Paying tax on a private sale boat in BC

[ClintR]

I’ve paid tax at the insurance office when I register the whole package or have waited for months when I’ve licensed it into my name with transport Canada. Sometimes many months and once I never did get any kind of tax bill at all

 

[rudykane]

I’ve paid tax at the insurance office when I register the whole package or have waited for months when I’ve licensed it into my name with transport Canada. Sometimes many months and once I never did get any kind of tax bill at all

Did you register it only with transport Canada? The trailer I assume you registered with ICBC.

 

[Aces]

Such a scam

 

[ClintR]

Did you register it only with transport Canada? The trailer I assume you registered with ICBC.

Yes only with transport Canada. I had my own trailer that time. When they finally phoned I had a hell of a time trying to get the bimbo on the other end to understand that not every boat comes with a trailer. She was adamant they do but I finally convinced her by faxing a copy of the trailer registration. I still think she might’ve thought I was bs ing her.

 

[rudykane]

Such a scam

It is which is why I am trying to figure out how they do it. Talk about double taxation! Buy a boat and pay PST I get. Every time you sell the boat seems insane to me.

 

[Aces]

It is which is why I am trying to figure out how they do it. Talk about double taxation! Buy a boat and pay PST I get. Every time you sell the boat seems insane to me.

Cash cow

 

[Wild Bill]

I knew it would likely happen but almost 2 years later pay out $10000. The Double Eagle I bought the seller did not realize eventually he is going to be contacted regarding taxes for the boat he just sold.

 

[Max123]

A trailer and a boat are two separate things - it just happens that you usually buy them together.

When you buy a trailer (any trailer - doesn't matter if a boat is sitting on it or not), you go to an autoplan dealer. You submit transfer papers with a declared value, you pay the transfer tax (provincial), you get new insurance for the trailer. The boat doesn't come into it.

The boat - you register transfer/new ownership with Transport Canada (Federal Government). This is just documenting that the Hull number has transferred to a new person. Since there is no nationally recognized 'transfer form' - they will ask you to provide a bill of sale to verify the transfer. They are just looking to confirm that the transfer is legitimate, the Feds don't collect any taxes on sale of used boats.

The provincial government is technically blind to the sale of a used boat, since you don't directly report anything to them. They get 'indirect' indicators that a sale has occurred and taxes owing. They see the boat trailer transfer through ICBC (but its possible to buy a boat trailer with no boat, so this may not be very useful). The Feds also share info on the hull number transfer. All of these have a lag, and its unclear what documents are shared and how automatic it is.

There is no provincial boat registration, so they have no means of directly/automatically becoming aware of the transfer or collecting the tax - you either have to voluntarily report, or they have to seek you out based on the indirect information they receive. From the commenters - it seems like it takes about 2 years for them to track you down - and even then it doesn't look like the Feds share the bill of sale, so they are just guessing at how much tax is owed.

 

[Wild Bill]

Such a scam

My trailer I valued at $1000. And I paid that Tax there. I will get a letter 2 years fom now. Isn't going to reduce tax load but you pay taxes on the trailer when you register. Boat taxes come later.
$1000 less at any rate. Seperare the trailer from the transaction.

 

[ziggy]

A trailer and a boat are two separate things - it just happens that you usually buy them together.

When you buy a trailer (any trailer - doesn't matter if a boat is sitting on it or not), you go to an autoplan dealer. You submit transfer papers with a declared value, you pay the transfer tax (provincial), you get new insurance for the trailer. The boat doesn't come into it.

The boat - you register transfer/new ownership with Transport Canada (Federal Government). This is just documenting that the Hull number has transferred to a new person. Since there is no nationally recognized 'transfer form' - they will ask you to provide a bill of sale to verify the transfer. They are just looking to confirm that the transfer is legitimate, the Feds don't collect any taxes on sale of used boats.

The provincial government is technically blind to the sale of a used boat, since you don't directly report anything to them. They get 'indirect' indicators that a sale has occurred and taxes owing. They see the boat trailer transfer through ICBC (but its possible to buy a boat trailer with no boat, so this may not be very useful). The Feds also share info on the hull number transfer. All of these have a lag, and its unclear what documents are shared and how automatic it is.

There is no provincial boat registration, so they have no means of directly/automatically becoming aware of the transfer or collecting the tax - you either have to voluntarily report, or they have to seek you out based on the indirect information they receive. From the commenters - it seems like it takes about 2 years for them to track you down - and even then it doesn't look like the Feds share the bill of sale, so they are just guessing at how much tax is owed.

The licensing or registration is Federal and the Feds alert the Province of the transfer, I guess that’s why it takes so long for the buyer to get a bill. I don’t believe it is indirect, but rather another example of government co operation

 

[Max123]

My trailer I valued at $1000. And I paid that Tax there. I will get a letter 2 years fom now. Isn't going to reduce tax load but you pay taxes on the trailer when you register. Boat taxes come later.
$1000 less at any rate. Seperare the trailer from the transaction.

Always a good idea to provide separate amounts for the trailer and boat on the bill of sale. If you lose the trailer transfer slip, you may end up paying tax twice.

 

[Max123]

The licensing or registration is Federal and the Feds alert the Province of the transfer, I guess that’s why it takes so long for the buyer to get a bill. I don’t believe it is indirect, but rather another example of government co operation

They definitely cooperate, in the sense that one alerts the other that a transfer has occurred - but I don't think the Fed record or convey the purchase price listed on the Bill of Sale. If they did, the Province would know exactly how much to assess - which doesn't appear to be the case.

Its one of those things: I don't like taxes, but I wish the government was run better, which would result in them being more efficient at collecting taxes...

 

[abl]

A trailer and a boat are two separate things - it just happens that you usually buy them together.

When you buy a trailer (any trailer - doesn't matter if a boat is sitting on it or not), you go to an autoplan dealer. You submit transfer papers with a declared value, you pay the transfer tax (provincial), you get new insurance for the trailer. The boat doesn't come into it.

The boat - you register transfer/new ownership with Transport Canada (Federal Government). This is just documenting that the Hull number has transferred to a new person. Since there is no nationally recognized 'transfer form' - they will ask you to provide a bill of sale to verify the transfer. They are just looking to confirm that the transfer is legitimate, the Feds don't collect any taxes on sale of used boats.

The provincial government is technically blind to the sale of a used boat, since you don't directly report anything to them. They get 'indirect' indicators that a sale has occurred and taxes owing. They see the boat trailer transfer through ICBC (but its possible to buy a boat trailer with no boat, so this may not be very useful). The Feds also share info on the hull number transfer. All of these have a lag, and its unclear what documents are shared and how automatic it is.

There is no provincial boat registration, so they have no means of directly/automatically becoming aware of the transfer or collecting the tax - you either have to voluntarily report, or they have to seek you out based on the indirect information they receive. From the commenters - it seems like it takes about 2 years for them to track you down - and even then it doesn't look like the Feds share the bill of sale, so they are just guessing at how much tax is owed.

Get 3 bill of sales, one for the trailer, one for the hull and a 3rd one for the engines and associated gear. Feds can only tax you on the price you paid for the hull and you will have bill for the amount. Save a lot of tax money

 

[Max123]

Get 3 bill of sales, one for the trailer, one for the hull and a 3rd one for the engines and associated gear. Feds can only tax you on the price you paid for the hull and you will have bill for the amount. Save a lot of tax money

I don't think that is correct - neither the feds nor the province let you exclude the value of the engine. The 'boat' is considered the hull and everything attached to it (engines, electronics, etc). The PST guide specifically states: that taxes are applicable on "the boat, including accessories". When the Feds assess GST they use the same criteria (for new boat purchases, or used boats subject to Lux tax).

There is no scenario where you get to exclude the power if it is attached to the boat. If you buy a bare hull, pay tax on it, and then buy a used engine as a separate transaction, and then install it - you are likely fine. You could maybe make an argument if you bought a bare hull and a separate (not installed) used engine from the same private seller - but it wouldn't look good, and you would want to take a lot of photos proving two separate transactions and that the engine was not attached.

The only accessories I think you can argue about are loose one - such as rods, traps, sporting goods, etc - nothing 'attached' to the boat.

This all assumes the boat is for private / non-commercial use. Commercial guys have separate rules.

 

[abl]

I don't think that is correct - neither the feds nor the province let you exclude the value of the engine. The 'boat' is considered the hull and everything attached to it (engines, electronics, etc). The PST guide specifically states: that taxes are applicable on "the boat, including accessories". When the Feds assess GST they use the same criteria (for new boat purchases, or used boats subject to Lux tax).

There is no scenario where you get to exclude the power if it is attached to the boat. If you buy a bare hull, pay tax on it, and then buy a used engine as a separate transaction, and then install it - you are likely fine. You could maybe make an argument if you bought a bare hull and a separate (not installed) used engine from the same private seller - but it wouldn't look good, and you would want to take a lot of photos proving two separate transactions and that the engine was not attached.

The only accessories I think you can argue about are loose one - such as rods, traps, sporting goods, etc - nothing 'attached' to the boat.

This all assumes the boat is for private / non-commercial use. Commercial guys have separate rules.

You have bought a used hull without power!