Tax application changes as of July 1, 2017

Effective July 1, 2017 certain Road-Building Machines were reclassified as Commercial Motor Vehicles and required licensing and registration under the Highway Traffic Act. Please visit the MTO website for more information, including details about the types of vehicles that were reclassified.

Application of Retail Sales Tax (RST) and Harmonized Sales Tax (HST)

Vehicles acquired before July 1, 2017

If a road-building machine was acquired before July 1, 2017, owners may be exempt from paying the tax (RST or 8% Ontario portion of the HST) at the time of registration.

In order to claim the exemption at the time of transfer, owners need a tax exemption authorization letter from the Ministry of Finance. If you don’t have a tax exemption authorization letter with you when you register your vehicle, you may be required to pay the tax and apply for a refund, if applicable.

Requests for tax exemption authorization letters must include:

  • your contact information
  • the following supporting documentation:
    • a copy of the bill of sale which shows:
      • a purchase date before July 1, 2017
      • the vehicle information
      • the purchaser’s name
      • the seller's name
      • the province or state where the vehicle was purchased, and/or
  • If you no longer have the bill of sale, or your receipt does not show all of the above information, please send an affidavit which covers any missing information.

Send your request to the Ministry of Finance by:

Ministry of Finance
Tax Information Office
33 King St W, 1st Floor
Oshawa ON L1H 8H5

Owners must submit this tax exemption authorization letter to ServiceOntario when they register.

Note: Vehicles purchased on or after July 1, 2017 do not qualify for the exemption and will not be issued tax exemption authorization letters.

Vehicles acquired on or after July 1, 2017

If a vehicle is purchased on or after July 1, 2017, the 13% RST or the 8% Ontario portion of the HST may be collected by ServiceOntario, if applicable, under the same conditions as other Commercial Motor Vehicles that require registration.

The following table outlines how the tax will be collected at the time of the vehicle registration.

Location of purchase Seller is a GST/HST registrant Seller is not a GST/HST registrant
Ontario
New Brunswick
Nova Scotia
Newfoundland and Labrador
Prince Edward Island 		Tax will not be collected by ServiceOntario at the time of the vehicle registration if the vehicle owner provides a bill of sale with the seller’s GST/HST number. 13% RST will be collected by ServiceOntario at the time of the vehicle registration unless an exemption applies.
British Columbia
Alberta
Saskatchewan
Manitoba
Quebec 		The 8% Ontario portion of the HST will be collected by ServiceOntario at the time of the vehicle registration unless an exemption applies.
Outside Canada *The 8% Ontario portion of the HST will be collected by ServiceOntario at the time of the vehicle registration unless an exemption applies.

*If the Canada Border Services Agency collects 13% HST, no tax will be collected at the time of the vehicle registration.

Please refer to Specified Vehicles or the Canada Revenue Agency webpage GST/HST and motor vehicles for more information.

Fuel Tax and Gasoline Tax

On or after July 1, 2017, owners of vehicles reclassified as Commercial Motor Vehicles will not be permitted to use (tax free) coloured fuel or be eligible for a refund of tax paid on gasoline used on or after that date.

For more information

Telephone: 1-866-ONT-TAXS (1-866-668-8297)
Teletypewriter (TTY) 1-800-263-7776

Requests for written interpretations

To obtain a written interpretation on a specific situation, please send your request in writing to:

Ministry of Finance
Advisory Services
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5