Importing U.S. car to canada via family member *Question*
09-02-2011, 02:15 AM
#1
Instructor
Thread Starter
Importing U.S. car to canada via family member *Question*
I was having a casual discussion with my brother who lives in New Jersey about him buying a new Porsche in New Jersey and have the vehicle ownership transferred to me in Ontario afterwards.
As I understand, there is no RST (Retail Sales Tax) in Ontario when a vehicle ownership is being transferred between family members. I see no mention about the family member transferring the vehicle having to be Canadian resident.
Of course, my brother has to pay the U.S. state tax when purchasing the car, and I have to do all required paperwork to have the car imported into Canada including paying Duties and the A/C fee, But according to this "transfer between family" rule, I don't have to pay the RST at the time I register the vehicle with the Ministry of Transportation of Ontario.
Anyone can see any real bebefit in doing such maneuver to have a new Porsche imported into Canada?
This is directly from the MTO website:
Tax exemption
You do not have to pay retail sales tax if:
•You are a qualifying Diplomat or Status Indian. You can complete a transfer by showing your identity card.
•You receive a vehicle as a gift from a close family member, such as: •Spouse
•Parent or step-parent
•Grand-parent
•Son or step-son
•Daughter or step-daughter
•Grandson or granddaughter
•Step-grandson or Step-granddaughter
•Son-in-law
•Daughter-in-law
•Father-in-law
•Mother-in-law
•Brother or Sister
•Half Siblings (siblings with a common parent)
•Adopted Siblings (siblings with a common parent by way of adoption)
•Siblings-in-law (siblings of a spouse of spouse of a sibling)
Note: Only one tax-free transfer per vehicle is allowed every 12 months within your close family.
For some transfers, such as gifts between close family members (describe above), are sales tax exempt if a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario is provided when registering your vehicle at a ServiceOntario Driver and Vehicle Licence Issuing Office.
As I understand, there is no RST (Retail Sales Tax) in Ontario when a vehicle ownership is being transferred between family members. I see no mention about the family member transferring the vehicle having to be Canadian resident.
Of course, my brother has to pay the U.S. state tax when purchasing the car, and I have to do all required paperwork to have the car imported into Canada including paying Duties and the A/C fee, But according to this "transfer between family" rule, I don't have to pay the RST at the time I register the vehicle with the Ministry of Transportation of Ontario.
Anyone can see any real bebefit in doing such maneuver to have a new Porsche imported into Canada?
This is directly from the MTO website:
Tax exemption
You do not have to pay retail sales tax if:
•You are a qualifying Diplomat or Status Indian. You can complete a transfer by showing your identity card.
•You receive a vehicle as a gift from a close family member, such as: •Spouse
•Parent or step-parent
•Grand-parent
•Son or step-son
•Daughter or step-daughter
•Grandson or granddaughter
•Step-grandson or Step-granddaughter
•Son-in-law
•Daughter-in-law
•Father-in-law
•Mother-in-law
•Brother or Sister
•Half Siblings (siblings with a common parent)
•Adopted Siblings (siblings with a common parent by way of adoption)
•Siblings-in-law (siblings of a spouse of spouse of a sibling)
Note: Only one tax-free transfer per vehicle is allowed every 12 months within your close family.
For some transfers, such as gifts between close family members (describe above), are sales tax exempt if a Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario is provided when registering your vehicle at a ServiceOntario Driver and Vehicle Licence Issuing Office.
09-02-2011, 08:40 AM
#2
Burning Brakes
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This is just from memory, lots of info on the net out there...
You will still have to pay duty and GST when you import the car to Canada. The RST is paid when you register the car and I suppose you would be exempt from that if it's from a family member.
...but I vaguely recall something about having had to own the car for a certain number of months before transfer to be exempt. I could be wrong.
You will still have to pay duty and GST when you import the car to Canada. The RST is paid when you register the car and I suppose you would be exempt from that if it's from a family member.
...but I vaguely recall something about having had to own the car for a certain number of months before transfer to be exempt. I could be wrong.
09-02-2011, 12:28 PM
#3
Burning Brakes
I think the question is you would have to prove it was a "gift" from your brother and sign all kinds of declaration(s) to that effect (both of you). If you did pay him on some basis that might be construed as a fraudulent transaction from the Sales tax viewpoint.
Also, isn't it HST that would have to be paid on top of the duty? In BC we have no retail sales tax anymore. Just the HST (which of course is going away in 18 months!).
John in Vancouver
Also, isn't it HST that would have to be paid on top of the duty? In BC we have no retail sales tax anymore. Just the HST (which of course is going away in 18 months!).
John in Vancouver
09-05-2011, 02:14 AM
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1st Gear
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09-05-2011, 12:07 PM
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Burning Brakes
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Check out http://www.borderbuddy.com to calculate duties and taxes, etc.
