Purchase of a New Road Vehicle
A person that purchases a new road vehicle from a retail vendor must pay the GST to the vendor. As a rule, the GST is calculated on the sale price agreed upon by the two parties.
A person that purchases a new road vehicle from a retail vendor must pay the QST to the vendor. As a rule, the QST is calculated on the sale price agreed upon by the two parties.
Collecting the QST
If the road vehicle is a new motor vehicle, the purchaser can choose to register the vehicle at the dealership or at an office of the Société de l'assurance automobile du Québec (SAAQ). The QST is paid to the SAAQ upon registration. For other types of road vehicles, such as motorcycles, snowmobiles, trailers and all-terrain vehicles, the QST is always collected by the dealer who sold the road vehicle.
The dealer must calculate the QST and provide the purchaser with a sales contract or other document clearly showing the amount of QST payable to the SAAQ, as well as other information, including:
- the sale price;
- the amount on which QST was calculated;
- the amount of GST charged;
- the trade-in amount, if applicable;
- the delivery date.
If the purchaser does not register the motor vehicle within 15 days following the delivery date, the QST will be considered payable by the purchaser at the time the vehicle is actually delivered.
If, as a purchaser of a motor vehicle, you paid the QST to the vendor in error, you still have to pay the QST to the SAAQ when registering. Moreover, Revenu Québec will not refund you the QST amount paid to the vendor.
To recover the QST amount paid in error, you must deal directly with the vendor. Neither Revenu Québec nor the SAAQ will refund the QST amount wrongly paid to the vendor.
Certain dealers act as the purchaser's mandatary for the purpose of registering a vehicle and paying the QST to the SAAQ. If your dealer provides these services, you can pay the registration fee and the QST to the dealer. However, should the dealer fail to remit these amounts to the SAAQ, you will have to pay the amounts again directly to the SAAQ.
Property and services acquired with a motor vehicle
If the price of property or services sold along with a motor vehicle is listed separately on the sales contract, the purchaser must pay the QST applicable to the property and services to the dealer. Examples of such property and services include:
- extended warranty or coverage;
- paint sealer;
- rust-proofing treatment;
- anti-theft marking;
- upholstery protection;
- remote starter;
- electronic starter lock;
- anti-theft system.
A person that purchases a vehicle equipped with new tires must pay the specific duty on new tires.
As a rule, the GST and QST apply to the specific duty on new tires.
The GST does not apply if:
- the vendor is a small supplier that is not registered for the GST; or
- the sale of the road vehicle or tires, or the lease of the road vehicle, is zero-rated under the GST system.
The QST does not apply if the sale of the road vehicle or tires, or the lease of the road vehicle, is zero-rated under the QST system.
Where a person acquires a road vehicle from a dealer and asks the dealer to act as an intermediary in the sale of the person's old vehicle to a third party, the sale is known as an “accommodation sale.” See Accommodation Sales of Road Vehicles for details on how to calculate the taxes in this situation.