A point of clarification. I have heard that there is no GST on a used boat but from what I've read you have to pay both PST and GST. Anyone know the correct answer?
This is the law:
When you bring anything that you have purchased in a foreign country into Canada
you are liable for GST and PST.
The value that these taxes
are calculated on varies depending upon the length of time that you have been absent from the country.
If you are away for more than 7 days, you are entitled to import
$750.00 worth of goods without paying duties or taxes
. You are required to pay taxes and any applicable duties on the amount that the value of the goods exceeeds the $750.00 exemption.
i.e.: You are out of Canada
for more than 7 days
You buy a boat for $10,000.00
You will be required to pay tax on $9,250.00
If you are away for more than 48 hours, but less than 7 days, your exemption is $400.00 rather than $750.00
If you are away for 24 hours or more, but less than 48 hours, your exemption is $50.00
When you arrive at the border, and if you are a resident of Ontario
, the CBSA will collect PST and GST on goods you import
, as there is a Memorandum of Understanding between the Province of Ontario
and the Federal Government
. Not all provinces and territories have this Memorandum of Understanding, hence the provincial sales tax is not collected from residents of some regions.
There is no duty on boats that are manufactured in a NAFTA country (Canada, US, Mexico).
There is no duty on boats that are manufactured in Costa Rica
, Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia
, Cape Verde
, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, East Time, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea -Bissau, Haiti
, Kiribati, Laos, Lesotho, Liberia, Madagascar
, Malawi, Maldives
, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Western Samoa
, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia
, Sudan, Tanzania, Togo, Tuvalu, Uganda, Vanuatu
, Republic of Yemen, Zambia, Anguilla
, Antigua and Barbuda
, British Virgin Islands
, Cayman Islands
, Guyana, Jamaica
, Montserrat, St. Kitts and Nevis
, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago
, Turks and Caicos
Boats imported from all other countries are subject to a duty of 9.5% of the transaction value (which is the price
paid or payable for the boat). This is not variable.
The duty is calculated after the currency of the transaction has been converted into Canadian Dollars.
Taxes are calculated on the sum of the transaction value and the duty.
You will need to be able to provide proof of the country of origin of the boat.
There are some situations where you may be able to import a boat that does not originate in one of the duty-free beneficiary countries without paying duty, if it has had extensive repair or refit
, in one of the beneficiary countries. This needs to be assessed on a case-by-case basis and can be done at any CBSA office.
You need to provide proof of clear title to the boat - at the minimum this would be a bill of sale
In the case of dispute regarding the value of imported goods, a Customs
Officer may detain goods until proof of the transaction value has been provided. This would happen rarely, and can be easily avoided by carrying copies of pre-sale correspondence, emails, advertisments, etc. In the case of dispute, the onus rests on the CBSA to prove that the price
paid for the imported goods were other than that declared.
Hope this helps