Syd B.

I recently imported a Jaguar XK from Delray Beach and had it shipped through Lewiston. The GST, excise tax and duty were paid at border entry. When I took the documents to Service Ontario for registration, they calculated PST based on the purchase price converted to $cdn, but then they added the duty and excise tax to that number , calculating PST on the sum. To me, this is charging tax on tax. Does that make sense? I asked the woman at Service Ontario how this could be and she simply gave me a blank look that either said, I don't know or, more likely, I don't care.

Does anyone know if her calculation was correct?

Onami

Yep, that's how they do it...

wc11

This seems normal as you would usually pay taxes based on the total cost of the imported vehicle.
When I imported mine, I paid 5% GSt & 6.1% Duty at the border (Federal)
Then when I plated the car, I paid the 8% PST (provincial) at the MTO
I think there was the AC tax too but that was it.

But under the McWynnty Liberals, who knows what other secret taxes they've applied while we slept.

Turbodan

yup!
in a few years no 6.1%

JGB

PST on the GST and duty? Or PST on the duty only?

Jim

Syd B.

PST was charged on Duty + Excise Tax. At the border, GST was also charged on these two items, which means that I paid 13% tax on the 6.1% duty and the $100 excise tax.

This makes as much sense as paying GST on the Debt Repayment portion of your hydro bill. I've been trying to get an explanation on that one for years.

wc11

Yup.
How's your *** feel now?

Just be glad the government doesn't run the banks otherwise we'd be taxed on mortgage interest too.

Torontoworker

The 'theory' (not that I agree*) is that by paying the import duties at the border you make the car legal for importation to Canada and thus - 'add value' to the vehicle and therefore have to pay the PST on the 'value' of the vehicle you wish to plate in Ontario.

*Don't throw things at ME - Queens Park is THAT WAY ----->

theiceman

yup its correct.. you pay tax on the TLC ( Total landed Cost ) . All these costs are payed on any car that is imported , you just dont see it .

silvermoon

can you give me any hints to import from US?

2004 porsche cab 4s

JimV8

Go to RIV (registrar of imported vehicles) or search this forum. Lots of info on the subject.

petee1997

It's the way it should be. If you bought a new Porsche in Canada, the 6.1% is included in the selling price and hst is charged on that price.

Crazy Canuck

Correct

Rinty

Welcome.

As noted, just search this section and you'll pull up all kinds of threads.

I would suggest that you make the provision by the seller, of a Recall Clearance Letter a condition of the deal.

pmt

Benzes, BMWs, VWs, etc. manufactured in the NAFTA zone are exempt from the 6.1 percent excise duty if you import them from the US.