Automotive

Tax on used cars in BC? (private sale)

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  • Jul 27th, 2010 10:57 am
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Deal Addict
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Feb 27, 2005
1926 posts
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Tax on used cars in BC? (private sale)

If you purchase a used car in BC directly from the owner in the classifieds, is there any tax? Initially I thought there was no tax at all by a collegue mentioned you don't pay GST but still pay PST.

Does the age of the car make any difference for tax? Eg. Purchasing a used 1990 car from a private seller in the classifieds or a used 2006 car from a private seller in the classifieds.
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15 replies
Sr. Member
Nov 2, 2006
841 posts
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you always pay PST on any used car, no matter how old it is. it is based on the selling price put down on the transfer papers. the buyer will pay the tax when he/she has the car insured.
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Mar 4, 2007
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number84 wrote:
Apr 23rd, 2007 8:26 pm
you always pay PST on any used car, no matter how old it is. it is based on the selling price put down on the transfer papers. the buyer will pay the tax when he/she has the car insured.
Go to your neighbourhood insurance broker & ask them what the ICBC book value is on the car you want to buy. If your buying price is lower than the book price, you will need to give a reason for your unusually good deal (expensive engine/transmission repairs, family sale). When I sold my last car, I was nice enough to leave the "selling price" blank on the transfer papers. I left it up to the buyer to quote whatever lower price he felt like to ICBC for tax purposes.
Sr. Member
Aug 7, 2004
626 posts
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Fraser River Rat wrote:
Apr 25th, 2007 7:30 am
Go to your neighbourhood insurance broker & ask them what the ICBC book value is on the car you want to buy. If your buying price is lower than the book price, you will need to give a reason for your unusually good deal (expensive engine/transmission repairs, family sale). When I sold my last car, I was nice enough to leave the "selling price" blank on the transfer papers. I left it up to the buyer to quote whatever lower price he felt like to ICBC for tax purposes.
Just curious, if the auto tax rebate is deducted from new cars, shouldn't it be deducted for used cars too, since it's taxed?
Newbie
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Feb 13, 2009
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BC Lower Mainland
Does anyone know how if the new HST will be on used cars like the present PST or will it be like the GST and be except ???
Sr. Member
Dec 6, 2007
792 posts
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Nat_ wrote:
Nov 14th, 2009 6:57 pm
Does anyone know how if the new HST will be on used cars like the present PST or will it be like the GST and be except ???
Exempt with special tax equivalent to PST. HST will apply to purchases from businesses though. So no changes basically.
Sr. Member
Dec 6, 2007
792 posts
8 upvotes
yvrwindsor wrote:
Nov 15th, 2009 1:58 am
When you purchase a used car in BC, 12% HST applies.
http://www.gov.bc.ca/hst/rebates_exemptions.html
Nope. When you purchase a used car from a dealer, GST+PST applies...HST will apply starting April. When HST comes in, there will be no HST on private sales. However, from what has been reported on the news, there will be a special "levy" of sorts equivalent to the current PST.
Officially though, it has still been undecided:
http://www.sbr.gov.bc.ca/documents_libr ... Notice.pdf
Additional information will also be provided in the near future about the following:
- the provincial tax on the private sales of used vehicles, boats and aircraft.
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Oct 6, 2007
4486 posts
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Kootenays
zivan56 wrote:
Nov 15th, 2009 3:46 am
Nope. When you purchase a used car from a dealer, GST+PST applies...HST will apply starting April. When HST comes in, there will be no HST on private sales. However, from what has been reported on the news, there will be a special "levy" of sorts equivalent to the current PST.
Officially though, it has still been undecided:
http://www.sbr.gov.bc.ca/documents_libr ... Notice.pdf
HST starts in July as far as I can see. We're looking at buying a used car in the US and if it's purchased AFTER July 1st, we pay HST and can use it as an input tax credit, since it's a vehicle for our business. This will save us approximately $1000 on a $20,000 vehicle. I called infoBC last week and she definately said July 1st.
Sr. Member
Dec 6, 2007
792 posts
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Yep it's July...I got it confused with personal taxes for some reason.
Sr. Member
Dec 6, 2007
792 posts
8 upvotes
Yeah they went back on what they said back then. I recall the basic HST info saying specifically exempt with levy. Then they said they aren't sure...now they finally announced in the budget it will apply to cars with the revenue going to the BC government (not federal, since used cars/boats/planes sales aren't taxed under HST).
Deal Addict
Oct 26, 2008
4679 posts
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BC
zivan56 wrote:
Mar 12th, 2010 2:59 pm
...now they finally announced in the budget it will apply to cars with the revenue going to the BC government (not federal, since used cars/boats/planes sales aren't taxed under HST).
So, when a B.C. vehicle buyer goes to proudly register and insure it,
the paperwork will show the current 7% PST with a new line item of an additional 5% PST that applies only to used vehicles in a private transaction.

In most cases, the private seller will be the one effectively absorbing that 5% cash grab.

Will likely give more business to shady used car dealers as private sellers will find it tough sledding - and just accept the best offer to buy from the small backstreet lots.

At least those lots may be getting some better condition vehicles for the next time W5 comes around.
Newbie
Apr 9, 2008
6 posts
What hqappens if someone from Alberta buys a car in BC. In the past we did not pay the PST because the vehicle was registered in Alberta. Do we now have to pay the whole HST at the point of sale. In other words GST and PST=HST and is paid at point of sale? Is that correct?
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