Old HST vs New PST/GST on private sale of vehicles.

[fishhunter327]

Trying to find info on how the new tax rates apply to a private sale of a used car.Is it worth it to wait until after April 1st to make my purchase?Can,t seem to find any info on the net.

fishhunter327

 

[scott craven]

Trying to find info on how the new tax rates apply to a private sale of a used car.Is it worth it to wait until after April 1st to make my purchase?Can,t seem to find any info on the net.

fishhunter327

Nope it will be exactly the same.
7% pst + 5% gst = 12 %

 

[fishin_magician]

Ummmm..interesting question.

http://www2.gov.bc.ca/assets/gov/to...B8B2E1451/uploads/whats_taxable_whats_not.pdf

 

[bigbruce]

It will still be 12%. The Government changed the regulations to equalize the taxes on public and private sales of autos. This was done outside of the whole PST/HST deal. The way it "used to be" doesn't apply here. Buy now, buy later - same tax.

 

[fishhunter327]

Thanks guys ,no surprize there .I wonder if "Uncle Jimmy" had any influence on that?Thanks fishin_magician thats the missing Link.

 

[Time]

PST on used cars bought privately are subject to 12% PST and no HST (as they have been for the past w years).
Cars bought from a 'dealer' are subject to 7% PST plus 5% GST.
No benefit to waiting to buy or sell a vehicle.

As a sidenote, I think the thinking behind the PST being set at 12% was partly to increase or maintain government revenue and, in what cheeses me off, to 'level the playing field' between the car dealers and individual sellers, after all, we can't have anybody being able to offer a better deal than the car dealers through a tax saving.

 

[Rockfish]

A number of people bought new to them used boats a little before the transition to the HST and thus saved a lot in taxes. I am not buying the used car and boat tax changes as being separate from the HST introduction although I understand that is the argument that government is trying to make and that the used car lot industry in particular lobbied heavily to get so they could have less competition from private car sales and be able to sell for more profit.

For me the HST will not be truly replaced until the total tax costs on used boats is the same as before the introduction of the HST.

Not 100% sure about used cars but if that tax change went through at the same time as the HST introduction then the same thing. I seem to recall that government promised that all previous exemptions would be reinstated when we went back to the PST/GST. I am not sure that is actually happening.

 

[fishhunter327]

PST on used cars bought privately are subject to 12% PST and no HST (as they have been for the past w years).
Cars bought from a 'dealer' are subject to 7% PST plus 5% GST.
No benefit to waiting to buy or sell a vehicle.

As a sidenote, I think the thinking behind the PST being set at 12% was partly to increase or maintain government revenue and, in what cheeses me off, to 'level the playing field' between the car dealers and individual sellers, after all, we can't have anybody being able to offer a better deal than the car dealers through a tax saving.

Yes I agree,and I'm sure the car dealers don't want used vehicles to be at an advantage of lower tax over a new vehicle either.

 

[Rockfish]

http://www.cbc.ca/news/canada/british-columbia/story/2013/03/26/bc-hst-pst-used-cars.html

Looks like we are not back to Pre HST when it comes to used cars as others have said. Nice of them not to call it HST at least.

Anyone know what they are doing with used boats?

 

[bigbruce]

http://www.cbc.ca/news/canada/british-columbia/story/2013/03/26/bc-hst-pst-used-cars.html

Looks like we are not back to Pre HST when it comes to used cars as others have said. Nice of them not to call it HST at least.

Anyone know what they are doing with used boats?

Same thing as with cars. Airplanes too.

 

[fish4all]

Does that include if you are buying it through a company? I understood that if I bought now in the company then i claim back the 12%hst as opposed to 5%gst later

 

[trendsetter]

Does that include if you are buying it through a company? I understood that if I bought now in the company then i claim back the 12%hst as opposed to 5%gst later

It's more complicated if you are purchasing it as a business expense. Yes, if you buy before the switch you can claim the full 12% HST input tax credit. After you will be able to claim the 5% GST input tax credit and 7% as a PST input tax credit which may not be worth as much depending upon your business setup.

 

[Rockfish]

An Interesting Analysis

http://opinion.financialpost.com/2011/09/06/don’t-buy-a-used-car-from-your-province/

 

[fishhunter327]

pattison... not much to say and not a shock

I prefer Uncle Jimmie.

 

[Rockfish]

http://www.vancouversun.com/opinion/op-ed/transfer+used+cars/8163565/story.html