Purchase of Road Vehicles Shipped Outside Québec
The purchase of a road vehicle is taxable. However, the QST does not apply in the following situations:
- The supplier ships the vehicle outside Québec.
- The supplier transfers possession of the vehicle to a common carrier or to a consignee that has been hired to ship it to a destination outside Québec.
Moreover, the purchase of a road vehicle is zero-rated when the vehicle is shipped outside Québec by a purchaser other than a consumer, provided the following conditions are met:
- The purchaser ships the vehicle outside Québec within a reasonable time after the vehicle is delivered by the supplier to the purchaser.
- The vehicle was not purchased for consumption, use or sale in Québec before being shipped outside Québec by the purchaser.
- After the vehicle is purchased and before the purchaser ships the vehicle outside Québec, the property is not further processed, transformed or altered in Québec except to the extent reasonably necessary for or incidental to transporting it.
- The supplier has proof that the purchaser shipped the vehicle outside Québec.
A vehicle that travels on Québec roads for the purpose of being shipped outside the province is not considered as being used in Québec prior to shipping.
In all the above-mentioned situations, the QST does not apply to the purchase of vehicles shipped to another Canadian province or territory outside Québec. However, the GST or HST does apply, depending on the province or territory to which the vehicle is shipped. For more information, see What is HST?.
Likewise, the GST, HST and QST do not apply to the purchase of a vehicle shipped outside Canada.
The purchaser of a road vehicle can apply for a rebate of the QST paid on the purchase of the vehicle in the circumstances listed below.
Road vehicle exported or shipped outside Québec by the purchaser
A rebate of the QST paid on the purchase of a road vehicle may be granted where the vehicle is exported or shipped outside Québec in the following situations:
- The purchaser is a person, other than a consumer, who is not resident in Canada, and the vehicle was acquired to be used primarily outside Québec and was exported or shipped outside Québec within 60 days of the date of delivery to the person (in such a case, the person is also entitled to a GST rebate).
- The purchaser is a person who is resident in Canada, and the vehicle was purchased in order to be used exclusively outside Québec and was exported or shipped to another Canadian province or territory outside Québec within 30 days of the date of delivery to the person. The person is required to provide proof of payment of the tax in the province or territory of Canada to which the vehicle was exported or shipped, or proof of registration where no taxes apply.
Consumers who are not resident in Canada are not eligible for a rebate of the GST or the QST.
New motor vehicles shipped outside Québec
A person who has paid QST to the Société de l'assurance automobile du Québec (SAAQ) on a new motor vehicle shipped outside Québec is entitled to a rebate if all of the following conditions are met:
- The rebate application is completed by the person who shipped the vehicle outside Québec (the “exporter”) and its agent.
- The exporter purchased the vehicle through an agent that is not a QST registrant, and the agent provides a signed statement confirming that the agent was acting on the exporter's behalf in acquiring the vehicles respecting which the rebate is being claimed.
- The exporter files the rebate application with Revenu Québec within 12 months following the date on which the QST was paid. Only one application may be filed per month.
- The exporter has the vehicle registered in his or her name but cancels the vehicle's registration no later than 15 days following delivery of the vehicle to the agent, as indicated by the note “Cancellation of registration of vehicle licensed elsewhere” (or “Annulation de l'immatriculation d'un véhicule émigré”).
- The vehicle was the subject of a single transaction involving no more than three persons (namely, the dealer, the exporter's agent and the exporter) prior to its being shipped outside Québec. This means that the vehicle must not have been registered in the name of another person.
To apply for a rebate, the exporter must complete form VD-403.E-V, Application for a Rebate in Respect of New Motor Vehicles Shipped Outside Québec.