Sale of a New Road Vehicle
If you sell a new road vehicle at retail, you must collect the GST. The GST is, as a rule, calculated on the agreed sale price.
If you sell a new road vehicle at retail, other than a motor vehicle, registered under the Highway Safety Code, you must also collect the QST. The QST is calculated on the agreed sale price.
If the new road vehicle is a motor vehicle, you are not authorized to collect the QST, as it is usually collected by the Société de l'assurance automobile du Québec (SAAQ) at the time of registration.
If the purchaser does not register the motor vehicle within 15 days after the delivery date, the QST is deemed to be payable by the purchaser at the time the vehicle is delivered.
You must calculate the QST payable by the purchaser of the motor vehicle and provide the purchaser with a sales contract or other document clearly showing the amount of QST payable to the SAAQ, as well as the other required information, including:
- the sale price;
- the amount on which QST was calculated;
- the amount of GST charged;
- the trade-in amount, if applicable;
- the delivery date.
If you do not correctly indicate the QST payable by the purchaser, you are liable for the amount of QST that was not collected by the SAAQ. You are also subject to a penalty corresponding to 15% of the QST that you owe. You must repay the purchaser any QST that you collected in error.
If the price of certain property and services sold along with the motor vehicle sold at retail is listed separately on the sales contract, you must collect the QST on the property and services. Examples of such property and services include:
- extended warranty or coverage;
- paint sealer;
- rust-proofing treatment;
- anti-theft marking;
- upholstery protection;
- remote starter;
- electronic starter lock;
- anti-theft system.
However, do not include the QST collected on the property and services on the Attestation de transaction avec un commerçant form of the SAAQ.