How is PST applied on a lease?
PST applies to the full amount of the lease that a customer must pay to obtain the use of a vehicle including: the down payment, monthly payments, early termination charges, repossession fees, vehicle upkeep and repair charges, mandatory service contracts, etc. It should be noted that a trade-in vehicle accepted as a down payment on a lease or as part payment against future lease payments cannot be used to reduce the amount of tax payable on leased vehicles. The Consumer Taxation Branch should be contacted for more specific information (877-388-4440).
