Importing a race car from the US to Canada

[nbs2005]

Re: Importing a race car from the US to Canada

Revisiting this thread.

What about bringing in a bill of sale car? If it could be made street legal, does that need to be handled through RIV? The car is over 15 years old. What if the plan was to make it street legal, what are the implications of that with a bill of sale car?

Thanks,

Jeff

[DavidSim]

Re: Importing a race car from the US to Canada

The way it appeared to me when I did this recently is as follows:

1. If the car has the potential to be street legal (licensed at some point) then RIV kicks in and you just pay GST at the border (with the assumption that when you go to license it you would pay the PST at that time)

2. If the car is a true race car (e.g. Tube chassis car, that requires you to do a Dukes of Hazzard style entry) then RIV is not applicable and you will pay both GST and PST at the border (given that you would not license it and pay PST at that time)

Now, the above is not to say that some have not brought race cars accross and only paid GST (I had some people tell me that), I guess it depends on how knowledgable the border person is at the time, or what they allow you to get away with (some people were real car guys/gals at the border, perhaps they turn a blind eye now and then).

In my case, they did not look in the trailer as far as I know (I could be wrong here because I was in the building while the person helping me was at the trailer) so I guess I could have told them anything (hoping they would believe me).

If anyone knows of any legal way to only pay GST when bringing a full blown race car accross to Canada then please let me know, I will want my PST monies back.

I hope this helps you.

[DavidSim]

Re: Importing a race car from the US to Canada

I just found the following on a Government website:

Tax on Specified Vehicles

Prior to July 1, 2010, Ontario Retail Sales Tax (RST) applied at the rate of 8 per cent to vehicles (including new and used motor vehicles), motorcycles, off-road vehicles, snowmobiles, boats, and aircraft sold from one person to another. RST also generally applied to vehicles purchased outside Ontario and brought into the province for personal use.

Effective July 1, 2010, RST will no longer apply to specified vehicles purchased from a GST/HST registrant, as these purchases will be subject to the Harmonized Sales Tax (HST) at a rate of 13 per cent. Private purchases of specified vehicles (purchases from a person who is not a GST/HST registrant) will continue to be subject to RST at a rate of 13 per cent.

Specified vehicles that are purchased privately in another Canadian province and brought into or delivered in Ontario after June 30, 2010 will generally be subject to either RST or HST at 13 per cent. HST of 13 per cent will generally apply to specified vehicles brought into Ontario from outside Canada.

Specified vehicles for RST purposes are:

•motor vehicles or other vehicles that require a permit under the Highway Traffic Act (e.g., motorcycles)
•off-road vehicles or motorized snow vehicles that require a permit under the Off-Road Vehicles Act or the Motorized Snow Vehicles Act (e.g., all-terrain vehicles or snowmobiles)
•boats, and
•aircraft.

Private purchases of passenger cars, vans and light trucks that have an empty weight of 2,200 kilograms or less will continue to be taxed on the greater of the declared purchase price or the average wholesale value of the vehicle (the amount stated in the Canadian Red Book or the Canadian Older Car/Truck Red Book). Where there is no average wholesale value available (e.g., boats and aircraft), the declared purchase price is used.

[wings2k]

Re: Importing a race car from the US to Canada

I just imported a Radical. They made me fill out the RIV paperwork. Told me to keep it but don't send it in. This way all the papers were done.

They only charged me 5% GST I drove out of there like a bandit because I expected to pay 13%

[DavidSim]

Re: Importing a race car from the US to Canada

You are very lucky indeed, it just proves my point that doing the border thing is somewhat of a crapshoot.

Enjoy that Radical.

[Doug P]

Re: Importing a race car from the US to Canada

I just imported a Radical. They made me fill out the RIV paperwork. Told me to keep it but don't send it in. This way all the papers were done.

They only charged me 5% GST I drove out of there like a bandit because I expected to pay 13%

What border crossing did you use?

[wings2k]

Re: Importing a race car from the US to Canada

Ogdensburgh / Prescott

They weren't sure of the procedure so they looked it up. They wanted a letter stating it was not for road use which I had from CASC and a bill of sale. They were happy to charge me 5% and send me on my way.

I didn't try to hide anything from them which helped, went in with lots of paperwork proving what I paid (wire transfer receipts etc) explained my business and done.

Didn't stop at the US side either... oops.

[DavidSim]

Re: Importing a race car from the US to Canada

>>If it is strickly a race car the tax is 5% (at least when I did it)<<

I occasionally see statements as such that refer to a 5% duty on race cars coming in to Ontario from the U.S.; unfortunately for me I have always had to pay full HST on any racing vehicles I have imported (cars or bikes), then I suffer when friends tell me I am stupid for having paid full HST, yada-yada-yada. So, to understand what is correct once and for all I contacted the Canada Customs Agency this morning to get the skinny, as follows:

1. Full Blown Race Cars or Motorcycles (not capable of being licensed, for track only)

The duty is 13% in Ontario, for the following reason:

If the border people only collect the 5% then the Province would never get the remaining 8%, because you are never going to register/license the vehicle at which point the Province could collect their 8%.

Now, the CCA told me that there are cases where some only pay 5%, as follows:

a. The border person does not understand what is owed (called it an oversight), in this case it may be a new person who is somewhat confused and does not understand the process, or the person might like you (or be a car or racing fan) and just gives you a break (it does happen, probably if you are handsome (e.g. Ray), or cute, or both (in this day and age), I assume)

b. If you are from Quebec, passing through Ontario on your way back to Quebec, then the Ontario border people only charge 5% as they are not bound to collect Provincial taxes for Quebec (sounds like a loophole to me for the Quebec folks)

2. Street Legal Cars or Motorcycles that are going to be licensed

In this case you only pay 5% at the border, the assumption is that you will pay the remaining 8% when you register/license the vehicle in Ontario

In closing,

I was told that any Ontario residents who got their full blown race vehicle across the border for just 5% got a lucky break, that they should have paid 13%; if you are one of those people then I envy you.

Regards to all my racing buddies.

[wings2k]

Digging this up from the grave because I just went through this again. Nothing major has changed except the export on the US side.

You use to just fax the title or whatever there, but now they require you to electronically file an AES form. This can only be done by a US citizen or business. You as a canadian cannot do this.

I simply hired a broker, it was $100, they filled everything out, sent it off and gave me an ITN number. With that number I just had to show up at the border with the bill of sale (car had no title) and have it stamped.

If you read all the US rules they seem very strict, but the US guy seemed pretty uninterested, took my paper, stamped it and away I went. But IMO it was worth spending the $100 to avoid any hassles and a potential $10k fine on the US side for not complying with export laws.

Last time I didn't stop in the US, Canadian side did ask me some questions, this time there were no questions with the stamp on that paper. Got hosed for the full 13% though this time.