Ontario vehicle ownership transfer between family

fromage wrote: ↑ how old is the car? i know in quebec if its 10 years old or older, there is no book value for it, therefore you could declare it as a $10 sale. and pay tax on $10.

plymouthhater wrote: ↑ When my father-in-law gave me his 14 yr old Corolla - I had to get a declaration of gift signed by my local Town Councilor - there was no tax payable. (This was in Ontario). The Town Councilor did not charge for witnessing the transaction and signing the document.

jimmy-j wrote: ↑ Yes, I think that's what I have to do but it's just seems like un-necessary red tape. I may end up just buying the $20 UVIP and declaring the sale for $10 or something like that. Last time I did a transfer between family, I declared the sale as .01 cent and it was totally straight-forward and no-hassle.

redsfan wrote: ↑ Go to the Service Ontario on Yonge St, they were great when I sold my Jeep. I think either way you have to buy the UVIP, but it's easy to fill out and the value may not even matter because a family transfer doesn't require them paying any taxes on it....I think just the simple ownership transfer which has to be done anyhow

jimmy-j wrote: ↑ Yes, I think that's what I have to do but it's just seems like un-necessary red tape. I may end up just buying the $20 UVIP and declaring the sale for $10 or something like that. Last time I did a transfer between family, I declared the sale as .01 cent and it was totally straight-forward and no-hassle.

mrweather wrote: ↑ The only way around the sales tax is to submit the notarized declaration. Period. You could try to "sell" it for $10 but Service Ontario will just laugh at you and set the value according to whatever wholesale data they use and charge you HST accordingly.

A lot has changed in 20 years since you last did this.

jimmy-j wrote: ↑ I'm having a vehicle ownership transferred to me by a family member.

I have not done this in about 20 years so I'm a bit fuzzy on the process but I went to Service Ontario today with the completed ownership and it seems I have to fill a form and have it signed and witnessed by a town commissioner or notary. This is a bit difficult as the family member and I are both on different schedules so it's a real challenge to coordinate a time.

What is the difference between the family member transfer vs saying he sold me the vehicle for .01 cent? Why is this form even necessary and is there any way around it?

Alexaander wrote: ↑ I recently transferred vehicle to my souse name. No taxes were paid or forms notarized. There is a special form on service Ontario website which allows to transfer vehicle or plates to family member, such father, mother, spouse and children. No other family members are included.

mrweather wrote: ↑ It's not the purchasing of the UVIP that's the problem, it's when the buyer goes and tries to register the vehicle using a bill of sale that says $10. That's when SO will laugh at them, reassess the purchase price and charge them HST.

board123 wrote: ↑ What would they assess the appropriate purchase price to be for a 1993 car?

jimmy-j wrote: ↑ The Service Ontario agent gave me the form to complete and said it must be witnessed and signed by either the town comissioner or notary. She said there's no alternative. Maybe between spouses, same household it's different. My father and I live at different addresses so maybe that complicated matters.

thebluegoat wrote: ↑ I don’t know how they do it but I bought a 1990 truck in 2020 and because there was no book value I had to spend more money to bring in an approved appraisal of the vehicle to then pay taxes on.

Alexaander wrote: ↑ This is very odd. Father considered to be family, where no tax involved. I went to Service Ontario on Yonge and Steeles and haven’t been asked a single question.

board123 wrote: ↑ What would they assess the appropriate purchase price to be for a 1993 car?

jimmy-j wrote: ↑ How recent was this? When I see the town commissioner tomorrow I'm going to ask when this started. It really shouldn't be this complicated to transfer ownership of a vehicle between family.