Bill, This is definitely not definite knowledge (CRA is the only one, who could provide you this).
As far as I know, there is no difference between private sale and brokerage in terms of if the tax is due or not. The only difference is that if you buy through a brokerage, the tax is is withheld at the time of purchase (they have the obligation to do that). If you buy a boat (or anything else) privately, it is your obligation to comply. CRA may not know about the transaction, so it may not come after you. However, the fact that they don’t know, does not mean that the tax is not due. Anything that you buy and have to register with any government agency usually, attract the attention of the tax authorities. So when you buy a car, you have to pay the tax or they would not issue the plates. With a boat, it is a bit different, as you usually don’t “register” the boat (in Canada). Rather, you “licence” it. You don’t need to licence the boat if it not powered or the motor is under 10 HP (hence, plenty of 9.9 HP motors). I think there is some length limitation, as well, but I cannot find it. Here is a link to Transport Canada web site: https://www.tc.gc.ca/eng/marinesafety/debs-obs-paperwork-paperwork_boat_licence-1898.htm. But if your boat has a bigger engine, you have to license it and this would trigger a notice to CRA. In my case the provincial tax authorities woke up to my buying the boat almost full three years after the transaction happened. Interestingly, the trigger was not my importing it across the border (where I had to show that the taxes were paid), but my licensing the boat. If you buy a smaller boat, you can try hiding under the radar and the authorities may not find you. However, if they do, you will have some explaining to do (and a fine to pay). Marek Ottawa, ON From: Bill Connon via CnC-List Sent: Friday, June 17, 2016 09:00 To: C&C List Cc: Bill Connon Subject: Stus-List Sales tax in Canada We've been having a discussion at the marina over sales tax payable in Canada. One thought is that a sale between two private owners incurs no tax whereas a sale by a broker brings on PST and GST. Does anybody out there have definite knowledge, especially where Quebec is involved? ( we still operate under Napoleonic Civil law) Bill Caprice 1 _______________________________________________ This list is supported by the generous donations of our members. If you like what we do, please help us pay for our costs by donating. All Contributions are greatly appreciated!
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