Licensing a Boat in Canada

[Sharphooks]

Is it a requirement to license a boat in Canada? If a used boat is sold on the secondary market, is the new owner of the pre-owned boat obligated to license a boat that has already been licensed by previous owner?

I’m looking at a pre-owned boat and although the boat has registration (or perhaps you call them license) numbers, it appears the current owner never licensed it after he purchased it on the secondary market

How does this work in Canada?

I can’t get Title to the boat in the US unless I show not only Bill of Sale but some sort of license/registration certificate, presumably to prove the boat wasn’t stolen, but current owner can’t produce this document

Thanks your comments

 

[scott craven]

Is it a requirement to license a boat in Canada? If a used boat is sold on the secondary market, is the new owner of the pre-owned boat obligated to license a boat that has already been licensed by previous owner?

The short answer is yes, you must be able to provide not only license/(registration)
but a bill of sale if asked for it.

 

[Sharphooks]

So each time the boat is bought and sold it must be re-licensed into the name of the new owner——I heard in order to do that there is a 10 - 12% tax assessed against the purchase price—-is that correct???

 

[Captain PartyMarty]

Welcome to Canada, please leave your wallet on JT's desk......

I really hate the tax on used purchases, the government continues to double and triple dip on used purchases

 

[ziggy]

So each time the boat is bought and sold it must be re-licensed into the name of the new owner——I heard in order to do that there is a 10 - 12% tax assessed against the purchase price—-is that correct???

12% in BC, but that’s a Provincial tax for BC residents

 

[scott craven]

So each time the boat is bought and sold it must be re-licensed into the name of the new owner——I heard in order to do that there is a 10 - 12% tax assessed against the purchase price—-is that correct???

Correct !

 

[disco]

12% sales tax on a used boat purchase. When you put fuel in it 1/3 of the money goes straight into the govt bank account and to add insult to injury, said govt tells you can't catch and keep a fish and we're greedy if we want to keep our hard earned money but they're not greedy for confiscating it. Only changing our voting habits can fix this. If we keep rewarding the people who do this to us, by giving them our vote, they will never change.

 

[Aces]

12% sales tax on a used boat purchase. When you put fuel in it 1/3 of the money goes straight into the govt bank account and to add insult to injury, said govt tells you can't catch and keep a fish and we're greedy if we want to keep our hard earned money but they're not greedy for confiscating it. Only changing our voting habits can fix this. If we keep rewarding the people who do this to us, by giving them our vote, they will never change.

This is part of how the working people pay for supporting the welfare, the immigration families and free child care

 

[Rayvon]

On top of all that ,when I purchased a U.S boat last year I had to pay a 10% counter-tariff on the boat to JT which was then rescended but when I asked for my money back they said no. OOOOH Canada.

 

[Flatlander]

No tax in Alberta yet, If you have a relative in Alberta have them buy your boat and take delivery of the boat in Alberta and bring it back to BC with Alberta Registration.

 

[Rotten Ronnie]

Is it a requirement to license a boat in Canada? If a used boat is sold on the secondary market, is the new owner of the pre-owned boat obligated to license a boat that has already been licensed by previous owner?

I’m looking at a pre-owned boat and although the boat has registration (or perhaps you call them license) numbers, it appears the current owner never licensed it after he purchased it on the secondary market

How does this work in Canada?

I can’t get Title to the boat in the US unless I show not only Bill of Sale but some sort of license/registration certificate, presumably to prove the boat wasn’t stolen, but current owner can’t produce this document

Thanks your comments

Sounds like the original owner registered the boat, but the next owner neglected to tell Transport Canada he bought it, probably to avoid the sales tax. All boats in Canada with a 10 horsepower or greater motor must have a registration number issued by Transport Canada. The number stays with the boat for its usable life in Canada no matter who owns it .There is no charge to re-register the boat in a new owners’s name. Bill of sale proves it wasn’t stolen. Transport Canada’s website has a FAQ page that can answer your questions better than I. Search under Marine Transportation “ licensing a pleasure craft” at tc.gv.ca

 

[Matt16]

Is it a requirement to license a boat in Canada? If a used boat is sold on the secondary market, is the new owner of the pre-owned boat obligated to license a boat that has already been licensed by previous owner?

I’m looking at a pre-owned boat and although the boat has registration (or perhaps you call them license) numbers, it appears the current owner never licensed it after he purchased it on the secondary market

How does this work in Canada?

I can’t get Title to the boat in the US unless I show not only Bill of Sale but some sort of license/registration certificate, presumably to prove the boat wasn’t stolen, but current owner can’t produce this document

Thanks your comments

When you buy the boat in the US, you receive the title for the boat and the title for the trailer showing the name of the last owner. You will also need to get a bill of sale for the boat and the trailer. You take these to the Canadian border and you'll pay tax on the boat and and trailer. In Canada, we have option to get a pleasurecraft registration (if you'll be traveling from US to Canada by boat) or a pleasurecraft license (if you just plan on using it in Canada).

Registering the boat in Canada is simpler than registering an imported trailer and there are fewer hoops to jump. You do not need to transfer the title in the states after buying the boat you do that in Canada.

 

[spring fever]

12% in BC, but that’s a Provincial tax for BC residents

The old owner must be able to give you the registration or a license depending on what he has plus a bill of sale. It is unlikely that they would get you with the tax since you are importing the boat into the states. The tax on the boat is only levied when you go to get Canadian registration and also the trailer is the same way when you go for the BC reg. If you have all the bc paper work for the trailer then get a Washington plate for the trailer or a temp transfer plate before pick up-have the owner drive it to the border give him back his plate -put the wash. plate on-have all your bills and boat registration ready for the US customs and you should be good. Make sure you have a seamless paper trail especially in your case.

 

[spring fever]

When you buy the boat in the US, you receive the title for the boat and the title for the trailer showing the name of the last owner. You will also need to get a bill of sale for the boat and the trailer. You take these to the Canadian border and you'll pay tax on the boat and and trailer. In Canada, we have option to get a pleasurecraft registration (if you'll be traveling from US to Canada by boat) or a pleasurecraft license (if you just plan on using it in Canada).

Registering the boat in Canada is simpler than registering an imported trailer and there are fewer hoops to jump. You do not need to transfer the title in the states after buying the boat you do that in Canada.

He is an American and doing it in reverse!!

 

[spring fever]

So each time the boat is bought and sold it must be re-licensed into the name of the new owner——I heard in order to do that there is a 10 - 12% tax assessed against the purchase price—-is that correct???

That is correct and it sounds like the guy you are trying to get the boat from has tried to duck the tax-probably could be worked around jf the buyer was Canadian he would just pay the tax and it would look like he got it from the original owner. You will be different because you will have to show title. bill of sale and registration at the US border and the bill of sale is not going to match registration so you will have a major problem!!

 

[Sharphooks]

Correct on all the above, spring fever, and thanks, though it is my understanding that the registration document is not critical for crossing the border (for the boat).....I specifically stopped at Aldergrove to ask the border guys this question on the way back from my Skeena steelhead trip last week.

The trailer, though, does require that registration (or insurance certificate and proof that the trailer meets US DOT guidelines). The problem with not having a license/registration from a Canadian Seller arises when trying to get Boat Title in the US. A Bill of Sale is not enough to get a Title—-without the provincial license/registration, a potential US buyer ends up twisting in the wind for several years while waiting out an “inoculation” period before he has any chance of getting a negotiable Title—- if the buyer keeled over and died from a heart attack during that period, his surviving kin could not liquidate the boat portion of his estate without that Title so lots of risk buying a boat without the license/registration. Down here, Title is everything. The Bill of Sale....not so much...

Although I love you guys, I’m left scratching my head about the 12% PST that is levied each time a boat (and its equipment <!!> ) is sold then resold....no wonder you guys hang on to your boats for long periods of time...talk about a poison pill if you’re a seller!

 

[ziggy]

That is correct and it sounds like the guy you are trying to get the boat from has tried to duck the tax-probably could be worked around jf the buyer was Canadian he would just pay the tax and it would look like he got it from the original owner. You will be different because you will have to show title. bill of sale and registration at the US border and the bill of sale is not going to match registration so you will have a major problem!!

The problem with guys doing this (tax dodging)is that technically you’re buying a boat from someone who has no record of actually owning it and you rely on the last legal owner not claiming it’s his and was stolen. As far as anyone in authority is concerned the last licensed owner is the owner. I would steer clear especially if taking it across the border.

 

[Sharphooks]

Words of wisdom, Ziggy—thanks. While staring at the shotgun barrel of incomplete paperwork I’ve resigned myself to waiting for a cleaner deal to come along or ....just hanging on to my current boat and maybe just repowering in the spring

 

[scott craven]

Although I love you guys, I’m left scratching my head about the 12% PST that is levied each time a boat (and its equipment <!!> ) is sold then resold....no wonder you guys hang on to your boats for long periods of time...

you're right SH it's a rip off !

 

[walleyes]

Couple things I’ve observed and learned over the years, don’t mess with the tax man and don’t mess with the customs guys. When it comes to ownership, registrations and insurances do it right, don’t fool around. If you can’t afford to do it right then don’t do it at all. Any money saved will come back to bite you in the butt and cost you a lot more in the end.