If you buy a used boat in British Columbia, you owe PST on it. The rate depends on who sells it to you, not on the boat. This guide covers the two rates, what the tax applies to, the exemptions that exist, and how to pay. The rules come from the BC Ministry of Finance's Bulletin PST 108, Boats (revised June 2026), with GST from the CRA.
This is general information, not tax advice. For your own deal, call the Ministry at 1-877-388-4440.
The two PST rates on boats
BC charges PST on boats at one of two rates:
- 12% at a private sale. A private sale is one where the seller is not a GST registrant, or is a registrant but the sale is not a taxable supply for GST. Most sales between two boat owners fall here.
- 7% from a GST registrant. This is usually a dealer. The dealer also charges 5% GST. PST is worked out on the price before GST.
You pay whether the boat is for personal or business use, unless a specific exemption applies.
Buying through a broker doesn't change this. A broker who only markets the boat and finds a buyer doesn't collect PST. If the owner isn't a PST collector, you self-assess. The rate follows the owner's status.
PST calculator
Enter the price and who is selling. The calculator uses the two rates above.
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Worked examples
| Price | Private sale: 12% PST | Dealer: 7% PST | Dealer: 5% GST | Dealer: total tax |
|---|---|---|---|---|
| $15,000 | $1,800 | $1,050 | $750 | $1,800 |
| $40,000 | $4,800 | $2,800 | $2,000 | $4,800 |
| $90,000 | $10,800 | $6,300 | $4,500 | $10,800 |
The total tax comes out the same: 12% of the price. What changes is who collects it. A dealer collects PST and GST at the sale. On a private sale, nobody collects it for you. You pay the Province yourself.
The federal luxury tax on boats ended on November 5, 2025, so it no longer adds to these numbers.
What counts in the price
PST applies to the purchase price of the boat, including accessories. Bulletin PST 108 says this covers goods that, when you buy the boat, are or will be attached to it, stored in it, or used to operate it. Its examples are motors, water sport equipment and fishing gear. They're taxed at the boat's rate, even if the seller bills them separately.
Say a private seller asks $30,000 for the boat, $4,000 for the outboard and $1,000 for the fishing gear. You pay 12% on $35,000, which is $4,200.
Trailers are different. A trailer is taxed under the vehicle rules, not the boat rules. If you didn't pay PST on the trailer when you bought it, ICBC charges it when you register the trailer. Keep the receipt and ICBC's Transfer/Tax Form (APV9T) as proof. List the trailer on its own line in the bill of sale so the split is clear.
Trade-ins. If you buy a boat in BC and the seller takes goods in trade, the trade-in value may reduce the price PST is charged on. That only works if you paid PST (or an earlier BC sales tax) on the trade-in, or were exempt. There's no trade-in reduction on a boat bought outside BC.
Auction fees. Bulletin PST 108 doesn't mention auction fees such as a buyer's premium. If you buy at auction, ask the Ministry how they apply before you file.
How to pay PST on a private sale
If you buy from a PST collector, such as a dealer, the collector charges you. In every other case you self-assess.
- Get the form. Without a PST number, you use the Casual Remittance Return (FIN 405). With a PST number, you self-assess on your next PST return instead.
- Describe the boat. One line, with the make, model, year and registration number, as the form asks.
- Enter the price. The form says to include charges such as delivery, customs and excise that you paid at or before the time you took title. Leave out GST.
- Apply the rate. 12% for a private purchase. For a gift, use the fair market value.
- Pay by the deadline. On or before the last day of the month after the month you got the boat. Buy in June, pay by July 31.
- Send it. Mail the form with payment to the Ministry of Finance, or take it to a Service BC Centre. Attach a copy of the bill of sale if you have one.
What happens if you don't pay
The Ministry routinely reviews Transport Canada records and matches changes in registered ownership against PST payments. Bulletin PST 108 says you may be contacted to confirm you paid.
If you're assessed, you get a Notice of Assessment for the tax plus interest. Under Bulletin CTB 005, interest compounds monthly, and no further interest is added if you pay in full within 30 days of the notice. Penalties depend on the facts:
- Generally none on a first assessment for tax you didn't pay on a purchase, if you've had no earlier warning or assessment.
- 10% if the facts show you knew you owed it and didn't pay.
- 25% for wilful evasion or gross negligence.
Filing on time is the cheap option.
Exemptions
Bulletin PST 108 lists specific exemptions. These are the ones private buyers ask about most:
- Gift from a related person. Exempt if the donor paid PST, or another province's sales tax, on the boat and got no refund or credit. It's also exempt if the donor was exempt, or received the boat as a gift in BC before April 1, 2013. Related means a spouse, child, grandchild, great-grandchild, parent, grandparent, great-grandparent or sibling, plus some in-laws. Only one exempt gift of the same boat is allowed in 12 months, unless it goes back to the donor. The Ministry may ask for a gift letter. If a trailer comes with the boat, you and the donor complete the Gift of a Vehicle form (FIN 319).
- Gift from anyone else. Taxed at 12% of fair market value on the day you receive it. It's 7% if the gift came from a GST registrant as a taxable supply.
- Inheritance. Exempt when you get the boat as part of the distribution of an estate. You may be asked for the death certificate and the will.
- Separation or divorce. Exempt when a spouse or former spouse transfers the boat under a Family Law Act property agreement, a written separation or marriage agreement, or a court order.
- New residents. Exempt if you bring the boat in for non-business use, it arrives within one year of you becoming a BC resident, and you owned it for at least 30 days before that.
- Commercial fishers and aquaculturists. Qualifying buyers can claim an exemption with the matching certificate (FIN 455 or FIN 456). The aquaculture exemption covers boats up to 20 metres.
Keep the paperwork that supports an exemption. The Ministry says it regularly contacts boat owners to check that they paid PST or claimed a valid exemption.
Buying in another province or the US
If you're a BC resident and bring in a boat bought elsewhere, you still owe PST.
From elsewhere in Canada. The rate is 12% for a private purchase or 7% from a GST registrant. It applies to the depreciated purchase price, which is the greater of:
- the price, less 15% for each full year before the boat came into BC and 1.25% for each 30-day period of a partial year, and
- 50% of the price.
The price includes transport, brokerage, customs, excise and other costs you paid to get title, but not GST.
Example: you buy a boat privately in Alberta for $40,000 and bring it home one year and 50 days later. That's one year (15%) plus two 30-day periods (2.5%), so 17.5% comes off. The depreciated price is $33,000 and the PST is $3,960. Because of the 50% floor, PST on a private purchase never drops below 6% of what you paid.
From outside Canada. PST is 7% of the boat's value as set under the federal Excise Tax Act. The Canada Border Services Agency may collect it at the border. If it doesn't, you self-assess on FIN 405. GST applies too. The CRA says it's calculated on the Canadian dollar value of the goods, including duty and excise tax, and collected at importation. You must declare the boat to the CBSA when it first arrives in Canada, so have the bill of sale and proof of ownership ready.
GST on a used boat in BC
- Private seller who isn't a GST registrant: no GST. Only registrants charge it, and most people selling their own boat aren't registered.
- Dealer, or another registrant selling the boat as a taxable supply: 5% GST, plus 7% PST.
- Imported boat: GST at the border, as above.
If the seller has a GST number, ask whether the sale is taxable before you agree on a price. It changes both taxes.
Before you pay for the boat
Tax is only one line in your budget. A private seller can also have a loan against the boat. Run a boat lien search in BC before any money moves. When Yachts & Bids auctions go live, the purchase price will go through a third-party licensed escrow and title partner, never through Yachts & Bids, and that partner runs the lien search. For the full ownership transfer, see our guide to selling a boat in BC.