Landing - Bringing a car to Canada - Tax Question

[gamehero]

Do I need to pay tax if I am bringing my own car that is originally priced US $ 65,000? I spoke with a border officer when I first landed but he did not have a clear answer. Has any of you imported a vehicle of more value during landing and have you paid any HST or other kinda taxes?

Thanks!!

 

[siroccoon]

First time settlers don't need to pay tax on their vehicles!! If you are doing the landing first and bringing the car later, make sure you declare the car as goods to follow. If you pay the GST 8% at the border by mistake that goes on your vehicle import form and province will charge the remaining 5%. So if you are asked to pay the tax at the border you ask for a supervisor.

 

[FSW_Applicant]

I think that you will still need to pay duty duty on a vehicle manufactured in a country other than Canada, United States and Mexico. (http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html#s5)

Generally, you do not have to pay duty on a vehicle imported for personal use that was manufactured in the United States, or Canada, or vehicles from Mexico that are of a model year 10 years of age or older (if admissible under Transport Canada's Motor Vehicle Safety Act).

The country of origin of a used or second-hand vehicle will be determined on the basis of the information contained in the vehicle's VIN (Vehicle Identification Number). The VIN is a unique 17-character identifier that indicates the country of origin of the manufacturer, the plant and the period of manufacture as well as, a specific identification of the type of vehicle. Vehicles manufactured in the U.S. or Canada will have a first-digit indicator in the VIN that will state, 1, 4 or 5 (United States), 2 (Canada), 3 (Mexico).

Vehicles with a first-digit character other than 1,2,3,4 or 5, indicate the vehicle was not produced in North America. However, included in the 17-digit VIN is a character that identifies the geographic location of the production facility in which the vehicle underwent production or final assembly. If the vehicle you plan to import has a first-digit character other than 1,2,3,4 or 5, and notwithstanding this indicator, you suspect it may have been assembled in North America, you should contact the manufacturer, provide them with the VIN of the vehicle and ask if they can identify the geographic location of the production plant in which the vehicle was assembled. If the production plant is located on North America, present this information at the time of accounting (importation).

 

[OhCanadiana]

Do I need to pay tax if I am bringing my own car that is originally priced US $ 65,000? I spoke with a border officer when I first landed but he did not have a clear answer. Has any of you imported a vehicle of more value during landing and have you paid any HST or other kinda taxes?

Thanks!!

Assuming you are a landed immigrant who qualifies as a settler (ie., who is entering Canada with the intention of moving for 12 months for the first time) and turns in a Personal Effects Accounting Document (B4/B4A) now, then no duties or taxes would be due upon landing. You would have RIV fees due ($195 + GST and QST if entering Quebec or + GST/HST in other provinces)

Who are considered Settlers?

Under customs legislation, Settlers mean all individuals who enter Canada with the intention of establishing, for the first time, a residence for a period of not less than 12 months.

It is important to know that the status of a person for customs purposes is not always the same as the person's status for immigration purposes.

For example,

    Persons coming to Canada for the purposes of employment for a period exceeding 36 months (other than United States Preclearance personnel) are at first arrival considered to be Settlers to Canada even though they may be considered Temporary Residents for immigration purposes;
    Persons entering Canada to become Permanent Residents without the intention of residing immediately in Canada are not considered Settlers to Canada since they do not have any intention of remaining in Canada at that time, and will live outside Canada for an undetermined period of time. Therefore, under customs legislation, these persons are considered visitors to Canada, even if they are Permanent Residents for immigration purposes.

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Who are considered Former Residents?

    Former Residents of Canada are persons who are returning to Canada to resume residence in Canada after having been residents of another country for a period of not less than one year. Persons who establish themselves as residents of another country for a period of at least one year may make return visits to Canada (as non-resident visitors) without jeopardizing their former resident entitlement.
    However, persons who do not establish themselves as residents of another country during their absence from Canada, such as those on extended vacations, voyages or world cruises, are only eligible to the former resident entitlement if the duration of their absence is a continuous period of at least one year, without any return to Canada having been made during that time. Should these persons make return visits to Canada, they will be entitled to a personal exemption as described in the publication called “I Declare”.

www.cbsa-asfc.gc.ca/publications/pub/bsf5113-eng.html

As a settler, you'd have no limit on value per item. As a returning Canadian, each item would have to be worth less than 10k at the time of importation. As a returning Canadian you'd also need to have owned, used, and possessed the item/vehicle for 6 months unless you've lived abroad over 5 years.

I think that you will still need to pay duty duty on a vehicle manufactured in a country other than Canada, United States and Mexico. (http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html#s5)

Generally, you do not have to pay duty on a vehicle imported for personal use that was manufactured in the United States, or Canada, or vehicles from Mexico that are of a model year 10 years of age or older (if admissible under Transport Canada's Motor Vehicle Safety Act).

The country of origin of a used or second-hand vehicle will be determined on the basis of the information contained in the vehicle's VIN (Vehicle Identification Number). The VIN is a unique 17-character identifier that indicates the country of origin of the manufacturer, the plant and the period of manufacture as well as, a specific identification of the type of vehicle. Vehicles manufactured in the U.S. or Canada will have a first-digit indicator in the VIN that will state, 1, 4 or 5 (United States), 2 (Canada), 3 (Mexico).

Vehicles with a first-digit character other than 1,2,3,4 or 5, indicate the vehicle was not produced in North America. However, included in the 17-digit VIN is a character that identifies the geographic location of the production facility in which the vehicle underwent production or final assembly. If the vehicle you plan to import has a first-digit character other than 1,2,3,4 or 5, and notwithstanding this indicator, you suspect it may have been assembled in North America, you should contact the manufacturer, provide them with the VIN of the vehicle and ask if they can identify the geographic location of the production plant in which the vehicle was assembled. If the production plant is located on North America, present this information at the time of accounting (importation).

This would apply if the OP is not eligible to submit a Personal Effects accounting document (B4/B4A), if say, he moved to Canada already without declaring the vehicles as goods to follow. If declared on a B4/B4A, the vehicle will be duty- AND tax-free:

"In all cases, you may qualify for duty- and tax-free importation of your personal and household goods, if you meet the conditions outlined in this publication."
www.cbsa-asfc.gc.ca/publications/pub/bsf5113-eng.html

 

[gamehero]

Thank you all.

I have put this vehicle in the "goods to follow" list when I first landed. In my case, if I am bringing this car to Toronto, do I still need to pay $195 + 13%HST?

 

[OhCanadiana]

Thank you all.

I have put this vehicle in the "goods to follow" list when I first landed. In my case, if I am bringing this car to Toronto, do I still need to pay $195 + 13%HST?

Yes, the RIV fees (195+tax on the 195) are the fees to process the paperwork to import your vehicle and the fees for the (lengthy) import inspection done at Canadian Tire. It is easiest to do it online via http://www.riv.ca/PaymentAndFees.aspx.

Keep in mind you'll also need to export the vehicle from the US, etc. Here's some thoughts to get you started (since I wrote the info below, a new requirement has been implemented: AES registration in the US.)

To move the car, there's several steps:
1) Confirm the car is eligible
Check the riv.ca website to confirm that your car is eligible for import and to see what modifications you may need to make (e.g., daytime running lights) to pass inspection once you are in Canada. You can make the modifications either in the US or upon arrival in Canada (i.e., you don't have to do them before crossing the border but do need them to pass inspection in Canada)

2) Prep for the move
- Contact the Ministry of Transportation for your province to understand what you'll need to register your car (e.g., driver's license, insurance, import documentation, etc) and get whatever you need lined up
- I don't know the BC specifics, but Ontario requires an Ontario driver's license to be able to register the car, so make sure you have everything you need with you to get it (e.g., for some states you may need a driver history)
- Get the recall clearance letter (for Honda, my understanding is that you can register on their owner's website and print it directly or get it from a dealer on their letterhead). Send the letter showing no outstanding recalls to the RIV (document is valid for 30 day) to support @ support.riv.ca so they pre-process it. Call them to confirm all's set before you leave the US so you can get anything else necessary before you leave.
- Confirm your US insurance will cover you in Canada and get a letter of experience to help you get Canadian insurance
- Lay foundation to get insurance in Canada (you'll need it to register your car)
- If you don't own the car (e.g., you have a lease or loan), get authorization to export the car from the lienholder
- Make sure you have your car title easily available

4) Export car from the US
You can only export the car at certain border posts in the US and at certain times. So, figure out where you are crossing and then understand their requirements to get the info to them ahead of time - usually they are looking to get the info 3 (sometimes natural, sometimes business) days before you arrive at the border. Take a look at http://www.ucanimport.com/Border_Crossing_Info.aspx for a good list of border crossings, but then search for the specific info for the border post and their instructions on the CBP website directly. For example, for Buffalo, look at http://www.cbp.gov/xp/cgov/toolbox/contacts/ports/ny/0901.xml and search "export a vehicle" to see an example of the instructions (other crossings sometimes need you to mail them the title so they receive it 3 business days prior so it's important to check for your specifics). You can search for other border crossings at http://www.cbp.gov/xp/cgov/toolbox/contacts/ports/ . Find out the location of the export office online or when you call them (it's not necessarily easy to find when you are at the border).
On the day of the crossing, stop by the CBP export office before you cross the border into Canada so they stamp your title to clear it for export.

3) Import the car into Canada
After you cross the border, tell the officer you are importing the car. Show them the stamped title and they'll send you inside to complete the process. Fill out the document at the Canadian border post - one page with your name, address, etc and car info. You'll need to get Form 1. If your car is included on your B4 (either submitted that day or previously), your tax rate will be 0% but make sure you keep the receipt carefully ... you'll need it at the Ministry of Transportation. Include your e-mail on Form 1 so the RIV e-mail you Form 2 (faster than mailing it). CBSA will be faxing Form 1 to the RIV.

4) Pay the import fee to the RIV and get your Form 2 from the RIV
You'll need to pay $195.00 + GST/HST (or QST) either at riv.com or by calling the RIV at 1-888-848-8240 (Mon. to Fri.: 7:00 a.m. to 12:00 midnight (EST), Sat. and Sun.: 7:00 a.m. to 5:00 p.m. (EST))
You'll need the red numbers from your Form 1 to do this step and they will then e-mail you Form 2 which you'll need to get the car inspected.

5) Get your car inspected for import inspection (at Canadian Tire) and, if necessary, provincial inspection
You'll need to get your car inspected to ensure it meets Canadian standards (remember the checklist you got at the beginning from riv.ca ... they'll check for those modifications so get them done before elsewhere or arrange to have them done at Canadian Tire). The cost is included in the import fee you paid to the RIV. Plan for an hour or hour and a half for the inspection.
Depending on the province, you may need a provincial inspection too. For expediency, you may want to have the provincial inspection done at Canadian Tire the same day. Just tell them when you make the appointment so they can schedule it in.
Canadian Tire will stamp Form 2, which you'll need at the Ministry of Transportation. Make sure they fax the form to the RIV so the system shows you passed the inspection.

6) Register your car and get plates at the Ministry of Transportation
The specifics vary by province

7) Cancel your US insurance and send your US plates back if your state requires them

8) Celebrate!!!

 

[gamehero]

Yes, the RIV fees (195+tax on the 195) are the fees to process the paperwork to import your vehicle and the fees for the (lengthy) import inspection done at Canadian Tire.

Thanks! I mistook it as the HST on the entire value of the car. 195+HST is totally doable.

 

[OhCanadiana]

Thanks! I mistook it as the HST on the entire value of the car. 195+HST is totally doable.

Thought that may have been the case

As long as it's on your Goods to Follow list, the vehicle itself may be imported duty and tax free. =)

 

[siroccoon]

RIV fees + exportation fees + registration fees = apply all the time, no exceptions

GST 8% - will be waved off when you are entering as a settler; 1. Bringing in the car when you do the landing, 2. Bringing the car after few months provided you declare your car as goods to follow.

GST - 8% - will be applied if you did not declare the car as goods to follow when you landed first; you are outside Canada for 12 or more months after the landing date - In this case you are considered as as returning resident and will be given 10,000 CAD exemption and for the rest you pay tax.

PST - 5% (Ontario)- based on the CBSA import form, you will be charged at the service Ontario.

_______________________________

In my case even after i declared my car as a goods to follow, the CBSA officer at the border treated me as a settler and charged tax. Service Ontario corrected me and I had to go through the painful refund process to get the money back and registered the vehicle in ON tax free. So if you are sure about the procedure, feel free to ask for a supervisor at the border before you pay any tax.

 

[gamehero]

RIV fees + exportation fees + registration fees = apply all the time, no exceptions

GST 8% - will be waved off when you are entering as a settler; 1. Bringing in the car when you do the landing, 2. Bringing the car after few months provided you declare your car as goods to follow.

GST - 8% - will be applied if you did not declare the car as goods to follow when you landed first; you are outside Canada for 12 or more months after the landing date - In this case you are considered as as returning resident and will be given 10,000 CAD exemption and for the rest you pay tax.

PST - 5% (Ontario)- based on the CBSA import form, you will be charged at the service Ontario.

_______________________________

In my case even after i declared my car as a goods to follow, the CBSA officer at the border treated me as a settler and charged tax. Service Ontario corrected me and I had to go through the painful refund process to get the money back and registered the vehicle in ON tax free. So if you are sure about the procedure, feel free to ask for a supervisor at the border before you pay any tax.

do you mean that I need to pay 5% tax on the car's total value？