The province has released this HST tax tip to inform tax payers how tax will apply to a private purchase of a specified vehicle for use in Ontario on or after July 1, 2010. Private purchases of specified vehicles purchased from a person who is not a GST/HST registrant will be subject to retail sales tax (“RST”) at a rate of 13%, effective July 1, 2010. Private purchases of specified vehicles in another Canadian province brought into or delivered into Ontario on or after July 1, 2010 will generally be subject to RST or HST at 13%.
For RST purposes, specified vehicles are defined as:
- motor vehicles or other vehicles that require a permit under the Highway Traffic Act;
- off-road vehicles or motorized snow vehicles that require a permit under the Off-Road Vehicles Act or the Motorized Snow Vehicles Act;
- boats; and