Buying used boat from the US

[Smomoto]

Apologies as this topic likely comes up a fair bit but also the tax laws seem to have changed a lot in the last few years. Learning about Luxury tax and seems like personal sales in the province is 12% now I swear it was 7% when I bought my last boat.

I am looking at the US and trying to do all the math to see if it is worth it. You have the exchange rate but didn't know what other tax I would have to pay. I think I have discovered that the rate would be 7% but a bit unclear it is 7% on what exactly.

"If you bring a boat into B.C. from outside Canada, you must pay PST at the rate of 7% on the taxable value of the boat. The taxable value is the value of the boat as determined under the Excise Tax Act (Canada). The Canada Border Services Agency may collect the PST due when you bring the boat into Canada. If not, you must self-assess the PST due (see Paying PST below)"

So if I spent 100K USD on a boat is that 7% on that 100K USD or lets say 140K CDN at the crazy exchange.

Assuming that is correct for a moment, will I have any additional taxes to pay when registering the boat in province?

Love to know if my total calculation is USD Price converted to CDN x 1.07 to pay that PST then I have the total cost of a boat from the US. ( not considering hauling costs of course as some may be trailered from Washington state by me easy enough )

 

[kaelc]

You'll have to pay PST and GST on the canadian price. Luxury tax is for 250k CAD and up, built in the last couple of years 2024 or 2023 if I remember correctly. If the boat isn't built in the US or Mexico you may have to pay duty of 9.5%, boats from CETA free trade members may not have pay this either, but ask a broker. Importing a boat from the US isn't great right now. If the right boat comes up and it's in bristol condition, maybe but most used boats are barely worth it right now.

 

[Weatherall]

Apologies as this topic likely comes up a fair bit but also the tax laws seem to have changed a lot in the last few years. Learning about Luxury tax and seems like personal sales in the province is 12% now I swear it was 7% when I bought my last boat.

I am looking at the US and trying to do all the math to see if it is worth it. You have the exchange rate but didn't know what other tax I would have to pay. I think I have discovered that the rate would be 7% but a bit unclear it is 7% on what exactly.

"If you bring a boat into B.C. from outside Canada, you must pay PST at the rate of 7% on the taxable value of the boat. The taxable value is the value of the boat as determined under the Excise Tax Act (Canada). The Canada Border Services Agency may collect the PST due when you bring the boat into Canada. If not, you must self-assess the PST due (see Paying PST below)"

So if I spent 100K USD on a boat is that 7% on that 100K USD or lets say 140K CDN at the crazy exchange.

Assuming that is correct for a moment, will I have any additional taxes to pay when registering the boat in province?

Love to know if my total calculation is USD Price converted to CDN x 1.07 to pay that PST then I have the total cost of a boat from the US. ( not considering hauling costs of course as some may be trailered from Washington state by me easy enough )

I can confirm that you have to pay GST & PST on the invoice amount (12%) (converted from the US price) in Canadian funds. Trailer registration is another major issue. US and Canada have different regulations on trailer sizes and brakes, etc. If you drive down to the US with a Canadian registered trailer, and pick up a boat in the US, it makes things much simpler and smoother at the border. Simply pay the tax and move through. Otherwise, you may need to get the trailer updated to the Canadian standard.

The exchange rate is not that favourable right now. Do you're math and see if it makes sense.

I also would highly recommend Sonja at Annacortes Marine Documents (https://anacortesmarinedoc.com/) to help you with paperwork. She can help broker the deal and transfer funds to the seller once all the proper paperwork has been signed over. They were reasonable, I think it cost about $400USD for them to broker the deal (transfer the funds) and make sure you are crossing the boarder with everything you need signed over correctly.

Good luck

 

[pescador]

I’ve been looking in the US for 2 years for a specific Pursuit model. Now at $1.40 I’m having second thoughts. And I’m reading it’s now going to shift in our favour for quite a while. My approach is when I see a boat in the US I multiple by 1.57 to get CAD $. That should cover boat, taxes, exchange, transport and dox processing.

 

[Flashman]

I’ve been looking in the US for 2 years for a specific Pursuit model. Now at $1.40 I’m having second thoughts. And I’m reading it’s now going to shift in our favour for quite a while. My approach is when I see a boat in the US I multiple by 1.57 to get CAD $. That should cover boat, taxes, exchange, transport and dox processing.

That's very close to what it cost me in 2017 to bring a boat and trailer up from the US. Exchange rate was pretty much the same then as it is now. I figured when all the bills were paid and everything complete I was 1.6X the US dollar sale price in Canadian dollars.