Taxation on Goods in Canada

[Softdev00]

Hi fellows ,

I have been doing some research about cost livings in Canada and also about taxation. So far it has been quiet clear to me how taxation works in Canada and it's far away cheaper than here where I live. One thing has been making me a little bit confused and not found answer yet, but do you pay in Canada tax when buying a new car/vehicle? If yes is it same like GST/HST rate of specific province? If yes then do you add that precentage to the total amount of the new car? For example let's say GST is 15% totally and the car cost 25$K then the end price would be 0.15 * 25000 = 28750 CAD.

 

[scylla]

Yes - that's exactly how it works.

 

[torontosm]

Hi fellows ,

I have been doing some research about cost livings in Canada and also about taxation. So far it has been quiet clear to me how taxation works in Canada and it's far away cheaper than here where I live. One thing has been making me a little bit confused and not found answer yet, but do you pay in Canada tax when buying a new car/vehicle? If yes is it same like GST/HST rate of specific province? If yes then do you add that precentage to the total amount of the new car? For example let's say GST is 15% totally and the car cost 25$K then the end price would be 0.15 * 25000 = 28750 CAD.

Yes, you do have to py GST/HST when purchasing a car. In addition, if the car is brand new, you should account for a series of other fees (freight, taxes, fees, etc.) that will also add about 5% or so to the overall price.

 

[Softdev00]

Thank you very much. That does make sense