Canadian Taxes on out of country purchase - Alberta

[Macblaze]

Originally Posted by Sapper

... it looks as though the boat would need to have the PST paid on it when brought into BC no matter what. But if I move the boat to Alberta within 30 days, that tax is refunded by the BC government.

If this is true then I would owe someone some money. And I don't. If you are an Albertan you don't have to pay the BC PST as long as you didnt buy the boat "in" BC.

[Sapper]

Originally Posted by Macblaze

If this is true then I would owe someone some money. And I don't. If you are an Albertan you don't have to pay the BC PST as long as you didnt buy the boat "in" BC.

Thanks Macblaze. I'm going to need to make some calls to Transport Canada and BC Revenue Services. I don't want or need any gotcha's. I fully trust what you are saying and I really hope to dear god you are correct, and so does my wallet :P

[chris mac]

We put on our offer and bill of sale, "sale deemed to take place in Alberta canada"

[Kelkara]

Here's the official guidelines:
https://www2.gov.bc.ca/assets/gov/ta...-108-boats.pdf


I think the relevant part is...

Non-residents generally must pay PST on all goods they bring, send or receive delivery of in BC. However, if you are a non-resident individual and bring a boat into BC solely for non-business purposes, you are exempt from paying PST on the boat.

[Sapper]

Originally Posted by Kelkara

Here's the official guidelines:
https://www2.gov.bc.ca/assets/gov/ta...-108-boats.pdf


I think the relevant part is...

Yep. Page 8. That about says it all! Thank you!

[Navi2016]

Ya ... its a process

Recently bought a boat built in the UK and brought to the USA by an Canadian, the person saved some taxes by not officially importing the vessel into Canada. There is a branch of law called Admiralty Law ....

I learned a bunch when I registered and vessel entered into Canada.

My suggestion would be to spend some quality time with Canada Customs and a Lawyer, you might save some frustration later

[NorthPacific]

Its even worse than you think.

They tax on Tax

Honest

[NorthPacific]

I live part of the year in BC. One way round it is to keep the boat only 6 months of the year in BC and then six over the boarder the USA. Blaine Washington is full of Canadian owned boats.

Covid has closed the border at the moment, but you never know the Virus may just go awayhttps://www.cruisersforum.com/images/smilies/whistling.gif

[danstanford]

Bit of a twist on this question. If I trade-in a boat for another boat here in Ontario I pay HST on the difference not the full price of the new boat. If I do the transaction in the US, does anyone know if the same rule applies?
The sale and purchase would happen in the US.

[Macblaze]

Originally Posted by danstanford

Bit of a twist on this question. If I trade-in a boat for another boat here in Ontario I pay HST on the difference not the full price of the new boat. If I do the transaction in the US, does anyone know if the same rule applies?
The sale and purchase would happen in the US.

Based on my experience you would be worse off and have to pay the HST on the full price of the boat (if you brought it back to Canada). But that's more of a WAG tan actual knowledge.

[Mike OReilly]

Originally Posted by danstanford

Bit of a twist on this question. If I trade-in a boat for another boat here in Ontario I pay HST on the difference not the full price of the new boat. If I do the transaction in the US, does anyone know if the same rule applies?
The sale and purchase would happen in the US.

How does this work? Do you mean that the newer boat's sale value is reduced by dealer based on the trade-in's value? Therefore you only pay HST on the new sale value? I guess that makes sense since it's a consumption tax applied to the end sale price. I assume the same happens with vehicle sales.

If you performed the same transaction at a dealer in the USA, the end sale price would also be lower. Since you pay HST (when you import the boat) based on the sale price, the same outcome would occur ... no?

... Or have I hopelessly convoluted your question.

[sv_pelagia]

HST, in Alberta?

[Macblaze]

Originally Posted by sv_pelagia

HST, in Alberta?

I think Dan was just "borrowing" the thread for an Ontario question. But I do wonder how those blended provinces handle something where he might own PST but not GST or vice versa. Do you have to pay the whole shot regardless?

[Mike OReilly]

Originally Posted by Macblaze

I think Dan was just "borrowing" the thread for an Ontario question. But I do wonder how those blended provinces handle something where he might own PST but not GST or vice versa. Do you have to pay the whole shot regardless?

Yes, it would just be GST in Alberta. But yes, in Ontario you get dinged for the whole amount. When I imported my boat from the USA into Ontario I had to pay 13% tax on the sale price.

In Alberta it would only have been 5% -- but then where would I sail ?

[danstanford]

If you trade-in a $ 5,000.00 car to buy a $ 10,000.00 car you only pay HST on the difference in Ontario. With boats in Ontario it is exactly the same.

My question would be if I traded in a $5,000.00 boat to a US dealer on a $ !0,000.00 boat (I presume I would pay a $ 5,000.00 invoice), on which amount would I pay the HST?