# Canada sales tax on registered boat



## skalashn (Jun 28, 2011)

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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## jcaldwell (Aug 12, 2013)

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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## skalashn (Jun 28, 2011)

Is there a standard bill of sale form? The one the broker used for the offer was definitely not standard.


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## jcaldwell (Aug 12, 2013)

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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## rikhall (Feb 7, 2008)

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


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## Faster (Sep 13, 2005)

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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## jcaldwell (Aug 12, 2013)

> ... 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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## skalashn (Jun 28, 2011)

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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## rugosa (Aug 30, 2011)

skalashn said:


> 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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## skalashn (Jun 28, 2011)

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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## bljones (Oct 13, 2008)

once you transfer the ON bow number to your name, the tax is due. BUT, you have to wait for the province to send you a notice to pay. Payable at any service ontario location http://www.fin.gov.on.ca/en/taxtips/hst/12.html


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## SVTatia (May 7, 2007)

bljones said:


> once you transfer the ON bow number to your name, the tax is due. BUT, you have to wait for the province to send you a notice to pay. Payable at any service ontario location https://www.services.gov.on.ca/locations/serviceDetails.do?id=12980


but the OP clearly stated that it is federally registered.


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## bljones (Oct 13, 2008)

if the change of ownership forms have been submitted:

Change of Ownership/Address - Transport Canada
The process is the same, whether the vessel is federally registered or if it is a standard transport canada ownership transfer- they will then be submitted to the province, which will then send the remittance order to the new owner's address, and the HST will be paid at a service ontario office. The joys of HST vs PST.


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## skalashn (Jun 28, 2011)

bljones said:


> The process is the same, whether the vessel is federally registered or if it is a standard transport canada ownership transfer- they will then be submitted to the province, which will then send the remittance order to the new owner's address, and the HST will be paid at a service ontario office. The joys of HST vs PST.


This makes sense, thank you. So basically file the new ownership and wait for notice in the mail. Is there any deadline for ownership transfer?


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## jcaldwell (Aug 12, 2013)

90 days from the date on the bill-of-sale.


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## CEOmike (Aug 25, 2021)

If the boat has a registration number, don't change the registration, pay cash, keep a sales receipt and boat away. In 20 years of boating, I was never asked stopped and asked about the registration, once on ownership and showed the sales receipt. There is not enough money to make it worthwhile for the government to remotely computerize for pleasure craft enforcement. Insurance does'nt need anything but the number as well. If you have a 50 footer maybe.


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## boatpoker (Jul 21, 2008)

bljones said:


> once you transfer the ON bow number to your name, the tax is due. BUT, you have to wait for the province to send you a notice to pay. Payable at any service ontario location http://www.fin.gov.on.ca/en/taxtips/hst/12.html


Irrelevant ! The OP is asking about a Registered Vessel and even a licensed vessel has nothing to do with the provinces


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## boatpoker (Jul 21, 2008)

CEOmike said:


> If the boat has a registration number, don't change the registration, pay cash, keep a sales receipt and boat away. In 20 years of boating, I was never asked stopped and asked about the registration, once on ownership and showed the sales receipt. There is not enough money to make it worthwhile for the government to remotely computerize for pleasure craft enforcement. Insurance does'nt need anything but the number as well. If you have a 50 footer maybe.


Irrelevant ! One cannot change the registration number of a Registered Vessel


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## boatpoker (Jul 21, 2008)

Totally incorrect !
Registered Vessels are handled differently than Licensed Vessels


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## boatpoker (Jul 21, 2008)

OP... I am A Transport Canada Appointed Tonnage Measurer and Licensed Master,. I deal with this stuff weekly. You are getting nothing but incorrect information here.
PM me and I'll respond with my phone number and I'll tell you the real deal. I've learned not to tell people on this forum because on this issue they know not what they talk about and I get nothing but silly uninformed retorts.


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## Minnewaska (Feb 21, 2010)

8 years ago


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## Den (11 mo ago)

skalashn said:


> 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.


It’s been this way for years great eh. 
Seriously times and Trump and new tax laws. Any European or Japanese boat enters Canada tax free under our free trade union. We don’t really have free trade with the US. A European boat from the US is 9% tax. A boat part 75% US origin tax free. A Chinese part from US 25% and some eBay Amazon 12$ game in the works. 
I tried to pay my Provincial tax on a Sea Ray from Michigan City Indiana for a couple years and gave up. 
Order that new European production jewel from the Canadian broker. Don’t lend it to them for a show either. 
If asked today I’ve accounted all HST and have it in the sail locker in a bag called Code 0.


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## CEOmike (Aug 25, 2021)

CEOmike said:


> If the boat has a registration number, don't change the registration, pay cash, keep a sales receipt and boat away. In 20 years of boating, I was never asked stopped and asked about the registration, once on ownership and showed the sales receipt. There is not enough money to make it worthwhile for the government to remotely computerize for pleasure craft enforcement. Insurance does'nt need anything but the number as well. If you have a 50 footer maybe.


and I docked beside a Coast Guard patrol vessel one year.


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## Den (11 mo ago)

CEOmike said:


> and I docked beside a Coast Guard patrol vessel one year.


I’ve been asked for insurance by the Ontario provincial police once. Was surprised and had it out quickly. To your point a boat it’s taxed when it’s numbered providing its powerful enough or large enough to number. Unlike a used car there seems to be no trail or as you mentioned cost effective ways. A car gets a new number gets taxed. Let’s not tell them 😁


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## Den (11 mo ago)

Den said:


> I’ve been asked for insurance by the Ontario provincial police once. Was surprised and had it out quickly. To your point a boat it’s taxed when it’s numbered providing its powerful enough or large enough to number. Unlike a used car there seems to be no trail or as you mentioned cost effective ways. A car gets a new number gets taxed. Let’s not tell them 😁


Oh here it’s any boat with an engine larger than 9.9


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