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post #1 of 15 Old 08-30-2013 Thread Starter
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Canada sales tax on registered boat

Does anybody know how and when the payment of Ontario HST is supposed to take place when purchasing a federally registered boat? Transport Canada only has information on how to transfer ownership. The broker has no idea.
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Re: Canada sales tax on registered boat

I'm in the same position now, though I didn't use a broker. The official bill-of-sale form has no place to identify the sale value (that wasn't the case many years ago). Called CRA and they said it was Transport Canada's problem. Called TC and they said they don't collect tax and to call CRA. So, I'm ignoring it until someone asks.
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Re: Canada sales tax on registered boat

Is there a standard bill of sale form? The one the broker used for the offer was definitely not standard.
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Re: Canada sales tax on registered boat

Let me restate: there are a series of forms you can download from Transport Canada's website to handle the sale and transfer of a used boat. I couldn't say if it's the one and only way to do it, but it looked pretty standard.
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Re: Canada sales tax on registered boat

Did you buy the boat in Canada or elsewhere?

We bought Mystery in the USA and sailed her home. When we cleared Canadian Customs we phoned 1888 CAN-PASS. The lady asked if we had anything to declare. I said we bought a sailboat. She was delighted, she too was a sailor. She asked the value, I told her, she asked if we wanted a bill or wanted to pay the tax now. I said "I'll use my Visa" and paid it over the phone. Got a receipt in the mail a few weeks later.

If that helps - great. If not, sorry

Irwin Citation 34
Mystery
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Re: Canada sales tax on registered boat

You'll definitely get 'nailed' on an import.. but if it's a Canadian deal, and the CRA, TC, and the province don't have it together you might avoid the tax for a while... but only for a while.

We bought a Registered boat some time ago (1992). The broker withheld the tax at the time of purchase. Some months later we got a letter from the tax people with a bill for the taxes (PST at the time), which they thought hadn't been paid. A quick call to the broker sorted it out, but I suspect if you ignore the issue, eventually it won't ignore you... I think once you transfer registry the info will trickle down to the 'right' people at some point.

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post #7 of 15 Old 08-30-2013
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Re: Canada sales tax on registered boat

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... I suspect if you ignore the issue, eventually it won't ignore you... I think once you transfer registry the info will trickle down to the 'right' people at some point.
I have no doubt about that and will handle it at the time. What am I supposed to do if the very departments and agencies involved in this collection deny their involvement? (That's a rhetorical question.) I can't do much until they want to themselves. It's not like MTO that collects immediately and without fail at registration.

There a thread deep in the forums here about this very issue. Some people still haven't been contacted for the tax, while others were contacted only after they'd sold the boat years later. Apparently the '07 boat licensing/registration changes inside Transport Canada aimed to help speed up collection.
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Re: Canada sales tax on registered boat

Thanks for the replies. This is a Canadian boat, not imported. With import it seems to be straightforward.
It is tempting to just ignore it for a while...the only concern is any potential penalties they could impose for late payment.
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post #9 of 15 Old 08-30-2013
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Re: Canada sales tax on registered boat

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Originally Posted by skalashn View Post
Thanks for the replies. This is a Canadian boat, not imported. With import it seems to be straightforward.
It is tempting to just ignore it for a while...the only concern is any potential penalties they could impose for late payment.
Is it a Canadian built boat, taken from Canada by Canadian owner (or owner chain) who paid applicable taxes previously and you are returning it to Canada? OR is it a Canadian built boat that was exported when built by builder to foreign owner and therefore no Canadian taxes paid? OR is it a foreign built boat that was imported into Canada previously with taxes paid, then subsequently taken from Canada? I'm sounding like the government asking you these questions, but that is what needs to be addressed.

I'm in the middle of a commercial real estate deal where the buyer only qualifies for partial input tax credits. Advised buyer to consult their accountant, who advised them to consult their lawyer, who advised them to consult their Realtor. What a mess.

As far as the Broker not knowing the answers, well they should know. As much as I have been removed from yacht sales for nearly 20 years, I suspect their are 'correct' or 'standard' forms.
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Re: Canada sales tax on registered boat

It is a US-built Beneteau the previous owner bought brand new in Canada. Nothing is being imported or exported, the question is about provincial sales tax aka HST.
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