What is the sales tax on vehicle purchases in NL in Canada?
In Newfoundland and Labrador (NL), the sales tax on vehicle purchases is a consistent 15% Harmonized Sales Tax (HST). This rate applies comprehensively to both new and used vehicles acquired from a registered automotive dealership. When purchasing from a dealer, the HST is calculated on the net price of the vehicle after any trade-in allowance has been applied, which can offer a notable reduction in the overall tax burden for the consumer. For private sales between individuals, the 15% HST is still applicable; however, it is collected by Service NL at the time of vehicle registration. In such cases, the tax is typically assessed on the greater of the declared purchase price or the vehicle's wholesale value, a measure designed to prevent undervaluation. This significant 15% levy is a critical component of the total cost of vehicle ownership in NL, necessitating careful financial planning and budgeting to ensure consumers are fully prepared for this substantial investment.