New Harmonized Value-added Tax System Regulations — 54
Definitions 54 (1) In this section, direct seller , distributor , exclusive product and independent sales contractor have the same meanings as in section 178.1 of the Act. Exclusive products held on July 1, 2010 (2) If before July 1, 2010, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a specified province, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act. Prepayments for exclusive products not delivered by July 1, 2010 (3) If before July 1, 2010, when an approval of the Minister for the application of section 178.3 of the Act to a direct seller is in effect, (a) the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect, (b) consideration for the supply becomes due, or is paid without having become due, after October 14, 2009 and before July 1, 2010, (c) the exclusive product is not delivered to the independent sales contractor before July 1, 2010, and (d) the exclusive product is to be held by the independent sales contractor for sale in a specified province, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the direct seller is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1) of the Act. Exclusive products held on July 1, 2010 (4) If before July 1, 2010, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a specified province, for the purpose of applying subsection 165(2) or 220.05(1) of the Act, the distributor is deemed to have made, and the independent sales contractor is deemed to have received, on July 1, 2010 a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1) of the Act. Prepayments for exclusive products not delivered by July 1, 2010 (5) If before July 1, 2010, when an approval of the Minister for the application of section 178.4 of the Act to a distributor of a direct seller is in effect, (a) the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller that is not a distributor in respect of which an approval granted under subsection 178.2(4) of the Act on application made jointly with the direct seller is in effect, (b) consideration