The GST does not apply when used road vehicles are exchanged between individuals if:

• the vendor is an individual who is not registered for the GST; 
• the vendor is an individual who is registered for the GST but did not use the vehicle exclusively in the course of his or her commercial activities.

Calculating the QST

The QST is collected by the Société de l'assurance automobile du Québec (SAAQ) from each buyer on the greater of the following amounts:

• the estimated value of the acquired vehicle;
• the sale price of the acquired vehicle.

Related individuals

If a used road vehicle is transferred between related individuals for a price that is less than the estimated value (whether or not any amount is paid for the vehicle), the QST is calculated on the agreed sale price.

Unrelated individuals

If a sale between two unrelated individuals who are not registered for the QST involves the exchange of two or more vehicles, Revenu Québec issues a Certificate of Determination Respecting the QST: Registration of a Road Vehicle (VDE-23-V) to indicate that the QST will be collected on the greater of the following amounts:

• the sale price of the acquired vehicle, which corresponds to the estimated value of the vehicle given in exchange;
• the estimated value of the acquired vehicle.

However, if the estimated value of the vehicle given in exchange is less than the fair market value, the QST is calculated on the fair market value of the property given in exchange.