Exchange of Used Road Vehicles Between Individuals

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 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.

Example

Mr. Lévesque owns a sedan that has an estimated value of $6,000. Mr. Girard owns a station wagon that has an estimated value of $10,000. Mr. Lévesque and Mr. Girard are unrelated individuals. They decide to exchange vehicles.

Mr. Lévesque acquires the station wagon. He must pay QST with regard to this vehicle on the greater of the following amounts:

  • the estimated value of the vehicle that was acquired ($10,000);
  • the estimated value of the vehicle given in exchange ($6,000).

Mr. Lévesque must pay QST on the estimated value of the vehicle that was acquired ($10,000).

Mr. Girard acquired the sedan. He must pay QST with regard to this vehicle on the greater of the following amounts:

  • the estimated value of the vehicle that was acquired ($6,000);
  • the estimated value of the vehicle given in exchange ($10,000).

Mr. Girard must pay QST on the estimated value of the vehicle given in exchange ($10,000).

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