BC Government changes to calculating PST on private vehicle sales
Written by: Michelle Meerse Categories: Uncategorized
- Effective October 1st, 2022- Private Sale taxation is changing
The provincial government announced changes to how the PST will be calculated on motor vehicles purchased through private sales. ICBC and brokers are required to enforce some changes to align with the Ministry of Finance’s new rules.
Brokers will be required to compare the average wholesale vehicle value from the Canadian Black Book and the declared purchase price value with every PST transaction. PST will be charged on the greater value of the declared purchase price or the average wholesale value from the Canadian Black Book.
We, as your Insurance Brokers, must comply with this government mandate.
Every client retains the right to obtain an independent appraisal if the value of the vehicle is less than the average wholesale value due to various factors like excessive wear, damage, or mechanical issues.
Questions? Contact us to see how we can help.