Canadian Help

I know there is a lot of Canadians on this board. I was hoping you could explain how to sell a boat across the border. A potential buyer wanted me to drive the boat across the border so he could avoid some "GST" Tax. Does this sound legit?

I have also sold cars in the US by accepting Cashiers Checks and cashing the check at the buyer's bank. I am under the impression that Canada and the US don't have the same banks, and I also have to worry about exchange rates.

Any advice on this transaction would be appreciated.

Thanks

Just bought my new 05 Outback in January and brought it into Canada in March.As far as you bringing boat across so he does not have to pay GST seems a little shifty,because as far as I know you own boat in the States correct? Won't you have to return with boat or will border crossing say nothing?I had to pay GST on boat and trailer,and then provincal tax only on trailer that was when I registered trailer for plates.I also needed a letter of recall on the trailer to bring it into Canada.I live in Saskatchewan and I bought the boat in Fargo ND was no problem bringing it home had all the paper work I needed no trouble at all at the border crossing .

You would be bringing a large, trackable asset across an international border, where taxes are due if it's staying. Even if you manage to bluff your way across at first, eventually someone may come looking for that tax money, and they'll start with the identfiable person whom they knew had the boat last. U.S. and Canadian authorities are fairly tight, so don't think that being back home is safe!

I am Canadian and lots of tradespeople here are pressured by their customers into skipping the sales taxes (federal GST and a provincial PST in most places) on things like residential construction and repairs. It takes a while, but the government does catch up eventually. My father's friend basically works for the gov't for free now after getting caught. I strongly recommend that you sell locally and let the buyer take care of his own cross-border issues if you don't know the rules in detail.

Ian

Well you dont have to pay GST on a used boat unless you buy from a dealer anyways.
Only PST. If you have the opportunity to purchase a good boat privately you will certainly save money! and thats with bringing it over the border. If you buy brand new you may still have to pay the GST at some point. I havent heard of anyone that has bought a boat in the US and had the tax police come looking forthem later for no GST..

Just my 2 cents.
Jay

Well I have decided to not drive the boat across the border. He is going to pick it up in the US. It does not sound like he will have to pay GST anyway.

Now, I am leary of Cashiers Checks. I did some research on the web and it seems there is a lot of fraud associated with them. I am going to insist on a wire transfer. I got to remember to protect myself first, no matter how confusing it makes the deal.

If the cheque is comming from Canada, just be sure its from a chartered bank. Wiretransfer is safe but, does cost the sender more and going from country to country can take much more time to clear.

Ask what bank he is dealing with and find out how you can check the authenticity.. i have never ever had an issue with canadian issued certified cheques because our banks are nation wide.. US certified cheques are the opposite because the banks are generally only in each state or few states.. i have had issues with US issued certified cheques in the past...

Still cant believe you gotta sell :(
Jay