GST/HST and motor vehicles

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GST/HST on the private sale of a specified motor vehicle
GST/HST on the sale of a specified motor vehicle by a GST/HST registrant
GST/HST on the lease of a specified motor vehicle
GST/HST on gift of a specified motor vehicle
GST/HST rebate on the purchase of or modification to a qualifying motor vehicle
GST/HST on sales of specified motor vehicles

The GST/HST on the sale of specified motor vehicles may apply differently to governments and municipalities, Indigenous peoples, foreign representatives and diplomatic missions, and customers outside Canada (import and exports).


GST/HST on the private sale of a specified motor vehicle

When you buy a specified motor vehicle  through a private sale (for example, you bought the vehicle from a person who is not a GST/HST registrant), the GST/HST does not generally apply to the private sale.

However, you may have to pay the provincial motor vehicle tax when you register the vehicle. Your provincial government charges and administers this tax, which is separate from the GST/HST.

You do not have to pay the provincial motor vehicle tax in some cases, including the following situations:

Contact your provincial vehicle registration office, or local provincial tax administration office, for rules specific to your province.

GST/HST on the sale of a specified motor vehicle by a GST/HST registrant

Generally, when you buy a specified motor vehicle from a GST/HST registrant (for example, a dealership), the GST/HST applies on the sale. The GST/HST rate to be used generally depends on several criteria such as the place of delivery and date of registration.

Learn more: GST/HST on sales of specified motor vehicles.

If you trade a used vehicle for full or partial payment, the GST/HST treatment depends on if you have to charge tax on the trade-in.

Learn more: GST/HST in special cases – Trade-ins.

Who has to pay the provincial part of the HST and when

Generally, you have to pay the provincial part of the HST or a portion of it when you register your vehicle in a province where the HST applies or if you bring the vehicle into a participating province from:

However, you may need to self-assess the amount owing. Generally, if the provincial laws relating to motor vehicle registration do not require you to register the vehicle, you have to self-assess the amount owing if you bring the vehicle into a participating province from:

Use Form GST489, Return for Self-assessment of the Provincial Part of Harmonized Sales Tax (HST) to self-assess the provincial part of the HST or the difference between the two HST rates.

How and when to recover the provincial part of the HST

You can get a rebate of the provincial part of the HST you paid on specified motor vehicles, or a portion of that part, if you meet all of the following conditions:

To apply for the rebate, use Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST).

GST/HST on the lease of a specified motor vehicle

Generally, when you lease a specified motor vehicle from a business that is a GST/HST registrant, you have to pay the GST/HST on your lease payments.

If you trade a used vehicle for full or partial payment for a lease, the GST/HST treatment depends on if you have to charge tax on the trade-in.

Learn more: GST/HST in special cases – Trade-ins.

GST/HST on leases
Lease period (must be continuous) GST/HST application
Three months or less GST/HST applies on lease payments at the rate of the province or other area in Canada where the supplier delivers the vehicle or makes it available to the customer.
More than three months GST/HST applies on lease payments at the rate of the province or other area in Canada where the vehicle must be registered under the laws of that province.

GST/HST on gift of a specified motor vehicle

A used specified motor vehicle supplied by way of a gift between two related individuals  is generally not subject to the GST/HST.

GST/HST rebate on the purchase of or modification to a qualifying motor vehicle

You may be eligible to claim a specially-equipped motor vehicle rebate if you paid GST/HST on the purchase of a qualifying motor vehicle , or you paid GST/HST on a modification service  performed on your motor vehicle.

To apply for the rebate, use Form GST518, GST/HST Specially Equipped Motor Vehicle Rebate Application.

Learn more: Excise and GST/HST News – No. 83 (Winter 2012).

GST/HST on sales of specified motor vehicles

The following tabs show how the GST/HST is applied in various circumstances on a sale made by a GST/HST registrant.

Tax payable when the vehicle is registered within seven days of the delivery date
Tax payable when the vehicle is registered within seven days of the delivery date
Where the vehicle is
delivered or made available
Where the vehicle is registeredFootnote 1  Tax payable on delivery
Participating province or
non-participating province
Non-participating province GST and the provincial motor vehicle tax
Participating province Participating province HST at the rate of the province where the vehicle is registered
Non-participating province Participating province GST
Tax payable when the vehicle is registered more than seven days after the delivery date
Tax payable when the vehicle is registered more than seven days after the delivery date
Place of supplyFootnote 2 Where the vehicle is registeredFootnote 1 Tax payable on delivery Tax payable on registration Eligible rebate (Form GST495)
Participating province Non-participating province HST None Provincial part of the HST
Participating province Participating province with a lower HST rate HST at the rate of the province where the supply was made None The difference between the two HST rates
Participating province Participating province with a higher HST rate HST at the rate of the province where the supply was made The difference between the two HST rates None
Non-participating province Non-participating province GST Provincial motor vehicle tax None
Non-participating province Participating province GST Provincial part of the HST None

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