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  • May 22nd, 2020 5:09 pm
[OP]
Jr. Member
Aug 13, 2015
121 posts
48 upvotes
Ottawa, ON

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Last edited by saisoj on May 26th, 2020 7:51 pm, edited 1 time in total.
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Deal Addict
User avatar
Nov 18, 2006
2920 posts
1599 upvotes
Pothole city
saisoj wrote: I couldn't find the exact answer for this.

Let's supposed:

1) I have a car that is worth over $50k
2) I live in Ontario
3) I decide to use that car as trade-in for buying a cheaper car that is worth $30k in Quebec
4) The car dealer decides to give me $20k back and I basically won't pay any taxes on the car I just got because mine is of higher value.

Once I bring that car back to Ontario, do I need to pay any taxes on that car when I register it? I was all happy thinking it would be tax free since mine was of higher value, now I'm not so sure!
My guess would be:

-You will only pay GST at the dealer.
-You'll will get a transit registration valid for 7 days
-Once you register the car in Ontario, you will pay the PST
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Deal Fanatic
Jul 4, 2004
5715 posts
1771 upvotes
Ottawa
I don't believe you will pay any taxes but you might have to pay it up front and get a refund.

Based on my experience (which was several years ago), during a typical vehicle purchase in QC for an ON driver, the dealer will charge you QC taxes which you have to pay, then when you register in ON, you pay the taxes again and then apply for a refund from the QC taxes showing that you paid taxes in ON and they send you a refund (I think in my case it took 4-6 months). In your case, because of the trade-in, you have a net $0 taxes from QC but I'm not sure if ON will charge you the taxes. They might in which case you'll have to do the same which is pay ON taxes and then apply to QC for a refund of the tax credit you received.

I think you'll have to check with Service Ontario to get the answer for that (and even then, I wouldn't be surprised if you get different answers depending on who you talk to).
Deal Addict
Sep 6, 2017
3199 posts
1904 upvotes
saisoj wrote: I couldn't find the exact answer for this.

Let's supposed:

1) I have a car that is worth over $50k
2) I live in Ontario
3) I decide to use that car as trade-in for buying a cheaper car that is worth $30k in Quebec
4) The car dealer decides to give me $20k back and I basically won't pay any taxes on the car I just got because mine is of higher value.

Once I bring that car back to Ontario, do I need to pay any taxes on that car when I register it? I was all happy thinking it would be tax free since mine was of higher value, now I'm not so sure!
Wonderful, I sell my house and buy one cheaper in another province and not pay taxes.
Deal Addict
Nov 16, 2011
1263 posts
954 upvotes
HAMILTON
You would have to think of the process logically. You sold the car to the dealership for $50k. With that $50K, you spend $30K to " purchase " another car.

Therefore, tax would be payable on the $30K vehicle that you bought.

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