Retail Sales Tax Exemption - Family Transfer
This section provides information on the application of Retail Sales Tax where the private transfer of a vehicle meets the requirements of a family transfer.
In order to qualify as a family transfer what requirements must be met?
In order to qualify for the family transfer exemption the following requirements must be met:
- The person who is the transferor:
- Must have owned the vehicle for not less than twelve months; or
- Paid the Provincial Sales Tax (PST) or Harmonized Sales Tax (HST) on the purchase price or, if acquired in a private transfer, paid the Retail Sales Tax (RST) or Provincial Sales Tax (PST) on the greater of the purchase price and the value that was set out in the Canadian Red Book value or the Canadian Sport Vehicle Blue Book, when the vehicle was acquired.
- A Sworn/Affirmed Statement for Family Transfer of Designated Property form has been completed.
The buyer/recipient and the seller/donor must sign and file a Sworn/Affirmed Statement for Family Transfer of Designated Property stating the make, model, year of the vehicle and VIN, the date of transfer and the amount of monetary consideration and the relationship between the buyer/recipient and seller/donor. The form must be witnessed by a “Commissioner of Taking Oaths” at Access PEI at the time of transfer and submitted to Taxation and Property Records.
- The transfer must be between an individual and a “member of his family” as defined below:
“Member of his family” in relation to a person means the spouse, common-law spouse, son, daughter, father, mother, grandfather, grandmother, brother, sister, grandson, granddaughter, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, sister-in-law, step-father, step-mother, step-son or step-daughter of that person.
A common-law relationship must be in existence for six months prior to the transfer and the exemption only applies to a common-law spouse.
- The vehicle was not transferred as a family transfer within the 12 month period preceding the date of the current transfer.
How does Retail Sales Tax apply to a family transfer?
Transfers of designated property which meet the requirements of a "family transfer" are taxable on the consideration paid, without reference to the Canadian Red Book value or the Canadian Sport Vehicle Blue Book value. Retail Sales Tax is due on the stated purchase price, even if that price is zero.
Who should I contact if I have questions about the Retail Sales Tax Family Transfer Exemption?
Taxation and Property Records
Phone: (902) 368-4070
Fax: (902) 368-6164