Government of New Brunswick

Disclaimer: This is intended to provide information respecting the Harmonized Sales Tax, the Provincial Vehicle Tax and the Tangible Personal Property Tax on the Purchase and/or Acquisition of Motor Vehicles, Boats and Aircraft under the Harmonized Sales Tax Act (the Act). This should not be regarded as a replacement of the laws, regulations or administrative documents to which it refers.

 

 

Introduction

In New Brunswick, a tax of 13% is applied to all motor vehicles, boats and aircraft. This tax may be either the Federal Harmonized Sales Tax (HST) or the Provincial Vehicle Tax (PVT) / Tangible Personal Property Tax (TPPT) depending upon the nature of the transaction by which an individual purchases and/or acquires a motor vehicle, boat or aircraft.

 

 

Purchase from a Dealer / Registrant - Harmonized Sales Tax (HST)

All vehicles, boats and aircraft purchased in the Province of New Brunswick from a dealer or GST/HST registrant are subject to the 13% HST. Although the 8% provincial portion of the HST returns to New Brunswick, this tax is administered by the Federal Government. Any inquiries on the Harmonized Sales Tax should be made to the Canada Revenue Agency (1-800-959-5525).

 

 

Purchase and/or Acquisition from a Private Individual

Purchase and/or Acquisition from a Private Individual - Motor Vehicles (Provincial Vehicle Tax - PVT)

All motor vehicles purchased and/or acquired privately (from a non-registrant) are subject to a 13% Provincial Vehicle Tax (PVT). This Provincial Vehicle Tax is administered by the Revenue & Taxation Division of the Department of Finance. This tax is paid upon registration of the vehicle at a Service New Brunswick Centre. Any inquiries on the Provincial Vehicle Tax should be made to the Revenue & Taxation Division, Department of Finance (1-800-669-7070).

Purchase and/or Acquisition from a Private Individual - Boats and Aircraft (Tangible Personal Property Tax -TPPT)

All boats and aircraft purchased and/or acquired through private sales (from a non-registrant) are subject to a 13% Tangible Personal Property Tax (TPPT). This tax, which is administered by the Revenue & Taxation Division of the Department of Finance, is due immediately upon the purchase of either a boat or aircraft and may be paid at any Service New Brunswick Centre. Any inquiries on the Tangible Personal Property Tax should be made to the Revenue & Taxation Division, Department of Finance (1-800-669-7070).

Please Note: Boats are exempt of tax if they are less than 10 feet in length and are not motor powered.

 

 

Exemptions from the Provincial Vehicle Tax or the Tangible Personal Property Tax

Family Gifts (see definition of "Immediate Family")

A motor vehicle, boat or aircraft transferred from one immediate family member to another is not subject to tax provided the following requirements are met:

  • that the donor and the recipient fall within the definition of "immediate family";
  • that the donor has not gifted a vehicle to this recipient in the past 12 month period;
  • that the vehicle has not been the object of a family gift exemption in the past 12 month period;
  • that no cash or other form of consideration is involved (note: if a person assumes a relative's outstanding payments and takes possession of a motor vehicle, boat or aircraft in return, then consideration is involved and is taxable to the extent of the consideration involved); and
  • that the tax has been previously paid by the donor.

Inheritance

A motor vehicle, boat or aircraft that is an inheritance is not subject to tax regardless of the deceased owner's former place of residence providing that all the appropriate forms (e.g. death certificate, will, etc.) are provided. (Note: a "living will" is not considered an inheritance for sales tax purposes and will be treated the same as gifts and are subject to limits set out under "Family Gifts".)

Settler's Effects (taking up residence in the Province of New Brunswick)

Individuals who take up residence in the Province and bring designated tangible personal property into the Province for their own personal use are exempt from paying tax as long as the following requirements are met upon taking up residence:

  • the individual must have resided outside the province for at least 183 consecutive days before taking up residence;
  • the individual must have owned the property for more than 30 days before taking up residence;
  • the acceptance of employment of a full time nature within the Province;
  • posting to a place within the Province of New Brunswick while on duty within the service of Canadian Armed Forces or Royal Canadian Mounted Police;
  • the chief place of residence is within the Province; and
  • any combination of the aforementioned events, in which case a settler is deemed to have taken up residence at the earliest date upon which any of the events above occur.

Please Note: New Brunswick residents who stay out-of-Province for 183 or more consecutive days without formally changing their New Brunswick residence (e.g. retain their New Brunswick Medicare card and driver's licence, claim New Brunswick residential tax credit, pay New Brunswick Income Tax, registered to vote in Federal, Provincial, and Municipal elections, etc.), are not settlers when they return and will not be entitled to the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) exemption for taking up residence.

 

 

Refund - 8% Portion of the Harmonized Sales Tax (HST)

Disabled Persons: Upon the purchase of a motor vehicle in the Province of New Brunswick, the New Brunswick Government may refund the 8% provincial portion of the Harmonized Sales Tax (HST) for persons with disabilities if:

  • the motor vehicle is specially equipped with a device to enable a wheelchair or scooter to enter or leave the passenger vehicle (e.g. hydraulic lifts); or
  • the motor vehicle is specially equipped with auxiliary driving controls that are used to facilitate the operation of the passenger vehicle (does not include spinner knobs); and
  • the motor vehicle is not operated by any person for the purpose of earning a profit for any person or as part of any undertaking carried on for gain; and
  • the claimant is not eligible for any other GST/HST credit or rebate related to this purchase.

Applications for refund of the 8% provincial portion of the Harmonized Sales Tax (HST) (form HST-R-02) can be obtained at any Service New Brunswick Centre or by contacting the Revenue & Taxation Division, Department of Finance at 1-800-669-7070.

Along with the application the claimant must submit the following necessary supporting documents:

  1. copy of Bill of Sale and/or New Brunswick Tax Receipt;
  2. proof that the motor vehicle is specially equipped with a device to enable a wheelchair or scooter to enter or leave the passenger vehicle; or
  3. proof that the motor vehicle is fitted with auxiliary driving controls that are used to facilitate the operation of the passenger vehicle, truck, or van;
  4. a letter from a medical practitioner certifying that the person is disabled.

Please note: Any inquiry related to all other types of Harmonized Sales Tax (HST) refunds must be made to the Canada Revenue Agency at 1-800-959-5525.

 

 

Refund - 13% Provincial Vehicle Tax (PVT) or 13% Tangible Personal Property Tax (TPPT)

Disabled Persons: Upon the purchase of a motor vehicle in the Province of New Brunswick, the New Brunswick Government may refund the 13% Provincial Vehicle Tax (PVT) on private sale transactions for persons with disabilities if:

  • the motor vehicle is specially equipped with a device to enable a wheelchair or scooter to enter or leave the passenger vehicle (e.g. hydraulic lifts); or
  • the motor vehicle is specially equipped with auxiliary driving controls that are used to facilitate the operation of the passenger vehicle (does not include spinner knobs); and
  • the motor vehicle is not operated by any person for the purpose of earning a profit for any person or as part of any undertaking carried on for gain; and
  • the claimant is not eligible for any other GST/HST credit or rebate related to this purchase.

Along with the application the claimant must submit the following necessary supporting documents:

  1. a copy of Bill of Sale and New Brunswick Tax Receipt;
  2. proof that the motor vehicle is specially equipped with a device to enable a wheelchair or scooter to enter or leave the passenger vehicle; or
  3. proof that the motor vehicle is fitted with auxiliary driving controls that are used to facilitate the operation of the passenger vehicle, truck, or van; and
  4. a letter from a medical practitioner certifying person is disabled.

Cancelled Sale: Where a sale transaction is cancelled and the motor vehicle, boat or aircraft is returned to the original owner for a refund, the buyer may apply for a refund of the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) paid to the Provincial Government.

Along with the application the claimant must submit the following necessary supporting documents:

  1. original purchase receipt;
  2. copies of registrations providing proof of the old and present ownership;
  3. proof of payment of the Provincial Vehicle Tax (PVT); or the Tangible Personal Property Tax (TPPT); and
  4. proof of refund on the cancelled sale (e.g. written acknowledgment from the original owner that the motor vehicle, boat or aircraft was returned and all money refunded).

Overpayment of Tax: Where a person pays the Provincial Vehicle Tax (PVT) on the private sale transfer of a motor vehicle and subsequently within 14 days of registration, obtains an appraisal showing a lesser value, he or she may submit an application for a refund on the difference between the taxed value and the purchase price or the appraised value, whichever is greater.

Along with the application the claimant must submit the following necessary supporting documents:

  1. original receipt or invoice from the seller;
  2. proof of payment of the Provincial Vehicle Tax (PVT), usually a copy of the registration certificate showing amount of the tax paid; and
  3. properly completed appraisal.

30 Day Removal: Where a motor vehicle, boat or aircraft is purchased by way of private sale, the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) is paid and the purchaser subsequently removes it from the province, registers it and pays the applicable taxes in another jurisdiction within 30 calendar days of purchase, the purchaser may apply for a refund of the tax paid..

Along with the application the claimant must submit the following necessary supporting documents:

  1. copy of Bill of Sale;
  2. copy of NB Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) receipt;
  3. copy of Vehicle Registration, in the purchasers name, from the other jurisdiction where the motor vehicle is registered dated within 30 days calendar of purchase; and
  4. copy of the tax paid receipt, where applicable, from the other jurisdiction dated within 30 calendar days of purchase.

7 Day Resale: Where a motor vehicle, boat or aircraft is purchased by way of private sale, the Provincial Vehicle Tax (PVT) or Tangible Personal Property Tax (TPPT) is paid and subsequently, the motor vehicle, boat or aircraft is resold and the new owner registers and pays the applicable tax within seven calendar days of the original purchase, the original purchaser may apply for a refund of the tax paid.

Along with the application the claimant must submit the following necessary supporting documents:

  1. copy of the original Bill of Sale;
  2. copy of NB Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) receipt; and
  3. proof of resale, registration in the new owners name and payment of taxes, where applicable, within seven calendar days of the original purchase.

NOTE:  Motor vehicles, boat or aircraft applied as a trade-in in another transaction within the time frame are not eligible.

Applications for refund of the 13% Provincial Vehicle Tax (PVT) or 13% Tangible Personal Property Tax (TPPT)  (form PVT-R-01) can be obtained at any Service New Brunswick Centre or by contacting the Revenue & Taxation Division, Department of Finance at 1-800-669-7070.

Refund claims are currently limited to a period of five (5) years from the day on which the overpayment of tax was made. Effective January 1, 2013, refund claims must be made within three (3) years from the day on which the overpayment was made.

 

 

Definitions

Aircraft Includes any aircraft as well as a balloon for air navigation.
Boat Includes any watercraft propelled by oars, paddles, sails, engines or other means.

HST

Harmonized Sales Tax

Immediate Family

Husband, Wife
Common-law spouse (relationship must span a period of at least 6 months - this includes same sex partners)
Father, Mother
Grandparents
Grandchildren
Son, Daughter
Step Mother, Step Father
Stepchildren (includes stepchildren and common law stepchildren in relationship to the parents) NOTE: Step-brother/sister cannot gift to each other.
Brother, Sister (includes half-brother/sister where the half-brother/sister have the same biological father or mother)

Non-Participating Provinces

Provinces that do not participate in the Harmonized Sales Tax (HST). (Alberta, Manitoba, British Columbia, Québec & Saskatchewan)

Non-Registrant

A person who is not registered for purposes of collecting the Goods and Services Tax / Harmonized Sales Tax (GST/HST).

Participating Provinces

Provinces that participate in the Harmonized Sales Tax (HST). (New Brunswick, Newfoundland & Labrador, Ontario, Prince Edward Island & Nova Scotia)

PVT

Provincial Vehicle Tax

Registrant

A person who is registered for purposes of collecting the GST/HST. (e.g. trucker, plumber, farmer, car dealer, etc.)

Spouse

Husband, wife and common-law spouse (relationship must span a period of at least 6 months - including same sex partners)

Supply

The acquirement of a motor vehicle, boat or aircraft by means of sale, transfer, barter, exchange, license, rental, lease, gift or disposition.

TPPT

Tangible Personal Property Tax

Vehicle

A motor vehicle required to be registered under the Motor Vehicle Act or the Off-Road Vehicle Act that is taxable under Part V of the Harmonized Sales Tax Act.

 

Inquiries

All inquiries should be directed to:

Department of Finance
Revenue and Taxation Division
Program Advisory Services
P.O. Box 3000
Fredericton, New Brunswick
E3B 5G5

Telephone: (800) 669-7070
Fax:           (506) 457-7335

E-mail:       wwwfin@gnb.ca
Web Site:  www.gnb.ca/finance

Legislation:

New Brunswick Acts and Regulations may be accessed on the Department of Justice and Consumer Affairs website (www.gnb.ca/justice) or copies can be purchased from the Queen's Printer.