Taxes on "Out of Province Car"

[mj_39]

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

[Edison_Chen]

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).

[mj_39]

Originally Posted by Edison_Chen

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...

[DGN23]

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.

[StanleyR]

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!

[Kalize]

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.

[mj_39]

^ 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

[urban.boi]

Originally Posted by mj_39

^ 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%

[asma123]

Originally Posted by DGN23

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 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

[dared3vil0]

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

[Kalize]

this link helps as well.

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