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Tax due on used boat?


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#1 Michael Brown

 
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Posted 22 September 2010 - 07:29 PM

I know this has probably been asked on here numerous times but what tax is due on a used boat in Ontario? With the recent changes to the tax rules(HST) not sure what would be due on a boat.
I know before you should have listed the boat, motor and trailer seperately but does this make a difference anymore?

Thanks for any help.

I will look on the governemnt tax websites as well.

Thanks

#2 Dutch

 
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Posted 22 September 2010 - 08:34 PM

I know tax is payable at the 13%, but I don't know the details of when it is paid. Probably at the time of Federal registration (i.e. getting the license number transferred over) as the HST is collected federally.

Although it may be collected provincially and then forwarded to the feds.

#3 Terry

 
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Posted 22 September 2010 - 08:44 PM

I know this has probably been asked on here numerous times but what tax is due on a used boat in Ontario? With the recent changes to the tax rules(HST) not sure what would be due on a boat.
I know before you should have listed the boat, motor and trailer seperately but does this make a difference anymore?

Thanks for any help.

I will look on the governemnt tax websites as well.

Thanks


the only reason people listed them separately was so they only had to pay tax on the items that had to be registered

#4 Raf

 
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Posted 22 September 2010 - 08:55 PM

when you register the boat in your name at service canada, you pay nothing. apparently, you may or may not get a letter in the mail asking to pay the tax on the boat at some point in the future.

you pay tax on the trailer at the MTO when you register it and plate it. so get a separate receipt for the trailer.

Edited by Raf, 22 September 2010 - 08:56 PM.


#5 zeeter

 
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Posted 22 September 2010 - 09:34 PM

You have to pay tax on the trailer right away at the MTO. That's why on the bill of sale it should always be listed as a very low price. The boat is through service canada. I actually got a tax bill from service canada for my old boat after I had sold it. I'm just ignoring it for now. They probably won't send me another update for another 5 years anyways !

#6 hirk

 
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Posted 23 September 2010 - 08:19 AM

I'm guessing you are bringing a boat from the US? You will pay hst on the boat and motor at the boarder and possibly the trailer as well now.

#7 west lake charlie

 
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Posted 23 September 2010 - 10:44 AM

I got a Letter Three years Later for PST owed on the Boat.
Haven't paid it yet. Was due about three monthes back. But Im sure they will
get me sooner or later. Im sure they money will go straight into MNR stocking programs right? :sarcasm:

#8 SylvanOwner

 
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Posted 23 September 2010 - 11:14 AM

Raf has it right.

I bought my boat over 10 years ago and started getting the letters in the mail a few years after that to pay some tax. I ignored them and they seemed to have stopped, for now anyway. I probably owe a million dollars in interest......lol.

Payed tax on the trailer upon registration, had a seperate receipt for it - no problems.

Enjoy your new ride!!!

#9 Rick OBanion

 
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Posted 23 September 2010 - 11:30 AM

A reasonable receipt with seperate invoices for boat, motor and trailer would help you only pay tax on what you are obligated. The motor is likely 70% of the value on a full boat/motor/trailer package. Last time I bought used there was no tax payable on the motor.

#10 Rae

 
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Posted 23 September 2010 - 12:29 PM

I'm guessing you are bringing a boat from the US? You will pay hst on the boat and motor at the boarder and possibly the trailer as well now.



I just imported a boat two weeks ago from the US and you have to pay HST on the sale of the Boat/motor and then they split the HST up and make you pay GST on the sale of trailer at the importation office. Then you pay the remaining PST portion on the trailer at the MTO office when you get the ownership. In the end you do pay the equivalent of HST on everything.

My first boat I bought was from a Marina up here, it was used and I didn't pay the taxes, the marina must of worked it into the price and took care of it...

Rae

#11 lookinforwalleye

 
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Posted 23 September 2010 - 03:29 PM

Surprised by the number of people here that openly admit to breaking the law!

And those of us who have paid the tax don`t mind subsidizing you criminals!!!LOL :sarcasm:

#12 gaspumper

 
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Posted 23 September 2010 - 05:25 PM

They sent me a letter a year after I bought my used boat from an older gentleman,I paid $600.00 for the boat and got a receipt for it,in the mean time I lost the receipt and the old guy passed away,so no proof of what I paid for boat they nailed me tax on a new boat ($450.00)

#13 Michael Brown

 
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Posted 23 September 2010 - 07:11 PM

Actually it is a close friend who is buying a domestic boat. I just wasn't sure how the new HST applied to the purchase.
Thanks for the confessions... :whistling:

#14 dave524

 
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Posted 24 September 2010 - 07:38 AM

A reasonable receipt with seperate invoices for boat, motor and trailer would help you only pay tax on what you are obligated. The motor is likely 70% of the value on a full boat/motor/trailer package. Last time I bought used there was no tax payable on the motor.


I would assume if you bought a used rig with a lot of electronics, downriggers tackle etc. you should probably have this as a separate purchase as well :dunno:






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