Getting the vehicle eligible by both CBSA and Transport Canada, you need to now pay the import assessment costs that would include excise taxes, duties, and 5% GST. Further, when you opt to license your vehicle, additional provincial or territorial taxes might get levied upon. Other taxes like Harmonized Sales Tax (HST) might be applicable in certain provinces of Nova Scotia, New Brunswick, or Newfoundland. Generally, vehicles imported for personal use that are manufactured in the U.S., Canada, or Mexico do not get duties charged on them.
The Duties and Taxes
The vehicles get charged with the duties and taxes after an evaluation is made on their “value for duty”. This is calculated on the value that you have already paid or you need to pay to the Canadian funds for the vehicle before any trade-in is considered.
When a vehicle price is paid for, it also contains amounts paid for the foreign sales taxes or the warranty payments. There might be no less for the credits charged while the vehicle is traded in Canada.
Here are the following duties that will get charged upon if the vehicles are imported from the USA.
- Import duties- These apply to non-NAFTA vehicles at 6.1%. A NAFTA vehicle is exempted from any extra taxes or duties if sold in Mexico, Canada, or the USA.
- Goods & Service Tax (GST) – A GST of 5% is subjected to any new vehicle en route Canada. It can be immediately paid to Canada Customs or pay at the registered dealer if the vehicle is bought in Canada.
- Provincial Sales Tax (PST) – PST is charged at the time of registration. The rate is based upon the current tax rate of the respective jurisdiction.
- Air Conditioning Tax- $100 air conditioning tax is also levied on vehicles having the following system. It is paid immediately when the vehicle crosses the border.
- Excess Weight Tax- Excess excise taxes are charged if the vehicle weighs above 4,425 pounds.
- Gas Guzzler Tax- This tax is charged upon fuel-inefficient vehicles. This applies to every new vehicle or the ones imported from the USA at an average rate of $2000 for 14-15 litres for 100 kilometres.
Holistic bits of help can be provided by the agents if you wish to import a car to Canada. Immense regulations and paperwork headaches are all handled by them for you to relax and have the shipment cross the border.