
If you are planning a move to Canada and want to bring your car, make sure you are fully prepared, financially. This is not a cheap venture—and in some cases, it might make more sense to sell your existing car and buy another one after you cross the border—but paying taxes and duties is a necessary part of the import and export industry.
Yes, the international trade community considers the transport of a vehicle to be registered in a new country an act of importation. As such, the owner of that vehicle must pay various Clearit.ca duties and taxes associated with international trade law.
STANDARD DUTIES and TAXES
Here is a simple breakdown of the various duties and taxes you might have to pay:
- Goods And Services Tax (GST): a flat tax of 5% of your vehicle’s value
- Provincial Sales Tax (PST): a sales tax dependent upon the province where you register your vehicle (the rate multiplied by the value of your vehicle)
- Import Duty: 6.1% of the value of a non-NAFTA vehicle
STANDARD REGISTRATION FEE
In addition to these required duties and taxes, you must also pay a fee when you register your vehicle with the Canadian Registrar of Imported Vehicles (RIV). You must pay this standard fee of $195 (and a GST) in every province but Quebec, where the agency adds an additional provincial tax.
Some cars are not subject to this RIV fee. Exemptions include:
- vehicles listed by someone recognized as a vehicle importer with the Transport Canada agency
- new vehicles already bearing a current and valid Canadian compliance label but only after the vehicle manufacturer registers it with Transport Canada
- a vehicle that has already been registered in Canada and is returning to its country of origin by its original owner
- any vehicle more than 15 years old-fashioned]
- a schedule VII vehicle, which is used for demonstration, exhibition, evaluation, or testing or another special purpose
- a work vehicle (as defined for civil engineering, construction, or maintenance jobs and has not been built on a truck or a truck chassis)
You may also be subject to a gas guzzler tax if you own a vehicle with a higher weighted average fuel consumption rating. The tax is as follows:
- $1,000 for a rating between 13 and 14 liters per 100 kilometers
- $2,000 for a rating between 14 and 15 L/100 km
- $3,000 for a rating between 15 and 16 L/100 km
- $4,000 for a rating higher than 16 L/100 km
For registration of ITN number you can go for itn number Canada.