Save $100’s on HST Tax when transferring ownership at Service Ontario (MTO) if a vehicle has:
- High odometer reading (km)
- Excessive wear or severe damage (mechanical/body/interior)
- Previous history (accident, rental/commercial use, out of province/country)
Pay HST Tax on the vehicle’s actual market value and not on the wholesale/book value listed on the UVIP (Used Vehicle Information Package) at Service Ontario (MTO).
If a vehicle is 20 years or older, Service Ontario (MTO) will require an appraisal letter to transfer ownership. An appraisal letter is required because Service Ontario (MTO) doesn’t know what the market or wholesale (book) value of the vehicle is due to age.
Due to regulations instituted by the Province of Ontario on the 1st of November 2004 all vehicles (car, trucks) over 20 years of age will now require an HST appraisal to allow registration of the vehicle in your name.
From the Ontario Government:
Payment for retail sales tax on the greater of the wholesale value (from UVIP) or purchase price from the bill of sale. Please note that for a passenger and light commercial vehicle (2,200kg and under empty weight) 20 years or older, the Retail Sales Tax is payable on the greater one of the following: the purchase price, the replacement value for insurance purposes, or the appraised value. An appraisal document or insurance document showing the value of the vehicle must accompany the bill of sale.