Just wondering what's the best way to break down Bills of Sale for a used boat to minimize the stupid sales tax? I know to write a sepaate B of S for the trailer but what about breaking it down further into a separate Bill for the hull alone and an another for the motors and other gear? Paying sales tax on used stuff just pisses me off and if there is any way to minimize it (legally) I'd like to do it.
Bill(s) of Sale for used boat
- Thread starter Clipper
- Start date
scott craven
Well-Known Member
I would think that would be a pain in the a$$ for the seller to prepare 3 bills ?
however, if it works ??
however, if it works ??
fish stalker
Active Member
I think the only issue might be is when you go to insure how much you want to insure it for. But just because you bought it for 'less' then price you want to insure it for dosnt mean its worth less and i dont think they can say you have to insure it for what you paid. Trailer is icbc and has nothing to do with boat. And can be gifted still and not just family members. That will be changing but not yet.
I just did a icbc transfer form for trailer. and a 'transfer of ownership' letter hand written out with description of boat and old license number both our info and sigs and that was it.
I just did a icbc transfer form for trailer. and a 'transfer of ownership' letter hand written out with description of boat and old license number both our info and sigs and that was it.
Foxsea
Well-Known Member
Tax Bulletin
http://www.sbr.gov.bc.ca/documents_library/bulletins/sst_114.pdf
http://www.sbr.gov.bc.ca/documents_library/bulletins/ctr_001.pdf
When to Pay PST
Generally, you pay PST on the purchase of a new or used boat in British Columbia.
You also pay PST on any accessories that come with the boat, such as a motor, a trailer
or water sport equipment. You pay PST on the total amount of the purchase, including
any delivery charges, but not including the goods and services tax (GST).
If you buy a boat privately and the seller does not charge you PST, you self-assess the
PST. To self-assess the PST, complete a Payment of Social Service Tax Due or Claim for
Exemption on the Purchase or Lease of a Boat form (FIN 132) and forward it to the ministry,
along with a copy of the bill of sale and payment for any PST owing.
To ensure that PST has been paid on all taxable boats, the ministry routinely reviews the
records of Transport Canada and matches changes in registered ownership with PST
payments. Therefore, when you register a taxable boat, you may be contacted by the
ministry to confirm that you paid the PST.
Boat Trailers
Boats and trailers are often purchased together. If you did not pay PST to the seller, the
Insurance Corporation of British Columbia (ICBC) will charge the PST when you license
the trailer. Keep your receipt and the Transfer/Tax Form (APV9T) from ICBC as proof
that you paid PST.
http://www.sbr.gov.bc.ca/documents_library/bulletins/sst_114.pdf
http://www.sbr.gov.bc.ca/documents_library/bulletins/ctr_001.pdf
When to Pay PST
Generally, you pay PST on the purchase of a new or used boat in British Columbia.
You also pay PST on any accessories that come with the boat, such as a motor, a trailer
or water sport equipment. You pay PST on the total amount of the purchase, including
any delivery charges, but not including the goods and services tax (GST).
If you buy a boat privately and the seller does not charge you PST, you self-assess the
PST. To self-assess the PST, complete a Payment of Social Service Tax Due or Claim for
Exemption on the Purchase or Lease of a Boat form (FIN 132) and forward it to the ministry,
along with a copy of the bill of sale and payment for any PST owing.
To ensure that PST has been paid on all taxable boats, the ministry routinely reviews the
records of Transport Canada and matches changes in registered ownership with PST
payments. Therefore, when you register a taxable boat, you may be contacted by the
ministry to confirm that you paid the PST.
Boat Trailers
Boats and trailers are often purchased together. If you did not pay PST to the seller, the
Insurance Corporation of British Columbia (ICBC) will charge the PST when you license
the trailer. Keep your receipt and the Transfer/Tax Form (APV9T) from ICBC as proof
that you paid PST.
Last edited by a moderator:
Adler
Well-Known Member
Thanks for this SeaFox, even though it was some time ago, it answered my question today perfectly. Having bought our boat in March 2012, today I received a notice from the BC Ministry of Finance seeking the PST for the purchase. The trailer tax had been paid at the time it was registered, but I missed the rest. Off goes a cheque now for the boat and accessories. Ouch.
Last edited by a moderator:
Dave S
Active Member
Wow, that took them a while.
Read the requirements for boat registration carefully. You need to send certain documents and sign a declaration stating its ok for the boat registration office to share that information with the province for tax purposes.
That's how you get the tax bill.
It's funny though, read the requirements carefully and you might notice one thing you are not required to have on your documents is the purchase price. If the province doesnt have documentation on how much you paid how will they tax you?
That's how you get the tax bill.
It's funny though, read the requirements carefully and you might notice one thing you are not required to have on your documents is the purchase price. If the province doesnt have documentation on how much you paid how will they tax you?
Fish Rider
Member
I'm in the boat it took them two years to tell me I have to pay pst on the boat. I just purchased my first house and couple weeks later there was a letter in the mail. Boat was registered to transport canada two years ago in my name from previous owner. Trailer pst was paid when I purchased insurance. I will be sending a cheque as well. Just wondering why it took so long? I wasn't hiding from the government.
Adler
Well-Known Member
Yeah, odd it took this long. GDW, the letter actually provides an estimated tax to be paid based on the information the Min of Fin has on my boat, and based on the sales of similar boats. Their estimate is more than double what I will be sending in, based on the real purchase price, and to prove that, I'll be sending in a copy of my purchase agreement.
Big Green Machine
Well-Known Member
So if you buy a boat that does not need to be licensed, i.e. Under 15 HP, the Ministry of Finance can't track or estimate the tax due on your used boat purchase because there is no record of it with Transport Canada?
An estimated tax amount hey? I suppose I'll get one of those too.
BGM your right if you don't licence your boat for any reason you won't get a tax bill but you are supposed to pay the tax.
If you buy anything used (even a $5 item) your supposed to pay PST though and the seller is supposed to claim that $5 on his income tax. Of course nobody does but that's how the government would like it to work.
BGM your right if you don't licence your boat for any reason you won't get a tax bill but you are supposed to pay the tax.
If you buy anything used (even a $5 item) your supposed to pay PST though and the seller is supposed to claim that $5 on his income tax. Of course nobody does but that's how the government would like it to work.
bigbruce
Crew Member
Sorry, GDW, but I don't think your correct on that income tax thing. Income tax would only be a concern if you were paying cash for a service provided by another and did so to avoid paying GST. Presumably the provider of the service would do this so as not to create a record of the transaction and not claim the amount you paid as income for tax purposes.
You can sell all the goods you want and not be required to claim the amount you sold the items for as income - unless, of course, you were making a profit on the sales, and the amount of profit could be considered taxable.
You can sell all the goods you want and not be required to claim the amount you sold the items for as income - unless, of course, you were making a profit on the sales, and the amount of profit could be considered taxable.
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