Automotive

Sales tax on used cars in Ontario

  • Last Updated:
  • Aug 18th, 2019 10:30 pm
[OP]
Newbie
Feb 17, 2017
20 posts
3 upvotes

Sales tax on used cars in Ontario

This is partly a rant and/or a question. Do we really have to pay friggin 13% HST on a used car in Ontario? Seems like robbery. I'd like to buy a car to have for a short-term for somebody in my family but hate the idea of shelling out 13% on top of what the original owner already paid. Is there a way around it?
15 replies
Newbie
Jul 21, 2019
87 posts
134 upvotes
That's the Government for you, robbing everyone blind, in my company the Government ends up getting taxes 4x per item. Buy a car off someone then you don't have to pay tax.
Sr. Member
User avatar
Jun 4, 2005
635 posts
20 upvotes
Brandon26 wrote:
Aug 15th, 2019 1:19 pm
That's the Government for you, robbing everyone blind, in my company the Government ends up getting taxes 4x per item. Buy a car off someone then you don't have to pay tax.
Even if you buy a car privately, you are still responsible for HST when you register the vehicle at MTO. Rate is calculated on either MTO book value or transaction value, whichever is higher.
Newbie
Jul 21, 2019
87 posts
134 upvotes
SkylineR34X wrote:
Aug 15th, 2019 1:24 pm
Even if you buy a car privately, you are still responsible for HST when you register the vehicle at MTO. Rate is calculated on either MTO book value or transaction value, whichever is higher.
Should have known the Government always finds a way lol, like that saying goes, the only things certain in life are death and taxes.
Deal Addict
User avatar
Jan 8, 2009
2624 posts
1344 upvotes
Ontario
SkylineR34X wrote:
Aug 15th, 2019 1:24 pm
Even if you buy a car privately, you are still responsible for HST when you register the vehicle at MTO. Rate is calculated on either MTO book value or transaction value, whichever is higher.
Surprised the cash hungry UK government hasn't caught onto this one.
"Never wrestle with a pig. You'll both get dirty, and the pig likes it"
Member
Jan 13, 2007
389 posts
285 upvotes
Toronto, Ontario
HST on used vehicles is nothing more than a huge government cash grab. I swear it is only in place to protect the network of new and used car dealers.
Deal Addict
Jul 4, 2004
4714 posts
831 upvotes
Ottawa
I suggest that everyone write to the Ontario provincial government about this (I've done it many times). Until a few years ago, private sales were only taxed the PST portion of HST but then it changed (I suspect at the lobbying of used car dealers) and private sales became subject to a "special" 13% tax (since there's no "goods or service" to tax so the transaction itself is exempt from the GST portion of the HST).

I actually always propose one better in that private sellers should be entitled to a credit for the taxes for a used car they sell privately (like you get if you trade in a vehicle at a dealership). Many US states do this an if you sell a car privately up to 3 months before / after you buy a replacement vehicle (new or used), you can apply for a credit from the sale of the previous one. It would be very easy to track since they already have the UVIP and would solve the problem of private sellers falsely reporting lower sale prices (since the seller gets a tax credit, they will want the full value).
Deal Addict
User avatar
Mar 7, 2007
2385 posts
647 upvotes
Seems like robbery?

It is 100% robbery !!!
Deal Addict
User avatar
Aug 7, 2007
3110 posts
1071 upvotes
GTA
Yeah it's an unbelievable cash grab. Doesn't matter what you sell it for, they will go by the number on the UVIP.
Deal Addict
Sep 21, 2011
1414 posts
284 upvotes
ssj4_ootaku wrote:
Aug 16th, 2019 2:50 pm
get an appraisal
I’ve heard of this, so if a appraisal was done and was for like 1000 they would take the word of it ? Even if the car black book valve way higher ?
Deal Addict
User avatar
Aug 16, 2009
1448 posts
316 upvotes
Diesel0007 wrote:
Aug 16th, 2019 10:29 pm
sorry but what does an appraisal mean ?
If you don't agree with the blue book or UVIP list price of the model car your purchasing you can take it to an appraiser to get a price for your specifc car. I'm not sure of how it works in real life, but I believe you then take that appraisal with you when registering the vehicle and if accepted then you pay HST based on the appraisers value not the blue book/UVIP value.
Deal Addict
Aug 1, 2007
2058 posts
601 upvotes
I'd rather be robbed by the government than some CEO/finance manger/sales dude of a car dealer.
Guess whts gonna happen when the govt stop charging taxes on used cars? Those greedy sales [...] are just gonna jack up their prices by 13% or even more, resulting in more money for someone's personal pocket.
Last edited by Mars2012 on Aug 19th, 2019 9:22 am, edited 1 time in total.
Reason: reported/don't bypass swear filter

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