- Insurance premiums must be separated from lease payments to be GST-exempt.
- Customers apply to insurers for insurance and receive policies directly.
- Car dealers pay the full premium to insurers and include it in the vehicle lease cost.
- The lease agreement governs the relationship between the dealer and customer.
- Monthly lease payments are considered a single taxable supply of the vehicle.
- If insurance premiums are charged separately by an agent, they are exempt.
Source: taxinterpretations.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Canada"
- Leveraging the Taxpayer Bill of Rights During a CRA GST/HST Audit
- New GST Voluntary Disclosure Guidelines: Major Changes to CRA’s VDP Now in Effect
- Navigating GST/HST on Domestic and International Freight Transportation Services in Canada
- Final 2025 GST/HST Credit Payments Released for Eligible Canadians on October 3
- Ensuring Compliance: Québec’s Uniform Fiscal Documentation and Reporting Requirements
