Quantcast
How is it legal to charge GST on a used vehicle? - Beyond.ca - Car Forums
Results 1 to 11 of 11

Thread: How is it legal to charge GST on a used vehicle?

  1. #1
    Join Date
    Oct 2002
    Location
    Calgary
    My Ride
    12 FJ, 06 YZ250, 77 kz1000, 82 GPZ1100, 81 TR-1
    Posts
    2,897
    Rep Power
    12

    Default How is it legal to charge GST on a used vehicle?

    I don't quite understand how this happends considering when the vehicle was new or imported it has had GST charged on it.

    Now I do understand "Goods and Services", so then I can see a dealership charging GST on their "Services" but the "Goods" on a used vehicle.

    Also I want people to know companies make money on GST! On the quarterly installment plan the first 30K you only submit 4% to the government and keep 3% to your self after that you submit 5% and keep 2%. Now you know why dealerships for example are completely happy with this, casue if the person who bought the car from the dealerships trades it back in for a new one the dealship got to charge GST twice on the old vehicle and new charge for the new vehicle the guy got! HAhahaha.

    Fuck the government! We are all little sheep.

  2. #2
    Join Date
    May 2003
    Location
    Calgary, AB
    My Ride
    2015 Ram 1500
    Posts
    4,980
    Rep Power
    13

    Default

    lol...it's kinda lame ya...but they have to unfortunately...
    however if you purchase the car under a business name you get the GST back, and when you sell them your car if it is a company owned asset they have to pay you gst
    Originally posted by HeavyD
    you know you are making the right decision if Toma opposes it.

  3. #3
    Fuji's Avatar
    Fuji is offline Track Events Co-ordinator
    Join Date
    Jun 2002
    Location
    Calgary
    My Ride
    cars
    Posts
    2,011
    Rep Power
    12

    Default

    Because the GST has nbever been paid on it before. IT happens even with purchases form Canada say you buy it in AB and then insure it in SK. They will charge you teh PST on it because it hasnt been paid (new or used). ONce its been paid you wont have to pay it again on that particular used vehicle if its a private sale.

  4. #4
    Join Date
    Nov 2002
    Location
    Not Aspen
    My Ride
    Two from Freemont
    Posts
    9,353
    Rep Power
    23

    Default Re: How is it legal to charge GST on a used vehicle?

    Originally posted by Hollywood
    I don't quite understand how this happends considering when the vehicle was new or imported it has had GST charged on it.
    Fuji is right for a car that you are importing. The GST was never paid.

    For a used car that you buy at a dealership, here is the math.

    1. You go in and buy a new $40,000 car.
    2. You trade in your $20,000 car.

    Cost of the car = $40,000 + GST (2,800) = $42,800

    Here is what you pay.

    $40,000 - $20,000 + GST = $21, 400

    You only pay for half of it. The government gets the other half when the stealership sells your used car. The government is only looking for their tax once.



    Now I do understand "Goods and Services", so then I can see a dealership charging GST on their "Services" but the "Goods" on a used vehicle.

    Also I want people to know companies make money on GST! On the quarterly installment plan the first 30K you only submit 4% to the government and keep 3% to your self after that you submit 5% and keep 2%. Now you know why dealerships for example are completely happy with this, cause if the person who bought the car from the dealerships trades it back in for a new one the dealship got to charge GST twice on the old vehicle and new charge for the new vehicle the guy got! HAhahaha.




    Now this is only half true. What you are describing is the quick method of GST calculation. This is to make it easier for small businesses that don't have a book keeper on staff. This works both for and against the business. If you utilize the quick method, if you make a big purchase, let's say a large piece of equipment, you can't demand a credit for the GST you spent on that item. If you don't need anything for your company, then you are making that extra 2%.

    Also, you can only utilze the quick method if your gross income in 4 of the last 5 quarters is less than $200,000. If you go over that amount, you automatically have to go through full disclosure. Most used car places should sell more than that in a month which makes your statement untrue.


    Fuck the government! We are all little sheep.

  5. #5
    Join Date
    Oct 2004
    Location
    AB/NS
    Posts
    3,284
    Rep Power
    13

    Default

    Whats this I hear about "no gst, private sale!".... I just moved here to alberta and am not used to this concept.. Back in nova scotia, you pay tax everytime you register a used car... I assume you pay it when new too, But I've never bought a new car But for used, you take the papers into the dmv, and even if you say and have a receipt for say 800bux, or whatever and you actually paid more, or if that is what you really paid and they feel it is worth more they go to the book, and charge you what they think is the price of the car, and tax 15% of that.. So say you actually bought a junker for $1200 amd get them to write out that you only payed $900, you go in and claim with receipt, they check the price range for the vehicle and if they feel it falls in the $1500 range thats what you pay tax on (15%) if you feel it's not worth that you go get it appraised and then take that too them, apprasiles are around 20bux and a sketchy shop will usually write you near what you want.. thts been my experience, now living in alberta and looking to spend 10-12k on a car, I needa figure out what your system is..

    Last edited by Supa Dexta; 02-20-2005 at 10:22 PM.

  6. #6
    Join Date
    Nov 2002
    Location
    Not Aspen
    My Ride
    Two from Freemont
    Posts
    9,353
    Rep Power
    23

    Default

    There is no system. If you buy it privately, then GST is included in the price. They can't charge your GST on the asking price unless you are buying it from a company.

  7. #7
    Join Date
    Oct 2004
    Location
    AB/NS
    Posts
    3,284
    Rep Power
    13

    Default

    No not the seller, but when you go to register it, you don't pay it there either? As we do back east?

  8. #8
    Join Date
    Nov 2002
    Location
    Not Aspen
    My Ride
    Two from Freemont
    Posts
    9,353
    Rep Power
    23

    Default

    nope... only on the registration fee.

  9. #9
    Join Date
    Oct 2004
    Location
    AB/NS
    Posts
    3,284
    Rep Power
    13

    Default

    sweet deal.. thanks man... whats the registration fee if you know it? different for different vehicles, or the same straight across the board?

  10. #10
    Join Date
    Oct 2004
    Location
    Calgary Alberta
    Posts
    309
    Rep Power
    0

    Default

    Originally posted by Go4Long
    lol...it's kinda lame ya...but they have to unfortunately
    Yeah the gov't sure makes more than their fair share of GST from vehicle sales.

    ex:

    New price at Franchise dealer $25,000 gst paid $1750.
    Sold at Auction 1 year later $17,000 gst paid $1190.
    New owner trades in 2 years later on newer vehicle
    Dealer sells vehicle to a wholesaler $5000 gst paid $350
    Smaller lot sells back to end user $7600 gst paid $532.

    Money made by Canada on GST $3822

    us? bent over and fucked hard Thanks Mulrooney

  11. #11
    Join Date
    Jun 2002
    Location
    ___________________________
    My Ride
    400whp MR2 - An Italian and a couple of Germans
    Posts
    11,139
    Rep Power
    21

    Default

    Yah buying a car out east is 100 time worse than here. You need to get some gay used vehicle report book which costs money, you need to have it safety and emissions tested which costs money, and you need to pay gst on a private sale!
    Looking for a new VW? How about a used vehicle? We are Central Albertas #1 source for pre-owned vehicles
    I will beat any deal on a new VW for beyonders

    Gary Moe Volkswagen/Gary Moe Used Car Superstore!

    Red Deer, AB

Similar Threads

  1. Replies: 25
    Latest Threads: 07-17-2007, 10:52 PM
  2. Turbo Charge Propane?

    By Pete92SL in forum General Car/Bike Talk
    Replies: 30
    Latest Threads: 01-26-2005, 05:31 PM
  3. Used Vehicle Inspection

    By import_illusion in forum General Car/Bike Talk
    Replies: 3
    Latest Threads: 11-22-2004, 03:13 PM
  4. Buying a used vehicle need a mechanic advice before buying?

    By Kamikid in forum General Car/Bike Talk
    Replies: 0
    Latest Threads: 07-14-2004, 11:05 PM
  5. Buying a used vehicle

    By dugrant153 in forum General Car/Bike Talk
    Replies: 7
    Latest Threads: 05-18-2004, 11:23 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •