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.
Thank you,
Team RideSafely.com
feedback[at]ridesafely.com
Updated: August 12, 2024, 5:17 PM
Leave a Reply
Want to join the discussion?Feel free to contribute!