Taxes on "Out of Province Car"
 

Hey Guys

I need to get some information on purchasing a vehicle from Alberta.

The dealership has asked for 5% GST, however, when I phoned ICBC, they stated that I would need to pay another 12% upon registering the vehicle in BC.

Has anyone gone through this process? I would love to get some more information as paying 17% in GST/PST doesn't seem right. I am wondering if there is a process to have the 5% paid in Alberta reimbursed, however the ICBC agent didn't have an answer.

Thanks

If the out of province dealer collected 5% GST, when you register the vehicle in BC, the insurance agent should charge you the remaining PST portion (probably 7% unless luxury tax applies).

That is exactly how I thought it would be done, but decided to call icbc to confirm and was told different. Maybe the agent was mistaken...

Something needs to be done about the endless sales tax on vehicles in BC. The tax is paid when the car is bought new; the end. All this repeat tax is straight up theft in my opinion.

I agree.
It's a great way to keep people from saving money with used cars.

I recall in Sask. years ago, they'd exempt $3g's of the purchase price. So if the car was 5g's, you'd only pay tax on 2g's.

With the cars I drive, I'd save a lot of coin!

That insurance agent you called is an idiot; call around.
Pay the GST to the Alberta dealer and get a bill of sale with the GST number printed on the bill of sale. When you register it in BC the agent will enter the GST number and charge 7%.

If it is a private sale from Alberta then no tax is paid in Alberta and the agent here in BC will collect 12%.

Not sure if this is true but the luxury tax applies only on new cars not used.

^ thank you, I think you have to pay the luxury tax even on used. I haven't found anything that says otherwise


I was able to find this if anyone else is wondering. http://www.icbc.com/Documents/pst-vehicles.pdf

It depends on the value of the vehicle, luxury tax only applies when it is over a certain value. otherwise it is only 7%

I wish this could happen but it's never going to. They're never going to close that loophole and why? Because they get a lot of free money

5% GST paid in AB, 7% additional PST paid when registering here in BC.

this link helps as well.

http://www.sbr.gov.bc.ca/documents_l...ns/pst_308.pdf