Pay tax on a trade?

They only time no sales tax needs to be paid is if the item is "gifted" And even then, it has to be from close family only (brother dad, maybe cousin). For trades I'm not sure. MTO will ask you how much you paid for it. This year the lady took my word, didn't even look at the bill of sale. I would have it made out for like 1 or 200 hundred, and go from there. At least that way if you HAVE to produce it, the tax would be much less. Granted MTO can call your ******** and take the listing from the "book".

Good luck
 
Two50noob said:
Yup legally you both still have pay the tax
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If its a straight up trade, i never paid tax on it, only when I received extra $$$$. you have to fill out a special paper, unless it has been changed
 
I did a straight trade and didn't pay any sales tax when I registered the bike in my name. This was 1.5 years ago.
 
ytvfr said:
I did a straight trade and didn't pay any sales tax when I registered the bike in my name. This was 1.5 years ago.
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like other have said if we are talking about bikes. You can put $0 on then your probably ok (no bluebook). Cars though will be a different matter. Your supposed to pay tax on the value not how much you pay (the assumption being they will be close to equal) Thats my understanding.

BUT if they don't call you on the $0 value when you do the paper work. Then i guess your Scott free.
 
I did this several times. "Bill" of sale notes straight exchange of bike for bike. Everytime, i've declared a dollar in the invoice and paid 13 cents each time.
 
JFD said:
I did this several times. "Bill" of sale notes straight exchange of bike for bike. Everytime, i've declared a dollar in the invoice and paid 13 cents each time.
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That's what I was going to suggest. If for any reason trading is complicated or they require you to pay tax, just agree to sell each other your bikes for $1. Tax on $1 is about 13 cents, and there is no law against selling your bike for too low a price.
 
If there's no value for them to base the tax on, all they have you do now is write on the corner of the UVIP how much you paid. They did three months ago for a van I bought, and two weeks ago when I bought a bike. Neither time did they even look at the bill of sale, and with the bike I offered it to them and they said,"don't worry about it."
 
Did a straight swap once, MTO lady said we EACH had to declare the full value of each others' bike and pay tax accordingly since we were each receiving something worth that monetary value. We agreed to sell our bikes for $5 each. She was so mad
 
Yeah I figured it would have to be trickery and deceit... but hey, the ****ers wanna steal money from us every chance they get so Im all for it. Good thing there's still no book values.
 
Really no trickery or deceit to it. If no money changed hands then the government has no right to your money. Ignorant clerks like the one that said each bike has a monetary value so tax is due is just plain wrong. The government does not have a right to your hard earned cash. Even on car deals you only pay tax on the difference when trading.
 
Tripletrouble said:
The government does not have a right to your hard earned cash. Even on car deals you only pay tax on the difference when trading.
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No. Whenever a car changes owners you pay tax on the value of the car. Hardly matters what you paid for it.
 
unL33T said:
No. Whenever a car changes owners you pay tax on the value of the car. Hardly matters what you paid for it.
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If you trade a car worth $10,000 for a car worth $25,000 you pay tax on the difference of $15,000 not the $25,000 value.
 
Tripletrouble said:
If you trade a car worth $10,000 for a car worth $25,000 you pay tax on the difference of $15,000 not the $25,000 value.
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If you say so but I'm pretty sure you're wrong.

http://www.mto.gov.on.ca/english/dandv/vehicle/used.shtml#retail

Retail Sales Tax

You must pay sales tax when you buy a used vehicle privately. The amount of tax is on either the purchase price or the vehicle's wholesale value, whichever is more. What is the "wholesale value"?

Wholesale value is based on the Canadian Red Book, which lists the wholesale and retail values of used vehicles. This book is an accepted industry standard used by car dealers, insurance companies and other provincial governments.
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So your purchase price on a trade would be low/nothing but the wholesale value is still going to be the same, regardless. Maybe someone could just call the MTO and ask them. heh
 
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