Renting cars in the U.S.
Jul 3, 2007, 3:36 pm
#31
Join Date: Jan 2005
Posts: 53
CBSA and Rental Vehicles
I can understand re: importing a car and reselling it if such was registered as a private vehicle to an individual. Please allow an Ottawa mandarin, within his/her 4-hour work-day, to explain to me how I can legally sell a car that is not mine, and which is registered to a corporate entity with a license to rent vehicles on a short-term basis....
This sounds like a great Rick Mercer skit --- Canadian drives up to border, alone, in a rented vehicle. Aggressive, over-the-top bureaucrat tells him to turn around, you can't come in with that, etc., etc. Canadian drives back to the McDonalds by the border in Champlain,NY and picks up 3 imams deeply entranced in their Koranic readings, and asks one to drive the car for the first 2 miles into Canada. Imam Rashid graciously accepts, and same previously aggressive, over-the-top bureaucrat gives him a big smile, waves the Maple Leaf, and shouts out "Welcome to Canada!".
That whole scenario makes me feel ever so much safer that CBSA, CSIS, et al, have their priorities in the right order (not).
This sounds like a great Rick Mercer skit --- Canadian drives up to border, alone, in a rented vehicle. Aggressive, over-the-top bureaucrat tells him to turn around, you can't come in with that, etc., etc. Canadian drives back to the McDonalds by the border in Champlain,NY and picks up 3 imams deeply entranced in their Koranic readings, and asks one to drive the car for the first 2 miles into Canada. Imam Rashid graciously accepts, and same previously aggressive, over-the-top bureaucrat gives him a big smile, waves the Maple Leaf, and shouts out "Welcome to Canada!".
That whole scenario makes me feel ever so much safer that CBSA, CSIS, et al, have their priorities in the right order (not).
Jul 3, 2007, 5:48 pm
#32
Join Date: Jul 2006
Location: YYZ
Programs: AC *P
Posts: 1,812
I can understand re: importing a car and reselling it if such was registered as a private vehicle to an individual. Please allow an Ottawa mandarin, within his/her 4-hour work-day, to explain to me how I can legally sell a car that is not mine, and which is registered to a corporate entity with a license to rent vehicles on a short-term basis....
This sounds like a great Rick Mercer skit --- Canadian drives up to border, alone, in a rented vehicle. Aggressive, over-the-top bureaucrat tells him to turn around, you can't come in with that, etc., etc. Canadian drives back to the McDonalds by the border in Champlain,NY and picks up 3 imams deeply entranced in their Koranic readings, and asks one to drive the car for the first 2 miles into Canada. Imam Rashid graciously accepts, and same previously aggressive, over-the-top bureaucrat gives him a big smile, waves the Maple Leaf, and shouts out "Welcome to Canada!".
That whole scenario makes me feel ever so much safer that CBSA, CSIS, et al, have their priorities in the right order (not).
This sounds like a great Rick Mercer skit --- Canadian drives up to border, alone, in a rented vehicle. Aggressive, over-the-top bureaucrat tells him to turn around, you can't come in with that, etc., etc. Canadian drives back to the McDonalds by the border in Champlain,NY and picks up 3 imams deeply entranced in their Koranic readings, and asks one to drive the car for the first 2 miles into Canada. Imam Rashid graciously accepts, and same previously aggressive, over-the-top bureaucrat gives him a big smile, waves the Maple Leaf, and shouts out "Welcome to Canada!".
That whole scenario makes me feel ever so much safer that CBSA, CSIS, et al, have their priorities in the right order (not).
Of course, the same three pick-ups will graciously walk back across the border to MCD!!!
Mar 29, 2012, 3:53 pm
#33
Join Date: Jul 2006
Location: YYZ
Programs: AC *P
Posts: 1,812
About time
Dug up this old thread, and finally, the government has waken up to address this silliness effective June 1:
http://www.canada.com/travel/More+ex...032/story.html
http://www.canada.com/travel/More+ex...032/story.html
Mar 29, 2012, 4:19 pm
#34
Join Date: Aug 2009
Location: YQR
Programs: NEXUS; alas, no status anymore.
Posts: 1,181
That's terrific news.
Now if we can only get them to get rid of the cross-provincial-border liquor laws... (it's illegal to take liquor across provincial lines without the permission of the destination province, although nobody would ever enforce this law for personal quantities... but that's not the point!).
Now if we can only get them to get rid of the cross-provincial-border liquor laws... (it's illegal to take liquor across provincial lines without the permission of the destination province, although nobody would ever enforce this law for personal quantities... but that's not the point!).
Mar 29, 2012, 6:32 pm
#35
Join Date: Jan 2010
Posts: 43
As people wrote, Canadians cannot drive a US registered rental car into canada; I don't think there is any problem if the car is privately owned. If you request in advance, a Canadian registered car can be arranged for you. On a couple of occasions Microsoft did this when I was visiting Seattle (though they have a special agreements with Avis).
As for OW rentals, these can also be expensive to arrange privately. Microsoft seemed to get this for free.
As for OW rentals, these can also be expensive to arrange privately. Microsoft seemed to get this for free.
Mar 29, 2012, 9:23 pm
#36
Join Date: May 2007
Location: Vancouver, BC
Programs: Aeroplan 35K, Hertz Gold
Posts: 1,289
The exemption is on rental vehicles only, and is a tourism move:
http://www.budget.gc.ca/2012/plan/chap3-2-eng.html
http://www.budget.gc.ca/2012/plan/an...#_Toc320300478
Tax Relief for Foreign-Based Rental Vehicles
Economic Action Plan 2012 proposes tax relief for Canadian residents temporarily importing foreign-based rental vehicles to facilitate access to Canadian tourism destinations.
To facilitate access to Canadian tourism destinations, Economic Action Plan 2012 proposes to eliminate or reduce taxes on foreign-based rental vehicles temporarily imported by Canadian residents, consistent with the Government’s commitment under the Federal Tourism Strategy. These changes will make it easier for Canadians who have been travelling abroad to return to Canada to continue their touring and travelling activities with a foreign-based rental vehicle. For example, a Canadian who takes a cruise from British Columbia to Alaska and has been outside Canada for at least 48 hours would be able to rent a vehicle in Alaska and then enter the Yukon for touring purposes without having to pay taxes on that vehicle at the border. These changes will be effective starting June 1, 2012.
Economic Action Plan 2012 proposes tax relief for Canadian residents temporarily importing foreign-based rental vehicles to facilitate access to Canadian tourism destinations.
To facilitate access to Canadian tourism destinations, Economic Action Plan 2012 proposes to eliminate or reduce taxes on foreign-based rental vehicles temporarily imported by Canadian residents, consistent with the Government’s commitment under the Federal Tourism Strategy. These changes will make it easier for Canadians who have been travelling abroad to return to Canada to continue their touring and travelling activities with a foreign-based rental vehicle. For example, a Canadian who takes a cruise from British Columbia to Alaska and has been outside Canada for at least 48 hours would be able to rent a vehicle in Alaska and then enter the Yukon for touring purposes without having to pay taxes on that vehicle at the border. These changes will be effective starting June 1, 2012.
Tax Relief for Foreign-Based Rental Vehicles Temporarily Imported by Canadian Residents
Currently, rental vehicles that are registered in another country (foreign-based rental vehicles) and temporarily imported by Canadian residents are generally subject to full taxes at the border (i.e., the GST on the full value of the vehicle, the Green Levy and the automobile air conditioner tax apply). Such importations were, until recently, also prohibited under federal vehicle safety rules unless it could be shown that the vehicle in question satisfied all Canadian standards. Generally, no taxes or similar restrictions apply to foreign-based rental vehicles temporarily imported by foreign residents visiting Canada.
As part of the Federal Tourism Strategy, the Government committed to review existing restrictions that make it difficult for Canadian residents to drive foreign-based rental vehicles into Canada and consider how these restrictions can be eased. Federal vehicle safety rules were amended in Bill C-13, Keeping Canada’s Economy and Jobs Growing Act, which came into force on December 15, 2011, to generally enable the temporary importation of these rental vehicles for a period not exceeding 30 days.
Following a review of existing tax provisions, Budget 2012 proposes changes to the tax treatment of rental vehicles temporarily imported by Canadian residents. Specifically, Budget 2012 proposes to:
In the case of a Canadian resident who has been outside Canada for less than 48 hours and who temporarily imports a foreign-based rental vehicle, the GST/HST will be levied on fixed monetary values, intended to approximate the average cost of a weekly rental of the same type of vehicle in Canada, for each week or part of a week that the vehicle is in Canada. These weekly fixed monetary values will be set out in regulations and will generally be as follows:
Where GST/HST applies on these rental vehicles, the GST/HST rate applicable will be that of the province where the vehicle enters Canada. For example, travellers who enter Canada at Windsor, Ontario would pay the Ontario HST rate of 13 per cent at the time of entry.
This tax treatment will apply only to foreign-based rental vehicles temporarily imported for a period not exceeding 30 days, which is consistent with the revised federal vehicle safety rules that now permit the temporary importation of these vehicles for a period not exceeding 30 days.
This measure will apply to foreign-based rental vehicles temporarily imported by Canadian residents on or after June 1, 2012.
Currently, rental vehicles that are registered in another country (foreign-based rental vehicles) and temporarily imported by Canadian residents are generally subject to full taxes at the border (i.e., the GST on the full value of the vehicle, the Green Levy and the automobile air conditioner tax apply). Such importations were, until recently, also prohibited under federal vehicle safety rules unless it could be shown that the vehicle in question satisfied all Canadian standards. Generally, no taxes or similar restrictions apply to foreign-based rental vehicles temporarily imported by foreign residents visiting Canada.
As part of the Federal Tourism Strategy, the Government committed to review existing restrictions that make it difficult for Canadian residents to drive foreign-based rental vehicles into Canada and consider how these restrictions can be eased. Federal vehicle safety rules were amended in Bill C-13, Keeping Canada’s Economy and Jobs Growing Act, which came into force on December 15, 2011, to generally enable the temporary importation of these rental vehicles for a period not exceeding 30 days.
Following a review of existing tax provisions, Budget 2012 proposes changes to the tax treatment of rental vehicles temporarily imported by Canadian residents. Specifically, Budget 2012 proposes to:
- fully relieve GST/HST on foreign-based rental vehicles temporarily imported by Canadian residents who have been outside Canada for at least 48 hours;
- levy GST/HST on a partial basis, as described below, on foreign-based rental vehicles temporarily imported by Canadian residents who have not been outside Canada for at least 48 hours; and
- fully relieve the Green Levy and the automobile air conditioner tax on all foreign-based rental vehicles temporarily imported by Canadian residents.
In the case of a Canadian resident who has been outside Canada for less than 48 hours and who temporarily imports a foreign-based rental vehicle, the GST/HST will be levied on fixed monetary values, intended to approximate the average cost of a weekly rental of the same type of vehicle in Canada, for each week or part of a week that the vehicle is in Canada. These weekly fixed monetary values will be set out in regulations and will generally be as follows:
- $200 for cars;
- $300 for pickup trucks, sport utility vehicles and vans; and
- $1,000 for recreational vehicles, such as motor homes.
Where GST/HST applies on these rental vehicles, the GST/HST rate applicable will be that of the province where the vehicle enters Canada. For example, travellers who enter Canada at Windsor, Ontario would pay the Ontario HST rate of 13 per cent at the time of entry.
This tax treatment will apply only to foreign-based rental vehicles temporarily imported for a period not exceeding 30 days, which is consistent with the revised federal vehicle safety rules that now permit the temporary importation of these vehicles for a period not exceeding 30 days.
This measure will apply to foreign-based rental vehicles temporarily imported by Canadian residents on or after June 1, 2012.
Last edited by guessaaa; Mar 30, 2012 at 2:02 am
Mar 30, 2012, 9:40 am
#37
Join Date: Aug 2009
Location: YQR
Programs: NEXUS; alas, no status anymore.
Posts: 1,181
That seems fair. So, example:
I fly YQR-ORD-BUF, do some touring, visiting and shopping, and then drive my rental car to meetings in Toronto. If I've been in the US 48 hours or more, I pay no tax on the car; if I have been in the US less than 48 hours, I pay Ontario HST on $200 per week I intend to be in Canada. So, for a few days in Toronto (less than a week) and then back to Buffalo, I'd pay $26 in tax (13% of $200).
That seems more than fair. That's the tax I'd pay on rentals in Toronto, approximately.
And if this seems like a crazy example, sometimes it is cheaper for me to fly to BUF than to YYZ, and some of my Toronto-area meetings are in Niagara-on-the-Lake, which is a lot closer to BUF than it is to YYZ.
I fly YQR-ORD-BUF, do some touring, visiting and shopping, and then drive my rental car to meetings in Toronto. If I've been in the US 48 hours or more, I pay no tax on the car; if I have been in the US less than 48 hours, I pay Ontario HST on $200 per week I intend to be in Canada. So, for a few days in Toronto (less than a week) and then back to Buffalo, I'd pay $26 in tax (13% of $200).
That seems more than fair. That's the tax I'd pay on rentals in Toronto, approximately.
And if this seems like a crazy example, sometimes it is cheaper for me to fly to BUF than to YYZ, and some of my Toronto-area meetings are in Niagara-on-the-Lake, which is a lot closer to BUF than it is to YYZ.
Mar 30, 2012, 12:48 pm
#39
Join Date: Aug 2009
Location: YQR
Programs: NEXUS; alas, no status anymore.
Posts: 1,181
My guess is that if you were crossing into Canada for a few days with a US rental car, they simply wouldn't worry about it. It's the people bringing such cars over for extended periods that they'd be concerned about.
Mar 31, 2012, 11:36 pm
#40
Join Date: Aug 2008
Location: YXY
Posts: 3,506
Methinks that this is not done to raise revenue, but to deter people who live close to the border to rent abroad.
BTW, I called the Canada Border Services Agency this week, Wednesday or Thursday, and they denied any such change of rules. They said that any foreign plated car would be confiscated at the border if I tried crossing into Canada. I mentioned Bill C-13 and asked what the point was to excempt US rental cars from the road safety rules but still confiscate them at the border, but they could not elaborate. They said that no changes were forthcoming. I guess noone told them yet. :-)
Last edited by sokolov; Apr 1, 2012 at 9:55 am
Apr 1, 2012, 10:39 am
#41
Join Date: Aug 2009
Location: YQR
Programs: NEXUS; alas, no status anymore.
Posts: 1,181
It's designed to allow it where it makes sense. Do you really want to forbid a Canadian in Alaska from crossing into the Yukon with his Alaska-plated rental car? Or the Albertan in Maine from going to New Brunswick? Or the Saskatchewanian in upstate New York from crossing over to the Canadian side of Niagara Falls? They want and need people to be able to do this, so reforming the tax and duty codes on vehicles makes a lot of sense.
I fully expect that no one will charge any tax on cross-border rentals unless they are for longer periods of time - and in that case, it is merely to protect the Canadian rental car industry from a tax arbitrage advantage. If you pay tax to rent a car in Fort Erie, you should pay to rent one in Buffalo so that you don't prefer to get the car from there, but if you happen to be on the New York side and want to visit the Canadian, there is no reason to stop you from bringing a US car. They would rather that you came and spent some tourist dollars in Canada before you cross back, finish your US trip and then return to your corner of Canada.
Apr 7, 2012, 10:44 am
#43
Join Date: Aug 2009
Location: YQR
Programs: NEXUS; alas, no status anymore.
Posts: 1,181