Now to Taxes
SVABC Comments
Attached is a copy of information supplied by a reliable source.
Like most changes this one doesn’t have all the details in the news release
There is lots of questions and answers, so this is a heads-up, best to confirm your situation prior to completing the purchase.
Here is what we know, coming from a very experienced Broker
It is not a new tax, just a new process, which is intended to place a more accurate current market value on the vehicle for tax purposes.
Basically, it applies to 2000 and newer vehicles.
Collector vehicles are exempt.
The Black Book wholesale price will be used to calculate value.
Vehicle Sales Tax—Private Sales
There are some exceptions such as gifted, modified, and collector vehicles, in most cases, the PST will be calculated on either the purchase price or the Canadian Black Book average wholesale value, whichever is greater. The general PST rate on private vehicle sales and gifts of vehicles is 12%. However, the PST rate varies based on whether the vehicle is a passenger vehicle and the value of the vehicle.
Recommendation, when you purchase a vehicle:
- Keep the ad for the vehicle and any similar ads.
- Get a detailed and signed receipt
- APV9t transfer form is not a valid receipt
- Do not pay cash, use cheque, debt or credit card.
- All these items and more will be required if you wish to appeal the tax applied to your purchase.
- Photos are also a great way to prove condition of vehicle.
Communications to Brokers
• Earlier this year, the Ministry of Finance announced that effective October 1, 2022 changes will be made to how the Provincial Sales Tax (PST) will be calculated on vehicles purchased privately or imported into Canada. •
Any vehicles sold or purchased by a PST/GST registrant (such as a dealership) will not be impacted by this change. • This change means that at the time of registration, brokers will compare the average wholesale value (Canadian Black Book) and the declared purchase price value, and select the greater value of the two to calculate the PST amount that is due. •
While there are some exceptions such as gifted, modified, and collector vehicles, generally the PST collected on a motor vehicle purchase will be either the purchase price or the Canadian Black Book value, whichever is greater. •
Questions or concerns regarding the new PST rules can be forwarded to CTB. Visit their website at gov.bc.ca/pst, call them toll free at 1-877-388-4440 or email CTBTaxQuestions@gov.bc.ca. Transfer Tax Forms •
ICBC will be revising the Transfer/Tax forms to reflect this change. Fillable PDF versions of the Transfer/Tax Forms (APV9T) are available on ICBC.com. • Paper copies will be distributed to broker offices once they are available.
Appraisals • If you believe the actual value of your vehicle is less than the average wholesale value due to various factors such as excessive wear, vehicle damage or mechanical issues, you have two options on how to proceed:
one you can decide to not proceed with the transaction and have the vehicle appraised and then return to complete the transaction, or
teo you can choose to proceed with the transaction and pay PST on the higher amount and then complete the appraisal and submit the required documents to Consumer Taxation Branch within 30 days.
o Please be aware that, in order to be eligible to submit an appraisal, the purchase price must be lower than the wholesale value.
• The Motor Vehicle Appraisal Form (FIN320) can be found on the Consumer Taxation Branch website.
• The appraised retail value of a vehicle can be determined by: a motor dealer registered under the Motor Dealer Act, a person authorized under the law of another jurisdiction to carry on business in that jurisdiction in a manner similar to a motor dealer under the Motor Dealer Act, or a person whose business it is to appraise vehicles.
• Questions about the completing the Motor Vehicle Appraisal Form (FIN320) should be directed to Consumer Taxation Branch.
• If the appraised value of the purchase price are both less than the average wholesale price of the vehicle, the PST calculation will be based on the purchase price or the appraised value, whichever is greater.
• If you want to get an appraisal before registering, the appraisal must be completed within 30 days before you register the vehicle.
Refunds • For a refund to be considered, the appraised value and the purchase price must both be less than the average wholesale value of the vehicle.
• The Consumer Taxation Branch will calculate PST due on the purchase price or the appraised value of the vehicle, whichever is greater.
• If you are eligible for a refund, you will need to submit the completed Motor Vehicle Appraisal Form (FIN 320) to the Consumer Taxation Branch, along with an Application for Refund of PST Paid on a Motor Vehicle (FIN 355/MV).
• Consumer Taxation Branch must receive the documents from customers within 30 days from the date of registration to receive a refund, if eligible. •
All refund applications must be mailed to the Consumer Taxation branch and will not be accepted by email or fax. Address: PO Box 9628 Stn. Prov Govt Victoria, BC V8W 9N6 • Postmarks will not be honoured.
More information
• If you have questions related to the new PST rules, appraisals or refund process, contact the Consumer Taxation Branch. • You can also refer to the government’s Provincial Sales Tax Bulletin for more details. •
You can contact Consumer Taxation Branch at the following contact information: Online: gov.bc.ca/pst Toll free: 1-877-388-4440 Email: CTBTaxQuestions@gov.bc.c
Note: If you are making a purchase, check with your Broker to ensure they are on board with the process or they can look it up.
The News Release was published to ICBC Brokers on September 28, 2022 and it was posted front & center of Broker Connect under “Latest News”.
This is not verbal information but posted information that ICBC released to ALL BROKERS ACROSS BC. Every broker has to login to this website in order to conduct ICBC transactions.
If it would be helpful – here is the link for the “Provincial Sales Tax Notice” released by the Ministry of Finance in September 2022. PST on Motor Vehicles Purchased at Private Sales or Imported from Outside Canada (gov.bc.ca)