Buying a US boat for Canadians

So, since I have been shopping mostly in the US for a boat (since I really cannot find one for our needs in Canada). I have also been researching what it means for a Canadian to bring a boat back to Canada.

Even a Kayak would go through these importation rules


A lot has already been written on this topic, and I encourage everyone to read through it here,

Many US buyers, use a Delaware corporation to own the boat, and get around some of the taxing issues, but this is not feasible/applicable for Canadians.

For my specific situation:
  • Buying a US documented boat
  • Bringing to to Canada
  • To liveaboard; meaning it will be in Canada for very extended periods
 The following rules seem to apply
  • Generally, there are no taxes in the state where it is bought, as long as it is removed in short order (depending on the state - 30-90 days)
  • When bringing it to Canada, which it is known as "importing" the boat, you will right away be subject to HST (PST+GST) as it applies in your province, that is 13% in Ontario. Too bad Alberta is so far and not on the great lakes, only GST(5%) would apply there.
  • If the boat is not built in North America, which I believe most trawlers fall in that scenario (as being from Taiwan), you are also subject to 9.5% import duty.
Even with 22.5%, prices tend to still be cheaper in US than in Canada, but you need to account for this.

I would hope that boats over, say 30 years old, should be exempt from duty, but I dont believe this is the case. Still researching, will update this post if I find better details on this.
Previous
Next Post »