Where to register

[pierrrre]

Hi,
I am in the process to buy a boat in the Bahamas. I don't want to register it in my home country (Canada) because of the ridiculous cost to import it here (about 25% of value when all said and done). Where would it make the most sense to register the boat at? I was thinking the BVI or maybe Bahamas. Am I on the right track?


Thanks

[Montanan]

The vessels registration / flagging, and importation [customs duty and VAT] are two entirely different and separate things.

If you are a resident of Canada, customs duty [if any] and VAT will be due upon its first arrival to Canada. The vessels flag state does not determine your Canadian taxation of the importation of the vessel to Canada, your status of residency is the determining factor.

If you are a Canadian citizen you may register your vessel to provide it with Canadian nationality and the customs / VAT will only become due if you import it to Canada.

In the alternative you could register the vessel with a country of convenience, that is to say countries with open registries.

Are you intending to bring the boat to Canada from the Bahamas.

[pierrrre]

Thanks for the reply.


I am not planning to "import" the boat to Canada. That being said, I would like to bring it up here for a few months in the summer. If I register it in Canada, the tax man will get me as soon as I cross the border. Correct me if I am wrong but if I register it under a flag of convenience, I could come spend a few months up here with it before heading back south for the winter. Right?

[sv_pelagia]

Originally Posted by pierrrre

Thanks for the reply.


I am not planning to "import" the boat to Canada. That being said, I would like to bring it up here for a few months in the summer. If I register it in Canada, the tax man will get me as soon as I cross the border. Correct me if I am wrong but if I register it under a flag of convenience, I could come spend a few months up here with it before heading back south for the winter. Right?

Pretty sure you are wrong. A resident Canadian has to pay GST (and duty, if not built in NA) regardless of where it is registered.

IF, however, you have legal residency outside of Canada (e.g., green card in USA), the rules change somewhat for temporary (short) visits.

[pierrrre]

Can't beat the tax man.....

[Montanan]

Originally Posted by pierrrre

Thanks for the reply.


I am not planning to "import" the boat to Canada. That being said, I would like to bring it up here for a few months in the summer. If I register it in Canada, the tax man will get me as soon as I cross the border. Correct me if I am wrong but if I register it under a flag of convenience, I could come spend a few months up here with it before heading back south for the winter. Right?

The good [e.g., the vessel] is imported upon arrival regardless of residency status. The taxation payment may be deferred if a nonresident pursues temporary admission status of the good.

Therefore, no, as a resident, you do not have the ability to pursue a temporary admission / deferred importation. Registration does not provide for temporary importation; only not being a resident can one request a temporary deferral of importation taxation, the tax is due upon arrival but is deferred as to its payment while awaiting the discharge of the importation by prompt export from Canada.

Residents pay all of the privilege taxes. Enjoy your Canadian privilege.

[Montanan]

Depending on what the value of your newly acquired vessel it may also be subject to Canada's new luxury tax.

There is [was] a bit of confusion about whether the luxury tax will apply to used boats of 2019 to 2023 ($250,000 CAD and up).

Overview – Luxury Tax Rates and Points of Imposition
The Luxury Tax would apply to deliveries in Canada by way of sale or similar arrangement, as well as importations into Canada, of new cars and new aircraft priced over $100,000, and new boats priced over $250,000 (the price thresholds, respectively)

For importations by non-registered [tax] persons, in most situations, the Luxury Tax would be payable at the border to the Canada Border Services Agency (CBSA) by the non-registered importer at the time of importation. The liability to pay the Luxury Tax would rest with the non-registered importer.

You can choose between 10% of the contract value or 20% of the excess of $250,000, whichever is less.

GST and QST apply to this new tax. So, it is a tax on top of existing taxes.

And is separate from customs duties [if any].

Reference link:

https://www.canada.ca/en/department-...goods-tax.html

[Montanan]

Procedure for importing a boat to Canada.

Link: https://www.cbsa-asfc.gc.ca/import/imp-mar-eng.html

Importing marine pleasure craft
Learn More
I Declare
Canadians and Permanent Residents
Marine pleasure crafts include any kind of vessels such as boats, fishing boats, yachts, dinghies, tenders, motorboats, sailboats, personal watercraft, etc., as long as they are used for non-commercial purposes.

If you are a Canadian resident importing a marine pleasure craft, you must report your purchase to the Canada Border Services Agency (CBSA) upon entering the country.

Importing at a land border crossing
If you are importing a marine pleasure craft at a land border crossing, you must declare it to the border services officer; all processing will take place at that location. You must also declare the boat trailer if you have purchased one with the vessel. Please ensure that you have the bill of sale and proof of ownership ready to present to the officer.

Travellers towing watercraft and equipment across borders must ensure that they are not unintentionally transporting zebra or quagga mussels. Learn more here: Towing watercraft and equipment across borders.

Importing at a marine border crossing
If you are importing your marine pleasure craft into Canada over water, you must report to a designated marine site and call the CBSA telephone reporting centre (TRC) at 1-888-226-7277 immediately upon your arrival. You must declare the importation of the vessel to the border services officer at the TRC and follow his or her instructions. If processing cannot take place at the marina, you may be required to report to the closest CBSA office, where you will need to pay any applicable duty and taxes. Please ensure that you have the bill of sale and proof of ownership ready to present to the officer.

Important information
For more detailed information on licensing and registering marine pleasure crafts, please visit the Service Canada and Transport Canada Web sites.

You are obligated by law to declare the importation of your marine pleasure craft to the CBSA upon its initial arrival in Canada and pay all applicable duty and taxes, regardless of where the vessel is licensed or registered. Failure to do so may result in penalties or other legal action being taken against you. As of September 1, 2022, a luxury tax applies to select vessels that have a taxable amount over $250,000. For more information, refer to Luxury tax - Canada.ca

It is recommended that you keep proof of your CBSA declaration or payment of duty and taxes on board the marine pleasure craft for future reference, particularly if you take frequent trips outside Canada.


Designated marine reporting sites:

Telephone Reporting Site/Marine (TRS/M)
A marine port of entry at which private pleasure craft operators must report by telephone.

https://www.cbsa-asfc.gc.ca/do-rb/se...-sdtm-eng.html

[Sailing August]

You could apply for a US Coast Guard - Certificate of Documentation and be issued an IMO number for the vessel. You do not need to register in an individual state once you have the US Coast Guard - Certificate of Documentation.
You can down load the form from their website. I was charged $295 to have my vessel registered when I bought it.... but I believe it costs less if you do it yourself.
You will be US flagged so you just need to check the vessel in if you happen to take it to Canada. No different than entering the Bahamas or any other country.

[pierrrre]

Thank you all for the very informative comments. I will just register the boat in Canada then and leave it south.


Thanks again.

[Montanan]

Originally Posted by Sailing August

You could apply for a US Coast Guard - Certificate of Documentation and be issued an IMO number for the vessel. You do not need to register in an individual state once you have the US Coast Guard - Certificate of Documentation.
You can down load the form from their website. I was charged $295 to have my vessel registered when I bought it.... but I believe it costs less if you do it yourself.
You will be US flagged so you just need to check the vessel in if you happen to take it to Canada. No different than entering the Bahamas or any other country.

I perceive that the OP is Canadian, hence USCG documentation would not available.

To reiterate, registration of the vessel does not impact the importation status of the vessel.

[Montanan]

Originally Posted by pierrrre

Thank you all for the very informative comments. I will just register the boat in Canada then and leave it south.


Thanks again.

Wishing Many Bon Voyages.

[boatpoker]

Originally Posted by pierrrre

Thank you all for the very informative comments. I will just register the boat in Canada then and leave it south.


Thanks again.

If the vessel is longer than 12 meters (or a multi-hull)... To register in Canada, a Tonnage Measurement must be performed by a Transport Canada Appointed Tonnage Measurer.
https://tc.canada.ca/en/marine-trans...asurers-canada

[h20man]

Originally Posted by boatpoker

If the vessel is longer than 12 meters (or a multi-hull)... To register in Canada, a Tonnage Measurement must be performed by a Transport Canada Appointed Tonnage Measurer.
https://tc.canada.ca/en/marine-trans...asurers-canada

Sounds simple.. but for a custom vessel is a pain in every possible area...


Check this out, as it if you never go back with the boat to Canada.. you will be probably happier to just flag it in a flag of convenience state..

[boatpoker]

Originally Posted by h20man

Sounds simple.. but for a custom vessel is a pain in every possible area...


Check this out, as it if you never go back with the boat to Canada.. you will be probably happier to just flag it in a flag of convenience state..

Nor sure what you mean , measuring a custom vessel is no different than measuring a production boat.