Gift of a Used Road Vehicle
Calculating the GST
Used road vehicles supplied by way of a gift between unrelated individuals are generally not subject to the GST.
Calculating the QST
Used road vehicles that must be registered under the Highway Safety Code and that are supplied by way of a gift are, as a rule, taxable under the QST system at the rate of 9.975%. The QST must be calculated on the vehicle's estimated value.
However, the QST does not apply in the following cases:
- The vehicle is a gift from one individual to another where the two are related individuals (This link will open a new window). Both individuals must complete and sign form VD-80.1-V, Declaration of a Transaction Between Related Individuals with Regard to a Road Vehicle Registered in Québec.
- The succession of a deceased person gives a vehicle to an individual in execution of the deceased's will or in accordance with the applicable legislation concerning inheritance.
- The vehicle is transferred from one individual to another as part of the settlement of their rights arising from their marriage, subsequent to a divorce, legal separation, marriage annulment or death.
Under the QST system, gifts of used road vehicles that are registered are generally taxable (This link will open a new window) if one of the parties is a corporation. The QST is calculated on the estimated value of such vehicles at the rate of 9.975%.
Collecting the QST
As a rule, the QST is collected by the Société de l'assurance automobile du Québec (SAAQ) when a road vehicle is registered. Note that an individual who is not registered for the QST is not authorized to collect the QST.