tax

[SimonV]

when buying a yacht in the states how dose your Tax work, do you still pay it when the boat will leave the country soon after purchase.

Also a yacht advertised as $50,000 is that pre tax or including tax.

[PBzeer]

Prices on US listed boats are without tax added. Can't say about boats in other locations, though I believe Canadian boats include GST in their prices. Sales tax in US is state by state, some do not require tax to be paid if you aren't registering the boat in that state. Best to check with the state in which you plan to purchase.

[sailingdog]

Yes, all prices are generally quoted pre-tax. The sales tax issue in the United States is handled per state, county and city. So it really depends on where you are going to be registering the boat. Even if the boat is going to be leaving the country soon after purchase, you will probably be responsible for taxes in some jurisdiction.

[SimonV]

how much is the tax (worst)? Im looking at getting a c38 1980/85 and shipping it back to Oz. In Oz its 10% on arrival.

[Johnrb]

Pbzeer:

With respect to the GST in Canada, it is never included in the advertised price and the same goes for any provincial sales tax. For the record, I’m almost certain the GST is payable only on new boats or boats bought through a dealer or broker. Private sales are exempt - the same goes for automobiles.

[sailingdog]

Originally Posted by SimonV

how much is the tax (worst)? Im looking at getting a c38 1980/85 and shipping it back to Oz. In Oz its 10% on arrival.

In that case, it might be worth looking at purchasing the boat as an item for export, in which case, you may not have to pay the taxes on it state-side. I would consult with an attorney and broker about this as a possiblity. It would really suck to have to pay 10% in Oz and 5-10% here in the states on top of it.

[Johnrb]

SimonV:

I would clarify this issue ahead of time with both your relevant Australian authorities and the state where you are buying the boat. As an example, I checked with the Canadian and the Ontario government about this issue and a boat imported here is subject to the federal GST and provincial sales tax. Most jurisdictions have a reciprocal policy of no double taxation so if I buy a boat from somewhere else (i.e. the US) and import it into Canada, I may avoid paying a state sales tax if the boat is exported within a reasonable time (more likely I will pay the tax and apply for a rebate later) and pay the Ontario sales tax instead. Unfortunately, the GST is a separate issue which would be levied separately.

If for some reason I had to pay the local state tax in the US, I believe this amount would be deducted from any provincial sales tax payable here in Ontario. It’s the principle of double taxation again. That is why I would ensure everything is sorted out beforehand since governments usually don’t like giving up tax revenue.

Good luck.

[SimonV]

Thank for that, I am slowly working up the cost. there is a company in OZ that imports older yachts at a 100% mark up a Catalina 38 is US$ 112800 landed in oz. I have calculated do it your self for @ US$ 73000.

Oz has a free trade agreement with the US, No import duty, but GST is payable on total cost of yacht and transport at 10%.

[PBzeer]

JohnrB.....that's why I said "I believe". When I was looking, I was told tax was included on Canadian boats as the reason their listed price was so much higher than on similar boats in the States.

Simon.....if you google state sales tax for the states in which you are looking at purchasing, you might find some more info.

[Johnrb]

PBeezer:

Glad to help - I wish that was the case (re. higher prices). I suspect the market in the U.S. is much larger with more boats trading at any given time - hence the more competitive market. I would certainly look in the U.S. if I was searching for a boat larger than 30 feet - more so given the current strong Cdn. dollar.

BTW - Ontario 32 - nice boat.

Cheers.