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 tax 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.
British Columbia (12%) 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
|
|
New Brunswick
|
13
|
|
Newfoundland
|
13
|
|
Ontario
|
13
|
|
British Columbia
|
12
|
|
Alberta
|
5
|
|
Manitoba
|
5
|
|
North West Territories
|
5
|
|
Nunavut
|
5
|
|
Prince Edward Island
|
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.