Hst on aircraft in bc?

[Firefighter2143]

Hi I am buying my first aircraft, I figure that someone can help me. I am trying to find out when buying an aircraft in Alberta and transferring it to bc, when do I pay Hst on it when I register it with transport Canada? or does transport contact bc government and they send me a bill? Also if I register it in bc but leave it in Alberta do I have to pay Hst?

Thanks everyone

[AirFrame]

The bill for the HST comes from Revenue Canada. They watch the daily list of aircraft registrations tht Transport Canada generates and bill all new owners, regardless of whether any taxes have already been paid. Expect the bill in the mail about a month or two after registration.

If you can show that you have already paid taxes on the sale (ie. you bought it from an aircraft dealer and he collected the taxes at time of sale) then you can mail a copy of the receipt back with the bill marked "taxes paid" and that will be the end of it. In my case I bought the plane in the US, and paid taxes to CBSA when I imported it... That receipt was enough.

If it's a private sale, have the owner write up a receipt for the sale amount (or whatever amount you think is reasonable). When you get the bill from RC, you send in a copy of the receipt and a cheque for the HST on that amount.

[SeptRepair]

If you purchased the aircraft in Alberta only the GST applies. Just keep it registered there. Have parents that live there? A business there? Anything that you can have as an address in Alberta so when you get correspondence, it can be forwarded to you?

[Firefighter2143]

Thanks for the info. Maybe if I am lucky I won't get a bill until the hst is gone. But the government probly would just charge me hst due to the date. Just hopeful thinking. Thanks again

[AirFrame]

If you purchased the aircraft in Alberta only the GST applies.

I agree, this is how it *should* work, but in the case of a private sale, that's not what happens. Revenue Canada doesn't know or care where you bought the plane, so you'll be taxed on the purchase based on where you live. The only option is to have a residence in Alberta where you can receive mail until you get squared away with Revenue Canada on the purchase. Then do the address change.

[floatpilot]

I bought an airplane 5 years ago, and still no tax bill. i'm in ontario. A friend of mine bought an airplane 8 years ago and he has yet to see a tax bill. Both airpalnes are certified and registerd. I'm sure it will come someday!

Purchase the airframe seperate from the landing gears, and any other parts, this will save you on paying the tax on the whole purchase price.

[pile_it]

HST was voted out of BC a few months ago now....you shouldn't get anything in the mail for that.

[husky]

HST was voted out of BC a few months ago now....you shouldn't get anything in the mail for that.

HST is still in effect until 2013. Anything bought between now and then will be subject to the current taxation rules.

[AirFrame]

Purchase the airframe seperate from the landing gears, and any other parts, this will save you on paying the tax on the whole purchase price.

How would that work, exactly? Do you mean write a cheque for the fuselage, one for the wings, etc. and get receipts for each? If you're going to do that, why not just get a separate receipt for the data plate, and offer to pay the tax on that... It would probably be the cheapest part, and it has on it all the data Transport will want.

Just keep in mind that Revenue Canada does have staff who watch for people who are practicing tax avoidance... If you claim to pay an unreasonably low price for something, they won't call you, they'll call the previous owner, who has no incentive to perjure themselves if Revenue Canada comes along asking questions. Once the previous owner lists all the parts you bought and what you paid for them, you'll get a bill for tax on the total. If you're lucky, you won't get charged triple damages for not being honest up front.

[Firefighter2143]

Thanks everyone I was more so just more so looking to see when I would get the bill in the mail. seems like it was like I thought a few months down the line.

[Beefitarian]

When you first get it sell me a part share for $500, base the plane in Airdrie or YBW. After the HST is gone, buy my share for $400, plane goes the rest of the way to your home airport. You can hand pick the freelance instructor guy that baby sits me exercising the plane, bringing it to you for visits.
I'm kidding but probably willing to try such a thing.

[floatpilot]

I should have said "aircraft". Yes you write a cheque for the "aircraft" and another cheque for the stuff that comes with it. EXAMPLE: floats,skis,parts etc. Not the wings, those are part of the machine. It is not "avoiding paying tax" and there is nothing illeagal about this. The airplane it self is the only thing that you legally have to pay tax on is how I understood it. You buy a set of skis for your new plane from your friend, do you pay tax on them?

[Firefighter2143]

I should have said "aircraft". Yes you write a cheque for the "aircraft" and another cheque for the stuff that comes with it. EXAMPLE: floats,skis,parts etc. Not the wings, those are part of the machine. It is not "avoiding paying tax" and there is nothing illeagal about this. The airplane it self is the only thing that you legally have to pay tax on is how I understood it. You buy a set of skis for your new plane from your friend, do you pay tax on them?

Doesn't work when you buy just wheels. I am sending the registration off tomorrow guess will see how long it takes.

[robertsailor1]

heard a rumor that bc was going not going to reduce the pst on cars, bikes etc