Is there tax on buying a used boat in BC?
You must pay PST on boats you purchase, lease or receive as a gift in B.C., and boats you purchase, lease or receive as a gift outside B.C. and bring or send into B.C. You must pay PST, regardless of whether the boat is for personal or business use. You must pay PST at the rate of 7% or 12%, depending on how the boat is acquired.
Boats purchased at a private sale in B.C.
If you purchase a boat at a private sale in B.C., you must pay PST at the rate of 12% on the purchase price of the boat, including accessories, unless a specific exemption applies. For information on how to pay the PST, see Paying the PST below.
Boats purchased in B.C. from GST registrants
If you purchase a boat in B.C. from a GST registrant (e.g. a boat dealer), you must pay PST at the rate of 7% on the purchase price of the boat, including accessories, unless a specific exemption applies. The purchase price does not include the GST or the federal luxury tax. For GST and federal luxury tax information, see canada.ca/en/revenue-agency.
Leased boats
If you lease a boat in B.C., you must pay PST at the rate of 7% on the lease price of the boat, including accessories, unless a specific exemption applies. The lease price does not include the GST or the federal luxury tax. For GST and federal luxury tax information, see canada.ca/en/revenue-agency.
If you lease a boat outside B.C. and bring or send the boat into B.C. for use during a rental period, you must self-assess (pay directly to us) 7% PST based on the number of hours the boat is in B.C. during the rental period. This requirement only applies if you are a B.C. resident or use a boat in B.C. in the course of your business.
If you lease a boat with an operator, such as an on-board skipper, guide, crew or instructor, you do not pay PST.
Boats acquired outside B.C. and brought into B.C.
If you are a B.C. resident, you must pay PST on boats you acquired outside B.C. and brought, sent or received in B.C., unless a specific exemption applies. You also pay PST if you have a person who is not a B.C. resident bring, send or receive a boat in B.C. for your use or for another person’s use at your expense.
You pay PST (see PST Rates below) on the total amount you pay to receive title to the boat, including the purchase price and charges for transportation, brokerage fees, customs, excise and any other costs, except the GST and the federal luxury tax. If you received the boat as a gift, see Boats Received as a Gift below.
Did you know, in Canada you are required to have a boating license to operate a boat with a motor? Try our online boating course for free, and obtain your Canadian boating license today!
