Aircraft sales tax

[redlaser]

In the late seventies and early eighties I bought several general aviation aircraft, at that time there was no sales tax on aircraft or aircraft parts in Canada, The last two aircraft I purchased I had to pay sales tax, collected by customs Canada as soon as the aircraft entered Canada, does anyone know when the government started charging sales tax on aircraft and aircraft parts and what government party was in power.

[BGH]

Bought our 185 in 1983 & paid a sales tax.

Daryl

[DadoBlade]

The federal government’s first budget in two years proposes a new tax on luxury goods such as yachts, personal aircraft and cars.

The tax would be applied to cars and personal aircraft that retail over $100,000; and boats for personal use that retail over $250,000. If the budget passes, the tax would come into effect on January 1, 2022.

[AirFrame]

There has always been tax on aircraft newly registered in Canada, ie. amateur-built, imported from the US, etc. Tracking and collecting it wasn't necessarily consistently applied though.

[photofly]

There is tax due on used aircraft purchased in Canada too. Province-wide sales taxes apply. Ontario also levies RST (at13%) on aircraft (and cars, and boats) bought privately when no HST is payable. The purchaser is responsible for remitting the taxes due directly to the province.

The new tax is an extra tax - HST will then be payable on the price including the new luxury tax - so you're paying tax on the tax.

[goldeneagle]

I paid sales tax on my first aircraft purchase, 1976.

[pelmet]

I would assume on a used aircraft, that the federal GST started to be applied when the GST was implemented(but only a guess).

You might have 13 different stories for the provinces and territories.

My understanding is that you pay the provincial tax in the province where the aircraft is to be based, not where your residence is(subject to confirmation by someone who actually knows their stuff).

[redlaser]

Aircraft are registered and certified airworthy by the federal canadian government, so why pay a provincial sales tax if the aircraft does not use the roads. As one person commented about provincial sales tax. And why do we pay the GST in the first place when the Government collects an income tax on our earnings.

[RatherBeFlying]

Alberta remains the only province without Provincial Sales Tax. Many provinces roll PST into HST (GST + PST) which gets collected by customs if importing. It helps to be living in Alberta (or have an Alberta corporation and customs broker paperwork) when importing an aircraft.

GST is not charged on transactions between private individuals, but PST may be chargeable depending on the province, likely most.

[photofly]

Ontario has a specific sales tax on the sale of cars, boats and airplanes between private individuals (when HST isn’t chargeable) called Retail Sales Tax, at 13%:

https://www.fin.gov.on.ca/en/tax/rst/

[redlaser]

It would appear that the HST was the tax we paid on aircraft starting in 2010, prior to that date no federal tax was paid on aircraft,