Road Vehicles Shipped Outside Québec (but in Canada)
The sale of a road vehicle is taxable. However, the QST does not apply in the following situations:
- The supplier ships the vehicle outside Québec.
- The supplier transfers possession of the vehicle to a common carrier or to a consignee that has been hired by the supplier, on behalf of a purchaser, to ship it to a destination outside Québec.
Moreover, the sale of a road vehicle is zero-rated under the QST system when the vehicle is shipped outside Québec by a purchaser other than a consumer, provided the following conditions are met:
- The purchaser ships the vehicle outside Québec within a reasonable time after the vehicle is delivered by the supplier to the purchaser.
- The vehicle was not acquired for consumption, use or sale in Québec before being shipped outside Québec by the purchaser.
- After the sale is made and before the purchaser ships the vehicle outside Québec, the property is not further processed, transformed or altered in Québec except to the extent reasonably necessary for or incidental to transporting it.
- The supplier has proof that the purchaser shipped the vehicle outside Québec.
A vehicle that travels on Québec roads for the purpose of being shipped outside the province is not considered as being used in Québec prior to shipping.
In all the above-mentioned situations, the QST does not apply to the sale of vehicles shipped to another Canadian province or territory outside Québec. However, the GST or HST do apply, depending on the province or territory to which the vehicle is shipped. See What is the HST? for more information.
Likewise, neither the GST nor the QST apply to the sale of a vehicle shipped outside Canada by the supplier.
The purchaser of a road vehicle can apply for a rebate of the QST paid on the purchase of the vehicle in the circumstances listed below.
A rebate of the QST paid on the purchase of a road vehicle, other than a motor vehicle purchased to be sold or leased for at least one year, may be granted where the vehicle is exported or shipped outside Québec, in the following situations:
- The purchaser is a person, other than a consumer, who is not resident in Canada, and the vehicle was acquired to be used primarily outside Québec and was exported or shipped outside Québec no later than 60 days after it was delivered to the person (in such a case, the person is also entitled to a GST rebate).
- The purchaser is a person who is resident in Canada, and the vehicle was purchased in order to be used exclusively outside Québec and was exported or shipped outside Québec (but in Canada) no later than 30 days after it was delivered to the person. The person is required to provide proof of payment of the tax in the province or territory of Canada where the vehicle was exported or shipped, or a proof of registration where no taxes apply.
The purchaser can apply for a rebate of the QST paid by completing form VD-60.R-V, Application for a QST Rebate for a Road Vehicle.
Consumers who are not resident in Canada are not eligible for a rebate of the GST or the QST.
When consumers who are resident in Québec purchase road vehicles to ship them outside Canada, they are required to pay the GST and the QST on the purchase and are not eligible for a rebate.
A person who has paid QST to the Société de l'assurance automobile du Québec (SAAQ) on the purchase of a new motor vehicle in order to ship it outside Québec is entitled to a rebate. This is the case if:
- the exporter completed form VD-403.E-V, Application for a Rebate in Respect of New Motor Vehicles Shipped Outside Québec, and filed it with Revenu Québec no later than 12 months after the day it paid the QST;
- the agent signed the statement included in form VD-403.E-V, confirming that it purchased the vehicle for which it is claiming a rebate on behalf of the exporter;
- the motor vehicle was registered in both the agent's and the exporter's name (the vehicle can only be registered in the vendor's name or that of the agent or exporter);
- registration was cancelled no later than 15 days after the vehicle was delivered to the agent;
- before the vehicle was shipped outside Québec, it was not involved in any other transactions;
- the rebate application is supported by the documents listed on form VD-403.E-V;
- the exporter files a rebate application with Revenu Québec only once a month.
For more information, click Reduction of or Exemption from the QST.