HST and Private Sale of Vehicle
(Ontario, Canada)
Private Sale of a Vehicle in Ontario and HST Rules
As a sole proprietor in Ontario do I collect HST as part of the sale when I sell a vehicle (used both personally and in the business) to a private citizen?
I am not up to speed on how Ontario handles private vehicle sales ... but I did find a link that I think will be useful to you:
Ontario's Mintry of Finance
Private Sales of Used Motor Vehicles
http://www.rev.gov.on.ca/en/guides/rst/209.html
It has not been updated for the HST changes yet but I'm sure you can contact them at the number provided for more up-to-date information.
BC has update their website to reflect HST. Ontario's policy is likely similar but you can't take it as a given. Here is BC's link:
Private Sales of Vehicles, Boats and Aircraft
http://www.rev.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/hst.html#12
I also found a CRA publication that you may find useful:
RC 4100 Harmonized Sales Tax and the Provincial Motor Vehicle Tax
http://www.cra-arc.gc.ca/E/pub/tg/rc4100/rc4100-10e.pdf
Based on my quick research, I'd say you do have to collect HST if the business is a GST/HST registrant.
P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.