Leases of Road Vehicles

Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

The GST and the QST apply to leases of road vehicles. When a dealer leases such a vehicle to a person, the dealer may sometimes accept the person's used road vehicle as a trade-in. In such cases, the GST and QST are generally calculated on the monthly lease payments, determined on the basis of the amount credited for the trade-in and the residual value of the new vehicle leased, but not on the basis of a loan related to the trade-in vehicle.

The GST and QST must also be collected on any payment made by the lessee at the end of the contract.

Registrant that leases road vehicles

A registrant must collect the GST and QST at the time a road vehicle is leased (short-term or long-term lease). In the case of a long-term lease, the registrant must also collect the taxes if the lessee exercises the purchase option provided for in the leasing contract.


A dealer registered for the GST and QST leases a $20,000 motor vehicle to an individual. The dealer accepts the individual's used vehicle as a trade-in and grants a $5,000 credit for the trade-in. The residual value of the vehicle is $8,000 and the lease period is 48 months.

The monthly payments are calculated as shown below:

Value of the new vehicle $20,000
Credit for the trade-in $5,000
Residual value (purchase option) $8,000
Monthly leasing payment ($7,000/48 months) $145.83
GST: ($145.83 × 5%) + $7.29
QST ($145.83 × 9.975%) + $14.55
Monthly payments ($145.83 + $7.29 + $14.55) $167.67

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter