News and Insights

British Columbia Bulletins re: Designated Property

Tax Development Aug 02, 2011

The province has revised two bulletins and one notice regarding tax on designated property.  Bulletin CTR 001, Tax on Designated Property (Vehicles, Boats and Aircraft), has been revised to clarify information on the tax on designated property.   

A 12% provincial tax on designated property (TDP) applies to:

  • vehicles, boats and aircraft purchased at a private sale in British Columbia; and
  • vehicles purchased at a private sale in another province and then brought or sent into British Columbia.  

In addition, the TDP applies to vehicles brought or sent into British Columbia and received as a gift, unless an exemption applies.  

However, the TDP does not apply to:

  • boats and aircraft purchased privately in another province and then brought or sent into British Columbia; or
  • vehicles, boats and aircraft imported into British Columbia from outside Canada.

In these circumstances, the HST or the provincial component of the HST may apply to these purchases.  

Bulletin CTR 002, Purchases of Designated Property by a New Corporation, and Notice 2011-002, Gift Vehicles and the Tax on Designated Property have been revised to clarify the definitions of boat and private sale.  

A boat includes any watercraft, regardless of the method of propulsion or lack of method of propulsion, but does not include a floating home, or other floating structure or device that is used principally for purposes other than transportation.  

A private sale is defined as a sale where: the seller is not a GST/HST registrant; or the seller is a GST/HST registrant, but the sale is not a taxable supply under the Excise Tax Act