What taxes are applicable if I buy a plane?
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
What taxes are applicable if I buy a plane?
Looked at my first plane recently - what should I be expecting to pay Her Majesty - or should that be "Majesties" if I include Ms Wynne?
Re: What taxes are applicable if I buy a plane?
In Ontario you pay RST (13%).....
"Carelessness and overconfidence are more dangerous than deliberately accepted risk." -Wilbur Wright
Re: What taxes are applicable if I buy a plane?
You pay 12% "PST" in BC (it's really PST+GST, but they call it PST just to make it sound a little less unreasonable).
Re: What taxes are applicable if I buy a plane?
What isRST and where does it come in?
Re: What taxes are applicable if I buy a plane?
https://www.tc.gc.ca/eng/civilaviation/ ... x-1272.htm
In Ontario, RST: Retail Sales Tax
http://www.fin.gov.on.ca/en/tax/rst/
etc. etc. etc.
In Ontario, RST: Retail Sales Tax
http://www.fin.gov.on.ca/en/tax/rst/
etc. etc. etc.
DId you hear the one about the jurisprudence fetishist? He got off on a technicality.
Re: What taxes are applicable if I buy a plane?
So today I was told that if I buy the plane from an individual (as opposed to a broker), no taxes are due. I live in Ontario.
True?
True?
Re: What taxes are applicable if I buy a plane?
False, unfortunately. Read the page I linked to above.
If you buy from an HST registered dealer, you pay HST. If you buy from a non registered individual, you pay RST. Same as for cars and boats. HST and RST both at 13%.
If you buy from an HST registered dealer, you pay HST. If you buy from a non registered individual, you pay RST. Same as for cars and boats. HST and RST both at 13%.
DId you hear the one about the jurisprudence fetishist? He got off on a technicality.
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Re: What taxes are applicable if I buy a plane?
Nothing if you negotiate it into the price.
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Re: What taxes are applicable if I buy a plane?
It sounds like you are in Ontario; so would be assessed for HST.
In Alberta, there's only GST which is applied only when buying from a GST registrant or from the US.
Moving to Alberta for a couple months or setting up an Alberta corporation to hold the aircraft gets you out of HST, RST...
Setting up an Alberta corporation costs a few hundred bucks, plus a bit over a hundred a year for annual report.
Once registered to a corporation, you can sell the corporation without triggering HST, RST...
I know a fine lady who handles the Alberta paperwork for several aircraft. PM if interested.
In Alberta, there's only GST which is applied only when buying from a GST registrant or from the US.
Moving to Alberta for a couple months or setting up an Alberta corporation to hold the aircraft gets you out of HST, RST...
Setting up an Alberta corporation costs a few hundred bucks, plus a bit over a hundred a year for annual report.
Once registered to a corporation, you can sell the corporation without triggering HST, RST...
I know a fine lady who handles the Alberta paperwork for several aircraft. PM if interested.
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Re: What taxes are applicable if I buy a plane?
In the "good old days" it used to be just 1 of the 2 taxes due for private sales ( provincial tax) about 5-7% depending on the province,,, NOW, on a 20-50 year old plane that has been taxed at new, every time its sold, taxes on the service, parts, fuel oil etc makes me think we are living as slaves in a prison. WHY doesn't the people say enough is enough??
Re: What taxes are applicable if I buy a plane?
Well with Liberals in Ontario and federally these tax laws will either not change or increase..
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Re: What taxes are applicable if I buy a plane?
For the sake of historic accuracy, the Ontario PST was brought in by Leslie Frost and the GST by Mulroney, both Conservatives.
Re: What taxes are applicable if I buy a plane?
I've always thought this is the biggest scam going. One of my cars has had something like 6 owners and started at $50K. I bought it eventually for $5,000. So if every owner has paid tax on it when they registered how much has Ontario collected off my single car? $15K? 20? I'm waiting for the day that some asinine politician tries to figure out how to tax someone for buying an old couch on Kijiji.crazyaviator wrote:In the "good old days" it used to be just 1 of the 2 taxes due for private sales ( provincial tax) about 5-7% depending on the province,,, NOW, on a 20-50 year old plane that has been taxed at new, every time its sold, taxes on the service, parts, fuel oil etc makes me think we are living as slaves in a prison. WHY doesn't the people say enough is enough??
Re: What taxes are applicable if I buy a plane?
I've bought 2 planes in Ontario privately. Did not have to pay tax. They were cheaper 25K. I was advised by TC that the bill of sale should show 1$. This is after submitting the proper receipts. I was never trying to deceive.
Re: What taxes are applicable if I buy a plane?
To be fair, the GST replaced a hidden 11% manufacturers tax that had the PST applied on on top. The hidden tax was not as broad in scope though.RatherBeFlying wrote:For the sake of historic accuracy, the Ontario PST was brought in by Leslie Frost and the GST by Mulroney, both Conservatives.
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Re: What taxes are applicable if I buy a plane?
Bought two airplanes in Ontario privately, Never paid taxes. This was before HST when only PST was applicable. I was advised you'll get a letter saying you owe PST, Ignore. If you get a second letter then pay up. Never got a second letter. this was 7-8 years ago.
I don't know anyone on our field that's paid taxes on a private aircraft purchase.
I don't know anyone on our field that's paid taxes on a private aircraft purchase.
Re: What taxes are applicable if I buy a plane?
Did you get that advice from a government official in writing? I'm fairly sure that under-declaring the value of a sale with the intent to avoid tax due is an offence that carries a hefty prison sentence.cap41 wrote:I've bought 2 planes in Ontario privately. Did not have to pay tax. They were cheaper 25K. I was advised by TC that the bill of sale should show 1$. This is after submitting the proper receipts. I was never trying to deceive.
DId you hear the one about the jurisprudence fetishist? He got off on a technicality.
Re: What taxes are applicable if I buy a plane?
Bought an aircraft in Nashville last weekend and brought it across the border in Ontario.
Tax was 13 %
Tax was 13 %
...isn't he the best pilot you've ever seen?....Yeah he is ....except when I'm shaving.........
Re: What taxes are applicable if I buy a plane?
what did you buy ?
DId you hear the one about the jurisprudence fetishist? He got off on a technicality.
Re: What taxes are applicable if I buy a plane?
I haven't bought anything yet - just contemplating. Here is what COPA has to say:
Here is a quick summary of tax issues when buying an aircraft:
Buying an aircraft from: PST GST HST (NS, NL and NB only)
a private individual Yes No Yes
a GST registered business Yes Yes Yes
a foreign country Yes Yes Yes
Here is a quick summary of tax issues when buying an aircraft:
Buying an aircraft from: PST GST HST (NS, NL and NB only)
a private individual Yes No Yes
a GST registered business Yes Yes Yes
a foreign country Yes Yes Yes