Change to Provincial Sales Tax on motor vehicles.
In 2022 the province of BC introduced changes to the method used to calculate sales tax (PST) on private sales and imported vehicles.
Under the new rules the province opted to use the Canadian Black Book Valuation Guide. When registering a vehicle ICBC now calculates
Provincial sales tax payable on the greater of the actual purchase price paid or Canadian Black Book value.
Many situations exist where vehicles with deficiencies are worth far less than Black Book, causing the new owner to overpay the PST.
To address any disparities, ICBC allows the client to obtain an independent appraisal where it’s believed the actual value is less than Black Book.
The appraiser completes a FIN-320 Motor Vehicle Appraisal Form.
The FIN-320 Appraisal is presented to ICBC when the vehicle is registered. Tax is then calculated on the appraised amount or the actual purchase price, whichever is greater.
Obtaining a FIN 320 Appraisal is very straightforward and can be done online. See our website for details.