Canadians Bound for the Caribbean - Got Questions!

[Chief Engineer]

Lotsa boats 4 sale in the Chesapeake

Don't try working in the Islands....the locals want you to visit...not move there.

[SydneyTim]

Ignoring the need for work on the boat which can extend the limit, the easiest solution to the 90 day rule is this:

Buy the boat, re register as a Canadian vessel, sail to Bimini, clear in, clear out and return to the USA as a Canadian vessel. You will be given a US cruising permit valid for 12 months and you are now exempt from Florida sales tax.

If you are anywhere other than Florida when you buy the Customs guys might know the law and actually give you the permit without the vessel arriving from Foreign, that said you probably aren't due teh sales tax either!

We did exactly this, and agreed everything with the very helpful guy at the Florida revenue office in advance.

On where to buy, the advantage of USA is the sheer number of baots to choose from. Look at lots of boats there, then having decided what you want look if one is available for sale elsewhere.

[GordMay]

Originally Posted by SydneyTim

Ignoring the need for work on the boat which can extend the limit, the easiest solution to the 90 day rule is this:
Buy the boat, re register as a Canadian vessel, sail to Bimini, clear in, clear out and return to the USA as a Canadian vessel. You will be given a US cruising permit valid for 12 months and you are now exempt from Florida sales tax...

The Florida sales tax (MIN. 6%) is cheaper than the Canadian 5% GST + PST (8% in Ontario).
You’ll have to pay tax, in whichever jurisdiction you licence/register the boat.

[Vasco]

Gord,

If you don't bring the boat into Canada you don't have to pay PST or GST.

[osirissail]

- - Actually there are a few variations on the buying a boat in Florida. If a USA citizen/legal resident and especially a Florida resident - if you take the boat out of Florida waters within 10 days of purchase you are exempt from the "6% Sales Tax." However, the State is not stupid - they want their money one way or the other - so they have a Florida "Use" tax/fee that just so happens to be 6% for any boats used in Florida waters for more than 90 days. Commercial use vessels are exempt from both by a little known "loophole" in Florida Tax statutes - which must be cited when attempting to use the loophole.
- - However, if as a non-USA citizen/legal resident you register the boat in Florida or any other State that allows you, you will probably have to pay a tax as specified by that State. And you will not be able to take the boat to most foreign countries as you cannot obtain a USCG Certificate of Documentation as a non-citizen.
- - The post about getting Canadian Documentation and being able to defer the Canadian Taxes sounds like the best avenue to pursue. And the real life secret to avoiding any hassles is to keep moving the boat from one jurisdiction to another. In other words you bought a boat, use it.