Leasing of motor vehicles
For certain rentals it is necessary to
- obtain a licence and decals;
- complete and file quarterly returns; and
- pay the fuel tax owing (or claim a refund).
However, depending on the duration of the lease and whether or not the vehicle is leased with the services of a driver, the onus of responsibility for meeting these requirements will vary, as shown below.
| Vehicle lease
|
Contract of 30 days or more
|
Contract of 29 days or less
|
| With driver
|
The person specified in the contract
|
The driver (subcontractor)
|
| Without driver
|
Lessee
|
Lessor
|
Moving companies
Moving companies sometimes hire a subcontractor, agent or service representative under an intermittent lease. If the vehicle used is operated in the company's home province or state, the company is responsible for filing the quarterly returns and paying the fuel tax. If the vehicle used is operated in the home province or state of the subcontractor, agent or service representative, the latter must file the returns and pay the tax.