HST and Private Sale of Vehicle

(Ontario, Canada)

As a sole proprietor in Ontario do I collect HST as part of the sale when I sell a vehicle (used both personally and in the business) to a private citizen?

I am not up to speed on how Ontario handles private vehicle sales ... but I did find a link that I think will be useful to you:


Ontario's Mintry of Finance
Private Sales of Used Motor Vehicles

http://www.rev.gov.on.ca/en/guides/rst/209.html

It has not been updated for the HST changes yet but I'm sure you can contact them at the number provided for more up-to-date information.



BC has update their website to reflect HST. Ontario's policy is likely similar but you can't take it as a given. Here is BC's link:

Private Sales of Vehicles, Boats and Aircraft

http://www.rev.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/hst.html#12



I also found a CRA publication that you may find useful:

RC 4100 Harmonized Sales Tax and the Provincial Motor Vehicle Tax

http://www.cra-arc.gc.ca/E/pub/tg/rc4100/rc4100-10e.pdf

Based on my quick research, I'd say you do have to collect HST if the business is a GST/HST registrant.




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