- Purchaser Taxes on Private Sales
- Purchaser Taxes on Company Sales
- Taxes for Farmers
- Giving a Vehicle as a Gift
- Taxes on Swapped Vehicles
- Acceptable Payment Types
Purchaser Taxes on Private Sales
Provincial Sales Tax (PST) of 15% is collected on private sales. A private sale is defined as 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 Red Book value is equal to or less than $1200, tax will be calculated on the purchase price recorded on the bill of sale.
- If the vehicle is purchased below the red book value an affidavit is required from the purchaser and seller, if not the PST will be collected on the Book value.
Purchaser Taxes on Company Sales
Newfoundland is a participating province in Harmonized Sales Tax (HST). If the seller is an HST registrant, chances are tax has already been collected as part of the sale. Please ensure that if tax is collected, the seller’s HST registration number is quoted on the Bill of Sale.
HST will be collected by Motor Registration Division in cases where the seller is a HST registrant, but the HST was not collected by the seller.
Please note: If the bill of sale does not quote the HST registration number, it is considered a private sale and Provincial Sales Tax applies.
Taxes for Farmers
Farmers are required to pay taxes, with the following exception:
- A person who is a bonafide farmer and purchases farm equipment is exempted from tax for the farm equipment.
- You must produce a farmer number as provided by the Department of Forest Resources and Agrifoods.
Giving a Vehicle as a Gift
Immediate family is defined to include the following:
- common law spouse ¹
- son-daughter ²
- any in-law relationship ³
¹ Must be living together for minimum of 12 months. Includes same sex partners.
² Includes step children.
³ Including common law.
A gift of a vehicle may be given within the immediate family. You must submit a statement that a vehicle is a gift, indicating the licence plate number or serial (VIN) number of the vehicle, the relationship of parties involved and the date of gift. A vehicle transferred from one person to another within the immediate family is not subject to tax if the recipient falls within the definition of “immediate family” (see side bar).
- An inspection certificate is NOT REQUIRED.
- Vehicle Registered In Another Jurisdiction: A vehicle must be registered in the owner’s name for a minimum of two (2) years before it can be given as a gift.
- In cases where the vehicle is registered in both husband and wife’s name, the vehicle may be transferred to (ie. the wife’s brother) but both husband and wife must sign the notice of gift.
- To transfer the vehicle to the new owner a completed and signed insurance declaration (found on the reverse of the current vehicle registration) is required.
- Transfer fee is $50.00, senior’s fee (65 years of age and older) $16.00
Taxes on Swapped Vehicles
You must complete a Declaration of vehicles being traded which includes, date of trade, serial (vin) numbers, plate numbers, parties involved in trade and any additional money paid in consideration of the purchase.
On private transactions, where there is a trade of vehicles, plus additional money paid in consideration of purchase, the clerk must enter the additional cash in the purchase price and PST will be calculated on the purchase price.
In cases, where there are differences in Red Book Value and even trade allowances, the Department of Finance will audit post transaction processing and collect any additional monies owing.