Implication of Transition from HST to PST when Purchasing a Boat

[Captain PartyMarty]

Hey Guy's

I am wondering are there any advantages to waiting until after the PST has been reintroduced to buy a boat?

Is there a diffrence if I buy locally (BC) or go to the states?

 

[trendsetter]

No advantage. You will have to pay HST prior to April first or GST+PST after April 1st. 12% either way. Too bad the province didn't vote to keep the HST and have it reduced to 10%. Then there would have been an advantage.

And no difference buying locally or in the states either as you would have to pay the taxes at the border.

 

[Jencourt]

Are you sure about gst on a used boat??????

 

[Degree of Freedom]

prior to HST there was only one tax on used boats...you pay the same amount of tax whether you buy it in the States or Canada

 

[Sculpin]

prior to HST there was only one tax on used boats...you pay the same amount of tax whether you buy it in the States or Canada

Yup, and they don't take checks at the border (don't ask me how I know lol). Cash or Credit card only.

So if they implement the G.S.T. along with the P.S.T. on used boats after the H.S.T. then they are bending us over.

 

[JAC]

From what I know you will pay just pst on used boats bought in Canada. This is because the gst was paid when it was bought new. If you buy a new or used boat from out of country you will then have to pay both the pst and gst.

 

[trendsetter]

Nope, they are going to ding boat purchases at 12% under the GST/PST system as well. I was just looking into this yesterday for a budy that just bought a boat.

"As previously announced, the return to PST will also see:

B.C. HST Credit eliminated.
B.C. Sales Tax Credit re-implemented.
Basic Personal Amount Tax Credit enhancement reversed.
Tobacco Tax Rates adjusted to keep price levels constant.
Continuation at 12 per cent of the tax on private sales of vehicles, boats and aircraft.
The PST rate of 10 per cent on liquor will be reinstated with the re-implementation of the PST. Liquor mark-ups will be reduced to generally keep shelf prices constant.
The tax on propane will be re-implemented. The tax rate will be 2.7 cents per litre, the same rate as prior to the implementation of the HST. "

 

[Degree of Freedom]

From what I know you will pay just pst on used boats bought in Canada. This is because the gst was paid when it was bought new. If you buy a new or used boat from out of country you will then have to pay both the pst and gst.

I've purchase two boats in the States (pre-HST) and paid the same tax as I would have if I bought them here...unless they're changing something, you will not be paying both taxes on the boat if purchased in the States. I believe both taxes were paid on the trailer, though.


Edit:
Posted at the same time as trendsetter...looks like things may be changing...

 

[Sculpin]

From what I know you will pay just pst on used boats bought in Canada. This is because the gst was paid when it was bought new. If you buy a new or used boat from out of country you will then have to pay both the pst and gst.

Your right JAC. I had to pull my receipts. I did pay both taxes at the border on the boat. I only paid g.s.t. on the trailer though!. Previous used boats bought in B.C. I only paid p.s.t.

 

[JAC]

Yes you only pay gst on the trailer at the border and then you pay the pst when you register with Icbc

 

[trendsetter]

If you are buying a boat through LOCAL private sale ask for separate bills of sale for the boat, trailer and outboard. This way you only pay the full tax on the trailer and boat. Unfortunately if the boat is an inboard that doesn't apply.

You can also separate out the removable items from the boat like downriggers, nets, lifejackets etc. These are not considered to be part of the boat and not subject to tax when registering the boat. For a US purchase I believe you will get taxed on everything at the border.

 

[Time]

No gst on private used boat sales, but the PST remains at 12%.
No benefit to waiting till after April 1.
As usual, we're getting screwed. Before the HST was introduced there was no gst on used boats and a PST of 7%.
HST came in and PST went to 12%.
HST comes off and PST remains at 12%.

This site gives a list of pre and post HST tax rates, boats on page 5.

http://www.pstinbc.ca/media/2013_GST_PST_List_WEB_Dec2012.pdf