Selling a 77 Targa to a US buyer
 

Any Canadians out there who have sold a car to a US citizen..if so, what taxes (provincial - Ontario) are incurred if any?. Govt websites are cryptic

Honest question.

Cash doesn't cut it anymore?

Drive it south of the border exchange paperwork and money and cross back?

Or you are considering internet sale with electronic funds transfer?

I wish it were that simple...but worth looking into :-)

I'm not Canadian, but I bought my Saab out of Vancouver and I asked the seller - no taxes incurred at all. I can't imagine Ontario is much different from BC. Only taxes are incurred to buyer wherever they register the car.

Yes, I ve gotten two answers from MVO so far, one a yes, one a no, I m going with the no (the taxes if incurred are refundable for a US citizen). BC is far more accommodating than Ontario (money grubbers). The buyer is looking into it from his side (Delaware) and I ve suggested he contact a broker who can do all the paper work versus driving it himself across the border..his choice

Oh, do you mean VAT or equivalent that the buyer would pay if they were Canadian? In my case (BC), the transaction was just like if it were in a US state - I only pay taxes to my home state (IL in my case) when I register it. When I bought the car, we went to the ICBC office with a bill of sale and transferred ownership out of his name and that was it. Plates stayed with the car (Historic plates, only ones BC issues that always stay with the car), I got paper temp plates for 24 hours just for CYA and I drove it home. In general it is almost universal in western countries that a foreign citizen buying something like a car to take back to their country does not have to pay local tax.

As a seller you pay no taxes; taxes are paid by the buyer. The buyer can hire a broker or manage the transaction on their own. I find the government website rules to be clear, but some technicalities can become wildly contentious in chat forum blogs. It's best to reach out to the office that has jurisdiction as it will be their opinion that prevails. A few phone calls will reassure that you're on the right track. Otherwise lots of stress when your new ride is stuck at the border on the Friday night of a long weekend and the Customs dude isn't sure if they can let that in. In the case you've described I'd avoid advice beyond encouraging the US buyer to check with their Federal and State authorities.

Called Govt offices in Ontario and the buyer pays no taxes since the car is being removed from Ontario within 30 days..I still advise the buyer to use a broker who knows the ins and outs of cross border transport

I purchased my 77 Targa from EP9 (in Montreal) last year. He shipped it for me and I don't remember having to pay any other taxes than import fees.

Changes from Province to Province but looks like no taxes in Ontario either despite their website statements

I just sold a 997 to a fellow in Florida - I am in Toronto. you, as the seller are not required to pay any taxes here in Canada with the car leaving our country. US Customs will charge 2.5% duty on the selling price of the car, in addition to other fixed processing fee's. In my case, everything came to almost $3000 USD. I strongly suggest you use a broker who knows about processing vehicles. The one I used is in Washington State and was excellent.

I joined this forum today - I think you can message me...

Jack

Thanks Jack

Sent you mail since your messaging isnt active

If you did this and the buyer gets pulled over for a traffic issue, or leaves the US with the car and then tries to re-enter there will be hell to pay to the US Customs people - as in they can seize the vehicle....

Why on earth would an American, who just bought a car from Canada, try to take it back into Canada?

Some people have way too much time on their hands.

The buyer wants to use shipping as he has a busy practice and cant get the time off. As well, using a service he doesnt have to figure out the paperwork, they will guide him as part of their services.

Matt/Vet..the car is going from Canada to US, he will have to register in US and obtain insurance/plates etc. I doubt he will be coming back to Canada with the car

Thanks all, I ve provided Jacks suggestion to the buyer as well as some others I researched. Just waiting to hear back. Of course a week later I had a local buyer get real keen so that's in my back pocket if needed