When purchasing a used vehicle in BC through a private sale, you are required to pay 12% Provincial Sales Tax (PST) to ICBC based on either the Canadian Black Book wholesale value or the purchase price, whichever is higher. However, relying solely on the Canadian Black Book valuation may not accurately reflect the true value of your vehicle if it has defects such as damage, rust, high mileage, or mechanical issues. To ensure that you pay the correct amount of taxes and avoid overpaying, obtaining a certified vehicle appraisal is highly recommended. By doing so, you can obtain an accurate assessment of your vehicle’s value and potentially save on taxes. If your vehicle is in below-average condition, an appraisal can help you save hundreds of dollars by ensuring you are not overpaying on taxes.
If you’re uncertain about the value of obtaining a professional vehicle tax appraisal for your used vehicle in BC, we encourage you to get in touch with us at Certified Quick Car Appraisals. We offer a complimentary consultation where our team of certified vehicle appraisers will provide guidance and help you assess whether an appraisal can result in tax savings for you. Rest assured that you won’t have to make any payment until we determine that our appraisal will indeed save you money on your vehicle purchase. Our services are fast and reliable, with appraisal completion typically within 45 minutes, and prices starting at $84. Don’t hesitate to reach out to us today to learn more about our services and how we can assist you.
It is important to note that before transferring ownership at your Autoplan broker, the only requirement is to obtain a vehicle appraisal. However, once the ownership of the vehicle is transferred, the government imposes additional requirements for vehicle buyers who apply for a refund on the provincial sales tax (PST) paid. This additional process can be time-consuming and frustrating, as the government’s current processing time for refunds can take up to six months.
To streamline the process, avoid the lengthy wait time, and reduce the need for additional documentation, it is highly recommended to get your car appraised before transferring ownership. By doing so, you not only save yourself from the extra requirements but also enjoy immediate tax savings. However, if you have already transferred ownership of your vehicle, there are additional steps you need to follow to apply for a refund.
Checklist of Required Documentation
To successfully apply for a refund of Provincial Sales Tax (PST) paid on a motor vehicle in British Columbia, you need to complete the relevant sections of the FIN 355MV form (Application for Refund of Provincial Sales Tax (PST) Paid on a Motor Vehicle) and include the following documents:
- Copy of the bill of sale: This document serves as proof of purchase.
- Copy of the validated ICBC Transfer/Tax Form (APV9T): This form indicates the amount of tax paid to ICBC during the vehicle transfer process. Make sure to include a copy that has been stamped by your ICBC autoplan broker.
- Proof of purchase: Provide evidence of the purchase, such as a copy of the payment cheque or a copy of the buyer’s bank statement showing a debit in the amount of the purchase on the transaction date.
- Copy of the Motor Vehicle Appraisal Form (FIN 320): This form should be completed by a qualified motor vehicle appraiser who has assessed the retail value of the motor vehicle.
Submitting Your Refund Application
Once you have gathered all the required documentation, it’s time to submit your refund application. Complete and sign the FIN 355MV form and mail it, along with the listed documents, to the BC Ministry of Finance. The address for submission can be found on page 2 of the form. It is important to note that the application must be submitted within 30 days of registering the vehicle with ICBC. Keep in mind that processing times for refund applications may take up to six months.
Sample Bill of Sale
To provide you with a better understanding of what a bill of sale looks like, here’s a sample template:
MOTOR VEHICLE BILL OF SALE
SELLER INFORMATION: BUYER INFORMATION:
Name: _________________________________ Name: _______________________________________
_________________________________ _______________________________________
Address: ________________________________ Address: _____________________________________
________________________________ ______________________________________
Phone: __________________________________ Phone: ______________________________________
VEHICLE INFORMATION:
Make: ___________________________________ Model: ______________________________________
Year: ____________________________________Odometer Reading: ____________________________
VIN: _________________________________________________________________________________
SALE INFORMATION:
Sale Price: $______________________________________
Payment Method: _________________________________
Date of Sale: _____________________________________
I, the undersigned seller, hereby sell the vehicle described above to the buyer for the sale price specified, paid in full via the selected payment method on the date of sale mentioned. I confirm that the information provided in this document is accurate and true to the best of my knowledge.
Seller’s Signature: _____________________________________ Date: ___________________________
Buyer’s Signature: _____________________________________ Date: ___________________________
Conclusion
Applying for a refund on BC Provincial Sales Tax (PST) paid on a motor vehicle requires careful attention to documentation and following the necessary steps. By getting your vehicle appraised before transferring ownership, you can avoid additional requirements and enjoy immediate tax savings. However, if you have already completed the transfer, ensure you gather all the required documents, including the bill of sale, validated ICBC Transfer/Tax Form, proof of purchase, and the motor vehicle appraisal form. Submit your refund application form within 30 days of registering the vehicle with ICBC and be prepared for a potential processing time of up to six months.”
Link to the refund form. Is it possible to upload it on the website so people can download?
https://drive.google.com/file/d/1-rMzWw1oDbHp6hsbbHPZ_qqfw8vbCVjM/view?usp=sharing