T-0.1 - Act respecting the Québec sales tax

Section 297.3 Disposition versions

1999-04-01

297.3. (Repealed).

1994, c. 22, s. 519; 1995, c. 63, s. 390.

1994-06-17

297.3. Where a distributor of a direct seller makes in Québec a supply by way of sale, other than an exempt supply, of an exclusive product of the direct seller to an independent sales contractor of the direct seller, the following rules apply:

(1)  the distributor shall, as a mandatary of the Minister, collect an amount from the contractor equal to the tax payable under section 16 by a purchaser in respect of the supply of the product, calculated on the suggested retail price of the product at the time the supply of the product is made by way of sale by the direct seller; and

(2)  the amount referred to in subparagraph 1 shall

(a)  be collected by the distributor at the time part of the consideration for the supply becomes due or at the time part of the consideration is paid, whichever time is earlier, and

(b)  be added in determining the net tax of the distributor for the reporting period of the distributor that includes the time described in subparagraph a, unless the distributor paid an amount to a collection officer equal to that amount in respect of the acquisition of the exclusive product.

For the purposes of subparagraph a of subparagraph 2 of the first paragraph, section 83 applies, adapted as required, in determining the time at which a part of the consideration for the supply is deemed to become due.

This section does not apply if the supply is made by the distributor of a direct seller to another distributor of the direct seller who is acquiring the exclusive product solely for the purpose of sale to the direct seller.

1994, c. 22, s. 519.