Automotive

Selling used car - do I need to collect GST (British Columbia)?

  • Last Updated:
  • Mar 20th, 2022 12:58 pm
[OP]
Newbie
Nov 5, 2020
3 posts
Vancouver

Selling used car - do I need to collect GST (British Columbia)?

Hi all,

I’m about to list my vehicle for a private sale. Looking at the transfer paperwork, there is a section for the seller’s GST number. I recently registered for one as I will be taking a new position where I am classed as a contractor and am required to have one. My business is not related to vehicle sales so there would be no confusing me with a car dealer.

Information I can find about this is confusing and in some cases says private sellers don’t need to collect, only GST registrants. But what if I’m both?

Am I understanding correctly that if I don’t collect GST, the buyer will need to pay it when they register the car? And if I do have to charge it, it’s not an extra cost as they’d be exempted from paying it upon registration?

BC vehicle tax rules are so confusing! Appreciate any input.
2 replies
Sr. Member
Feb 13, 2021
592 posts
617 upvotes
Nope, don't collect any GST.

Buyer pays it during vehicle transfer.

Depending on the vehicle, just tell the buyer to put in a grand or two for the selling price. It'll lower their taxes.
Deal Fanatic
Oct 26, 2008
6906 posts
2723 upvotes
Victoria, BC
Roxy604 wrote: ........
Am I understanding correctly that if I don’t collect GST, the buyer will need to pay it when they register the car? And if I do have to charge it, it’s not an extra cost as they’d be exempted from paying it upon registration?

BC vehicle tax rules are so confusing! ......
The buyer will pay a special PST rate of 12% when they register the vehicle. Private vehicle sales don't have GST applied.
The reason for this is that the automobile dealers lobbied the government to make the tax on private transactions the same as for dealer transactions, to so-called level the playing field.
In actual fact, it gives dealers an unfair advantage.
Notsojdmgc4 wrote: .......
Depending on the vehicle, just tell the buyer to put in a grand or two for the selling price. It'll lower their taxes.
Don't do that. It's up to the buyer to decide on whether they want to reduce the tax payable.
Just give them a standard Bill of Sale receipt for the amount you received for the vehicle.

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