Taxes on used boat

[Cosmos]

Hi guys,

Can someone please advise me if i will need to pay tax on used boat i am planning to buy in Ontario.

Last time i brought boat from US and paid tax on the boarder. Now i am planning to buy it here from private seller.

Any advice would be greatly appreciated.

Thank you

 

[misfish]

Morning buddy

https://aceboater.com/en/tax-buying-used-boat

https://www.fin.gov.on.ca/en/tax/rst/index.html

Edited March 29, 2019 by misfish

[BillM]

You'll pay tax on both, the trailer when you go to get a plate at the MTO, the boat sometime later when the government feels like collecting, lol.   Two bills of sale, one for the trailer, one for the boat itself.   If buying from a dealer and not a private sale, you'll pay the tax up front.

[AKRISONER]

a word of advice, when you got to register the trailer and get your plates, take your boat to somewhere where they have no idea what the heck to do. Seriously.

I got my registration done at Dufferin and Eglinton, the lady just said...uh how much is a boat trailer worth??? I ended up paying $200 in taxes total for both the boat and the trailer.

Also do not forget that you are also required to register your boat with transport canada. A small additional fee but its required. That one can be confusing, but if you look it up you will find where you need to go.

[misfish]

And if you are buying it from a private person and he/she is cool,ask for a second receipt for half the price of what you paid. This will save on tax. I did this a few times for the buyer. Why give the gov more then they need. LOL The trailer can even be a gift.

Edited March 29, 2019 by misfish

[BillM]

20 minutes ago, misfish said:

And if you are buying it from a private person and he/she is cool,ask for a second receipt for half the price of what you paid. This will save on tax. I did this a few times for the buyer. Why give the gov more then they need. LOL The trailer can even be a gift.

You'll still pay tax on the trailer being a gift.   That trick only works if it's a family member.   Although who knows what the MTO will baseline a trailer at value wise.  

[Cosmos]

Thank you guys

[Cosmos]

2 hours ago, BillM said:

You'll still pay tax on the trailer being a gift.   That trick only works if it's a family member.   Although who knows what the MTO will baseline a trailer at value wise.  

 

Thank you Brian and Bill, I sold my boat yesterday and did exactly the same - left price fields empty so young fellow who bought it can put whatever numbers he want.

 

Edited March 29, 2019 by Cosmos

[irishfield]

.. and there is NO fee to register a boat.

[AKRISONER]

1 minute ago, irishfield said:

.. and there is NO fee to register a boat.

you are right, i dont know why i thought there was...i think my wallet was hurtin so bad last march that it seemed like everything cost me an arm and a leg lol.

 

DONT FORGET TO DO IT THOUGH. 

 

Such a common mistake is to not register the vessel. its a weird process but has to be done!

[porkpie]

You have 90 days from the date of your receipt to register..... just sayin!

[Hack_Fisherman]

I thought you only had to register a Hull with Transport Canada, and the trailer with MTO. Do we have to pay tax on the purchase price of the boat at MTO also? 

[Fisherman]

14 minutes ago, Hack_Fisherman said:

I thought you only had to register a Hull with Transport Canada, and the trailer with MTO. Do we have to pay tax on the purchase price of the boat at MTO also? 

No.

[spincast]

Keep your proof of payment of the taxes somewhere you can get it in 5 years, when you get the demand notice in the mail to pay them again

[lakerguy]

I bought a 1994 lund pike DLX from a guy.  To transfer the boat I had to take pictures of the boat itself 2 images,hull number copy of bill of sale signed, send it to service Canada. 

Also had to send in sellers complete contact info,phone number, town and street address.

im assuming there cracking down on price paid vs price shown to them. not sure,but I assure you someday the gov will come knocking. Ive been thru a business audit...they don't miss very much lol. 

Edited March 30, 2019 by lakerguy
more info

[Canuck]

On 3/29/2019 at 11:32 AM, BillM said:

You'll still pay tax on the trailer being a gift.   That trick only works if it's a family member.   Although who knows what the MTO will baseline a trailer at value wise.  

Split the invoice up.  Pay for the boat without the outboard, the equipment that is not attached and anything else that goes with it.  The outboard is worth a lot of money (hint hint).  Oh, and by the way, the tax authorities WILL find you so you might as well just go in and pay them once you buy the boat.  

[BillM]

14 hours ago, Canuck said:

Split the invoice up.  Pay for the boat without the outboard, the equipment that is not attached and anything else that goes with it.  The outboard is worth a lot of money (hint hint).  Oh, and by the way, the tax authorities WILL find you so you might as well just go in and pay them once you buy the boat.  

Yup, trailer on a separate receipt is the way to go.  Exactly what we did when buying our Lund.

[Freshtrax]

3 bills of sale

 

boat , motor, trailer

 

no taxes on used motors....just sayin

 

[Old Ironmaker]

3 receipts is the way to go. I would be wary of thinning the total for the package to save on taxes. Our Feds and Provincial Govs. are like Pit Bulls that want that bone. And believe me they will get it and you may pay a fine for fraud against the Federal Gov. They are serious folks. I can't count how many vehicles I have bought over the years for a dollar. Those days are over. By the way however I have never been asked to pay the taxes on the new to me StarCraft 11 years ago. I'm sure there is an invoice somewhere but I'm not going looking for it. I presume if and when I sell there will be a bill for me before ownership is transferred. I have a pal that has a small Marine business. He has sold a few used  boats in the last year and he said it all depends on where and with who the Federal transfer is made. One lady actually went to the NADA website to get an idea of the boats value. NADA is the Blue Book of marine vessels out of the US. 

[ketchenany]

On 3/29/2019 at 10:59 AM, AKRISONER said:

I got my registration done at Dufferin and Eglinton, the lady just said...uh how much is a boat trailer worth??? I ended up paying $200 in taxes total for both the boat and the trailer.

 

Where did you go, the church at Dufferin and Glenholme?

[G.mech]

 

MTO does NOT collect taxes for boats or motors, only the trailers. 

    The boat license (some incorrectly refer to it as registration which is a different thing altogether) is Federal and they are supposed to collect that tax based on the license transfer process.  That said, many folks never get billed for the federal tax and some get the bill years later but it's kind of hit and miss for some reason.   As many have mentioned the value of the boat claimed does not need to include the outboard motor, just the boat so get three receipts, claim the boat only and if you're lucky, you'll never get a bill anyway.  

Edited April 2, 2019 by G.mech

[dalghariMike]

Hey there! When it comes to taxes on used boats, it really depends on where you are located and the laws in your area. If you're buying in Ontario, taxes may need to be paid, but it's best to check with local authorities to be sure. Sometimes, professions or jobs can offer tax benefits on purchases like this, so it may be worth looking into. If you're looking for a way to keep track of your finances and make sure you're making the most of your money, you might consider checking out a paystub maker. They can help you keep track of your income and expenses, making it easier to plan and budget.

Edited February 8, 2023 by dalghariMike

[Terry]

3 years late