As a retailer, you must collect the specific duty on new tires at the time of the sale (on all retail sales of new tires or road vehicles equipped with new tires subject to the duty) or at the time the lease contract is signed (on all long-term leases).

Small supplier

If you are considered a small supplier for QST purposes, you must collect the specific duty on the:

• sale of new tires
• sale or long-term lease of road vehicles equipped with new tires

In such a case, you must be registered for the QST and collect the specific duty on the sale or lease price. You must also collect QST on the specific duty on new tires.

If you are a small supplier and you chose not to register for the GST, you are not required to collect the specific duty; however, if you are registered for the GST, you must collect GST on the sale or lease price. You must also collect GST on the specific duty on new tires.

Persons not required to collect the specific duty on new tires

Where a vendor sells new tires to a purchaser that acquires them for resale or for installation on a road vehicle intended for sale or long-term lease, the vendor is not required to collect the specific duty.

Likewise, where a vendor sells road vehicles equipped with new tires to a purchaser that acquires the vehicles for resale or long-term lease, the vendor is not required to collect the specific duty.