Automotive

Buying a car in another province - where do I pay tax?

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  • Apr 16th, 2016 12:37 pm
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[OP]
Sr. Member
Feb 14, 2005
822 posts
38 upvotes

Buying a car in another province - where do I pay tax?

This is a simple question, but I couldn't find an answer on RMV NS website.

I'm in NS and looking at buying a car in SK.
Will the dealer in SK collect the 15% HST at the time of sale and then I will not pay any tax when I register the car here?
Or will the dealer not collect any tax and I'll pay the full 15% HST when I register the car in NS?

Thanks!
10 replies
Deal Fanatic
User avatar
Jan 17, 2003
7944 posts
337 upvotes
No, you would be paying the tax in our home province.
Deal Addict
Jul 3, 2006
1727 posts
36 upvotes
Maple
you pay the taxes when you put plates on it in your home province at the local MTO office
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Deal Guru
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Jun 12, 2007
11195 posts
1417 upvotes
It depends on the province. For example, in ON, the dealer charges Hst.

When you license in your home province, you pay the applicable taxes again.

You then use your local tax receipt as proof the car physically left ON and apply to get the ON HST refunded.
Deal Addict
Sep 22, 2007
4599 posts
116 upvotes
What will happen is you pay the tax where you purchase. If you've owned it less than 90 days when you move it, you repay in NS and recoup from SK.
Deal Addict
Nov 24, 2007
2066 posts
327 upvotes
Ottawa
ygtgxi wrote:
Mar 4th, 2011 5:42 am
you pay the taxes when you put plates on it in your home province at the local MTO office

how can you find a MTO office in NS?
[OP]
Sr. Member
Feb 14, 2005
822 posts
38 upvotes
Sooo, we have 3 votes for paying in the home province and 3 votes for paying in the other province. LOL

So, I picked up a phone and called RMV NS (no MTO here! :) ) and asked them this question. The answer is as follows:
- the dealer in SK will charge tax since they should be as a business registered to collect GST
- on the bill of sale, if they charge GST separately and PST separately, RMV NS will ask me to pay an additional 10% tax and I will have to apply with CRA to get the PST back from SK.
- if the dealer charges me only GST, RMV NS will get me to pay 10% and all is done
- if the dealer charges me the full tax (PST+GST) and does not break it down on the bill of sale, RMV NS will ask me to pay 15% and I will have to apply to get my full tax back from SK through CRA.

The dealer in SK says that there's no PST on the purchase.

So, I'm trying to do the math and I assume it will go like this:
- I pay the dealer in SK 5% GST
- RMV NS will charge me an additional 10% tax
That will bring my tax rate total to 15%, which is equivalent to the HST rate and the taxman will be happy and we will all live happily everafter. Do I have that right?

Tax rates for reference: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... s-eng.html
Deal Fanatic
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Jul 12, 2003
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Markham
Airbus wrote:
Mar 4th, 2011 4:45 pm
how can you find a MTO office in NS?

OP is in NS, so MTO for him is just his provincial ministry of transport that isue plates, licenses in that province.
Retired Forum Moderator February 2009 - June 2015
Deal Fanatic
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Jul 12, 2003
6270 posts
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Markham
eljay wrote:
Mar 4th, 2011 10:25 pm
Sooo, we have 3 votes for paying in the home province and 3 votes for paying in the other province. LOL

So, I picked up a phone and called RMV NS (no MTO here! :) ) and asked them this question. The answer is as follows:
- the dealer in SK will charge tax since they should be as a business registered to collect GST
- on the bill of sale, if they charge GST separately and PST separately, RMV NS will ask me to pay an additional 10% tax and I will have to apply with CRA to get the PST back from SK.
- if the dealer charges me only GST, RMV NS will get me to pay 10% and all is done
- if the dealer charges me the full tax (PST+GST) and does not break it down on the bill of sale, RMV NS will ask me to pay 15% and I will have to apply to get my full tax back from SK through CRA.

The dealer in SK says that there's no PST on the purchase.

So, I'm trying to do the math and I assume it will go like this:
- I pay the dealer in SK 5% GST
- RMV NS will charge me an additional 10% tax
That will bring my tax rate total to 15%, which is equivalent to the HST rate and the taxman will be happy and we will all live happily everafter. Do I have that right?

Tax rates for reference: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... s-eng.html

Do what RMV tell you, I don't think anyone here will know more than the staff that works there.
Retired Forum Moderator February 2009 - June 2015
Newbie
Apr 15, 2016
1 posts
MP3_SKY wrote:
Mar 4th, 2011 10:30 pm
OP is in NS, so MTO for him is just his provincial ministry of transport that isue plates, licenses in that province.

Hi, did you get the answer? I have the same question with you now. And i don't know where to pay the tax :)
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