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PST Changes on Vehicles

Temporary

Big changes to PST on vehicles come in to effect today!

  • The exemption in place for eligible used light vehicles is eliminated. PST now applies to all classes of new and used vehicles
  • The trade in allowance on the purchase of new light vehicles is restored and the trade in allowance currently in place for other classes of vehicles continues, such that trade-ins are now allowed on all vehicle sales
  • For private sales the current $3,000 deduction is eliminated and replaced with an exemption for personal use vehicles purchased for less than $5,000. The $5,000 exemption does not apply to dealer sales or to vehicles registered for commercial use. As well, vehicles purchased from outside Canada, for either personal or commercial use, do not qualify for the $5,000 exemption

Transition Rules

1) The PST exemption for an eligible used light vehicle, on which the PST has previously been paid in full, will be provided in the following situations:

 Dealer sales of eligible used light vehicles fully or partially paid for prior to April 11, 2018.

If a deposit has been placed on the vehicle prior to April 11, 2018, this is considered partially paid.

 Private sales of eligible used light vehicles purchased prior to April 11, 2018.

 2) The trade-in allowance on the purchase of new light vehicles applies to purchases on or after

April 11, 2018.

3) For private sales, the $3,000 deduction applies only for vehicles purchased prior to April 11, 2018. The new $5,000 exemption for private sales of used vehicles applies to vehicles purchased on or after April 11, 2018.

Note: Private sale means both parties involved in the transaction are individuals and the vehicle is registered for personal, non-business use. Private sales are subject to Red Book value comparison.

 SGI will collect PST on all vehicles purchased privately with a value greater than $5000 and registered on or after April 11, 2018. In instances where SGI collects tax on an eligible used light vehicle purchased before April 11, 2018, on which the PST has previously been paid in full, or on a vehicle purchased before April 11, 2018 for which the $3,000 deduction should apply, the purchaser may apply to the Ministry of Finance for a refund of tax.

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