Do you have to pay HST on a used boat?
- Thread starter TenMile
- Start date
scott craven
Well-Known Member
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.
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.
Reel Knotty
Member
BigHog
Member
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!!!
TenMile
Well-Known Member
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?
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?
scott craven
Well-Known Member
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
Should be illegal for the gov't to keep collecting tax every time something is sold...
talk about double dipping ?? (triple,quadruple) :O
vetteman
Active Member
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
Dave S
Active Member
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
Halilogger
Active Member
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.
Not sure if you broke out the price (outboard only) of the main motor if you would have to pay on that.
Sitkaspruce
Well-Known Member
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
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.
scott craven
Well-Known Member
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.
No judge is going to dispute a bill of sale especially when the trailer is already registered & licensed in your name.
Halilogger
Active Member
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.
TenMile
Well-Known Member
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.
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.
vetteman
Active Member
Service BC checks with Service Canada(or whoever) on a semi regular basis for changes to vessel registration.That's how they keep track of things.Sometimes you get caught pretty quick,sometimes it takes a bit longer. I decided to pay mine promptly because by the time they caught up to me, HST would have been implimented and although I bought my boat in 2009 I might possibly have had to pay the 12% instead of just 7%.I didn't want to chance that.Besides,I like to make things easy for the taxman. I love the guy as much as you guys do.
Dave
Dave S
Active Member
So was just reading up on this thread and I'm wondering if anyone knows what the deal would be if I bought a boat now and held off on registering it until 2012, would I pay HST or just pst on it? Fvck! So confused. Maybe I should just print up some k numbers myself and then tax man gets none.
FishBC.org
Active Member
Hypothetical question. What if the seller is a business and charged the HST on the sale?
scott craven
Well-Known Member
you would only pay 7% pst if you held off till the taxes are changed.
at least that is what happened under the old system.
who knows what kinda spin the gov't will throw at us this time ?
NautiGirl
Well-Known Member
Yes. See http://www.rev.gov.bc.ca/documents_library/bulletins/ctr_001.pdf
the tax on used was likely brought in because Jimmy P's dealership clout lobbied that private sellers and unlicenced car dealers had an unfair advantage when selling used cars. If a business buys or sells anything with HST/GST, they will collect or pay it as needed. If you buy it personally, then try to transfer to the co, you will get shafted twice, but if you buy it originally in your business name, you will get the GST input tax credit. If it is large and noticeable on your HST return, CRA will usually call you asking what it was. If your ITC is not unusually large, it is possible that no one will ask. They will get on your case if the boat was not for business use and make you pay the tax, because once it has a deemed change of use (mostly personal use), then the GST is payable by self assessment or at time of audit. If you are a charter business, no problems there.
If you are importing boats and trailers, make sure you get separate bills of sale or one bill of sale with the trailer and boat separated,or some jackass at the border might want to bill you for the whole value, then they might try that again at ICBC when you go to get it licenced, then you have to apply for refunds where you got overcharged. That could be hard to do if there are no separate values assigned on the bill. Assume there is a jackass behind the counter or the badge and split the values on the bill for your US boat.
Just remember that for those who forget to pay the tax or try to "gift" their boat for unbelievably low values, the tax man will apply interest and often penalties too.
I registered mine with Transport Canada and followed the process. I later noticed that Transport Canada has a boat registration search tool online, but my boat and my name were not on it. I guess they can screw up whenever.
Good luck.
the tax on used was likely brought in because Jimmy P's dealership clout lobbied that private sellers and unlicenced car dealers had an unfair advantage when selling used cars. If a business buys or sells anything with HST/GST, they will collect or pay it as needed. If you buy it personally, then try to transfer to the co, you will get shafted twice, but if you buy it originally in your business name, you will get the GST input tax credit. If it is large and noticeable on your HST return, CRA will usually call you asking what it was. If your ITC is not unusually large, it is possible that no one will ask. They will get on your case if the boat was not for business use and make you pay the tax, because once it has a deemed change of use (mostly personal use), then the GST is payable by self assessment or at time of audit. If you are a charter business, no problems there.
If you are importing boats and trailers, make sure you get separate bills of sale or one bill of sale with the trailer and boat separated,or some jackass at the border might want to bill you for the whole value, then they might try that again at ICBC when you go to get it licenced, then you have to apply for refunds where you got overcharged. That could be hard to do if there are no separate values assigned on the bill. Assume there is a jackass behind the counter or the badge and split the values on the bill for your US boat.
Just remember that for those who forget to pay the tax or try to "gift" their boat for unbelievably low values, the tax man will apply interest and often penalties too.
I registered mine with Transport Canada and followed the process. I later noticed that Transport Canada has a boat registration search tool online, but my boat and my name were not on it. I guess they can screw up whenever.
Good luck.
