Buy a boat in the USA without paying taxes, it’s possible !!!
You have found the boat of your dreams but it is located in the United States. You have heard all sorts of stories about purchasing in US territory, but what you have heard, is it true?
Here are the facts: When you purchase a boat in US territory and you intend to register it with Transport Canada, at the time of purchase (or possession) you do not pay either US or Canadian taxes.
As long as the boat remains in US territory and the boat is registered in Canada (title deed), you do not pay taxes in the US. It will however be necessary to purchase, what is well known as, a Cruising Permit in order to be able to circulate as a visitor in US territory. Canadian taxes are payable only when the boat crosses the Canadian border.
Please also note that the story of entering via Ontario to save the QST is folklore.
If you buy a used boat built in Europe located in US territory, you will also have a customs duty of 9.5% to pay, but again, only when the boat crosses the Canadian border.
So, if you buy a boat in the US, register it with Transport Canada and leave it on Lake Champlain, for example, you do not pay US taxes or Canadian taxes. It may be advantageous for tax purposes to do this and it is perfectly legal.
Please contact expert boat brokers with experience of importing and exporting of boats as there are several possible formulas depending on your particularities.
Call the brokers at itayachtscanada.com or 514-521-1221
The boat import export, it’s also our business.
Also, you may read in english this interesting article on purchases boats in USA, clic here.
This is the link with CANADA BORDER SERVICES AGENCY for more details.