Prices-tax included or not??

[slobodan]

Hi everybody!Because of high price differencies me and my business partner we think of buying several cars(new or nearly new)to import them to Poland.Im looking for a help to understand,if prices of new vehicles shown in Price Guide (MSRP),and used ones in advertisings include all taxes (VAT or similar-depending on what it is in Canada).For example: if new Camry MSRP is $25000,it means,that I can buy it for 25k,or  must I pay some tax extra(if yes,how much)?? second thing is:can I get back canadian VAT/simmilar,if car is bought for export.My last question is: are they any restrictions for non-Canadian to buy a car and some extra costs when exporting it,or I can simply do some Custom paperwork,get the vehicle onto ship and go back home?? Thanks for attention and greetings from Poland ;]

(Message edited by Slobodan on October 15, 2004)

[barrie1]

Welcome Slobodan to the Forum, I would think if you call Customs Canada they will be able to fill you in on all the details. They are in the Gov section of the phone book.

[Sterling]

Somehow I doubt that listing will be in a Polish phone book.;)

[slobodan]

It's not, indeed

[awebber]

Here's what I know about these things, which is not a lot.

First, I was slightly wrong about Quebec TVQ, apparently the rebate form I had is in case you actually register in Quebec, if you leave within 10 days and register elsewhere, you apply for the tax back.  A friend told me if I buy in Montreal and get a 10-day trip permit to drive home to Ottawa, I don't pay TVQ since I haven't actually registered for more than 10 days.  I assume Ontario is the same.

GST in general (not specifically for cars) is not actually paid by businesses (just like VAT).  You pay GST on your purchases and collect it on your sales, and send in the difference.  Or get a refund if you paid more than you collect.  You also don't charge GST on exports.

I don't know what special documentation would be needed, but if you're buying vehicles and having them shipped out of the country by the seller, I would imagine the GST wouldn't even be collected (that's how GST works for other exports).  If you're buying them, gathering them up and shipping them yourself, you might have to pay GST to the seller (since he's not exporting them himself) and then claim it back, either by becoming GST registrant business who's exporting them, or directly from the government.

I'm sure this is a specialized area wrt cars, and I also know that there were a mini-scandal a few years ago when people were selling each other cars for the GST, then exporting them to the US to get the GST back, but never actually handling the cars at all.  So it would be subject to more than the usual scrutiny I suspect.

Finally, check out this part of the CRA (Canada Revenue Agency, formerly called CCRA and before that Revenue Canada) site:  http://www.cra-arc.gc.ca/tax/business/topics/gsthst/taxable/import/ex_good-e.htm l (you can work your way up the tree if you wish to learn more about GST, and of course it's also all in French if you prefer that).  [edited: the link I just gave suggests that a car dealer would _not_ charge you GST if you said you were exporting and provided evidence]

=andrew


(Message edited by awebber on October 16, 2004)

[slobodan]

I think I already know most of the things I want,so thanks to All.But there's still one answer i'd like to get. Talking about asking prices for used cars (for example in AutoTrader). I wonder,if they customary include GST/HST or not,if there's no mention in particular advertising. Question may sound silly,but in Poland for example advertising price always includes tax,unless it is stressed:"plus VAT". No need to say,it is big difference for me between buying a car for retail $20k,than GETTING TAX BACK and buying for $20k,than NO NEED TO PAY TAX      I'd say it determines whether whole business makes sense or not. Looking forward for replies.

[S60]

Taxes and fees are not included in advertised pricing here in Canada.

[awebber]

That's right, GST _can_ be included in price like VAT but since the convention here is that taxes are extra, almost no one does.

Now, I know that as a GST registrant (someone who collects GST), if I buy something from someone who isn't, I can calculate what's called a "notional GST", IOW if I paid $10.70 for something from someone who doesn't collect GST (very small resellers may opt out), I can consider that to have been "$10 plus 70c GST".  I suppose it's different with a private sale of used car where you're expected to pay GST when you register it?

=aw