Sale and Leasing of Road Vehicles to an Indian
As a rule, an Indian does not have to pay the GST or QST on property purchased on a reserve. For more information, see Sales to Indians.
The above rule applies to all property purchased by an Indian, including road vehicles, according to certain terms and conditions. If your own vehicle is used to deliver the property on a reserve, you can complete form LE-20-V, Proof of Delivery to a Reserve.
The rules on this page also apply to band councils, tribal councils and band-empowered entities.
If you are a dealer and you sell a vehicle to an Indian, the GST and QST do not apply if you or your agent delivers the vehicle to the reserve and the Indian presents the appropriate proof of identity. In such cases, you are required to keep documents showing why the GST and QST were not collected.
In addition, you must complete the Attestation de transaction avec un commerçant (ATAC) form required by the Société de l'assurance automobile du Québec (SAAQ) and write “Indien et livraison dans la réserve (name of reserve)" in the appropriate box. Once the ATAC form has been completed, the Indian is exempted from paying the QST when the road vehicle is registered.
If you are not a dealer, the GST and QST do not apply to the sale of a road vehicle if you or your agent delivers the vehicle to a reserve and the purchaser presents the appropriate proof of identity.
In addition, in order to be exempted from paying the QST to the SAAQ when the vehicle is registered, the Indian must first obtain from Revenu Québec form VDE-23-V, Certificate of Determination Respecting the QST: Registration of a Road Vehicle. To obtain a certificate, complete form VD-55.1-V, Application for a Certificate of Determination Respecting the QST: Registration of a Road Vehicle, and submit the required supporting documents.
However, if the Indian is unable to obtain this form before reporting to the SAAQ office, he or she can obtain a rebate of the QST by completing form VD-60.R-V, Application for a QST Rebate for a Road Vehicle, and returning it to Revenu Québec, together with the purchase contract and proof of delivery. The same procedure applies where an Indian purchases a road vehicle from an individual.
An Indian who leases a road vehicle is not required to pay the GST and QST for each leasing period, provided the appropriate proof of identity is given to you when the Indian takes possession of the vehicle and the vehicle is delivered to a reserve by you or your agent.
A Mohawk of Kahnawake who purchases a road vehicle from your dealership is exempted from paying the QST, regardless of whether you deliver the vehicle to a reserve. To exempt your customer from paying QST, you must carry on your commercial activities in one of the municipalities listed on the Mohawks of Kahnawake page.
You must also write the note “Mohawk of Kahnawake” in the “TVQ à payer par client à la SAAQ” box on the Attestation de transaction avec un commerçant (ATAC) form of the SAAQ.
These special rules do not apply under the GST system.