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  UCDA
The Used Car Dealers Association of Ontario

416-231-2600 or 1-800-268-2598 or fax 416-232-0775

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Used Car Dealers Association of Ontario   

TAXES ON SALES TO OUT OF PROVINCE PURCHASERS WITHIN CANADA

Put simply:

If delivery takes place in Ontario, then 13% HST will apply to the sale, regardless of where the customer lives.

If delivery takes place outside of Ontario, the Federal Tax (ie. HST or GST) applicable to that province should be charged.

Delivery takes place where the customer is considered to take possession of the vehicle.

• If the customer picks the vehicle up in Ontario and drives it home, delivery takes place in Ontario

• If the vehicle is shipped out-of-province with the buyer shown as consignor on the bill of lading, delivery takes place in Ontario.
It does not matter who actually pays the shipping invoice.

• If the vehicle is shipped out of province with the selling dealer shown as consignor on the bill of lading, then delivery takes place in the destination province.
It does not matter who actually pays the shipping invoice.

• 13% HST should be collected on any shipping charges for which the dealer separately invoices the customer.

• Prince Edward Island (14%) and Nova Scotia (15%) have different HST rates from Ontario and the other HST provinces. Here’s a summary of GST and HST rates in all Canadian jurisdictions

Delivered To Tax rate to Charge %
Nova Scotia 15
Prince Edward Island 14
New Brunswick 13
Newfoundland 13
Ontario 13
Alberta 5
British Columbia 5
Manitoba 5
North West Territories 5
Nunavut 5
Quebec 5
Saskatchewan 5
Yukon 5

Out-of-province purchasers from non-HST provinces and territories may apply for a refund of the 8% provincial portion of the HST paid in Ontario from Canada Revenue Agency, once they have registered the vehicle in their home province and paid any applicable provincial taxes.