I want to buy a boat in the US or in the Caribbean. I then intend to cruise her for a year or two around Central America and the Caribbean. Can I register this boat in Canada without paying taxes, if I don't intend to actually bring her here? What do I need to do and aprox. how much does it cost? Any help would be helpful.
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It can be done
The boat can be Canadian Registered (Documented) without being brought into Canada and without paying the Canadian tax. I did this with my current boat and then paid the Canadian tax when I imported it onto Canada 2 years later. You must go through Canadian Ships Registry and all the proper documents must be filled out including Bill of Sale, etc. If you go onto the Transport Canada website you will find detailed instuctions on how to go about the process and you can also download the applicable forms. The cost was $250.00 Canadian for the Registration Fee. The tax (Canadian) does not have to be paid unless the boat is imported into Canada and then becomes payable when you clear the boat into Canadian Customs for the first time. Your Provincial tax Department monitors the Ships Registry transactions and you may get a letter from them requesting payment of the Provincial tax immediately (should not be a problem if you use Edmonton as your home port). All that is required to get them off your back is proof that the boat has not been imported into Canadian waters and is moored outside of Canada. The other thing to check is the tax ramifications of the State you are buying the boat - some States require you to pay the State tax on the boat unless you are transporting it out of the State within a certain time period. It all sounds complicated but it really isn't - with a little homework you can avoid that nasty tax surprise.
The boat can be Canadian Registered (Documented) without being brought into Canada and without paying the Canadian tax. I did this with my current boat and then paid the Canadian tax when I imported it onto Canada 2 years later. You must go through Canadian Ships Registry and all the proper documents must be filled out including Bill of Sale, etc. If you go onto the Transport Canada website you will find detailed instuctions on how to go about the process and you can also download the applicable forms. The cost was $250.00 Canadian for the Registration Fee. The tax (Canadian) does not have to be paid unless the boat is imported into Canada and then becomes payable when you clear the boat into Canadian Customs for the first time. Your Provincial tax Department monitors the Ships Registry transactions and you may get a letter from them requesting payment of the Provincial tax immediately (should not be a problem if you use Edmonton as your home port). All that is required to get them off your back is proof that the boat has not been imported into Canadian waters and is moored outside of Canada. The other thing to check is the tax ramifications of the State you are buying the boat - some States require you to pay the State tax on the boat unless you are transporting it out of the State within a certain time period. It all sounds complicated but it really isn't - with a little homework you can avoid that nasty tax surprise.
I thought so...
So the brokers I am dealing with are telling me the same, and thanks for the reply as I could find nothing on transport Canada's site. I am going to Houston tomorrow am. to buy a boat, so this came in just in time. Also, I am a Calgary resident and there is no sales tax in AB, so I was only worried about the GST and possible import duty. Thanks again.
So the brokers I am dealing with are telling me the same, and thanks for the reply as I could find nothing on transport Canada's site. I am going to Houston tomorrow am. to buy a boat, so this came in just in time. Also, I am a Calgary resident and there is no sales tax in AB, so I was only worried about the GST and possible import duty. Thanks again.
Call Canada border services.
We had a thread going on this very subject about 2 weeks back. You can register the boat for free if it is less than a certain weight. My Catalina 30 was free. registration was done at Canada border services but now I think it is handled by "Service Canada" the new name for the federal offices. You would have to have a pretty big boat to pay money. They will ask for a copy of the bill of sale and want to see your GST payment when you brought it into Canada. If you do not intend bringing to Canada then you will probably end up having to pay a state sales tax if you stay in one place too long. Do your homework ahead of time. good luck.
We had a thread going on this very subject about 2 weeks back. You can register the boat for free if it is less than a certain weight. My Catalina 30 was free. registration was done at Canada border services but now I think it is handled by "Service Canada" the new name for the federal offices. You would have to have a pretty big boat to pay money. They will ask for a copy of the bill of sale and want to see your GST payment when you brought it into Canada. If you do not intend bringing to Canada then you will probably end up having to pay a state sales tax if you stay in one place too long. Do your homework ahead of time. good luck.
I think you are talking about licencing
Ken, There is a difference between licencing a boat (K number) and a Canadian registered vessel. When you licence a vessel then it is indeed done through Canadian Border Services when you import a boat into Canada. The boat is given a "K" number and is registered under that number. You can not licence a boat in Canada without importing it into the Country first to the best of my knowledge. Canadian Registration on the other hand is done through Canadian Ships Registry (Transport Canada)and has nothing to do with Canadian Revenue or Border Services. That is why it can be done for a vessel that has not yet been imported into Canada. The vessel is given an official number and is actually registered under the vessel's name. Registering a vessel in Canada is not required unless the vessel is over 15 tons but can be useful because it allows a marine mortgage to be registered against a vessel or for the vessel to be "flagged" and registered as a Canadian vessel even though it has never been in Canadian waters. There is a minimum fee for this of $250.00 regardless of the size of the vessel.
Ken, There is a difference between licencing a boat (K number) and a Canadian registered vessel. When you licence a vessel then it is indeed done through Canadian Border Services when you import a boat into Canada. The boat is given a "K" number and is registered under that number. You can not licence a boat in Canada without importing it into the Country first to the best of my knowledge. Canadian Registration on the other hand is done through Canadian Ships Registry (Transport Canada)and has nothing to do with Canadian Revenue or Border Services. That is why it can be done for a vessel that has not yet been imported into Canada. The vessel is given an official number and is actually registered under the vessel's name. Registering a vessel in Canada is not required unless the vessel is over 15 tons but can be useful because it allows a marine mortgage to be registered against a vessel or for the vessel to be "flagged" and registered as a Canadian vessel even though it has never been in Canadian waters. There is a minimum fee for this of $250.00 regardless of the size of the vessel.
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