HST on Vehicles Sold for Export Out of Canada

Vehicles Sold to a consumer for export

• if consumer takes delivery of vehicle from the dealer in Canada, HST must be charged by the dealer
• even if proof of export is later obtained, the dealer is expected to remit the HST

Vehicles Sold to Business for export

No HST is payable if all of the following apply

• purchaser does not use the vehicle in Canada prior to export
• the vehicle must not be modified by the purchaser before being exported
• dealer must have documentation to prove export
• dealer should arrange for the vehicle to be delivered to the shipper and obtain a bill of lading from the shipper, showing the foreign destination as proof of export
• if the vehicle is being shipped by rail or truck to a Canadian port and then exported by ship, the dealer will need to obtain the bill of lading directly from the overseas shipper, as the land shipper will not be able to provide a bill of lading for the overseas delivery

Vehicles Sold to Business or Consumer and Delivered Outside of Canada

If a vehicle is purchased for export, by either a Canadian or foreign purchaser, and the purchaser does not take delivery in Canada, the purchase is HST exempt if:

• the dealer delivers the vehicle to common carrier (shipper) and obtains a bill of lading showing the foreign destination, or
• the vehicle is delivered directly by the dealer to the United States and the dealer keeps an embossed copy of U.S. Entry Summary (Form 7501) or other valid U.S. Customs entry documentation