Ontario tax on used watercraft

[iceno9]

So i am only asking about this because i have seen conflicting information today.
When i bought my second hand Seadoo from a private seller, i registered it and paid tax at the Service Ontario downtown on the full amount.
Today i have heard that no tax is payable on a private re-sell of a PWC.....i have googled and got mixed feedback.

What does everyone else think?
If i have paid tax and shouldnt have, then i want to go after getting it back!

[ptscon]

Unless something changed in the last two years Services Ontario only deals with the trailer.

When you register the watercraft under your name with the gov thats where taxes would be paid, or not. You're supposed to get a tax bill in the mail but a lot of the time it doesn't happen or takes a very long time. I haven't received anything when I registered two skis back in 2015

[iceno9]

....but you are still suggesting that tax SHOULD be paid sooner or later?

[connorrxp]

Unless something changed in the last two years Services Ontario only deals with the trailer.

When you register the watercraft under your name with the gov thats where taxes would be paid, or not. You're supposed to get a tax bill in the mail but a lot of the time it doesn't happen or takes a very long time. I haven't received anything when I registered two skis back in 2015

+1 when I brought mine in from the states I had to pay tax on the amount written on the bill of sale, my brother and I bought one from a private sale and had to send a bill of sale in and will likely get a tax bill sometime in the next 10 years.. I had to pay tax on my first ski but that was from a used ski dealership. It's really weird they made you pay the tax at service ontario.

[clelly30]

When I bought my 08 a few years ago I didn't pay any tax on it. The only thing that needed to be paid was to licence it. Although a few years after that I received a notice in the mail from the government saying I owed sales tax on the seadoo. Eventually it will probably have to be paid once the government finds out there is a new owner but it may take awhile.

[ptscon]

....but you are still suggesting that tax SHOULD be paid sooner or later?

Technically yes, will you get a tax bill ...that is the question.

What exactly did Services Ontario charge you for? They don't deal with watercraft, that's done through Transport Canada.

[canuck]

Similar in BC, purchase at a dealer and tax is paid on delivery with a private sale you are supposed to remit the taxes on the purchase price to the province. In the past I have always received a letter from the province months or years after registering or transferring ownership with Transport Canada. I believe Transport Canada notify the respective provinces of all registrations and transfers so they can collect the taxes. Basically the provinces want the tax on private boat sales but have no way of collecting it so they rely on info from Transport Canada.

I had a 2004 RXP that I purchased used and sold it about 18 months later then I got the tax notice. The letter stated the value based on the sale of similar models was $9,000 and I was to remit $1,080.00 in taxes, 12% tax in B.C. I sent them a cheque for $180.00 and a copy of the bill of sale for $1,500.00 and that's the last I heard.

[connorrxp]

Similar in BC, purchase at a dealer and tax is paid on delivery with a private sale you are supposed to remit the taxes on the purchase price to the province. In the past I have always received a letter from the province months or years after registering or transferring ownership with Transport Canada. I believe Transport Canada notify the respective provinces of all registrations and transfers so they can collect the taxes. Basically the provinces want the tax on private boat sales but have no way of collecting it so they rely on info from Transport Canada.

I had a 2004 RXP that I purchased used and sold it about 18 months later then I got the tax notice. The letter stated the value based on the sale of similar models was $9,000 and I was to remit $1,080.00 in taxes, 12% tax in B.C. I sent them a cheque for $180.00 and a copy of the bill of sale for $1,500.00 and that's the last I heard.

I love how those shit bags try and scum you for all they can on what "similar" models go for, we got my brothers for 500 as is and fixed some stuff, they can pound sand if they think I'm paying over 1k in tax on a ski that's used

[iceno9]

Ok...so today i rang the CRA and ministry of finance to find out the real answer.
There are different scenarios - but i will go witht he scenario that you buy a used Seadoo from a private individual that is not GST/HST registered, the craft is bought in Ontario for use within Ontario.
- No GST/HST is payable.
- RST is payable and this has been set at 13% (in Ontario) to deliberately match shops HST.
- Normal process is that you register the craft license number with the Marine thingy and they inform the MoF about the license transfer which prompts them to check for tax payment. If there is none, they send a 'Boating letter' to you asking for the RST payment. This could be in theory after you have sold on the craft!!!
- They have 4 years in which to request the tax payment. If you have had the craft more than 4 years and not been asked for tax.....then you owe nothing!
- Doesnt sound like they can police this system very well....i.e. if you just ignore the letter, it doesnt sound like much happens. That was the impression i got on the phone.
- I paid RST at Service Ontario because i had one receipt for the Seadoo and Trailer. So whilst they split it into two different RST receipts, i didnt 'have' to do that at the time. I could have just paid the RST on the trailer only and then wait for the boating letter....which i will likely still get, but then i can prove the RST has been paid already

My advice for future reference - ensure you get a separate receipt for Seadoo and trailer....keep the bulk of the deal in the Seadoo. Only pay RST on the trailer and wait to see IF you get a letter.
Apperantly they are only just doing audits on Seadoo's bought in 2014 so it sounds like there is a good chance that the 4 year window will expire for a number of transfers!

[ptscon]

Ah yes now I remember about the split ski/trailer purchase thing. One ski I bought with a trailer but the seller split the bill into two. The other ski I already had the trailer.

This process is so messy it's funny, hoping not to get my tax bills


The whole idea of paying tax on used goods on a private sale is just wrong anyway. Tax should be payable once when purchased new, after that f-off.

[11c]

Zero taxes paid here in Manitoba unless purchased from a dealer.

I've been riding for around 16 years and never paid a dime in taxes on used SEA-DOO'S and I have always registered the hull numbers. $0.00

[iceno9]

Ah yes now I remember about the split ski/trailer purchase thing. One ski I bought with a trailer but the seller split the bill into two. The other ski I already had the trailer.

This process is so messy it's funny, hoping not to get my tax bills


The whole idea of paying tax on used goods on a private sale is just wrong anyway. Tax should be payable once when purchased new, after that f-off.

Amen to that...100% agree with you!

[ptscon]

All my Canadian friends never RE-Register a used boat/PWC. They simply leave it alone/as is. The boat/PWC is only registered once.

You only register the trailer and it's present value, which you pay taxes on. Its what touches the road. Not the boat/PWC.

A bill of sale for the boat/PWC is written up separately between the seller and new owner; which remains in the new owners hands for proof of ownership. Don't show or tell the FATTY people about it, its not their business.. (Government)

Its like buying a trailer and putting a used TV on it.. You don't pay taxes for selling your used TV...
Why would you want to make the government's ass any fatter? Unless your a government worker..... They don't earn.. They take like a thief..

Insurance brokers for the boat is like buying insurance for anything. They only care about the bill of sale and not if the boat was RE-registered..

That's illegal, you have 90 days to transfer ownership of a used pleasure craft in Canada.

[ValBugi]

I purchased a used craft 7 years ago and paid tax only on the trailer when transferring the ownership. 5 years later revenue canada or transport canada (not sure which one) sent me a letter stating I need to pay tax on the craft. I called and told them I don't remember how much I bought it for and did not have the bill of sale any longer as I sold the watercraft a few years before that. They advised me to guess the amount I paid and note that bill of sale was lost. Apparently this is quite common when they contact people years later.

So all I could remember was $100 and paid 13% tax on that.

[ptscon]

Its Transport Canada that tells revenue Canada. They do this when you Re-register the boat/pwc. Re-registering the boat/pwc does not prove ownership, so NO need to do so.. Bill of sale proves ownership.. Its not a car that uses the road from what I've heard.

When cops pull you over on the water they check the registration papers not the bill of sale.

No matter how you spin it what you are suggesting is not legal. What if something happens on the water, the original owner who registered the craft would get the blame?