Selling a boat privately in British Columbia

British Columbia: PST on a private boat sale

British Columbia taxes a boat differently depending on who sells it, and unlike a vehicle there is no registration counter where the tax gets collected. That second part is what catches people out.

• ·Private sale in B.C.: the buyer pays PST at the rate of 12% on the purchase price of the boat, including accessories, unless a specific exemption applies.
• ·From a GST registrant (a dealer): 7%.
• ·Bought privately outside B.C. and brought in: 12% on the depreciated purchase price.
• ·Received as a gift: 12% on the fair market value.
• ·Nobody collects it at a counter, so the buyer self-assesses: file a Casual Remittance Return (FIN 405) on or before the last day of the month following the month of purchase. A buyer who already has a PST number reports it on their next return instead.

Selling to a buyer in the United States

The seller-side admin is short, and most of it is the same as any other sale. What changes is the licence or registration record, and the two systems behave differently.

Licensed pleasure craft (the common case): the rule does not change because the buyer lives elsewhere. If you sell your pleasure craft, do not cancel the licence. A Pleasure Craft Licence number stays with a pleasure craft for its entire life. The buyer transfers the licence into their name before operating the craft, within 30 days of the ownership change, and Transport Canada accepts government issued ID from their own country if they are a resident of another country.

One published rule does bear on the situation: a pleasure craft cannot be licensed or registered in multiple countries at the same time. Transport Canada handles cancellation as a written request giving the name, address, licence number and the reason.

• ·Registered vessels are a different system: Canada does not register vessels to foreign citizens.
• ·Closing a registration lists "vessel sold to a foreign citizen" as a reason. The request goes to the Vessel Registration Office with the official number, proof of ownership and the reason.
• ·A deletion certificate is often issued when a vessel is sold to a foreign buyer who wants to register it in their own country. The foreign registry will need proof that the Canadian registration of the vessel has been closed.
• ·On the large register, the vessel must be mortgage-free, and if the vessel has been sold the request to close must come from the new owner.

Pleasure Craft Licence vs. Vessel Registration

These are two different systems, and mixing them up is the most common boat-selling mistake.

Pleasure Craft Licence (PCL): a unique ID number, like a licence plate. It is NOT proof of ownership. Required if your boat has one or more motors totalling 10 hp (7.5 kW) or more and is operated in Canadian waters. Valid 5 years; $24.41 to issue, renew, transfer, or replace (fee indexed each April 1); apply and manage it online through Transport Canada's PCELS system. Operating an unlicensed boat that requires one can mean a $250 fine.

Vessel Registration (Canadian Register of Vessels): a title system that tracks ownership. It's optional for most pleasure craft; you only need it to name your vessel or register a marine mortgage. Registration gives you a Certificate of Registry. A registered vessel does not also carry a PCL; the two are mutually exclusive. Most private recreational boats are licensed (PCL), not registered.

Selling a boat and trailer together

Selling a boat on a trailer is two separate transactions. The trailer is a provincially registered vehicle, not part of Transport Canada's boat paperwork.

• ·The boat: bill of sale + PCL transfer through Transport Canada (see above).
• ·The trailer: a separate bill of sale + provincial registration/permit transfer (e.g., at ServiceOntario); the exact steps vary by province.