On June 27, 2018, changes were made to the rules for reporting and paying GST/HST and QST on taxable supplies of carbon emission allowances made in Québec or elsewhere in Canada on a secondary market, such as those traded in cap-and-trade systems. Under the new rules, purchasers of emission allowances must self-assess the GST and QST payable on the purchase and remit them to us. (Under the former rules, the seller of the allowance collected the GST and QST from the purchaser and remitted them to Revenu Québec.)

The new rules have no impact on the obligation to self-assess the GST and QST on imported taxable supplies of emission allowances made outside Canada (outside Québec).

The changes also apply to supplies of emission allowances made before June 27, 2018, if the following conditions are met:

• The GST and QST are payable on the supply.
• Were it not for the new measures, the supplier would have to collect the taxes.
• The supplier did not collect the taxes before that date.