Question about trading motorcycles in the eyes of Service Ontario | GTAMotorcycle.com

Question about trading motorcycles in the eyes of Service Ontario

Boots

Boots

Well-known member
Hey sorry if this is the wrong place to ask this, but If i were to do an even trade for a motorcycle, no cash is added. Do I still need to pay tax on this transaction when i switch the ownership? Technically I paid $0 but would they go after the market value of the bike?

Thanks!
 
Service Ontario doesn't normally have a value for bikes. You pay tax on the value you declared. Letter of the law, you should pay tax on full price of bike as government doesn't care if you paid cash or bartered. Many people choose to declare a different value. There have been reports of newish bikes (2020 or 2021 model year) having a reference price in the SO system.
 
GreyGhost said:
Service Ontario doesn't normally have a value for bikes. You pay tax on the value you declared. Letter of the law, you should pay tax on full price of bike as government doesn't care if you paid cash or bartered. Many people choose to declare a different value. There have been reports of newish bikes (2020 or 2021 model year) having a reference price in the SO system.
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Got it thanks for getting back to me. So even though its a motorcycle to motorcycle trade with no cash involved I would have to tell them what I think the value of the bike is when I see them?
 
Boots said:
Technically I paid $0 but would they go after the market value of the bike?
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"Technically" yes, in REALITY you paid a motorcycle... and tax is due on the value of that motorcycle. That motorcycle had "cash" value.

If someone, other than a blood relative, GAVE you a motorcycle, for free, no money, you still owe sales tax on the value. I can GIFT you a washing machine tax free, but I can't GIFT you a vehicle or real estate.
THE GOVERNMENT WANTS IT'S TAXES.
Someone can leave you vehicle in a estate, BUT the vehicle has to be described in the will to be tax free ( saying I want Bitzz to have my car when I die won't cut it, I want Bitzz to have my 1969 Ford Galaxie, VIN #xxxx will).... and you still have to pay any parking tickets or road tolls due on it. When this happened to me the nice lady at the MOT let me reg the car for a $1 sales price. It helped I had a letter from the executor supporting my claim.
 
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I traded a gun for a motorcycle (many years ago ) and was told if no money changed hands then no tax is due.
 
Tripletrouble said:
I traded a gun for a motorcycle (many years ago ) and was told if no money changed hands then no tax is due.
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You were told wrong. There are a list of exemptions where tax is not due. Trading is not one of them. It wouldn't make sense if it was. You provided the seller with xx dollars of value whether it was cash, a gun or home depot gift cards. Now, if you want to argue that the government already collected tax on the new vehicle so they should keep their grubby hands out of used vehicle transfers, I agree but that's not the law.

Specified Vehicles | Retail Sales Tax

Learn about retail sales tax on private purchases of specified vehicles and on certain premiums of insurance and benefits plans. This online book has multiple pages. Please click on the Table of Contents link above for additional information related to this topic. Help us improve your online...
www.ontario.ca www.ontario.ca
 
I've always just gone in to the Service Ontario and asked. They must think I'm a nice guy, as they've made things simple, easy and not expensive.

Your results may vary.
 
GreyGhost said:
You were told wrong. There are a list of exemptions where tax is not due. Trading is not one of them. It wouldn't make sense if it was. You provided the seller with xx dollars of value whether it was cash, a gun or home depot gift cards. Now, if you want to argue that the government already collected tax on the new vehicle so they should keep their grubby hands out of used vehicle transfers, I agree but that's not the law.

Specified Vehicles | Retail Sales Tax

Learn about retail sales tax on private purchases of specified vehicles and on certain premiums of insurance and benefits plans. This online book has multiple pages. Please click on the Table of Contents link above for additional information related to this topic. Help us improve your online...
www.ontario.ca www.ontario.ca
Click to expand...
Bottom line is that I did not pay tax!
 
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