Automotive

[Alberta] no tax on private purchase of used car is by default?

  • Last Updated:
  • Nov 11th, 2019 12:26 pm
Deal Addict
Aug 11, 2008
1291 posts
423 upvotes
Calgary

[Alberta] no tax on private purchase of used car is by default?

In Alberta no tax(GST) on private purchase of used car is by default? or there is some trick?

What i understand that i print 'bill of sale', me and seller enter information, price paid, bill signed and then I call my insurance, used my exiting car number plate (upto 10 days), drive home. To go registry office within 10 days, show them bill of sale and register newly purchased car on existing number plate. Do i tell actual purchase price to registry agent and still no GST?
Last edited by ykhehra1 on Nov 18th, 2019 9:27 pm, edited 1 time in total.
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4 replies
Deal Expert
Aug 2, 2001
18946 posts
10527 upvotes
You are correct - there is no GST on the private sale of used cars in Alberta.

There is no trick or scam.
Deal Addict
Oct 13, 2014
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I stand to be corrected (too lazy to look up), there is no GST on used vehicles anywhere in Canada that has separate GST and PST (provincial). Those provinces (Ontario) that have the blended HST as one tax do calculate the GST into the tax.
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Sr. Member
Mar 22, 2004
845 posts
682 upvotes
London, ON
This is correct. GST is not applicable to used car sales. However, in provinces like Ontario, they are weasling us by increasing the PST to a special "13%" for used car sales:

Private sales of used cars are not subject to GST, but in Ontario are subject to a special 13 percent provincial sales tax "to level the playing field" between car dealerships and others. Used cars bought through a dealership are taxable, however.

I think this is a BS argument, because dealers have multiple advantages already. Namely, if you trade a car at a dealer, you pay the tax only on the difference, whereas you cannot "trade" a car tax free outside a dealer, nor do you get the "tax back" if you sell privately.

Thank crooked OMVIC and the dealer lobbies for fleecing Canadians.
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User avatar
Oct 13, 2007
4920 posts
3840 upvotes
Edmonton
ykhehra1 wrote: In Alberta no tax(GST) on private purchase of used car is by default? or there is some trick?

What i under that i print 'bill of sale', me and seller enter information, price paid, bill signed and then I call my insurance, used my exiting car number plate (upto 10 days), drive home. To go registry office within 10 days, show them bill of sale and register newly purchased car on existing number plate. Do i tell actual purchase price to registry agent and still no GST?
Yea, like the good old (pre-GST) days, no tax at all on a private sale in Alberta.

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