Purchase of a New or Used Road Vehicle

A person who purchases a new or used motor vehicle (This link will open a new window) at retail must pay 9.975% QST when the vehicle is registered. However, if the motor vehicle is not registered by the purchaser within 15 days following the delivery date, the QST will be considered payable by the purchaser at the time the vehicle is actually delivered. 

In the case of a new road vehicle, QST is calculated on the agreed sale price.

In the case of a used road vehicle, the QST must be calculated on the greater of the following amounts:

Example

A dealer registered for the GST and QST sells a used motor vehicle for $13,000 to an individual; no vehicle is taken as a trade-in. The average wholesale price of the vehicle is $12,000.

Agreed sale price: $13,000.00
GST ($13,000 × 5%) + $650.00
QST ($13,000 × 9.975%) + $1,269.75
Total: $14,946.75

QST is calculated on the greater of the following amounts:

  • the agreed sale price
  • the estimated value of the vehicle

In this example, the agreed sale price ($13,000) is greater.

Note
In the case of motor vehicles (This link will open a new window), the QST is calculated by the dealer, but paid by the purchaser when the vehicle is registered. In all other cases, the QST must be collected by the dealer.

Price that is lower than the estimated value

If a used road vehicle is transferred between related individuals (This link will open a new window) for a price that is less than the estimated value (whether or not any amount is paid for the vehicle), the QST is calculated on the agreed sale price.

If a used road vehicle is purchased from a dealer for less than its estimated value (because it is damaged or has been subjected to unusual wear), the QST may be calculated on that price as long as the purchaser, before the transaction, provides the dealer with an evaluation report prepared by an appraiser who holds a certificate of professional qualification as an automobile damage appraiser issued by the Groupement des assureurs automobiles. The dealer must keep the report, as there may be an audit at a later date.

If the purchaser pays QST on the estimated value of the vehicle, he or she may claim a refund of the QST overpaid by submitting the evaluation report (dated within 10 working days after the date of the transaction) to Revenu Québec within the prescribed time limit. The purchaser must also file a copy of form VD-60.R-V, Application for a QST Rebate for a Road Vehicle.

Example

An individual sells a used vehicle to another individual for $10,000. However, the average wholesale price of the vehicle is $13,000. Its estimated value is therefore $12,500 (the average wholesale price minus $500). Neither individual is engaged in commercial activities.

Agreed sale price: $10,000

Calculation of the QST

Estimated value $12,500

QST ($12,500 × 9.975%) = $1,246.88

The GST does not apply in this case because the sale involves two individuals. The QST applies, however, and must be calculated by the SAAQ on the estimated value since it is greater than the agreed sale price. Since the vendor is not registered for the GST or the QST, the vendor is not required to calculate the amount of QST payable by the purchaser.

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