When moving your car from the US to Canada, you might be burdened with the pressure of finances and paperwork. You must be wondering about the things you should be putting aside even before the process starts. Although your car transport service should be looking into the transport process and taking care of everything on your behalf, there are certain things you should also know. You must know the fees that will be charged to you at different points, the taxes and duties that are levied during the transport process etc. This way, you will have an idea of the expenses and know what is essential to be kept in mind.
In this article, we will be highlighting the essential taxes and duties that you can expect while importing the car into Canada from the US.
Here’s the list of taxes and duties when imports are made to Canada
Import Duty
Every vehicle which is non-NAFTA will have to pay a 6.1% import duty. If the vehicle you are importing is manufactured and assembled in either Mexico, the US, or Canada with at least 55% content, it will be considered as NAFTA. It will then be exempted from import duty.
GST
The Goods and Service Tax will be levied on your vehicle no matter whether you are importing any new or used vehicle to Canada. It is also applicable on vehicles (both new and old) that are purchased within Canada. You will have to pay about 5% tax on the total value of the vehicle. You can pay an immediate GST amount to the Customs Agent in Canada when you are arranging the transit across the borders.
PST
The Provincial Service Tax will be levied upon the car once it is successfully imported into the Canadian borders. The tax will be charged based on the rate that is prevalent in the respective province.
AC Tax
This is yet another necessary tax called the Air Conditioning Tax, which you will have to pay after you cross the borders. It is about $100.
Excess Weight Tax
This will be charged to you based on the weight of your car. If the weight of the car exceeds the limit of 4425lbs, the tax will be levied.
There are many more guidelines attached to the process, and you will need to know them all thoroughly before you import a car to Canada.
