PST - HST transition info required

[tortuga]

Does anyone have a simplified explanation of when it happens and how it would affect buying a new or used car before and after the change date.
Thanks

 

[scott craven]

Shouldn't make any difference, you'll still pay 7% pst and 5 %gst
as opposed to 12% hst.

 

[tortuga]

Good to know. Thanks Craven

 

[nicnat]

not sure if that is correct. pre hst you only paid the pst on used cars, no gst. if it goes back to the way it used to be, with the same exemptions for gst you should only be paying the pst again on used vehicles. i'm not sure how it's going to work, they may change some of the former gst exemptions.
cheers nicnat

 

[scott craven]

here's something taken from an announcement on the PST return.

When you purchase a used car in BC, it will be subject to tax at 12% regardless of whether you buy it from a dealer or from your neighbour. When you buy the used car from the dealer you will pay 5% GST and 7% PST after April 1, 2013 (luxury tax may also be applicable). When you buy a used car from your neighbour, for example, you will pay 12% tax on designated property when you register the vehicle with ICBC. This tax is applicable for sales occurring now and after April 1, 2013.

 

[Rockfish]

From the press I have been reading the Liberals have been saying that all of the original exemptions/tax system would go back into effect once the HST is removed. That should include used cars and boats. When I bought my last boat I got it through before the HST clicked in or I would have had to pay a lot more tax. That was a big difference on an expensive used boat or car

I understand it was the commercial car lot industry that lobby government to force the added cost on to those buying a used car privately to make themselves more competitive and thus more money. If the tax on used cars and boats does not go down when the HST is removed then it seems to me they have not really removed the HST at all. They have just done a little renaming and slimy sleaze bag politicking.

The main reason the BC’ers were so overwhelmingly opposed to the HST was because of the giant tax grab with all the lost exemptions despite the BS at the time about it being revenue neutral which turned out to be untrue . So my question to BC Liberals is are you going to actually go back to the way things were including all the previous exemptions as promised and why would the total tax on used boats and cars not go down after April first?

 

[scott craven]

more info...

Will all permanent PST exemptions return?

The PST will apply to the same goods and services that were subject to PST prior to the implementation of the HST. All permanent PST exemptions will be re-implemented with the new PST, including:

• all food for human consumption (e.g. basic groceries and prepared food such as restaurant meals);
• most services (e.g. personal services such as haircuts, dry cleaning, funeral services);
• admissions and memberships;
• bicycles;
• newspapers and magazines; and
• all permanent PST exemptions for business.

How will the PST Apply?
The re-implemented PST, like the previous PST, will be a retail sales tax that is payable when a taxable good or service is acquired for personal use or business use, unless a specific exemption applies.
PST generally applies to:

• the purchase or lease of new or used goods;
• goods brought into BC for use in BC;
• the purchase of most services to goods (for example, vehicle maintenance, furniture assembly, computer repair);
• the purchase of telecommunication services including internet access, non-basic cable, non-residential telephone services, cell phone use, satellite services and facsimile services; and
• the purchase of legal services.

 

[NautiGirl]

i'm pretty sure the extra tax on designated property (TDP) will likely stick around once the HST is gone. I think Jimmy P (Who owns most of the halibut licences and sets the price on raw meat for the commies) lobbied to put the TDP in place because people were buying cars outside BC and used cars that were cheaper than the used cars he was selling. The argument was that it was an unfair playing field, because dealers had to charge tax but private sellers did not have to charge it. It's a tax grab that actually kept Jimmy happy.

 

[adrianna3]

Here's another little tidbit for all you out there. When the HST reverts back to he PST/GST you will still be paying the PST on labour. There never was PST on labour before the HST.

Dave