Maximizing Tax Savings: The Importance of Vehicle Appraisal Before Ownership Transfer in British Columbia

When transferring ownership of a used vehicle in BC purchased through a private sale, you will need to pay Provincial Sales Tax (PST) based on the Canadian Black Book wholesale value or purchase price, whichever is higher. However, the Canadian Black Book valuation used by ICBC may not reflect the true value of your vehicle if it has defects such as damage, rust, high mileage, or mechanical issues. By obtaining a vehicle appraisal, you can gain an accurate assessment of the value of your vehicle and potentially save on taxes.

Avoid the lengthy wait time

Some people pay the full tax and transfer the ownership, and then apply for a refund after getting their vehicle appraised. However, the process of getting a refund after the vehicle has already been transferred to their name is very slow and onerous and requires much more documentation. It is worth noting that the government’s current processing time for refunds can exceed six months, which can be frustrating and time-consuming for vehicle owners who are seeking to recoup the overpaid taxes.

To avoid the lengthy wait time and added documentation, it’s best to get your car appraised before transferring ownership. Not only will this save you from additional requirements, but you will also see immediate tax savings. Here’s the process to appraise a vehicle before transferring ownership in British Columbia.

Here are the differences in requirements between getting a vehicle appraisal before or after transfer of ownership:

Requirements BEFORE Transfer of Ownership:

• Completed and signed FIN 320 appraisal form provided by the vehicle appraiser.

Requirements AFTER Transfer of Ownership:

• Completed and signed FIN 320 appraisal form provided by the vehicle appraiser.

• Proof of purchase, such as a copy of the payment cheque, bank draft, or buyer’s bank statement showing a debit in the amount of the purchase on the transaction date.

• Bill of Sale with a description of the vehicle, date of purchase, names of the seller and purchaser, and the purchase price.

• Completed and signed FIN 355MV form (Application for Refund of Provincial Sales Tax Paid on a Motor Vehicle).

• Validated copy of the ICBC transfer form (APV9T).

• Mailing all the required documents to the Consumer Taxation Branch within 30 days

We hope you found this information helpful. Don’t hesitate to reach out to us if you have any questions or if you’re ready to schedule your car appraisal.