What taxes are applicable if I buy a plane?

[ogopogo]

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?

[JasonE]

In Ontario you pay RST (13%).....

[CpnCrunch]

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).

[ogopogo]

What isRST and where does it come in?

[photofly]

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.

[ogopogo]

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?

[photofly]

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%.

[sstocker31]

Nothing if you negotiate it into the price.

[RatherBeFlying]

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.

[crazyaviator]

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??

[Johnny#5]

Well with Liberals in Ontario and federally these tax laws will either not change or increase..

[RatherBeFlying]

For the sake of historic accuracy, the Ontario PST was brought in by Leslie Frost and the GST by Mulroney, both Conservatives.

[Chris M]

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??

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.

[cap41]

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.

[woodzi]

For the sake of historic accuracy, the Ontario PST was brought in by Leslie Frost and the GST by Mulroney, both Conservatives.

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.

[Taxivasion]

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.

[photofly]

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 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.

[fleet16b]

Bought an aircraft in Nashville last weekend and brought it across the border in Ontario.
Tax was 13 %

[photofly]

what did you buy ?

[ogopogo]

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