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.

Related Legislation
Harmonized Sales Tax Act	Motor Vehicle Act	Federal Excise Tax Act

Introduction  ( back to top )

In New Brunswick, a tax of 14% 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)  ( back to top )

All vehicles, boats and aircraft purchased in the Province of New Brunswick from a dealer or GST/HST registrant aresubject to the 14% 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  ( back to top )

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

All motor vehicles purchased and/or acquired privately (from a non-registrant) are subject to a 14% 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 (506-453-2404).

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 14% 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 aircarft 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 (506-453-2404).

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

Family Sales within a participating province (New Brunswick, Newfoundland, Nova Scotia) (see definition of "Immediate Family")

Where a motor vehicle, boat or aircraft is sold from one immediate family member to another for a stated price, the Provincial Vehicle Tax (PVT) / Tangible Personal Property Tax (TPPT) would be applicable to the actual purchase price provided that the buyer and the seller fall within the definition of "Immediate family".

Family Sales within a non-participating province  ( back to top )

Where a person residing in a non-participating province, sells either a motor vehicle, boat or aircraft to a member of his/her immediate family residing in New Brunswick, the Provincial Vehicle Tax (PVT) of 14% or the Tangible Personal Property Tax (TPPT) of 14% must be paid. The applicable tax is paid on either the actual purchase price or the Red Book value, whichever is greater. However, if the New Brunswick Provincial Sales Tax, Harmonized Sales Tax, Provincial Vehicle Tax or Tangible Personal Property Tax was accounted for previously, tax would be paid on the actual purchase price provided that the buyer and the seller fall within the definition of "Immediate family".

Where a person residing outside Canada sells a motor vehicle, boat or aircraft to a member of his/her immediate family residing in New Brunswick, the buyer, upon crossing international boundaries, is required to pay the 6% Goods & Services Tax (GST) to the Canada Revenue Agency at the point of entry. The 8% component of the Harmonized Sales Tax (HST) must be paid at any Service New Brunswick Centre upon registration.

Exemptions from the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT)  ( back to top )

Family Gifts (see definition of "Immediate Family") within a participating province (New Brunswick, Newfoundland, Nova Scotia)

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 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 in a "participating province".

Family Gifts (see definition of "Immediate Family") within a non-participating province or from outside of Canada

Where a person residing in a non-participating province transfers a motor vehicle, boat or aircraft to a member of his/her immediate family residing in New Brunswick, Provincial Vehicle Tax (PVT) or Tangible Personal Property Tax (TPPT) of 14% must be paid unless New Brunswick Provincial Sales Tax (PST), Harmonized Sales Tax (HST) or Provincial Vehicle Tax was accounted for previously. Documentation must be provided to substantiate that the applicable tax was paid previously in New Brunswick.

Where a person residing outside Canada transfers a motor vehicle, boat or aircraft to a member of his/her immediate family residing in New Brunswick, the recipient, upon crossing international boundaries, is required to pay the 6% Goods & Services Tax (GST) to the Canada Revenue Agency at the point of entry. The 8% component of the Harmonized Sales Tax (HST) will be paid at any Service New Brunswick Centre at the time of registration.

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)  ( back to top )

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)  ( back to top )

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 506-453-2404.

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 - 14% Provincial Vehicle Tax (PVT) or 14% Tangible Personal Property Tax (TPPT)  ( back to top )

Disabled Persons: Upon the purchase of a motor vehicle in the Province of New Brunswick, the New Brunswick Government may refund the 14% 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.

Applications for refund of the 14% Provincial Vehicle Tax (PVT) (form PVT-R-01) can be obtained at any Service New Brunswick Centre or by contacting the Revenue & Taxation Division, Department of Finance at 506-453-2404.

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, a person 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 person buys a motor vehicle, boat or aircraft by way of private sale, pays the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT) and removes it from the province within 30 calendar days of purchase, the purchaser is entitled to a refund of the tax paid at the time of purchase.

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

1. original invoice or purchase receipt;
2. proof of payment of the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT); and
3. proof of removal from New Brunswick, usually a photocopy of registration issued by the other jurisdiction.

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, within seven calendar days of purchase, the motor vehicle, boat or aircraft is resold, 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. original receipt or bill of sale;
2. proof of payment of the Provincial Vehicle Tax (PVT) or the Tangible Personal Property Tax (TPPT); and
3. proof of resale within seven calendar days.

Definitions  ( back to top )

Inquiries  ( back to top )

All inquiries should be directed to:

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

Telephone: (506) 453-2404
Fax: (506) 457-7335
E-mail: wwwfin@gnb.ca
Web Site: www.gnb.ca/0024/index-e.asp

Legislation:

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