Changes to PST Collection on Private Motor Vehicle Sales in BC

Earlier this year, the provincial government announced changes to how the Provincial Sales Tax (PST) will be calculated on motor vehicles purchased through private sales or imported from outside of Canada, effective October 1, 2022.

PST on Vehicles

You must pay PST on vehicles you purchase or lease in B.C., and vehicles you purchase outside B.C. and bring into the province, unless a specific exemption applies. You must pay PST, regardless of whether the vehicle is for personal or business use, even if you are registered for PST.

PST Rates

PST rates apply as set out in the tables below. The PST rate depends on: whether the vehicle is a passenger vehicle, whether the vehicle is a zero-emission vehicle (ZEV) and when it was acquired, the value of the vehicle, and how the vehicle was acquired.

Rates are not affected by whether a vehicle is acquired in B.C. or outside B.C. but within Canada.

Note: Effective February 23, 2022, qualifying used ZEVs are STILL exempt from PST.

Documentation and Payment of PST

If you pay PST to us before registration, when you register the vehicle you will need to provide evidence that the PST was paid. Otherwise, ICBC must collect the PST from you. At the time of registration, you will be required to document the purchase price you paid for the vehicle (or the fair market value of the vehicle in the case of leases and gifts) on the vehicle transfer form. The purchase price is the total consideration accepted by the seller for the vehicle.

The government will regularly review information on the transfer of vehicles to determine that PST was paid correctly. If they are of the opinion the documented purchase price or the documented fair market value of a vehicle does not accurately reflect the fair market value of the vehicle, they may contact you or the seller to request information to support the documented purchase price or value. If you are unable to support the purchase price or fair market value claimed, you may be assessed additional PST on the vehicle.

Exemptions

If you are claiming an exemption, you may be required to provide information or documentation to support your claim. If you do not provide the required information or documentation, ICBC must collect PST from you. Specific information required to prove the exemption is identified in each of the sections below. The government may request additional documentation that supports your claim. If you are unable to provide documentation to show PST was paid or that you are entitled to an exemption, you may be eligible to apply to us for a refund of the PST if you provide the documentation to us.

New Residents

If you are a new resident to B.C. and you bring a vehicle into B.C. on or after February 19, 2014, solely for non-business use, the vehicle is exempt from PST if:

• you owned the vehicle for at least 30 days before you became a resident of B.C., and

  the vehicle arrives in B.C. within one year of you becoming a resident of the province.

If you became a resident of B.C. on or after March 11, 2019, the one-year deadline is extended to on or before the earlier of:

• January 1, 2023, or

• one year following the end of the most recent quarantine order made under the Quarantine Act (Canada).

Note: Different rules apply if the vehicle was brought into BC before February 19, 2014.

Documentation

To claim the exemption, you must provide your previous registration from another jurisdiction or bill of sale to show you owned the vehicle for at least 30 days. You may be asked to provide documentation proving the date you became a resident of B.C. (e.g. B.C. medical services plan enrolment).

Gifting Vehicles

Only one gift of a specific vehicle between related individuals is eligible for exemption in a 12-month period. PST will apply to any future gifts of that vehicle within 12 months. The only exception is if a gift vehicle is gifted back from the recipient to the donor.

A related individual is:

• a person’s spouse (legally married or living for a continuous period of at least 2 years with another person in a marriage-like relationship), child, grandchild, great grandchild, parent, grandparent, great grandparent, or sibling, the spouse of a person's child, grandchild or great grandchild, or the child, parent, grandparent or great grandparent of a person's spouse.

So How Does it Work?

Example

Vehicle: 2013 Kia Rio

Kilometers: 166,111 km’s

Fair Market Value (generated from Black Book) = $5457

PST Collected at time of Registration = $654.84

Example

Customer purchases 2013 Kia Rio, valued at $5457 but physically paid the seller only $1000 due to various factors such has mechanical issues and exterior damage, the customer will need to obtain an independent appraisal and provide it to the broker at time of registration for proof.

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Procedures for registering a vehicle will mostly remain the same, however, some changes are required to align with the Ministry of Finance's new PST rules outlined in this Provincial Sales Tax Notice. More specifically, starting October 1, at the time of registration when Brokers collect the PST, you will need to compare the average wholesale value (Canadian Black Book value) and the declared purchase price value with every PST transaction

For the vast majority of customers, these new rules will not change the amount of PST they are required to pay. In most cases, customers are currently paying PST on the declared purchase price, which is typically greater than the average wholesale value.

In less common situations, where a customer believes the actual value of their vehicle is less than the average wholesale value (due to various factors like excessive wear, damage, or mechanical issues), customers have the option to obtain an independent appraisal.  

Transfer Vehicle Ownership

As a Seller or a Buyer, here’s what you need to know…

Steps for the seller

1. Download a Transfer/Tax Form (APV9T) or pick up a copy from any Autoplan broker. Please note that all four pages must be complete and original signatures are still required.

2. Remove your license plates from the vehicle you're selling.

3. Remove your insurance and registration. The insurance and registration are actually two parts of the same document (APV250).

4. Tear off (carefully please!) the bottom, vehicle registration portion.

5. Give the registration to the buyer, making sure it has your signature on it.

6. After you've been paid, fill out and sign the Transfer/Tax Form in full. Each of the four pages must have original signatures.

7. To complete the transfer, take the registration and Transfer/Tax Form to an Autoplan broker. We strongly recommend going together with the buyer to ensure that the registration transfer is processed in a timely manner and that your name and any insurance and licence products are removed from the vehicle registration record. This is important in avoiding any possible liability claims associated with the future operation of the vehicle by the purchaser. If you cannot visit the Autoplan broker with the buyer, keep the seller's copy (with original signatures from both you and the seller) for your records.

8. Remember to cancel your insurance or transfer it to a new vehicle.​

Steps for the buyer

1. Get the original vehicle registration, with the owner's signature on it, from the seller.

2. Fill out and sign in full the purchaser's portion of the Transfer/Tax Form (APV9T) (you can also pick up a copy at any Autoplan broker). Please note that all four pages must be c​omplete and original signatures are still required.

3. To complete the transfer, take these documents to an Autoplan broker. We strongly recommend going together with the seller.

You can get the vehicle registered, licensed and insured at the broker's at the same time.​

10-Day Rule: What does it mean?

Using plates from your old vehicle

You can drive your "new" vehicle using the licence plates from your old one for 10 days from the date of purchase if all of these conditions are met:

• The vehicle you're switching plates to is registered in B.C. (or was purchased from a licensed B.C. auto dealer).

• You have sold or otherwise disposed of your old vehicle.

• Both vehicles are the same type (for example, passenger vehicles).

• The licence plates are valid B.C. plates.

During those 10 days, you must carry in your new vehicle

• the signed Transfer/Tax Form for your new vehicle,

• the original registration from the seller (or, for a new vehicle, the signed and dated bill of sale from a dealer),

• the insurance papers for your old vehicle (the insurance must still be valid), and

• proof, such as the "seller's" copy of the Transfer/Tax Form, that you sold your old vehicle.

If a vehicle owner has passed away:

Have you lost a loved one who was the registered owner of a vehicle?

Please be aware that it's important to contact an Autoplan broker as soon as you can. Your broker will help you transfer the ownership of the vehicle (or, if you prefer, cancel the policy).

It's also important to cancel their driver's license.

Depending on your situation, here are some of the documents your broker may need to transfer the vehicle's ownership:

• The original or a certified copy of each of the documents in our Checklist for Estate Transfers.

• A fully completed Transfer/Tax Form (APV9T) (you can also pick up ​​a copy at any Autoplan broker). Please note that all four pages must be complete and original signatures are still required.

• The current vehicle registration (usually kept in the glove box).

• A valid marriage certificate or a notarized statutory declaration if you are the surviving spouse and want to keep the plate without a decal as a keepsake. (You can get a statutory declaration form from your broker.)