On-line Tax Strategies (December 2015)

ATTENTION: Dealer action required

Effective November 1, 2015, Revenu Québec announced a new position on the application of restricted input tax refunds (ITRs) when a car dealer provides a replacement vehicle to a client and is reimbursed by the manufacturer.

Targeted situations:

  • The dealer makes repairs to a vehicle covered by the manufacturer’s warranty;
  • Under the terms of the manufacturer’s warranty, the client is entitled to a replacement vehicle;
  • The dealer bills the manufacturer for the repair services, including the cost of the replacement vehicle.