These questions have come through the VSA Training Program from people working in the industry. If you have any questions you would like added to this list, please send them to training@mvsabc.com
When does the 24-hour cooling-off period of a lease agreement start?
The lease cooling-off period begins on the date and time that the contract is signed. The cooling-off period does NOT apply if the lessee takes immediate delivery of the vehicle and drives the vehicle off the dealer's lot.
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How does a weekend or statutory holiday affect the 24-hour cooling-off period of a lease agreement?
Section 25 of the Interpretation Act addresses the affect a holiday or weekend may have on the 24-hour period:
Section 25(2) If the time for doing an act falls or expires on a holiday, the time is extended to the next day that is not a holiday.
Section 25(3) If the time for doing an act in a business office falls or expires on a day when the office is not open during regular business hours, the time is extended to the next day that the office is open.
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Does taking the car off the dealer lot waive the 24-hour cooling-off period of a lease agreement?
Taking delivery of the vehicle and removing the car from the dealer's lot voids the cooling-off period.
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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).
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Does the dealer ever have a right to refuse a sale? Is that refusal legal?
Dealers have the right to refuse a sale. However, if the sale is refused on the basis of an individual's race, creed, colour, religious belief etc., the dealer may be in conflict with human rights legislation and subject to the consequences.
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Is there any written legislation on air bags and their replacement?
New legislation (or policy) is about to be introduced requiring that all vehicles that were originally equipped with air bags must have them replaced when the bags are either deployed or when a vehicle so equipped is written-off and rebuilt. This legislation would also be applicable to out-of-province vehicles entering British Columbia.
At present, all that is required is that any reference to the fact that a vehicle was equipped with air bags must be removed from the vehicle (e.g.. steering wheel cover and decals) if the bags are not replaced.
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Who manages the Motor Dealer Customer Compensation Fund?
The Office of the Registrar of Motor Dealers administers (manages) the Fund through the Motor Vehicle Sales Authority of BC. All decisions concerning claims against the Fund are made by the Motor Dealer Customer Compensation Fund Board of Directors. The members of this Board are representatives of the industry and consumers who are appointed by the Board of Directors of the Motor Vehicle Sales Authority of BC.
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Repairers lien act - do the monies first go to the repairer or the lender?
A repairers lien has priority over a security interest. Monies first go to the repairer, then to the lender.
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What is the process to repossess a vehicle on Indian land?
Most repossessions from reserves are completed with the approval of the Band Administration. Bailiffs will generally not undertake repossessions without securing this permission beforehand. This does not mean, however, that permission is required. Whether or not bailiffs can simply go onto a reserve to seize a vehicle without permission in their normal course of business would be subject to a legal opinion. Given the sensitivity of this issue, there may be as many differing legal opinions as there are lawyers. Given the fact that permission is generally granted by the Band Administration, repossessions of this type have not been an issue.
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What is the handicapped propane refund of PST referred to in the Social Service Tax Act?
Persons with certain physical disabilities are eligible for a refund of the provincial tax they pay on gasoline, diesel, or propane used in their vehicles. Each eligible person may claim a maximum refund amount of $400.00 each refund year. Please contact the Consumer Taxation Branch (877-388-4440) to determine eligibility requirements.
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Under what conditions are Status Indians exempt from PST?
The federal Indian Act and provincial Consumer Taxation Branch provide a provincial tax exemption to people who hold a 'Certificate of Indian Status' card. This exemption applies to goods purchased on the reserve, and to goods for which the title passes once the goods have been delivered to the reserve location. For title to pass on reserve land, the seller must retain ownership and responsibility for the goods until they are delivered to the purchaser on reserve land. For a leased vehicle, a person who holds a 'Certificate of Indian Status' card, as well as proof that they are a resident of a reserve, can take possession of the vehicle on or off the reserve. Proof of residence can be provided by such things as a driver's license or a letter from the band.
Additional information concerning sales tax exemption regulations for Status Indians can be found in the Consumer Taxation Branch Bulletins # 034 and # 046. These bulletins are available on the internet at www.rev.gov.bc.ca/ctb/ or by calling 1-877-388-4440 or 604-660-4524 and selecting option #1.
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Under what conditions is the provincial sales tax on a vehicle purchase 50% of the full amount and no GST collected?
Provided all the criteria for an exempt sale are met, where you have two individuals purchasing a vehicle and one of the individuals has a Certificate of Indian Status card and the other does not, provincial sales tax will apply on the 50% of the vehicle being purchased by the person who does not have a status card. This applies regardless of whether or not the couple are legally married, common-law spouses, or just friends. In this situation the transaction is exempt from 100% of the GST.
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Is there a form to assist dealers in correctly documenting tax-exempt sales to Status Indians?
The provincial government has created a form to assist dealers in documenting tax-exempt sales to Status Indians. Following you can view a notice in PDF from the Revenue Ministry which outlines procedures for using the form. You can also view a copy of the form itself.
Form #429 Introduction and Procedures
Form #429: Tax Exempt Motor Vehicle Sales or leases to First Nations Purchasers
The form is also available on the Government website - click on Forms (on left-hand side), and scroll down to form #429.
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In regard to tax exemption rules, does it matter whose name is on the vehicle registration when a Status Indian and non-Indian buy a vehicle together?
No, it does not matter whose name is on the vehicle registration. If a Status Indian and a non-Indian buy a vehicle together (both names are on the purchase contract) then only 50% of the provincial sales tax is due as long as all other conditions for status Indian exemption are met. In this situation, the transaction if exempt from 100% of the GST.
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Can a BC resident apply for a PST refund if they purchase a vehicle in BC and then move out of the province?
Yes, where a motor vehicle is sold within the Province to a resident of the Province and the vehicle is subsequently taken out of the Province to another jurisdiction by the purchaser within 30 days of the date of such sale, to be used solely outside the Province, then the tax collected at the time of sale shall be refunded by the minister on receipt of evidence that the purchaser:
(a) established residence in that other jurisdiction within 30 days of the date of the sale,
(b) was required to pay a retail sales tax on registration of the vehicle under the laws of that other jurisdiction, and
(c) purchased the vehicle on or after March 1, 1981.
Refunds of provincial sales tax paid in error by mistake of fact must be claimed within six years from the date the taxes were paid. The refund does not differ depending on where a claimant may move to.
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Is it okay for a dealer to sell a vehicle to a person under 19 years of age? A customer from Alberta can sign a contract at 18 years of age.
Yes, it is okay for a BC dealer to sell a vehicle to a person under 19. The concern would be whether the contract would be enforceable in the event of any problem. It doesn't matter where the person lives, or where the vehicle is delivered. If the deal is written in BC by a BC licensed dealer then the BC law applies. If the dealer had to take any kind of action against the under 19 customer regarding the deal, then it is likely that the courts would decide in favor of the customer stating that the dealer knew that the person was under 19 and could not enter into a legitimate contract in BC. Enforceability is the key in this situation.
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Is "rate only" advertising for lease and finance promotions in compliance with current regulations?
If the ad only states the lease or finance rate being offered and does not refer to payments, terms or cash price of the vehicle(s) then it is considered to be in compliance with current requirements. It is also required that the advertised lease or finance rate is available on the vehicle(s) as promoted.
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Do environmental levies (tire and battery) apply on used vehicles?
No, a dealer should not collect the environmental levies on the sale of used vehicles unless the dealer has replaced the battery or tires on the vehicle with new products before re-selling the vehicle.
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Can a credit report be obtained for 2 spouses with only one signature?
Yes, while the new Personal Information Protection Act (Jan. 2004) is very strict about access to personal information without approval, it is felt that the argument would be that spouse 1 is acting as agent of spouse 2 in providing consent for the credit report. Presumably the credit report is obtained so that the spouses can finance a vehicle purchase together. As a result, it likely falls in the consent section 12(1)(a) where "an organization may collect personal information ... without consent ... if ... the collection is clearly in the interests of the individual and consent cannot be obtained in a timely way..." That said, it is always best to obtain written consent for the report as soon as possible. Spouse 2 will have to sign the finance documents in any event.
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