Registering vs Licensing Boat in Canada

[Mike OReilly]

Originally Posted by thelifenomadik

I guess, we will have to register the boat in Canada: $250, but the problem is, the boat is a catamaran and a tonnage survey is required, which will cost somewhere between $500-1100.
I was trying to see if only a licensing would be enough, which does not require such a survey and is free. (so there is a big difference between registration and licensing...) But it is not an option. And you are right, licensing is for vessels within Canada, registration can be done without the boat being in Canada. I guess, our only option is to find the cheapest tonnage surveyor possible...

Thank you!

Ah ... I understand. I guess I should have said registration or licensing makes no difference from an import tax perspective. Certainly does make a difference in cost and difficulty, especially in your case.

Good luck.

[Dsanduril]

Has the boat you are buying ever been through the Panama Canal? If so she should have be measured and a certificate might be available. If she's a manufactured boat might be able to use one from a sister ship to bring down costs.

[zumsel]

Originally Posted by thelifenomadik

Mike, I checked the date for this thread AFTER i posted
.......I guess, we will have to register the boat in Canada: $250, but the problem is, the boat is a catamaran and a tonnage survey is required, which will cost somewhere between $500-1100.....

I went through the same problem in June 2011. I bought a used 42' Catamaran in the Netherlands which was built in England. After sailing Lucia across the Atlantic and arriving in Halifax I had to pay HST plus Duty. Man I was glad that my boat is older, already built in 1988, but otherwise in tiptop shape. Still I had to shell out $20,000 for tax and duty.

I did only licensing my boat for the moment to avoid the extra costs for a tonnage measurement. My boat was custom built so I don't think that there are already figures easily available.

Don't try to licensing your boat while it is outside of Canada. Your provincial tax collectors will contact you soon after you got your license number and are asking to show prove that all taxes were paid. At least that was the case with my boat.

Cheers,
Jochen

[Vasco]

Originally Posted by Dsanduril

Has the boat you are buying ever been through the Panama Canal? If so she should have be measured and a certificate might be available. If she's a manufactured boat might be able to use one from a sister ship to bring down costs.

Panama Canal tonnage measurements are different from the tonnage measurements required to register a vessel in Canada.

[Heritage]

Originally Posted by thelifenomadik

(We are buying a used boat from USA, but we are not planning to bring her in Canada. )

thelifenomadik.wordpress.com

If you will not bring your boat to Canada, then you should not register or license it there. Instead state register in a US state. Instead of paying 13%HST plus duty in Canada, you will have to pay sales tax in whichever state you register it. Every state is different, and some such as Delaware, Rhode Island, and New Hampshire do not charge sales tax at all. And besides, if your boat is registered in any US state, you will not have to get a Cruising Permit to use it in the US.

If you are not a US citizen, you can not federally document your boat.
Your broker should be able to help you on this. For more information go to
Boat Registration & Title Information - MarineTitle.com

[Capt Phil]

Not certain whether Canada accepts the Bureau Veritas measurement for tonnage... I suspect they do as it is required in other countries with ties to the UK. It was interesting to know the number of guns a boat I had 'measured' for Cayman Island Registry was capable of carrying based on volumetric size. Although there was a difference in the number of '12 pounders' and the number of '20 pounders' allowed. Interesting information but useless in this day and age. On reflection, maybe not!... Phil

[jabiroo]

I have been researching this for a while but from a different angle. I am a Canadian citizen living in Washington State with a Green Card. I bought a 1993 Island Packet, paid state sales tax and registered the boat in state. I can't document because I am not a US citizen but I was told I could flag the boat in Canada for $250. I am a non-resident of Canada and shouldn't have to pay tax or duty, so I was told but no one seems willing to send that to me in a letter.

I know I will need a cruising permit which may be a small inconvenience but I am worried what will happen the first time I sail into Canada flying the Canadian flag and clear customs.
Any thoughts?

[Jd1]

Originally Posted by jabiroo

I am worried what will happen the first time I sail into Canada flying the Canadian flag and clear customs.
Any thoughts?

You will have been deemed to have imported the boat and all applicable taxes become due

[jabiroo]

Thanks Jd1. Do you think so, even if I am not a resident of Canada and don't file Canadian taxes? It sure doesn't apply when I drive my car into Canada, although it doesn't have Canadian plates.

I think I will stop in and ask the next time I drive up to Canada. Will let you know.

[mesquaukee]

As a non-resident you would not be deemed to be importing the boat into Canada. This is provided that you are in fact a non-resident of Canada and have some sort of documentation to that effect.

"The status of an individual who leaves Canada and purports no longer to be resident in Canada will not generally be affected by occasional visits to Canada, whether for personal or business reasons. However, where such visits are more than occasional, particularly where the visits occur on a regular basis, this factor together with other residential ties that exist will be examined to determine whether they are significant enough in total to conclude that the individual is a continuing resident of Canada. For example, a history of the periods of time an individual has spent in Canada would be relevant in determining whether the individual has established a pattern of regular visits to Canada"


"An individual who leaves Canada and becomes a non-resident will not usually retain any residential ties in the form of personal property (furniture, clothing, automobile, bank accounts, credit cards,) or social ties (club memberships,) within Canada after his/her departure. Where such ties are retained within Canada, the CCRA may examine the reasons for their retention to determine if these ties are significant enough to conclude that the individual is a continuing resident of Canada while absent. Other ties that may also be relevant in this determination are:

• the retention of a seasonal residence in Canada;
• the retention of child tax benefits and family allowance payments;
• the retention of provincial hospitalization and medical insurance coverage (other than extended medical insurance for visitors to Canada); (Provincial medical coverage is generally extended for three months after an individual leaves Canada. However, because each province has its own guidelines and policy regarding eligibility for benefits after leaving Canada, continuing coverage under a provincial plan will not be considered to be a significant residential tie, but will be given consideration when reviewing all the facts.)
• the registration of property that is being taken outside Canada with Canada Customs;
• the rental of a safety deposit box or postal box in Canada;
• the listing of a telephone number in a telephone directory in Canada;
• the continued use of stationery and business cards with a Canadian address; and
• professional or other memberships in Canada (on a resident basis)."

[GordMay]

Greetings and welcome aboard the CF, jabiroo.

[GordMay]

Originally Posted by mesquaukee

As a non-resident you would not be deemed to be importing the boat into Canada. This is provided that you are in fact a non-resident of Canada and have some sort of documentation to that effect...

See also the CCRA interpretation bulletin
“Determination of an Individual's Residence Status”
➥ http://www.cra-arc.gc.ca/E/pub/tp/it...consolid-e.txt

[jabiroo]

Thanks mesquaukee and Gord. I had to prove it once before in 2002 when I did a short consulting job in Edmonton. Since then I have kept my ducks in order. I will post my progress.
How does the 'sleeping giant' look these day in Thunder Bay Gord?

[Cap10]

This question may be a new topic or simply an extension of this one. I have purchased a boat in Florida and have the option of registering/licensing it in either Canada or the States? I am seeking pros and cons. For example...I am assuming Cuba is out if I have an American Flag flying! Can anyone help me with other issues and things I should consider? I believe others have said I pay no duty if regsitered in the States until I enter Canada. Please advise!

I can prove residency in either country and work back and forth so that is not an apparent issue.

Thank you! Cap10

[prior]

Having licenced about ten boats in Ontario i do not think the boat has to be "in province". I have never been asked where it was located. You can actually licence it by mail. The tax is due to the federalies so the provincials do not collect it. They do however provide the feds the list of newly licenced boat and they will come knocking.