raising activity is exempt, but does not include

 (1) a supply of any property or service where the institution makes supplies of such property or services in the course of that activity on a regular or continuous basis throughout the year or a significant portion of the year;

 (2) a supply of any property or service where the agreement for the supply entitles the recipient to receive from the institution property or services on a regular or continuous basis throughout the year or a significant portion of the year;

 (3) a supply of property or a service referred to in any of paragraphs 1 to 4 or 11 of section 141; or

 (4) a supply of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance.

1997, c. 85, s. 492.

144. A supply of corporeal movable property made by way of sale by a public sector body is exempt where

 (1) the body does not carry on the business of selling such property;

 (2) all the sales persons are volunteers;

 (3) the consideration for each item sold does not exceed $5; and

 (4) the property is not sold at an event at which supplies of property of the kind or class supplied are made by a person who carries on the business of selling such property.

This section does not apply to a supply of alcoholic beverages or tobacco products.

1991, c. 67, s. 144.

145. A supply made by a public sector body of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance is exempt where

 (1) the administrative functions and other functions performed in operating the game and taking the bets are performed exclusively by volunteers; and

 (2) in the case of a bingo or casino, the game is not conducted in premises or at a place, including any temporary structure, that is used primarily for the purpose of conducting gambling activities.

1991, c. 67, s. 145.

146. A supply made by a public institution or non-profit organization of a right, other than an admission, to play or participate in a game of chance is exempt.

This section does not apply to a supply made by a prescribed person or in the case of the supply of a prescribed game of chance.

1991, c. 67, s. 146; 1994, c. 22, s. 433; 1997, c. 85, s. 493.

147. A supply of a service is exempt when the service is deemed under section 60 to have been supplied

 (1) by a public institution or non-profit organization, other than a prescribed person; or

 (2) where the service is in respect of a bet made through the agency of a pari-mutuel system on a running, trotting or pacing horse-race.

1991, c. 67, s. 147; 1997, c. 85, s. 494.

148. A supply by way of sale made by a public service body (other than a municipality) to a recipient of corporeal movable property (other than capital property of the body or, if the body is a person designated to be a municipality for the purposes of subdivision 5 of Division I of Chapter VII, designated municipal property), or of a service purchased by the body for the purpose of making a supply by way of sale of the service, is exempt if the total charge for the supply is equal to the usual charge by the body for such supplies to such recipients and

 (1) if the body does not charge the recipient any amount as tax in respect of the supply, the total charge for the supply does not, or could not reasonably be expected to, exceed the direct cost of the supply; and

 (2) if the body charges the recipient an amount as tax in respect of the supply, the consideration for the supply does not, and could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to tax imposed under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15) and without reference to any tax that became payable under this Title at a time when the body was a registrant.

1991, c. 67, s. 148; 1994, c. 22, s. 434; 1997, c. 85, s. 495; 2001, c. 53, s. 302; 2012, c. 28, s. 54; 2015, c. 21, s. 653.

149. (Repealed).

1991, c. 67, s. 149; 1997, c. 85, s. 496.

150. (Repealed).

1991, c. 67, s. 150; 1997, c. 85, s. 496.

151. A supply made by a public sector body of an admission in respect of a place of amusement is exempt where the maximum consideration for a supply by the body of such an admission does not exceed one dollar.

1991, c. 67, s. 151; 1997, c. 85, s. 497.

152. A supply made by a public sector body of any property or service is exempt if all or substantially all of the supplies of the property or service by the body are made for no consideration, but not including a supply of

 (1) blood or blood derivatives; or

 (2) a parking space if the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the body.

1991, c. 67, s. 152; 1997, c. 85, s. 497; 2015, c. 21, s. 654.

153. A supply of a right to be a spectator at a performance, competitive event or athletic event is exempt where all or substantially all of the performers, athletes or competitors taking part in the performance or event do not receive, directly or indirectly, remuneration for doing so, other than a reasonable amount as prizes, gifts or compensation for travel or other expenses incidental to the performers', athletes' or competitors' participation in the performance or event, or grants paid by a government or a municipality to the performers, athletes or competitors, and where no advertisement or representation in respect of the performance or event features participants who are so remunerated.

However, a supply of a right to be a spectator at a competitive event in which cash prizes are awarded and in which any competitor is a professional participant in any competitive event does not constitute an exempt supply.

1991, c. 67, s. 153.

154. A supply made by a public sector body of a right of membership in a program established and operated by the body that consists of a series of supervised instructional classes or activities involving athletics, outdoor recreation, music, dance, arts, crafts or other hobbies or recreational pursuits is exempt where

 (1) it may reasonably be expected, given the nature of the classes or activities or the degree of relevant skill or ability required for participation in them, that the program will be provided primarily to children 14 years of age or under, except where the program involves overnight supervision throughout a substantial portion of the program; or

 (2) the program is provided primarily for underprivileged individuals or individuals with a disability.

The first paragraph also applies to a supply of services supplied as part of a program referred to in that paragraph.

1991, c. 67, s. 154; 1997, c. 85, s. 498.

155. A supply made by a public sector body of board and lodging, or recreational services, at a recreational camp or similar place under a program or arrangement for providing the board and lodging or services primarily to underprivileged individuals or individuals with a disability is exempt.

1991, c. 67, s. 155; 1997, c. 85, s. 499.

156. A supply made by a public sector body of food, beverages or short-term accommodation is exempt where the supply is made in the course of an activity the purpose of which is to relieve poverty, suffering or distress of individuals, and is not fund-raising.

1991, c. 67, s. 156.

157. A supply made by a public sector body of food or beverages to seniors, underprivileged individuals or individuals with a disability under a program established and operated for the purpose of providing prepared food to those individuals in their places of residence and any supply of food or beverages made to the public sector body for the purposes of the program are exempt.

1991, c. 67, s. 157; 1997, c. 85, s. 500.

158. (Repealed).

1991, c. 67, s. 158; 1994, c. 22, s. 435.

159. A supply of a membership in a public sector body, other than a membership in a club the main purpose of which is to provide dining, recreational or sporting facilities or in an authorized party, is exempt where each member does not receive a benefit by reason of the membership, other than

 (1) an indirect benefit that is intended to accrue to all members collectively;

 (2) the right to receive services supplied by the body that are in the nature of investigating, conciliating or settling complaints or disputes involving members;

 (3) the right to vote at or participate in meetings;

 (4) the right to receive or acquire property or services supplied to the member for consideration that is not part of the consideration for the membership and that is equal to the fair market value of the property or services at the time the supply is made;

 (5) the right to receive a discount on the value of the consideration for a supply to be made by the body where the total value of all such discounts to which a member is entitled by reason of the membership is insignificant in relation to the consideration for the membership; or

 (6) the right to receive periodic newsletters, reports or publications where, as the case may be,

(a)  their value is insignificant in relation to the consideration for membership, or

(b)  they provide information on the activities of the body or its financial status, other than newsletters, reports or publications the value of which is significant in relation to the consideration for the membership and for which a fee is ordinarily charged by the body to non-members.

This section does not apply where the body has made an election under this section in prescribed form containing prescribed information.

1991, c. 67, s. 159; 1994, c. 22, s. 436; 1997, c. 85, s. 501.

159.1. Notwithstanding section 159, where a public sector body has made an election under section 17 of Part VI of Schedule V to the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), the body is deemed to have made an election under the second paragraph of section 159 and the election is deemed to become effective on the day an election under section 17 of Part VI of Schedule V to that Act is to become effective.

1997, c. 85, s. 502.

160. A supply of a membership made by an organization membership in which is required to maintain a professional status recognized by statute is exempt.

This section does not apply where the supplier has made an election under this section in prescribed form containing prescribed information.

1991, c. 67, s. 160; 1994, c. 22, s. 437.

160.1. A supply of a membership in an authorized party is exempt.

1997, c. 85, s. 503.

160.2. A supply made by an authorized party to a person is exempt where part of the consideration for the supply may reasonably be regarded as an amount (in this section referred to as the amount contributed) that is contributed to the authorized party and the person can claim a deduction or credit in determining the person's tax payable under the Taxation Act (chapter I-3) or the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in respect of the total of such amounts contributed.

1997, c. 85, s. 503.

161. A supply made by a public sector body of a right that confers borrowing privileges at a public lending library is exempt.

1991, c. 67, s. 161.

162. A supply of any of the following property or services made by a government or municipality or by a commission or other body established by a government or municipality is exempt:

 (1) a supply of

(a)  a service of registering, or processing an application to register, any property in a property registration system,

(b)  a service of filing, or processing an application to file, any document in a property registration system, or

(c)  a right to use, or to have access to, a property registration system to register, or make application to register, any property in it or to file, or make application to file, any document in it;

 (2) a supply of

(a)  a service of filing, or processing an application to file, a document in the registration system of a court or in accordance with legislative requirements,

(b)  a right to use, or to have access to, the registration system of a court, or any other registration system in which documents are filed in accordance with legislative requirements, for the purpose of filing a document in that registration system,

(c)  a service of issuing or providing, or processing an application to issue or provide, a document from the registration system of a court, or

(d)  a right to use, or to have access to, the registration system of a court to issue or obtain a document;

 (3) a supply (other than of a right or service supplied in respect of the bringing of alcoholic beverages into Québec) of

(a)  a quota, licence, permit or similar right,

(b)  a service of processing an application for a quota, licence, permit or similar right, or

(c)  a right to use, or to have access to, a filing or registration system to make application for a quota, licence, permit or similar right;

 (4) a supply of any document, a service of providing information, or a right to use, or to have access to, a filing or registration system to obtain any document or information that indicates

(a)  the vital statistics, residency, citizenship or right to vote of any person,

(b)  the registration of any person for any service provided by a government or municipality or by a board, commission or other body established by a government or municipality, or

(c)  any other status of any person;

 (5) a supply of any document, a service of providing information, or a right to use, or to have access to, a filing or registration system to obtain any document or information, in respect of

(a)  the title to, or any right in, property,

(b)  any encumbrance or assessment in respect of property, or

(c)  the zoning of an immovable;

 (6) a service of providing information under the Access to Information Act (Revised Statutes of Canada, 1985, chapter A-1), the Privacy Act (Revised Statutes of Canada, 1985, chapter P-21) or the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1);

 (7) a law enforcement service or fire safety service, made to a government or a municipality or to a commission or other body established by a government or municipality;

 (8) a service of collecting garbage, including recyclable materials; and

 (9) a right to deposit refuse at a refuse disposal site.

1991, c. 67, s. 162; 1994, c. 22, s. 438; 1995, c. 63, s. 345; 1997, c. 85, s. 504; 2000, c. 20, s. 175; 2009, c. 5, s. 608.

162.1. A supply made to a government or a municipality, or to a commission or other body established by a government or a municipality, of a service of receiving and processing telephone calls through a 9-1-1 emergency centre is exempt.

1999, c. 83, s. 311; 2005, c. 1, s. 353.

163. Notwithstanding section 162, the following supplies are not exempt:

 (1) a supply to a consumer of a right to hunt or fish;

 (2) a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, where the supply is made to

(a)  a consumer; or

(b)  a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals or peat to consumers;

 (3) a supply of a right to use, to have access to or to enter property of the government, municipality or other body other than a right, referred to in any of paragraphs 1 to 5 of section 162, to use, or to have access to, a filing or registration system.

1991, c. 67, s. 163; 1994, c. 22, s. 439; 2009, c. 5, s. 609.

164. A supply of a municipal service made by a government or municipality to owners or occupants of immovables situated in a particular geographic area is exempt where

 (1) the owners or occupants have no option but to receive the service; or

 (2) the service is supplied because of a failure by an owner or occupant to comply with an obligation imposed under a law.

This section does not include a supply of a service of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner.

1991, c. 67, s. 164; 1997, c. 85, s. 505; 2002, c. 40, s. 340.

164.1. A supply made by a municipality or a board, commission or other body established by a municipality of any of the following services is exempt:

 (1) a service of installing, replacing, repairing or removing street or road signs or barriers, street or traffic lights or property similar to any of the foregoing;

 (2) a service of removing snow, ice or water;

 (3) a service of removing, cutting, pruning, treating or planting vegetation;

 (4) a service of repairing or maintaining roads, streets, sidewalks or similar or adjacent property; and

 (5) a service of installing accesses or egresses.

1997, c. 85, s. 506.

165. A supply of a service, made by a municipality or by an organization that operates a water distribution, sewerage or drainage system and that is designated by the Minister to be a municipality for the purposes of this section, of installing, repairing, maintaining, or interrupting the operation of a water distribution, sewerage or drainage system, is exempt.

1991, c. 67, s. 165; 1994, c. 22, s. 440; 1997, c. 85, s. 507.

166. The following supplies are exempt:

 (1) a supply of unbottled water when made by a person other than a government or by a government designated by the Minister to be a municipality for the purposes of this section;

 (2) a supply of the service of delivering water, when the service is supplied by the supplier of the water and that supply of water is described in subparagraph 1.

This section does not apply to a supply of unbottled water that is a zero-rated supply or a supply of water dispensed in single servings to consumers through a vending machine or at a permanent establishment of the supplier.

1991, c. 67, s. 166; 1994, c. 22, s. 440; 1997, c. 85, s. 507.

167. A supply of a municipal transit service or of a public passenger transportation service designated by the Minister to be a municipal transit service is exempt if it is made to

 (1) a member of the public;

 (2) a government;

 (3) a prescribed mandatary for the purposes of section 399.1; or

 (4) a department within the meaning of section 2 of the Financial Administration Act (R.S.C. 1985, c. F-11).

1991, c. 67, s. 167; 1997, c. 85, s. 507; 2005, c. 1, s. 354; 2012, c. 28, s. 55.

168. A supply of an immovable made by a public service body (other than a financial institution, a municipality or a government) is exempt, exc