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Old 12-04-2018, 09:27   #1
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Buying an American boat as Canadian

Hello all,

Long story short, my wife and I are planing to buy a C&C 42 USA registered) in NC and sail from there heading South.

As we are canadian we cannot register it in the USA. So I was wondering if someone knows if we buy it in, register it in Canada but do NOT bring it back to canada if we have to pay Canadian taxes?

many thanks

Sam
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Old 12-04-2018, 09:37   #2
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Re: Buying an American boat as Canadian

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Originally Posted by MisterTranquill View Post
Hello all,

Long story short, my wife and I are planing to buy a C&C 42 USA registered) in NC and sail from there heading South.

As we are canadian we cannot register it in the USA. So I was wondering if someone knows if we buy it in, register it in Canada but do NOT bring it back to canada if we have to pay Canadian taxes?

many thanks

Sam
No, you only pay taxes when (if) you bring boat back into Canada. If it stays outside all the time do dont, pay taxes at all
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Old 12-04-2018, 10:32   #3
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Re: Buying an American boat as Canadian

True^^^^

Here's the govt site:

Canada Border Services Agency (CBSA) - Home
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Old 12-04-2018, 10:44   #4
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Re: Buying an American boat as Canadian

Why can't it be reg in USA
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Old 12-04-2018, 11:04   #5
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Re: Buying an American boat as Canadian

Quote:
Originally Posted by MisterTranquill View Post
Hello all,

Long story short, my wife and I are planing to buy a C&C 42 USA registered) in NC and sail from there heading South.

As we are canadian we cannot register it in the USA. So I was wondering if someone knows if we buy it in, register it in Canada but do NOT bring it back to canada if we have to pay Canadian taxes?

many thanks

Sam
No expert on taxes or anything else besides health care maybe and even then probably not!. Good news if you buy a boat in NC I do not think they tax used boats. I an curious if you are confusing documentation with registration. If you sail in any states waters 9they vary as to time) you are required to obtain a registration. Think Florida is 180 days and WA state is 90 days. Know a guy from Oregon who kept his boat in WA and was angry and shocked he had to pay WA taxes.

Allow me to reverse this for friendly argument sake. If I purchased a boat and used in Sydney Harbor a great sailing area if you can avoid crab pots. Would I not be required to obtain a registration in Canada or you equivalent? Something not out of the question for me s I LOVE THE Sydney Marina, the office, the great town.Whats not to love about Sydney? Did I mention the bay is huge and makes for great sailing!

Tax questions especially Canadian ones are better addressed by lawyers IMHO.

tHANK yUOU Michael cAREY!
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Old 12-04-2018, 11:21   #6
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Re: Buying an American boat as Canadian

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>>>>>>>>>>>>>>>>
>>>>>>>>>>>>>>>>>>>>>>
If I purchased a boat and used in Sydney Harbor a great sailing area if you can avoid crab pots. Would I not be required to obtain a registration in Canada or you equivalent? Something not out of the question for me s I LOVE THE Sydney Marina, the office, the great town.Whats not to love about Sydney? Did I mention the bay is huge and makes for great sailing!

Tax questions especially Canadian ones are better addressed by lawyers IMHO.
Sydney is in Australia. Sidney is in Canada.

Tax for boats is not the subject for lawyers. It is the subject of the CBSA, and their website, to which I provided a link.

I imported my 32 year old American boat a few months ago because I moved here in 2016 and waited until my California state registration expired at the end of 2017, all the while traveling to the USA to stay legal. I read the website. Then I asked a friend of a friend who had imported her boat. She simply confirmed what I'd learned and showed me the form they used.

Do your homework, it ain't that hard.

And you should learn about the difference, in the States, between US state registration and federal documentation. It is analogous to provincial licensing and CAN federal registration. Same words, different meanings in each country.

FYI, there have been endless discussions on this forum about state licensing, FL laws, etc. I small search on your part will uncover all you need to know about the quirks of each State, the amount to pay, cost benefits of older boats in FL for state registration, and all the rest of the fun'n'games involved. That's if you care to.

Good luck.
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Old 12-04-2018, 11:31   #7
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Re: Buying an American boat as Canadian

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Sydney is in Australia. Sidney is in Canada
Sidney is in BC, Sydney is in Nova Scotia.
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Old 13-04-2018, 08:30   #8
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Re: Buying an American boat as Canadian

I bought a boat in Phuket, Thailand in 2001. It was registered in the UK. I registered it in Canada at the time.

Didn’t pay any taxes till we sailed into Victoria Harbour 10 years later. I was given 48 hours to pay the bill.
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Old 13-04-2018, 08:44   #9
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Re: Buying an American boat as Canadian

So, the way I see it, is you are planning to sail south, but not outside US territorial waters? So you really only need proof of ownership, which is a bill of sale. I see some responses from fellow BC boaters about taxation laws and such, and not sure if you ever brought it back where in Canada you might register. The tax to register a boat in BC is 12% of the sale price.
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Old 13-04-2018, 09:02   #10
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Re: Buying an American boat as Canadian

You buy the boat and have the prev. Owner deflag and/ or deregister it. Then you register it as Canadian (takes about 2 weeks) and pay tax / duty ONLY after (if) it comes to Canada.

The advantages of Canadian reg. are numerous.

You fly the CDN. flag. You get search and rescue coordinated by the Canadian coast guard and you are bound to Canadian safety equipment minimums and generally are left alone by officials that don't want to bother with the Canadian equipment standards..... :-)

Enjoy your new boat!!
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Old 13-04-2018, 09:08   #11
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Re: Buying an American boat as Canadian

Quote:
Originally Posted by Stu Jackson View Post
Sydney is in Australia. Sidney is in Canada.

Tax for boats is not the subject for lawyers. It is the subject of the CBSA, and their website, to which I provided a link.

I imported my 32 year old American boat a few months ago because I moved here in 2016 and waited until my California state registration expired at the end of 2017, all the while traveling to the USA to stay legal. I read the website. Then I asked a friend of a friend who had imported her boat. She simply confirmed what I'd learned and showed me the form they used.

Do your homework, it ain't that hard.

And you should learn about the difference, in the States, between US state registration and federal documentation. It is analogous to provincial licensing and CAN federal registration. Same words, different meanings in each country.

FYI, there have been endless discussions on this forum about state licensing, FL laws, etc. I small search on your part will uncover all you need to know about the quirks of each State, the amount to pay, cost benefits of older boats in FL for state registration, and all the rest of the fun'n'games involved. That's if you care to.

Good luck.
Thank You Stu. The OP state buying a used boat in NC and not bringing it back to Canada. States can not register the boat in US because of Canadian citizenship. I do not know why? I believe registration is required in the primary state the boat is being used. I have someone who buys boat in Oregon (No sales tax) then tries to keep boat in WA state. After so many days boat requires WA state registration and is also hit with taxes! Like your point regarding it differs from state to state. Thanks
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Old 13-04-2018, 09:26   #12
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Re: Buying an American boat as Canadian

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Originally Posted by Greg Mason View Post
So, the way I see it, is you are planning to sail south, but not outside US territorial waters? So you really only need proof of ownership, which is a bill of sale. I see some responses from fellow BC boaters about taxation laws and such, and not sure if you ever brought it back where in Canada you might register. The tax to register a boat in BC is 12% of the sale price.
Not quite.

The tax to IMPORT a boat into Canada in BC is 12%. 5% GST/HST and 7% PST. I just did it in March 2018.

From the Transport Canada website:

Register a pleasure craft

If you choose to register your pleasure craft, rather than licensing it, keep in mind the following differences in the procedures and markings:
  • There are fees to register your pleasure craft
  • The exterior markings on a registered pleasure craft are the name of the vessel and the port of registry, for example: Morning Star III, Toronto, ON
  • The interior markings on a registered pleasure craft are the official number and the registered tonnage, for example: O.N. 123456, N.R.T. 4.52
There are fees These fees have nothing to do with the tax to import a boat.

Licensing a boat in Canada is free.
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Old 13-04-2018, 10:14   #13
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Re: Buying an American boat as Canadian

We bought our boat in Washington state, it was registered in California and made in Hong Kong 1973.
We brought it here in Victoria in 2016. We paid 12% taxes and 9.5% import duty. Even now I try not to think about it, otherwise I will swear in French Taber........ and go mad. Instead I enjoy the ride.
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Old 13-04-2018, 10:17   #14
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Re: Buying an American boat as Canadian

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You buy the boat and have the prev. Owner deflag and/ or deregister it. snip

Enjoy your new boat!!
Yup -- prior owner can get the "deletion from documentation" form here https://www.dco.uscg.mil/Our-Organiz...ons-and-Forms/

Make that a condition of sale, and hold back money until he can provide proof that it's done. That's not the kind of "loose end" you want to have to chase anyone for, and if it's not done it might cause problems for you when you try to register or sell it.
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Old 13-04-2018, 10:35   #15
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Re: Buying an American boat as Canadian

We are Canadian, and bought in Florida and sailed to Cuba and Cancun. Canada told us we could not register in Canada if it would never come here. Mexico wanted 16% tax. Finally we got a trusted captain in Mexico to someone, not back street either to register it for us in Delaware for 100 US, and about 120 US for paperwork, she does it all the time. We were trying to avoid paying taxes . Bernadette and Bruce
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