Taxes on Canadian purchases?

General boating discussion
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waterdog247
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Taxes on Canadian purchases?

#1

Post by waterdog247 »

Does anyone know what additional taxes and fees there are for buying a boat in Canada? One of their websites posts the following;

GST ( Goods and Services Tax - Federal) is calculated at 5%. Non residents of Canada may (if they qualify) apply for a GST rebate of goods and services taxes that were paid while visiting British Columbia.

PST ( Social Service Tax - Provincial) includes retail sales and leases in British Columbia of "tangible personal property" purchased or leased for consumption or use. This is calculated at 7%.

I am hoping there is a work around for this. Paying 12% to the Canadian Gvmt, then an additional 7.5% to Washington State, may end up being too much. :shocked:

Maybe I should just buy another Harley...
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goatram
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Re: Taxes on Canadian purchases?

#2

Post by goatram »

There is a way to get some if not all back when you cross the border. But then you might have import fees for bringing in the boat. 8.6% sales tax I think for Gov. Christine

I talked to my friend J.D. today about the boat in AK and he said that that engine combo is spot on for that boat. He used to work for them. I can PM his number if you want to pick his brain. Plus he knows all the intel on the fish where a bouts. A good guy to know James. :titanic: February is fast approaching and Blackmouth fishing will be on going when you get back here to the PNW and the Puget Sound
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waterdog247
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Re: Taxes on Canadian purchases?

#3

Post by waterdog247 »

Thanks John. I would appreciate that. You can send him my email address if you don't mind.

Paying almost 20% tax to two governments, :banghead: I don't mind doing my part, but that puts a lot of boats out of our price range.

Believe me, I can't wait to hook into a couple little Chinooks!
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goatram
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Re: Taxes on Canadian purchases?

#4

Post by goatram »

will do when i go home in a half hour.
He posts up on Gamefishin and bloodydecks as well under J.D.
John Risser aka goatram
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Re: Taxes on Canadian purchases?

#5

Post by steve-r »

On July 1 2010 there was a change to Canadian taxes: in BC it went from from GST 5% plus PST 7% on new boats, for a total of 12% to a new Harmonized Sales tax of 12%. I believe private boat sales were previously exempt but now are subject to a new 12% TDP tax. More info here http://www.boatingbusiness.ca/todaysnews/article/9466
shudda bought by June 30 :banghead:
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Re: Taxes on Canadian purchases?

#6

Post by ruggit »

In the not too distant past, a boat purchase made in Canada could be delivered via Pt. Roberts in the US to complete the purchase.

Paperwork would already be completed to put boat legally in US. US state taxes would be due as required.

There is an abundance of American aluminum boat builders, as well as at least one Canadian (Silverstreak and Kingfisher come to mind) that markets through American brokers that should make Canadian taxes a non issue.
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Re: Taxes on Canadian purchases?

#7

Post by Shark Bait »

Waterdog: When I bought my EagleCraft Daigle Welding and Marine was responsible for importing it into the US at Sydney and there was no GST or PST charged since it was going to be registered in the US.

I supplied the electronics and some other equipment which I delivered to Daigle Welding and Marine. When I crossed the border I had to declare the items and pay the GST and/or PST depending on the item. This amounted to approximately $600. After the boat had been imported into the US I gave Daigle a copy of the import paperwork for the items I had supplied and they sent me a letter certifying that all of the equipment on the list had been used on my boat and that all of the items had been exported to the US.

I then filled out a GST/PST refund form and sent it to Canadian Customs and in about 3 or 4 week I got a check for the entire amount I had paid. I was a little hassle but no too bad.

IF you were to purchase a boat in Canada and the dealer/builder imported it into the US, to be registered in the US , it is my understanding that you would not have to pay any GST/PST.

SB
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waterdog247
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Re: Taxes on Canadian purchases?

#8

Post by waterdog247 »

Thanks SB. I was hoping that was the case. I wasn't able to find any definitive answers on the Canadian websites, but knew someone here would be able to enlighten me!!
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