Is there tax on a used boat in Canada?

Is there tax on a used boat in Canada?

Specified vehicles without a Red Book value (e.g., off road vehicles, boats, aircraft, etc.) are taxed at 13% based on the purchase price. Specified vehicles purchased outside Ontario but within Canada are also taxed at 13% on the purchase price.

Do you pay GST on used boats?

Amazingly, most provinces continue to collect a provincial sales tax (PST) each and every time a boat is sold on the used market. Alberta there is no sales tax at all! None of the taxes – GST, PST, sales and fuel taxes – are directed towards funding of any recreational boating services.

Do I have to pay sales tax on a used boat in Ontario?

Boats are registered by the purchaser at Transport Canada federal government offices. Transport Canada does not collect tax from the purchaser at time of registration. Boats purchased outside Canada may be subject to the 8% Ontario portion of the HST .

Do I have to pay taxes when I sell my boat?

If the boat was for your private personal use and you sold it for less than its purchase price, you do not have to report anything on your tax return. You had a capital loss on the sale of the boat and capital losses on private property are not deductible.

What kind of taxes do you pay on a boat in Ontario?

When Ontario instituted the 13% ‘harmonized tax’ (HST combines 8% provincial sales tax with 5% GST), Ontario boaters started to pay an extra 8% on previously exempt costs: dockage, winter storage, mast stepping, haulout, holding tank pumpout, fuel and brokerage fees. (Nova Scotia, New Brunswick and Newfoundland have HST.

Do you have to pay sales tax on a new boat?

In most provinces this adds a hefty amount to the price. The only way to save money on a new boat is with a trade-in, if you only need to pay sales tax on the difference. Amazingly, most provinces continue to collect a provincial sales tax (PST) each and every time a boat is sold on the used market.

How is luxury tax calculated on a boat?

In practice, the tax would be calculated as the lesser of 10 per cent of the full value of the boat or 20 per cent of the value above $250,000. So, for instance, a $350,000 power cruiser would be charged $20,00 in luxury tax. GST/HST is applied to the final sales price (including the luxury tax).

Where do you pay the HST on a boat in Ontario?

If RST is applicable, purchasers can make payment at any ServiceOntario centre or directly to the Ministry of Finance. Boats purchased outside Canada may be subject to the 8% Ontario portion of the HST. ServiceOntario centres cannot accept payment of the 8% Ontario portion of the HST for boats and aircraft.