How does donating a vehicle work?
Given the higher value of used vehicles since the pandemic, selling yours yourself or trading it in at a dealership will pay better than ever. On the other hand, you'll have to find another vehicle... which may also cost more.
That's why more and more people are choosing to invest in car maintenance, as it's financially more advantageous in the long term. However, if you're feeling charitable and would like to donate your vehicle to a loved one or an organization, there are a few rules and procedures to follow, as the Société de l'assurance automobile du Québec (SAAQ) reminds us.
How does it work?
First, two essential points. The transfer cannot be made if you or the person receiving the vehicle has an unpaid fine on their driving record. Secondly, if the vehicle is registered outside Quebec, or if the recipient of the donation is not related to you, or is a company or organization, you will need to contact Revenu Québec before going to an SAAQ point of service to make the transfer.
On site, you'll need to prove the family relationship, if any, by filling out a form and presenting a document (large-format birth certificate, copy of birth certificate, marriage or civil union contract or certificate, driver's license showing the same address and surname, etc.).
Should you be unable to attend in person, the person taking your place will need to bring a proxy form completed by you in advance.
By the way, are there any taxes to pay, even if the vehicle is donated? Generally speaking, no. There is no GST or QST to pay if the vehicle is given to a family member.
Donate to a friend, company or organization
In this case, you must present a contract or invoice specifying that the vehicle is being donated, and provide the name of the new owner. The new owner may have to pay QST on the transfer. For more information, contact Revenu Québec. The SAAQ generally calculates the amount of QST based on the estimated value of the vehicle. an organization
Now, if your car can no longer be used, you can retire it and donate it to charity. Have you heard of Auto-Rein? It's an initiative of the Kidney Foundation of Canada to raise money to improve the quality of life of people living with kidney failure. In association with various recycling partners, it's a simple, fast and even profitable way to donate a vehicle.
Vehicles donated through Auto-Rein are 100% recycled or resold for reuse. You'll receive a tax receipt for donations of $300 or more, either by e-mail or regular mail.
