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Do you have to pay Ontario PST................

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Old 10-10-2008, 03:46 PM
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Cman01
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Default Do you have to pay Ontario PST................

.............................if you buy a new vehicle from a dealer in another province and licence the car here in Ontario????

Let's just say this vehicle is new and is a canadian model but you are just buying it from a dealer in another provice (ex. Alberta where there's no PST), when you bring it into Ontario to licence it do you have to pay Ontario PST or can you just licence it like you purchased the car here????

Tony
Old 10-10-2008, 03:49 PM
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Zeeman28a
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If you bought a car in Alberta that had never been registered in Ontario, you would have to pay the tax as soon as you register it - if it's a new car, tax on the full selling price, on a used car, the tax would be pro-rated depending on how old it was.
Old 10-10-2008, 04:00 PM
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Cman01
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What if it is registered first in Alberta then I "move" to Ontario with the car? Do I pay the tax then? I have an address connection in Alberta where I can register the car to before bringing it to Ontario.
Old 10-10-2008, 04:03 PM
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I agree with everything Stan just posted except one thing...

Ontario has its own valuation scale for vehicles. Say a rich buddy sold you a 2002 Vette for $15,000 and you then go to the MVO office with receipt in hand to register the vehicle in your name and pay the PST, they would look up their own valuation and charge the PST on their amount - likely about $25,000 vs what you paid !!
Old 10-10-2008, 04:11 PM
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Jon04CTSV
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Originally Posted by Cman01
What if it is registered first in Alberta then I "move" to Ontario with the car? Do I pay the tax then? I have an address connection in Alberta where I can register the car to before bringing it to Ontario.
I'm 99% sure you don't. That's what I've heard.
Old 10-10-2008, 04:14 PM
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Zeeman28a
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Originally Posted by Cman01
What if it is registered first in Alberta then I "move" to Ontario with the car? Do I pay the tax then? I have an address connection in Alberta where I can register the car to before bringing it to Ontario.
Then it's a used car. So you pay the tax on the purchase price or the wholesale value of car, whichever is higher, usually.

Sorry to say, but you cannot get away from paying the tax.
Old 10-10-2008, 04:15 PM
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Cman01
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Greetings Jon, nice to see you over here from GTAMC (I know, you've been here way before I joined this MB)

Tony
Old 10-10-2008, 04:20 PM
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1BDRSK
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On a new car you would pay the PST on the amount you paid. On a used vehicle you will pay the PST on either the wholesale value or bill of sale amount, whichever is more.

As for having the car 'registered' in Alberta first, when you go to transfer the ownership and get Ontario plates, they will look at your Ontario drivers license number and probably say 'nice try'. Also if you 'switch' your drivers license as well to an Alberta one, they'll probably look at how long ago you changed it and quickly figure out what you were trying to do.
Old 10-10-2008, 04:25 PM
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CanadaGrant
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Originally Posted by Cman01
What if it is registered first in Alberta then I "move" to Ontario with the car? Do I pay the tax then? I have an address connection in Alberta where I can register the car to before bringing it to Ontario.
I think every province has their own rules but generally, if the car was registered in YOUR name in another province for a minimum of six months you could then transfer it to another province, plate it, and there would be no taxes. It would be treated as a move.
Old 10-10-2008, 04:25 PM
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Originally Posted by Cman01
Greetings Jon, nice to see you over here from GTAMC (I know, you've been here way before I joined this MB)

Tony
I knew I recognized that screen name from somewhere!

Looking to bring over a Vette?
Old 10-10-2008, 04:26 PM
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dankhts
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Registering it in Ontario if it was never registered before, is subject to PST. The selling dealer will collect the GST there...
If it's registered to you at your address in another province, and you move here, there's no provincial tax due. I can't remember the time required though...
I sell a lot of vehicles out of province, but only have to collect the GST....they pay their PST if applicable in their home province.
It gets a little rickier in Quebec and futher east, where they have the haromized tax however...
Old 10-10-2008, 04:30 PM
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Originally Posted by Jon04CTSV
I knew I recognized that screen name from somewhere!

Looking to bring over a Vette?
I'm getting closer to getting my Z06, just figuring out where I'm gonna get it. States is the best bet, just hoping the dollar gets better and if not I'm looking at other options hence the question.
Old 10-10-2008, 07:50 PM
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Originally Posted by 1BDRSK
On a new car you would pay the PST on the amount you paid. On a used vehicle you will pay the PST on either the wholesale value or bill of sale amount, whichever is more.

As for having the car 'registered' in Alberta first, when you go to transfer the ownership and get Ontario plates, they will look at your Ontario drivers license number and probably say 'nice try'. Also if you 'switch' your drivers license as well to an Alberta one, they'll probably look at how long ago you changed it and quickly figure out what you were trying to do.
Old 10-10-2008, 10:30 PM
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McFence
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I bought mine in the states.

When I went in to get ontario plates they asked for my bill of sale and charged me pst on that alone - no other issues.

Mabey there are other rules that people in other offices might get more **** about, but the point is - if you want ontario plates then will have to pay pst.
Old 10-11-2008, 01:19 AM
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Originally Posted by Cman01
What if it is registered first in Alberta then I "move" to Ontario with the car? Do I pay the tax then? I have an address connection in Alberta where I can register the car to before bringing it to Ontario.
The problem may ocur that you won't be able to register the car in Alberta, unless you have an Alberta Driver's License. It is also illegal to hold two driver's licenses in Canada. So, not only will you need to be in Alberta to get your "new drivers license" and take delivery of your "new car" but you'll have to relinquish your Ontario license. Unfortunatly, being an inter-provincial thing, simply loosing your Ont license won't do.
I'm pretty sure that you'd have to hold both the license and the registration for 6 months or more.

Canadian laws state that you can operate a motor vehicle registered in another jurisdiction up to a maximum of 3 consecutive months in a calendar year. Oct-Nov-Dec (New Year) Jan-Feb-Mar, Change Back. Chances are you're not driving your new Vette over the winter months, so you may not be running as much risk of getting pulled over and questioned about the the 3 month time frame, however, you'll only be investigated if there's a claim and someone smells something funny. (Store the car in Alberta for the first winter 6 moths??) but then that still leaves you with Ontario vehicles registered in "your name" (cough) wife's name?

So the question will be how much is the tax you're going to pay, and how much is the hassle (and the trip) worth to you??? Unless you have business (or something) in Alberta to justify the unusual changes, you run the risk of having an improperly registered vehicle and as a result no insurance. Criminal might sound a little harsh, until you put it in the same sentence as tax evasion.... Doesn't sound worth it to me Sorry my friend, I'd pay the calculated taxes deemed appropriate.

Last edited by Spinner_89; 10-11-2008 at 01:34 AM.

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