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Vehicle Transportation Taxes in Canada

Vehicle Transportation Taxes in Canada

Vehicle auto transport is a business that most of the times has customers all across the country. That situation may be confusing when it comes to the pricing of the service. Canada’s taxing system has a different tax percentage in every province and territory.

Customers may wonder, which tax will apply to my purchase when I ship my car? Auto transport is not a service that you purchase and receive in the same place, so it can cover one, two, or more provinces on every trip.

When shipping your vehicle the taxing that applies is the delivery province taxing system. The reason for this is that the car shipping service is not complete until the vehicle is delivered. Taxing in Canada is separated in different taxes and percentages, there is the “Goods and Services Tax” (GST), this tax has a 5% value and applies in the thirteen provinces and territories in Canada.

This means that each province will have a tax amount when the purchase is done of at least 5%, the Canadian territories and the province of Alberta only have this kind of tax. Another class of taxes is the “Provincial Sales Taxes” (PST), this tax is applied in just some of the provinces and it doesn’t have a set value and goes from 5% to 10% depending on the province.

The third and last tax that is applicable in Canada is the “Harmonized Sales Tax” (HST), this is a combination of the two previous taxes and is applied as a whole in the provinces of Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. Car dealerships are the only customers that pay a fixed tax amount (GST only) when shipping with ShipMyRide.

Canada taxes per province are the following:

ShipMyRide is a company that values the satisfaction of customers. That is the reason why we always prefer to have all our customers appropriately informed about the pricing system of our service!

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