BC to pay 12% tax on privately sold vehicles!

bosco · 03-02-2010, 05:55 PM

So just read through the new BC budget and it looks like we will be paying 12% tax on privately sold vehicles! Does anyone know when this comes into affect? Would it be the same time as the HST?

mathu.bala · 03-02-2010, 06:06 PM

We're getting HST 13% for private auto sale. You should be happy with extra 1%

DeltaBMW'r · 03-02-2010, 06:08 PM

We used to pay 7% Provincial on private sales (collected by ICBC) so it stands to reason that a "Harmonized Sales Tax" would mean it would go up to 12%.. just like restaurants... hair cuts... etc.

AFAIK, it all comes into effect at the same time.

CRS · 03-02-2010, 06:40 PM

Quote:

Originally Posted by Delta335i

We used to pay 7% Provincial on private sales (collected by ICBC) so it stands to reason that a "Harmonized Sales Tax" would mean it would go up to 12%.. just like restaurants... hair cuts... etc.

AFAIK, it all comes into effect at the same time.

+1

Yvette · 03-02-2010, 09:11 PM

I need to get out of here....

benyl · 03-03-2010, 10:20 AM

Wow, I hate paying GST... I can't imagine paying HST on a used car!

rshew · 03-03-2010, 10:29 AM

Still can't figure why tax is payed on used car anyways. Tax was already paid the first time when the car was bought new!

Mike@N54Tuning.com · 03-03-2010, 10:43 AM

Quote:

Originally Posted by rshew

Still can't figure why tax is payed on used car anyways. Tax was already paid the first time when the car was bought new!

If you think about it a car is worth a fortune to the government.

You pay tax when its new on the sale price plus all the other environment taxes, etc. You pay tax when you repair it, you pay tax on your insurance, you pay tax on things you buy for it, you pay a #$# tax on the gas you put in it, and the government gets tax when you sell it. You also pay tax for your licence, stickers, etc. They probably get more taxes during the life of the vehicle then what you paid for it brand new.

Mike

DeltaBMW'r · 03-03-2010, 11:12 AM

Quote:

Originally Posted by Mike@N54Tuning.com

If you think about it a car is worth a fortune to the government...
.... They probably get more taxes during the life of the vehicle then what you paid for it brand new.

Mike

So you should arrange to have a "Give me a break from taxes" sale, Mike

schnell325 · 03-03-2010, 08:32 PM

That's why I only buy new!!!

Nah, just kidding. I've reserve judgement on the HST until I read more on it. Any one have a non-biased (or biased!) link to decent/legitimate information on the HST? Or a link to the budget?

Thanks!

JHFW89225 · 03-03-2010, 08:43 PM

I thought they originally introduced the HST after the economy went boom to help people out but how is this going to help... I don't know.

I think is more like they realize they over spent 3X the budget for the Olympics and now they going to tax the shit out of everything to get it back and then some...

halB · 03-03-2010, 09:16 PM

I am putting my flame suit on to say this:

If you are a business owner in Ontario who is sick and tire of all the inconsistencies and bullsh*t in the PST system you will welcome the HST.

There are so many different rules and exceptions in the Ontario PST system even their own auditors have trouble keep track of them. We had 2 PST audits in the past 7 years and each time they came up with things that ended up costing us thousand of dollars in back taxes, simply due to different interpretations of PST rules applying to different items. Without exception, at each audit we discover more grey areas that required the auditor to make a judgement call, or to apply for ruling from the authority. It is a nightmare that consumes untold number of man hours to handle just for day to day operation, not to mention all the exemption forms and paperwork you have to deal with.

GST is simple as 1 + 1 in comparison. You collect GST universally as a percentage of sale, subtract the GST you paid out for good and services, and remit the difference, that's it! The only exception is when you deal with a charitable organization that is partially GST exempted, or a native reserve that is fully exempted, but these are few and far in between.

HST is basically GST increased from 5% to 13%, and PST scrapped altogether. It will be a big load off any business owner's shoulder. Unfortunately it is not the same for average consumer.

The Ontario government has been quietly preparing for HST in the past few years. When they merged the PST and GST remittance agencies about 2 years ago we knew HST was coming.

bosco · 03-03-2010, 09:56 PM

Quote:

Originally Posted by halB

I am putting my flame suit on to say this:

If you are a business owner in Ontario who is sick and tire of all the inconsistencies and bullsh*t in the PST system you will welcome the HST.

There are so many different rules and exceptions in the Ontario PST system even their own auditors have trouble keep track of them. We had 2 PST audits in the past 7 years and each time they came up with things that ended up costing us thousand of dollars in back taxes, simply due to different interpretations of PST rules applying to different items. Without exception, at each audit we discover more grey areas that required the auditor to make a judgement call, or to apply for ruling from the authority. It is a nightmare that consumes untold number of man hours to handle just for day to day operation, not to mention all the exemption forms and paperwork you have to deal with.

GST is simple as 1 + 1 in comparison. You collect GST universally as a percentage of sale, subtract the GST you paid out for good and services, and remit the difference, that's it! The only exception is when you deal with a charitable organization that is partially GST exempted, or a native reserve that is fully exempted, but these are few and far in between.

HST is basically GST increased from 5% to 13%, and PST scrapped altogether. It will be a big load off any business owner's shoulder. Unfortunately it is not the same for average consumer.

The Ontario government has been quietly preparing for HST in the past few years. When they merged the PST and GST remittance agencies about 2 years ago we knew HST was coming.

I agree with this it does make it easier for business owners. Its basically a tax shift from the businesses to consumers.

bosco · 03-03-2010, 09:59 PM

Quote:

Originally Posted by schnell325

That's why I only buy new!!!

Nah, just kidding. I've reserve judgement on the HST until I read more on it. Any one have a non-biased (or biased!) link to decent/legitimate information on the HST? Or a link to the budget?

Thanks!

Here is the gov's site:

http://www.bcbudget.gov.bc.ca/2010/

schnell325 · 03-03-2010, 10:01 PM

Thanks very much!

DinoMite · 03-04-2010, 07:09 AM

as a business owner i like it, as a consumer i hate its fucking guts.

MechUT · 03-04-2010, 09:25 AM

Quote:

Originally Posted by halB

If you are a business owner in Ontario who is sick and tire of all the inconsistencies and bullsh*t in the PST system you will welcome the HST.

Quote:

Originally Posted by bosco

I agree with this it does make it easier for business owners. Its basically a tax shift from the businesses to consumers.

As a small business owner, I too agree. PST is a real pain, and a costly one too. While it is, in theory, a tax shift to consumers, there is an income tax reduction to compensate for it.

The real benefit here is the huge SAVINGS that both business and government will enjoy from not having to deal with the costs of processing two different sales taxes, and this will make it's way back to us either through reduced prices on actual products / services, increased wages of more profitable companies, or increased profits / dividends as business owners or shareholders. The government has claimed that this will be revenue neutral.

03-02-2010, 05:55 PM	#1
bosco New Member 0 Rep 24 Posts Drives: 335i Join Date: Jun 2008 Location: Vancouver iTrader: (0)	BC to pay 12% tax on privately sold vehicles! So just read through the new BC budget and it looks like we will be paying 12% tax on privately sold vehicles! Does anyone know when this comes into affect? Would it be the same time as the HST?
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03-02-2010, 06:06 PM	#2
mathu.bala First Lieutenant 24 Rep 329 Posts Drives: 2009 323i/6mt Join Date: Aug 2009 Location: Kirkland, WA iTrader: (0) Garage List 2009 LCI 323i [0.00]	We're getting HST 13% for private auto sale. You should be happy with extra 1% __________________ 2009 323i Titanium Silver Metallic: Premium Pkg(Heated SW, Bluetooth, Sunroof), USB MFD Scoop,SWS-8,JL M6450
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03-02-2010, 06:08 PM	#3
DeltaBMW'r First Lieutenant 23 Rep 335 Posts Drives: 2011 E92 M3 Join Date: Mar 2009 Location: Delta iTrader: (10)	We used to pay 7% Provincial on private sales (collected by ICBC) so it stands to reason that a "Harmonized Sales Tax" would mean it would go up to 12%.. just like restaurants... hair cuts... etc. AFAIK, it all comes into effect at the same time.
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03-02-2010, 09:11 PM	#5
Yvette Major General 761 Rep 7,408 Posts Drives: M Join Date: Sep 2006 Location: Vancouver iTrader: (19)	I need to get out of here....
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03-03-2010, 10:20 AM	#6
benyl Lieutenant 6 Rep 408 Posts Drives: '08 335i, '10 W204 w/m156 Join Date: Nov 2007 Location: Calgary iTrader: (0)	Wow, I hate paying GST... I can't imagine paying HST on a used car! __________________ E92 335iA, AW on BLK, Al trim, Premium, Nav, 6FL, CA, Sport, PDC, Paddles... W204 C63, OBS on BLK, Carbon Trim, Premium, Performance, Rev Cam, and stock exhaust...
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03-03-2010, 10:29 AM	#7
rshew member 2 Rep 118 Posts Drives: BMW 325i 2006, BMW 328xi 2014 Join Date: Dec 2009 Location: Van iTrader: (0)	Still can't figure why tax is payed on used car anyways. Tax was already paid the first time when the car was bought new!
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03-03-2010, 08:32 PM	#10
schnell325 Bored at work.... 890 Rep 5,391 Posts Drives: 2016 F82 M4 GTS//2022 M235iGC Join Date: Aug 2007 Location: Comox Valley iTrader: (8)	That's why I only buy new!!! Nah, just kidding. I've reserve judgement on the HST until I read more on it. Any one have a non-biased (or biased!) link to decent/legitimate information on the HST? Or a link to the budget? Thanks! __________________ Grey Matter:2008 E92 M3:608/425. SG/PS SOLD! Dark Matter:2015 F80 M3:495/505. SOLD! Anti Matter :2016 F82 M4 GTS What next?!? A 2022 M235i GC- I must be getting old
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03-03-2010, 08:43 PM	#11
JHFW89225 Major 176 Rep 1,251 Posts Drives: E92 M3 Join Date: Nov 2006 Location: HK/Vancouver iTrader: (6) Garage List 2009 BMW M3 [0.00] 2008 335i [0.00]	I thought they originally introduced the HST after the economy went boom to help people out but how is this going to help... I don't know. I think is more like they realize they over spent 3X the budget for the Olympics and now they going to tax the shit out of everything to get it back and then some... __________________ 2013 Scion FR-S 2009 BMW E92 M3 2008 BMW E90 335i 2005 BMW X3 3.0i
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03-03-2010, 09:16 PM	#12
halB Colonel 53 Rep 2,384 Posts Drives: W211 E350 4M MkV GTI 987.2 S Join Date: Jan 2007 Location: Just north of Toronto iTrader: (0)	I am putting my flame suit on to say this: If you are a business owner in Ontario who is sick and tire of all the inconsistencies and bullsht in the PST system you will welcome the HST. There are so many different rules and exceptions in the Ontario PST system even their own auditors have trouble keep track of them. We had 2 PST audits in the past 7 years and each time they came up with things that ended up costing us thousand of dollars in back taxes, simply due to different interpretations of PST rules applying to different items. Without exception, at each audit we discover more grey areas that required the auditor to make a judgement call, or to apply for ruling from the authority. It is a nightmare that consumes untold number of man hours to handle just for day to day operation, not to mention all the exemption forms and paperwork you have to deal with. GST is simple as 1 + 1 in comparison. You collect GST universally as a percentage of sale, subtract the GST you paid out for good and services, and remit the difference, that's it! The only exception is when you deal with a charitable organization that is partially GST exempted, or a native reserve that is fully exempted, but these are few and far in between. HST is basically GST increased from 5% to 13%, and PST scrapped altogether. It will be a big load off any business owner's shoulder. Unfortunately it is not the same for average consumer. The Ontario government has been quietly preparing for HST in the past few years. When they merged the PST and GST remittance agencies about 2 years ago we knew HST was coming. __________________ 07 E93 335i - Returned at lease end 09 W211 E350 4Matic Avant Garde - Blk/Blk, AMG pkg w/18". Sport Susp. F1 Asym. Debadged. 09 MkV GTI w/Leather & 18" Huffs. F1 Asym 10 987.2 S w/Leather sport seat, Sport Chrono, 19" Carrera S II wheels Last edited by halB; 03-03-2010 at 09:29 PM..*
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03-03-2010, 10:01 PM	#15
schnell325 Bored at work.... 890 Rep 5,391 Posts Drives: 2016 F82 M4 GTS//2022 M235iGC Join Date: Aug 2007 Location: Comox Valley iTrader: (8)	Thanks very much! __________________ Grey Matter:2008 E92 M3:608/425. SG/PS SOLD! Dark Matter:2015 F80 M3:495/505. SOLD! Anti Matter :2016 F82 M4 GTS What next?!? A 2022 M235i GC- I must be getting old
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03-04-2010, 07:09 AM	#16
DinoMite First Lieutenant 10 Rep 379 Posts Drives: 2013 - 335is Coupe Join Date: Aug 2008 Location: Mississauga iTrader: (0)	as a business owner i like it, as a consumer i hate its fucking guts. __________________ 335is Silver / Coral Red Leather, Nav + the works. Retired: 335i Coupe / M-Sports pack / 19" wheels, Alpine White, Coral Red Leather, Alarm, Comfort Access, BMW Individual Sound System
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