Sales Tax on Vehicles

Motor Registration collects the Provincial Sales Tax (PST) of 15% at the time of registration or transfer. A private
sale is the sale of a vehicle from a non-HST registrant; or the sale of a vehicle from a HST registrant, where the
vehicle is not registered in the business name.

  • Where the purchase price stated on the Bill of Sale is equal to or greater than the average wholesale price in
    Red Book, PST will be collected on the purchase price.
  • Where the wholesale value (as indicated by the Canadian Red Book) is equal to or less than $1200, tax will be
    calculated on the purchase price recorded on the Bill of Sale.
  • If the vehicle purchase price is below the wholesale value an affidavit is required from the purchaser and
    seller. Without an affidavit the PST will be collected on the Red Book value.

Purchaser Taxes on Company Sales

Newfoundland and Labrador is a participating province in Harmonized Sales Tax (HST). If the seller is an HST registrant,
the tax may have been collected as part of the sale. If tax was already collected, the seller’s HST registration number
must be on the Bill of Sale.

HST will be collected by Motor Registration when:

  • the seller is a HST registrant, but the HST was not collected by the seller.
  • the Bill of Sale does not quote the HST registration number

Farmers

Farmers are required to pay taxes, with the following exception:

  • A person who purchases farm equipment is exempt from tax for the farm equipment.
  • A person who purchases a farm tractor exceeding 25 horsepower is exempt from paying tax.
  • A declaration must be made to claim tax exemption.

Taxes on Swapped Vehicles

You must complete a declaration of vehicles being traded that includes the date of trade, serial (VIN) number, plate
number, parties involved in the trade and any additional money paid in consideration of the purchase.

  • Where there is a trade of vehicles, plus additional money paid, the additional cash is included in the purchase
    price and Motor Registration will collect PST on that purchase price.
  • Where there is a difference in wholesale value of the vehicle, and even trade allowances, the Department of
    Finance will audit post transaction processing and collect any additional monies owing.

Homemade Trailers

For any trailer that has been built by an individual, a declaration must be made indicating that Harmonized Sales Tax has been paid on all materials and parts used in the construction of the trailer.

Settlers

A person may be exempt from paying tax on their vehicle if:

  • They have resided outside of Newfoundland & Labrador for a period of one hundred and eighty three (183) consecutive days or more, and
  • Have owned the vehicle for a period of not less than 30 days prior to taking up residency in Newfoundland & Labrador.
  • A declaration must be made to claim tax exemption.