Honda Car Forum

GST and PST on Gas tax and A/C tax?? re: new car purchase canada


Hi, a friend is buying a new car in Ottawa, Ontario, Canada. In the
taxable subtotal she was quoted, there is a $100 air conditioning tax
and a $75 gas tax. I think this is standard for Ontario, but should
she be paying GST and PST on the TAX??? This is nutty! I know it is
like $20000 for a new car, but $26.25 is still $26.25!! Any ideas???

-Rob

PS: Can someone confirm that these fees are government levied and
non-avoidable? Thanks.

That's interesting... getting taxed on the tax. I wouldn't be surprised
if the dealership's are pocketing the difference.

Pars

Rob B wrote:

> GST and PST on Gas tax and A/C tax?? re: new car purchase canada
>
>
> Hi, a friend is buying a new car in Ottawa, Ontario, Canada. In the
> taxable subtotal she was quoted, there is a $100 air conditioning tax
> and a $75 gas tax. I think this is standard for Ontario, but should
> she be paying GST and PST on the TAX??? This is nutty! I know it is
> like $20000 for a new car, but $26.25 is still $26.25!! Any ideas???
>
> -Rob
>
> PS: Can someone confirm that these fees are government levied and
> non-avoidable? Thanks.

Actually, paying tax on tax is quite normal in Canada. With GST (7% goods
and services tax) and PST (provincial sales tax, varries by privince), you
always pay tax in tax. In my province, the PST used to be 11% and GST is
7%. People would always assume then that the tax rate on a retail purchase
was 18% but because you calculate the PST first, the calculate the GST
against that new amount, you end up paying GST, on the PST, so the actual
tax rate was really 18.77%. Yes that right all my american friends, in
Canada, everything I bought from a pack of gum all the way up to a car was
taxed at 18.77%. Not to mention our insanely high income taxes. That's the
price we pay for Medicare up here.


"pars" <"sdaro(remove)"@hotmail.com> wrote in message
news:3F9BE4E8.EEB6F5E8@hotmail.com...
> That's interesting... getting taxed on the tax. I wouldn't be surprised
> if the dealership's are pocketing the difference.
>
> Pars
>
> Rob B wrote:
>
> > GST and PST on Gas tax and A/C tax?? re: new car purchase canada
> >
> >
> > Hi, a friend is buying a new car in Ottawa, Ontario, Canada. In the
> > taxable subtotal she was quoted, there is a $100 air conditioning tax
> > and a $75 gas tax. I think this is standard for Ontario, but should
> > she be paying GST and PST on the TAX??? This is nutty! I know it is
> > like $20000 for a new car, but $26.25 is still $26.25!! Any ideas???
> >
> > -Rob
> >
> > PS: Can someone confirm that these fees are government levied and
> > non-avoidable? Thanks.
>

"pars" <"sdaro(remove)"@hotmail.com> wrote in message
news:3F9BE4E8.EEB6F5E8@hotmail.com...
> That's interesting... getting taxed on the tax. I wouldn't be surprised
> if the dealership's are pocketing the difference.

Tax on tax is nothing new.

Bought gas recently?


> Pars
>
> Rob B wrote:
>
> > GST and PST on Gas tax and A/C tax?? re: new car purchase canada
> >
> >
> > Hi, a friend is buying a new car in Ottawa, Ontario, Canada. In the
> > taxable subtotal she was quoted, there is a $100 air conditioning tax
> > and a $75 gas tax. I think this is standard for Ontario, but should
> > she be paying GST and PST on the TAX??? This is nutty! I know it is
> > like $20000 for a new car, but $26.25 is still $26.25!! Any ideas???
> >
> > -Rob
> >
> > PS: Can someone confirm that these fees are government levied and
> > non-avoidable? Thanks.
>

Now that the American Dollar is closing up on the Canadians, Shopping on ther
American
internet site is starting to become a real bargin. Especially when you can get a
friend to bring over
the products and avoid the 15% (18.77% in you case) taxs.

A month back, I was looking to buy a pair of Timberland shoes which were totally
sold out in all the stores in Toronto that carried that product. Lucky for me, I
found them on the US web site. To my good fortune, the shoes only cost $75
American (with no additional charge for taxes), when they could have cost me
$175 (plus 15% gst) here in Canada.

Pars

Sean Donaher wrote:

> Actually, paying tax on tax is quite normal in Canada. With GST (7% goods
> and services tax) and PST (provincial sales tax, varries by privince), you
> always pay tax in tax. In my province, the PST used to be 11% and GST is
> 7%. People would always assume then that the tax rate on a retail purchase
> was 18% but because you calculate the PST first, the calculate the GST
> against that new amount, you end up paying GST, on the PST, so the actual
> tax rate was really 18.77%. Yes that right all my american friends, in
> Canada, everything I bought from a pack of gum all the way up to a car was
> taxed at 18.77%. Not to mention our insanely high income taxes. That's the
> price we pay for Medicare up here.
>
> "pars" <"sdaro(remove)"@hotmail.com> wrote in message
> news:3F9BE4E8.EEB6F5E8@hotmail.com...
> > That's interesting... getting taxed on the tax. I wouldn't be surprised
> > if the dealership's are pocketing the difference.
> >
> > Pars
> >
> > Rob B wrote:
> >
> > > GST and PST on Gas tax and A/C tax?? re: new car purchase canada
> > >
> > >
> > > Hi, a friend is buying a new car in Ottawa, Ontario, Canada. In the
> > > taxable subtotal she was quoted, there is a $100 air conditioning tax
> > > and a $75 gas tax. I think this is standard for Ontario, but should
> > > she be paying GST and PST on the TAX??? This is nutty! I know it is
> > > like $20000 for a new car, but $26.25 is still $26.25!! Any ideas???
> > >
> > > -Rob
> > >
> > > PS: Can someone confirm that these fees are government levied and
> > > non-avoidable? Thanks.
> >