Taxes due on a used boat

[vetteman]

Here is something I didn't know...
http://www.sbr.gov.bc.ca/documents_library/bulletins/pst_108.pdf

That clears up all the misconceptions.
Dave

 

[GLG]

Ok here is another....
http://www2.gov.bc.ca/assets/gov/to...B8B2E1451/uploads/whats_taxable_whats_not.pdf

So it looks like there is no GST on the sale of used boat/ motor/ electronics / riggers / fishing gear but full tilt plus tax with PST (12%) on that stuff..... sad.
Must be new changes when the cons switched from HST back to PST.
New rules that I'm may not be up on as some of the other members here.

 

[GDW]

Oh good it says in one of the links that boats purchased strictly for aquaculture are PST exempt so I'd guess birdsnest got his tuna machine tax free.

But charter operators or other people who use boats for business all must pay just their fish farming friends get a break.

Wish I never registered my boat at 12% tax I could pay multiple transport canada fines for no registration and still come out ahead. And really how often do they check? Could probably own my boat for 10 years and maybe get checked once.

I'm still waiting for my tax bill and I bought the boat in 2009. Question is will I have to pay current rules 12% or former rule of 7%? Had I gotten the tax bill right away it would have been 7% but now the rules have all changed.

 

[scott craven]

It will arrive when your kids need braces, the furnace quits and the transmission falls out of the truck....

 

[JAC]

I wonder how far back they will go. I don't think you need to keep tax documents pass 7 years so maybe you will make it. With pst changing to hst and back to pst you gottta think something have slipped through the cracks

Oh good it says in one of the links that boats purchased strictly for aquaculture are PST exempt so I'd guess birdsnest got his tuna machine tax free.

But charter operators or other people who use boats for business all must pay just their fish farming friends get a break.

Wish I never registered my boat at 12% tax I could pay multiple transport canada fines for no registration and still come out ahead. And really how often do they check? Could probably own my boat for 10 years and maybe get checked once.

I'm still waiting for my tax bill and I bought the boat in 2009. Question is will I have to pay current rules 12% or former rule of 7%? Had I gotten the tax bill right away it would have been 7% but now the rules have all changed.

 

[big.griff]

Oh good it says in one of the links that boats purchased strictly for aquaculture are PST exempt so I'd guess birdsnest got his tuna machine tax free.

But charter operators or other people who use boats for business all must pay just their fish farming friends get a break.

Wish I never registered my boat at 12% tax I could pay multiple transport canada fines for no registration and still come out ahead. And really how often do they check? Could probably own my boat for 10 years and maybe get checked once.

I'm still waiting for my tax bill and I bought the boat in 2009. Question is will I have to pay current rules 12% or former rule of 7%? Had I gotten the tax bill right away it would have been 7% but now the rules have all changed.

My tax form breaks down the different tax amounts for the changes. You pay the tax that was in effect when you bought your boat. Prior to July 1,2010 it is 7%

 

[NootkaSounder]

I just got my letter Today, So even if i buy the boat in BC register the trailer and bring it here. I still have to pay 12% witch is $1800.00
on the bright side it only took them a year and three months to send me this letter.

a bit poed as it of course come at the worst time, just hashing contracts out for work.

sucks

 

[Clipper]

It's a Transfer Tax and it's an absolute rip off! Aggravates me to the extreme!

 

[NootkaSounder]

what if someone had a boat registered in bc, but the boat was located in Alberta...thus not bought in the province..

first line of the letter
"when a boat is purchased at a private sale in British Colombia, provincial tax is applicable"

got me thinking..

Why do they assume the transaction was in BC, boats are very mobile.

 

[bigbruce]

As long as you don't apply to have the registration number transferred to your name, the Government would not find out about the change in ownership. Of course this means that the registration certificate you carry on the boat in case you're ever checked for it on the water would have someone else's name as the "owner" of the boat. That could be complicated to explain.

 

[ziggy]

Wonder if it would have insurance implications? Can you carry insurance on a boat you don't own? For sellers are you responsible for a boat you only own on paper? Could get messy!

 

[KatieB]

A bill of sale signed by both seller and buyer is enough to satisfy most situations.

 

[ziggy]

A bill of sale signed by both seller and buyer is enough to satisfy most situations.

You might be right but it sure doesn't work for any other vehicle.

 

[bigbruce]

Yes, a bill of sale will prove ownership - but you could still have some explaining to do if your boat registration is checked and you don't have anything to show the boat number is registered in your name.

 

[ziggy]

When I was checked , shortly after buying my boat,they asked for a bill of sale and a copy of my registration application.

 

[J-GLOBAL]

I got a bill for the PST owed on my boat bought 3+ years ago, although I had paid the combined HST when importing it.
Seems CRA doesn't share info with PST people.
PST people had billed me for Taxes + Interest.
I sent in a copy of my CRA HST receipt and it was all cleared up. Was easier to resolve than I thought it might be.

 

[KatieB]

Bill of sale will count for something but not everything. I'm sure you couldn't insure a boat without the registration officially taking place. Application for registration doesn't mean it will be accepted. Curious if anyone has achieved insurance without official registration taking place. Years ago this was a much simpler process as the access center could process it, now you have to mail it off to Fredricton for it to be processed and mine took over a month to get back to me with my numbers.

 

[Wiseguy]

Bill of sale will count for something but not everything. I'm sure you couldn't insure a boat without the registration officially taking place. Application for registration doesn't mean it will be accepted. Curious if anyone has achieved insurance without official registration taking place. Years ago this was a much simpler process as the access center could process it, now you have to mail it off to Fredricton for it to be processed and mine took over a month to get back to me with my numbers.

I insured my boat right after purchasing it,(this was a few yrs ago) without the registration papers. My application for registration was not returned for three months after applying. The insurance company asked for the serial numbers on the boat and motor, all the particulars (make,size,style, etc) estimated value and a few pics of the boat.

 

[Fishalot]

Hmmmm. If you requested a new registration number because it was now an Alberta boat would that satisfy BC for a tax exemption? Each province has their own registration numbers starting with abbreviation for province. Probably have to register trailer there as well......

 

[bigbruce]

I had my boat and trailer insured effective the date I picked it up in Oregon. All I needed was a description and hull number of the boat and the serial numbers of the engine, kicker and trailer. At that time, the boat had an Oregon registration. I did not need a BC registration number for insurance purposes. In fact, I'm not sure I ever provided the insurance company the registration number even after I received it - a couple of months after I purchased the boat.
I suspect if one was going to register one's boat in Alberta to avoid paying BC sales tax one going to need an Alberta address to do it. You would also want to ensure your bill of sale also had the same Alberta address on it.