Gifts of Used Road Vehicles
Used road vehicles supplied by way of a gift between two related individuals are generally not subject to the GST.
However, used road vehicles that must be registered under the Highway Safety Code and that are supplied by way of gift are, as a rule, taxable under the QST system at the rate of 9.975%. The QST must be calculated on the vehicle's estimated value. However, the QST does not apply if the vehicle
- is supplied by one individual to another and the two individuals are spouses or related by blood, marriage or adoption. Both individuals must complete and sign form VD-80.1-V, Declaration of a Transaction Between Related Individuals with Regard to a Road Vehicle Registered in Québec;
- is supplied by the estate of a deceased individual in execution of the person's will or in accordance with the applicable legislation concerning inheritance; or
- is transferred from one individual to another as part of the settlement of their rights arising as a result of their marriage, or as a result of divorce, legal separation, marriage annulment or death.
When the vehicle in question is a used road vehicle registered in a Canadian province or territory other than Québec, the QST applies and is calculated on the estimated value of the vehicle. If the vehicle in question is registered outside Canada, the QST only applies when the GST applies. In such a case, the QST is calculated on the total of the value of the vehicle plus duties and excise taxes.