Announcement

Collapse
No announcement yet.

Do you have to pay HST on a used boat?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Do you have to pay HST on a used boat?

    Hypothetically speaking (for now) -- but if a guy were to buy a used boat off a private seller -- do we now have to pay HST on the total purchase price?
    TenMile
    <'((((><

  • #2
    I believe you do. if it was bought prior to July 2010
    it would only be 7%.
    The gov't seems to catch this shortly after you license and get your
    "BC/K "numbers.

    A buddy who bought his boat in 2005 and just recently licensed it
    last spring magically rec'd his tax bill in the mail last week.

    Comment


    • #3
      Originally posted by r.s craven View Post
      A buddy who bought his boat in 2005 and just recently licensed it
      last spring magically rec'd his tax bill in the mail last week.
      Abbra Kaddabra
      Hockus Pockus
      The Government desends
      Like a swarm of Locusts

      Comment


      • #4
        When you license the boat they collect the money. You don't pay anything to the seller. If you decide to only license the trailer then you only pay 12% on the trialer price so MAKE SURE you break out the cost of both with 2 bills of sale or you will have an issue determining the cost of the trailer!!!

        Comment


        • #5
          Good point -- I guess if you don't register the 14K/BC number you technically don't have to pay?!?

          Only time I've ever had anyone ask about my boat registration is when we go to the USA and I don't think they verify it against the BC registrar, I think they just put it into their database?
          TenMile
          <'((((><

          Comment


          • #6
            I've never been asked for my license and wonder if they see numbers on the boat, if that's all they need ?
            Should be illegal for the gov't to keep collecting tax every time something is sold...
            talk about double dipping ?? (triple,quadruple) :O

            Comment


            • #7
              If your boat is stolen how will you prove it is yours if you don't register it? The previous owner if crooked could come back anytime and claim that you stole his boat. He is still the registered owner and now it is your word against his.
              Without fish there be no fishing. Get involved or accept that you will continue to fish less in the future!

              Comment


              • #8
                Originally posted by BigHog View Post
                When you license the boat they collect the money. You don't pay anything to the seller. If you decide to only license the trailer then you only pay 12% on the trialer price so MAKE SURE you break out the cost of both with 2 bills of sale or you will have an issue determining the cost of the trailer!!!
                Are you sure of that? When I registered my boat at Service Canada last November I asked about paying the tax on it. I was told that it was strictly a provincial matter to collect taxes. Registering is a federal matter and they had nothing to do with the collection of taxes.
                I had to go to Service BC to pay the tax on my boat.
                Dave
                17'2" Hourston Sportsman
                115 HP Mercury Optimax
                8 HP Mercury 4 Stroke
                sigpic

                Comment


                • #9
                  Originally posted by profisher View Post
                  If your boat is stolen how will you prove it is yours if you don't register it? The previous owner if crooked could come back anytime and claim that you stole his boat. He is still the registered owner and now it is your word against his.
                  Thats why you would want to get a bill of sale from the previous guy. Wouldn't that be proof the boat is no longer theirs? Also, I'm sure bank statements could prove an exchange of money took place. Don't think it would be that easy for someone to pull it off. imho

                  Comment


                  • #10
                    Also remember for anyone buying a used boat, break down the extras on the bill of sale, IE downriggers, radar, kicker ect. HST is on the boat, and trailer.
                    Not sure if you broke out the price (outboard only) of the main motor if you would have to pay on that.

                    Comment


                    • #11
                      Originally posted by vetteman View Post
                      Are you sure of that? When I registered my boat at Service Canada last November I asked about paying the tax on it. I was told that it was strictly a provincial matter to collect taxes. Registering is a federal matter and they had nothing to do with the collection of taxes.
                      I had to go to Service BC to pay the tax on my boat.
                      Dave
                      If you Reg with Service Canada, it takes about 7-10 month for the BC tax man to come collecting, but he will.

                      Also, get a bill of sale for the trailer, just the hull and all the other stuff that came with it. In other words get three bills of sale with a breakdown for each item. The just take in the Bill of Sale for the hull to SC to get it registered, ditto for the trailer and the last is a piece of mind in case something happens like Profisher said.

                      Cheers

                      SS
                      sigpic

                      Comment


                      • #12
                        So you have a bill of sale, from who? The registered owner or someone else pulling the same. Many used boats (private sales) are sold multiple times without the registration taking place. So your bill of sale is from someone who isn't on the title either. By this time any bill of sale documents in the chain are long gone, previous owners die etc etc. The last person to legally register it could come back and claim it. story like...had it in long term storage, never checked on it...decided it was time to sell it..went to clean it up...its gone. Spotted it the other day at your house. If you can't prove he sold it 3 or 4 persons back in the chain..your F%@KED.
                        Without fish there be no fishing. Get involved or accept that you will continue to fish less in the future!

                        Comment


                        • #13
                          I can't see that happening, how would an ex owner know whether or not you had the boat licensed already ??
                          No judge is going to dispute a bill of sale especially when the trailer is already registered & licensed in your name.

                          Comment


                          • #14
                            Just make sure when you purchase a boat, it has a pleasure craft licence, and the name on this document has the same as the person selling the boat.

                            Comment


                            • #15
                              Back to my opening question on whether the HST is payable -- the answer is "Yes" -- gotta love the Government "spin" convincing us that higher taxes are good :-)

                              Another advantage of going to HST is that tax will no longer be payable on most used goods purchased privately. However, used vehicles, aircraft and boats purchased privately (not from an HST registrant) would still be subject to provincial sales tax, which is being increased from 7% to 12%. Almost everything that is subject to PST when purchased new is also subject to PST when purchased used. Exceptions to this are used clothing or footwear priced at less than $100, and certain used manufactured homes. Most people are not aware that the Social Services Tax Act requires them to remit the tax to the government when they buy used goods privately, or when they purchase something from an out of province seller. We would guess that most people don't remit the PST on this type of item, and are therefore in contravention of the Social Services Tax Act.

                              However, if buying a boat from a broker/dealer and you are making a trade-in, you only pay HST on the cost difference -- so can save a few bucks.
                              TenMile
                              <'((((><

                              Comment

                              Working...
                              X