Purchase of a Road Vehicle for Resale
Calculating the GST
If you purchase a road vehicle for resale, you must pay 5% GST on the agreed sale price if the vendor is a registrant. If the vendor is not a registrant, the GST is not payable.
If you are a registrant, you can claim an input tax credit (ITC) for the GST paid on the purchase of the vehicle.
Calculating the QST
Road vehicle other than a motor vehicle
If you purchase a road vehicle other than a motor vehicle for resale, you must pay QST, regardless of whether the vendor is a registrant. In the case of a used vehicle, the QST is calculated on the vehicle's estimated value if it is greater than the agreed sale price.
If you are a registrant, you can claim an input tax refund (ITR) for the QST paid on the purchase of the vehicle.
The sale of a motor vehicle to a person who acquires it solely for resale, or for lease for a period of at least one year, is considered to be a zero-rated supply under the QST system if the person is a registrant.
Neither the SAAQ nor Revenu Québec will refund (as an ITR or in another manner) the QST paid on the zero-rated supply of a motor vehicle.
If the purchaser is not a dealer and does not want to pay the QST when registering the vehicle, the purchaser must complete the Certificate of Determination Respecting the QST: Registration of a Road Vehicle (form VDE-23-V). To obtain this certificate, the purchaser must also complete the Application for a Certificate of Determination Respecting the QST: Registration of a Road Vehicle (VD-55.1-V) and provide documents justifying the requested exemption.
For more information, see Reduction of or Exemption from the QST.