Is there tax on buying a used boat in Ontario?
Absolutely! Despite common misconceptions, registering and using a used boat within Ontario mandates the payment of the 13% Harmonized Sales Tax (HST).
The general rule is that you pay taxes on a good at the place where you plan to use it. If you plan to register your boat in Ontario, you will have to pay the 13% Harmonized Sales Tax (HST).
I'm from Ontario and I want to buy a boat from anywhere in Canada
In Ontario, whether you have to pay tax on a used boat depends it was purchased from a private individual or a dealer.
If you’re buying from a dealer, you simply pay 13% of the purchase price to the dealer who then remits it to the Ministry of Finance.
Purchasing from a private seller introduces a twist: rather than handing over the HST to the seller, you're tasked with the responsibility of directly submitting the sales tax yourself.
After registering your boat with Transport Canada, Transport Canada will send you an invoice for the amount you entered when you applied for the pleasure craft license.
Some people will try to cheat the system by changing the amount they've paid. Be aware that Transport Canada knows the approximate value of each boat, and they may check the amounts entered.
I'm from Ontario and I want to buy a boat from another country
If the boat was purchased from outside Canada, you might be subject to customs duties, taxes, and fees upon importation, in addition to Ontario's Harmonized Sales Tax (HST).
Pleasure craft license
I want to transfer the Pleasure Craft License of a used boat.
Boats are registered by the purchaser at Transport Canada federal government offices. Transport Canada does not collect tax from the purchaser at time of registration. If HST is applicable, purchasers can make payment at any Service Ontario Center or directly to the Ministry of Finance.
For more information please call the Canada Revenue Agency at 1 800 959‑8287.
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