xinfamousx
Well-known member
HEY GUYS okay so just a quick question.. when registering a motorcycle and dealing with the bill of sale do you need to have the actual purchase price ? or can you state it cheaper for tax purpose ?
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MOTORCYCLES TAXES
- Thread starter xinfamousx
- Start date
bigpoppa
Well-known member
I am not suggesting at all that you should cheat the government out of tax revenue on a product upon which tax has already been paid at least once, but there is no blue book value on bikes, especially used bikes, and it would be difficult for the people at service ontario to ascertain exactly how much you may have paid for it, it might be in slightly damaged condition so you paid less... etc etc etc
^This.
xinfamousx
Well-known member
so if im buying a a bike for 5000 its bad to state that i bought it at lets say $700?
TK4
Well-known member
Do what you like, but be prepared if the person at Service Ontario questions you.
A major lowball like that is VERY likely to get questioned.
Make sure the seller is on board with your plan. The more questionable your price is, the more likely they mail a letter to the seller asking them for the sale price. All the seller has to do is throw it out and they wont bother them again. You dont want the seller to return 3000 when you wrote 700.
If you want a slightly more supportable approach, buy a "parts bike" for 700 and the parts required to fix it for 2300 on two separate bills.
If you want a slightly more supportable approach, buy a "parts bike" for 700 and the parts required to fix it for 2300 on two separate bills.
Unless that motorcycle you bought had a blown engine, was crashed, and was sold "As is" (which is clearly mentioned on the receipt) so the value is perfectly in line with what's on the paper. (Edit: Ghost and I were typing at the same time and are on the same page....)
Anyhow, it's been my personal experience they don't question it anyways unless you somehow happened to buy a 2019 Harley Davidson for $50 or something like that. One must use common sense if they're choosing to go the route being discussed.
If the UVIP value is not stated, you will pay HST on whatever you put as purchase price. (Ie. you put $100 you pay $13 in tax)
Just make sure you and seller are on the same page.
Also, writing $10 will work, but you are likely to get hassled a bit. I wouldn't go under $100 personally.
Just make sure you and seller are on the same page.
Also, writing $10 will work, but you are likely to get hassled a bit. I wouldn't go under $100 personally.
ScorpionT16
Well-known member
Not to name anyone, or imply anything, however the one time I did buy a bike and the seller was insistent on writing the value he wanted (exact amount paid), when I went to SO, even the clerk was like, and word for word, "why did you put that much down for something with no blue book value, your paying a lot extra". I just shook my head saying I know, the seller signed it, lets just say, without implying anything, the clerk himself made some changes and I walked away happy.
Make note, they could randomly reach the seller to ask, however its random, and the seller does not have to reply, its just an act of faith.
Make note, they could randomly reach the seller to ask, however its random, and the seller does not have to reply, its just an act of faith.
For the record - the sales tax on used vehicles was less absurd before HST rolled around. It's been a few years now hasn't it
But it was so unfair to car dealers having to compete with private sales at a lower tax rate. eyeroll.
Yeah the same dealers who have the advantage of giving a discount worth the tax value on trade ins which regular people dont get when they buy privately. Should have stayed at 8%, in many other jurisdictions its 0%
What a goof
One thing: Make sure you don't give the seller a check, MO, or bank draft for $5000 and then put $700 on the bill of sale. lol
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