Gifting Vehicles: New Brunswick's Rules

In the province of New Brunswick, Canada, a tax of 15% is applied to all vehicles, which may be either the federal Harmonized Sales Tax (HST) or the Provincial Vehicle Tax (PVT), depending on the nature of the transaction. While the PVT does not apply to vehicles purchased from a GST/HST registrant within Canada, or to vehicles purchased outside the country, it is applied at a rate of 15% to all vehicles purchased privately within New Brunswick or elsewhere in Canada and brought into the province for use. In the case of gifting a vehicle, while taxes are typically not paid for family gifts, there may be certain restrictions and requirements, such as a time limit for registration, that vary depending on the province.

Vehicle registration

Registering a vehicle in New Brunswick is a necessary process for all residents to legally drive on public roads. The registration process depends on the residency status of the owner. To qualify as a New Brunswick resident, you must have a primary home in the province, file income taxes in the province, hold a valid New Brunswick driver's license, and spend most of your time in the province. Visitors can operate a vehicle registered in another jurisdiction for up to 6 months before needing to register it in New Brunswick.

To register a vehicle, you must gather the required documentation, including proof of identity, vehicle ownership, a safety inspection certificate, and proof of insurance. The safety inspection must be conducted annually for passenger vehicles and light trucks and every 6 months for commercial vehicles and buses. The inspection fee typically ranges from $55 to $65.

The fees for registering a vehicle depend on several factors, including the vehicle's weight. The base registration fee ranges from $61 for vehicles under 2,750 kg to $189 for vehicles over 4,500 kg. There are also additional fees, such as the motor vehicle inspection fee of $21.20, the air emissions fee of $30, and the tire recycling fee of $2.50 per tire. Taxes are also applicable.

Registration can be completed in person at any Service New Brunswick (SNB) location or online through the SNB website. During the registration process, you will need to provide the completed vehicle registration application form, proof of insurance, your driver's license, vehicle permit, safety inspection certificate, and payment for the registration fee.

It is important to keep your vehicle registration up-to-date, as registration must be renewed annually before it expires to legally operate your vehicle in New Brunswick.

Vehicle tax

In New Brunswick, a tax of 15% is applied to all vehicles. This tax may be either the federal Harmonized Sales Tax (HST) or the Provincial Vehicle Tax (PVT) depending on the nature of the transaction by which an individual purchases and/or acquires a vehicle.

The PVT is applied at a rate of 15% to all vehicles purchased privately in New Brunswick or vehicles purchased privately elsewhere in Canada and brought into New Brunswick for use. The PVT is administered by the Revenue Administration Division of Finance and Treasury Board. Any inquiries on the PVT should be made to the Revenue Administration Division (1-800-669-7070).

The PVT does not apply to vehicles purchased from a GST/HST registrant within Canada or to vehicles purchased outside Canada. For information on the obligation to pay the federal and provincial portions of the HST, contact the Canada Revenue Agency at 1-800-959-5525.

In some cases, you do not have to pay the provincial motor vehicle tax. These include:

• Buying your vehicle in a participating province from a GST/HST registrant (e.g. a farmer) who used the vehicle in their commercial activities.
• Moving from one participating province to another, having already paid HST on the vehicle.
• Living in a non-participating province before moving to a participating province, having owned and used your vehicle before the move. This depends on how long you owned the vehicle and whether you paid the provincial sales tax (PST) in a non-participating province.
• Returning to Canada after an absence of at least one year, having owned and used your vehicle abroad for at least six months.
• Inheriting the vehicle.

In New Brunswick, you can gift a vehicle twice a year. Normally, when a car is gifted within a family, you don't pay any taxes. However, if the vehicle was gifted less than 30 days ago, you may have to pay a few hundred dollars in taxes to get it registered.

Transfer of ownership

In New Brunswick, a 15% tax is levied on all vehicles, which may be either the federal Harmonized Sales Tax (HST) or the Provincial Vehicle Tax (PVT), depending on the nature of the transaction. The PVT is applied to all vehicles purchased privately in New Brunswick or elsewhere in Canada and brought into the province for use.

If you are transferring ownership of a vehicle to a family member as a gift, you typically don't need to pay any taxes. However, if the vehicle is being gifted out of the province, the rules may differ. For example, in Ontario, a broader range of family members are accepted as gift givers, and there is no tax to be paid when registering the vehicle.

In New Brunswick, there are specific requirements for vehicle gifting, and there may be a time restriction on when a gifted vehicle can be registered without incurring a tax. One source suggests that if a vehicle is gifted and then registered within 30 days, a tax must be paid. It is also stated that an individual can gift a vehicle twice a year in New Brunswick.

To transfer ownership of a vehicle in New Brunswick, the current owner must sign the registration, similar to a regular sale. A bill of sale for $0 and a signed letter from the giver are also required. With these documents, the recipient can obtain a certificate of ownership and a transit sticker.

It is important to note that vehicles with expired registrations cannot be transferred online and must be processed at a Service New Brunswick (SNB) location.

Out-of-province gifting

Gifting a vehicle to someone in another province in Canada involves a few key steps. While the process may vary slightly depending on the province, the general procedure is as follows:

Firstly, it is important to complete the necessary forms, including a Bill of Sale or a notarized declaration of the gift, along with the vehicle's registration and a signed Transfer of Vehicle Ownership, if required by the province. Obtaining a signed letter from the giver of the vehicle is also recommended.

Secondly, the recipient of the gift must insure the vehicle and may be required to pay taxes based on the vehicle's book value, unless exempted by provincial regulations. For instance, in New Brunswick, there is a Family Gift Exemption that allows for tax exemption when transferring a vehicle between direct family members. However, it is important to note that the list of valid gift givers in New Brunswick is more restrictive than in other provinces like Ontario.

Thirdly, the recipient must register the vehicle in their province and obtain the necessary plates. For example, in Nova Scotia, the NS Gift Affidavit form must be signed at an Access NS office or in front of a lawyer. The vehicle must then be registered and NS plates obtained.

It is worth noting that there may be time restrictions on how long you have to transfer the vehicle and register it in the new province. Additionally, it is important to carry proof of insurance at all times, as per the requirements in the province.

Valid gift givers

In the province of New Brunswick, a tax of 15% is applied to all vehicles, which may be either the federal Harmonized Sales Tax (HST) or the Provincial Vehicle Tax (PVT), depending on the nature of the transaction. The PVT is applied at a rate of 15% to all vehicles purchased privately in New Brunswick or vehicles purchased privately elsewhere in Canada and brought into New Brunswick for use.

In the case of gifting a vehicle, the rules vary depending on whether the gift is given within the province or out of the province. For vehicles gifted within the province, the New Brunswick website outlines the requirements that must be met for the gift to be considered valid. It is important to note that New Brunswick has specific restrictions on who is considered a valid gift giver, which may differ from other provinces. For example, a mother-in-law or father-in-law is not recognised as a valid gift giver in New Brunswick, whereas they are in Ontario.

When a vehicle is gifted within a family in New Brunswick, typically no taxes are owed. However, if the vehicle was gifted recently (within a specified time frame, such as 30 days), taxes may be applicable. In such cases, the recipient may have to pay a few hundred dollars in taxes to register the vehicle.

For vehicles gifted out of the province, the process may vary. For instance, if a vehicle is gifted from New Brunswick to Ontario, the recipient would need the owner's signature on the New Brunswick registration, similar to a regular sale. They would then take that documentation and register the vehicle in Ontario, following the standard Ontario requirements. It is important to note that Ontario has different rules regarding valid gift givers, allowing transfers from parents-in-law, which are not recognised in New Brunswick.

Frequently asked questions