Are you in the market for a used car in British Columbia but concerned about paying taxes? While it’s not possible to completely avoid taxes on a used car purchase, there are several exemptions available that can help minimize your tax liability. Let’s explore some of these exemptions and how you can save money on taxes.
New Residents
If you’re a new resident to BC and bring a vehicle into the province solely for non-business use, you may be eligible for a PST exemption. To qualify, you must have owned the vehicle for at least 30 days before becoming a BC resident, and the vehicle must arrive in BC within one year of your move.
Gifts to Related Individuals
If you receive a vehicle as a gift from a related individual, such as a spouse, child, grandchild, parent, grandparent, or sibling, you may be exempt from paying PST on the vehicle.
Inheritance
You may be exempt from paying PST on a vehicle if you receive it as part of a deceased individual’s estate distribution.
Used Zero-Emission Vehicles (ZEVs)
Effective February 23, 2022, you are exempt from PST on the purchase or lease of qualifying used ZEVs. The exemption is in effect until February 22, 2027. However, if you purchase a used ZEV privately, the vehicle must have 6,000 km or more on the odometer to be eligible for the exemption.
Get a Vehicle Appraisal
Another way to save money on taxes when purchasing a used car is to get a vehicle appraisal from an independent motor vehicle appraiser. If you’re buying a vehicle at a private sale with defects or damage, a certified auto appraisal can provide you with an accurate assessment of the vehicle’s value. This vehicle appraisal can potentially save you money on taxes since the PST is based on the vehicle’s wholesale value or purchase price, whichever is higher. At Certified Quick Car Appraisals, we offer free appraisal value consultations, so you can determine if it’s worth getting an appraisal for your vehicle. Our online vehicle appraisals are completed within 45 minutes and cost $84.
In conclusion, while it’s not possible to avoid taxes on a used car purchase in BC, there are several exemptions available to help reduce your tax liability. By taking advantage of these exemptions and getting a vehicle appraisal, you can potentially save money on taxes and make your used car purchase more affordable. Contact Certified Quick Car Appraisals to learn more about how our services can help you save money on taxes when transferring ownership of your vehicle in BC.