Question for experienced boat purchasers

[alverz2007]

Hi everybody,
Anybody know what fees, duty, taxes, etc would be involved if I'm from Canada and purchasing a sail boat from the US or any other country (besides monetary conversion) ?
Thanks,

[SVTatia]

If boat was built in the US you pay the HST when you register in Canada. If you truck it in, you pay the HST plus the broker to clear customs.Done once, painless process.

[admiralslater]

I'm Canadian and purchased a boat offshore 3 years ago. If the boat was not built in a nafta country you will pay about an extra 10% on top of of the provincial and federal tax. In Ontario this would be 13 for a total of 23 %.
We flagged Canadian but keep the boat offshore

[ranchero76]

Originally Posted by admiralslater

We flagged Canadian but keep the boat offshore

Could you explain please? Did you simply put canadian flag and kept boat registered somwhere else? Is it legal? Can you visit Canada on such boat? If yes, what are limitations?

[REsCat]

Originally Posted by ranchero76

Could you explain please? Did you simply put canadian flag and kept boat registered somwhere else? Is it legal? Can you visit Canada on such boat? If yes, what are limitations?

You register the boat in Canada and therefore you are flagging it CDN. You do not pay any Txs/duty etc as long as you do not bring it into Canadian waters.

By doing this you enjoy our proud CDN! "hoser, eh... " status abroad in the world.
But... you can never bring it into Canada! (well actually I think you can come in once or twice for 24-48 hrs, but try to stay any longer, the taxman will have his hand out and expect to be promptly paid of the above amounts. Your choice.

Bob

[ranchero76]

That's interesting. Where I could find more information about such registration? Can boat be registered under company name? How it's compared to offshore (Panama etc.) registration ?

[DavidLGCrawford]

1. You can set up a company in most countries and register the boat there. They may charge an import duty if you visit that country, but going to Canada is free (well, you'd need a cruising permit).
2. You can register the boat in Canada, keep it outside Canada and have no taxes (what we did). You will probably have a cetain amount of time to get it out of the place you purchased it to avoid sales tax there. In Florida the tax is 6% (or was it 6.5?) but you can purchase a tax exemption sticker, leave the state in 90 days and pay nothing.
3. You can register in Canada and bring it in, paying HST, and if it was built in non-NAFTA country pay duty (something like 8 to 15% depending upon build country). South African is 9.5%, others you would have to check.

[SVTatia]

Originally Posted by ranchero76

That's interesting. Where I could find more information about such registration?...

Vessel Registration Office - Transport Canada

[scareygary]

I have a different view than the tone of many of these responses. I'm so sick of people doing whatever they can to avoid taxes on purchases of every type, even to the extent of 'offshoring' properties. Then many complain about why there are so many CUTS to programs and services provided by government, many of them very useful. I shouldn't have to list them, if you simply look. As someone who chose to work in the public sector as an educator, most of my pennies earned were ultimately paid by TAX dollars from one source or another, and every item I bought in stores (like yours?) for boating supplies or whatever is a tax dollar coming home to roost.

If one can afford a BOAT, one should be able to kick in some for the services we expect, from nav aids to public moorages, parks, local Coast Guard services, government weather, etc. I've seen SO many big, expensive boats come to marine parks and not even pony up for registration and fees to stay there, but then complain if they see something lacking maintenance, etc. Talk about 'privileged'

Respectfully, quit playing the game, and pay your doggone taxes and fees!

OKay....I'm now wearing body armor (or armour? for my Canadian friends?). I know full well this will tick off some folks, but I think this is a point of view that some might consider once in awhile)

[alverz2007]

Well, I've paid my taxes all my life but if I can save 25k on a purchase then I certainly will and won't lose any sleep about it.


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[ranchero76]

Originally Posted by scareygary

I have a different view than the tone of many of these responses. I'm so sick of people doing whatever they can to avoid taxes on purchases of every type, even to the extent of 'offshoring' properties. Then many complain about why there are so many CUTS to programs and services provided by government

LOL))) That's really funny! What about these with two (or more) passports? Should they pay taxes in all their countries just for piece of mind?)))
You REALLY should do DEEP research where corrupted governments (in fact, all of them are deeply corrupted, didn't you know?) spend most of PEOPLE's money. Why few a-holes own this world and the rest of us just surviving more or less successfully. Do you really believe that while you already paying (combining all taxes and BS "fees") more then half of what you're earning to greedy and everhungry government, is still not enough?! That's fine, they'll make you to pay 60,70 %, whatever. And they will make you think "it's all fair" . Good luck with that. I've seen by far better world in my life, so no thanks.

[alverz2007]

Oh god, there's one on every forum


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[alverz2007]

Totally right Ranchero


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[scareygary]

Still wearing the body armor. Nope, never suggested that one pay MORE than one's share, and certainly not suggesting flagging in more than one nation or any such nonsense. I am simply suggesting that if you want SERVICES from government (I'm American), like GPS, nav markers, dredging?, weather info, Coast Guard, marine parks, environmental protections and cleanup, docks, and so much more that are often taken for granted, then paying one's fair share in taxes is what one does, obviously. I don't expect something for nothing. I resist the theology that all government is BAD, and that we should take whatever measures necessary to avoid paying up what is owed. I'm quite sick of requesting for services from the CG, Corps of engineers and even police and hearing the same excuse for poor service. "Budget Cuts". And, for what it's worth, my EFFECTIVE federal tax rate is less than what I tip a good waitress. Perhaps I'm not the only one who could benefit from some research. State sales taxes, fed taxes, county property taxes and all of it lumped together probably don't exceed the 28% tax bracket I fall in for the feds. Even with a standard deduction, I pay no where NEAR my 'maximum bracket amount", and neither do you! Do what you think you need to, but I'm offering a dissenting opinion. I'll pay my fair share to support civilization, and I'll continue offering my opinion, thanks. Just trying to get some of you to see the issue from another perspective is all.. I'm not trying to pick a fight here, no matter how you want to interpret my remarks....

[TrentePieds]

There might actually be two :-)

As a wise man said: "Taxes are the price of admission to a civilized society". Don't know that he was Kinaydian, but it sure sounds like it ;-)!

TrentePieds