PST & GST

[amunk]

My broker is telling me that when I purchase a Canadian Registerd Vessel in Ontario through a broker there is no GST or PST payable even if I decide to change the name. Is this true?
Thanks
Alex

[Johnrb]

I suppose the answer is - it depends. If you are Canadian there is no escaping the dreaded G.S.T. (gouge and screw tax – actually Goods and Services Tax) if you are buying through a broker and if you are a resident of Ontario you will be hit for the provincial sales tax. Should you buy the boat directly from the seller without a broker there is no G.S.T. but you will still be liable for the provincial sales tax. If you are Canadian but from another province I am certain you will be hit for provincial sales tax and I assume it will be Ontario if the boat is purchased there.

If you are from the U.S. and buying the boat in Ontario through a broker (and the boat is being exported to the U.S.) I believe you have to pay the G.S.T. but you are eligible for a complete rebate from the Canadian government. Check the link below for further information and I would suggest also checking with the Canadian Revenue Agency. I’m not sure about the provincial sales tax if you are exporting the boat but I think, if there is proof the boat has been exported from Canada, the PST either will be rebated or non-payable. I would suggest checking with the Ontario Government about this – there is a link below to the Government of Ontario Ministry of Finance website. This is a home webpage so you will have to do a bit of hunting or make a telephone call.

Good luck.
John

www.travelcanada.ca/tc_redesign/pdf/ en_cnd/Travelling_to_Canada/Money_Tax-Rebates.pdf

http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_2491_1.html