If I purchase a car from Canada through RideSafely, which taxes am I responsible for?

When you purchase a vehicle from Canada, you are required to pay taxes based on the delivery location. Here’s how it works:

  • Ontario Deliveries: A 13% Harmonized Sales Tax (HST) applies if the vehicle is delivered within Ontario, irrespective of the buyer’s residence.
  • Outside Ontario: The tax rate of the province where delivery occurs will apply.

What Constitutes ‘Delivery’?
‘Delivery’ refers to the location where the customer takes possession of the vehicle:

  • If you pick up the vehicle in Ontario and drive it home, the delivery is considered to have occurred in Ontario.
  • If the vehicle is shipped out-of-province with your name on the bill of lading, the delivery is considered to have occurred in Ontario.
  • If the vehicle is shipped with the dealer’s name on the bill of lading, delivery is considered to have occurred in the destination province.

Tax Refunds for Out-of-Province Buyers:
Buyers from non-HST provinces can apply for a refund of the 8% provincial portion of the HST from the Canada Revenue Agency after registering the vehicle in their home province and paying any applicable provincial taxes.

Tax Rates Across Canadian Jurisdictions:

  • Nova Scotia: 15%
  • Newfoundland, New Brunswick, Ontario: 13%
  • British Columbia: 12%
  • Alberta, Manitoba, Northwest Territories, Nunavut, Prince Edward Island, Quebec, Saskatchewan, Yukon: 5%

For more detailed information or specific inquiries, please contact our RideSafely support team at (215) 289-0300.

RideSafelyThank you,
Team RideSafely.com
feedback[at]ridesafely.com

Updated: August 12, 2024, 5:17 PM  

August 12, 2024   3444   RideSafely    Payment    
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