For a commercial sale, it’s called a harmonized sales tax (HST). For a private sale, it’s known as retail sales tax (RST). This figure helps determine the amount of taxes the buyer pays. Sales TaxĮvery bill of sale in Ontario will have a section that asks for the purchase price or selling price of the vehicle. Without the bill of sale and a signature from the seller, a new owner can't legally claim rights to the car. Transfer of OwnershipĪ bill of sale is also vital when selling or buying a motor vehicle because it signifies the transfer of ownership from the legal owner to the buyer. Registration cannot take place without a valid bill of sale. In Ontario, the buyer of a used vehicle must register the car within six days of the purchase date. As a result, you'll always need to produce a bill of sale whether you're selling or buying a vehicle. Why You Need a Bill of Sale in OntarioĪlthough buying and selling vehicles is different throughout Canada, a bill of sale - similar to a sales receipt - is a vital document for the purchase or sale of a used vehicle in Ontario for numerous reasons: registration, transfer of ownership, and sales tax.

By understanding the significance of this form and what it must contain, you can turn a potential hurdle into a seamless, stress-free transaction. This important form is an integral part of the transfer of ownership of a used car, whether you're the buyer or seller.Ī bill of sale in Ontario isn't a standardized form like many other car ownership documents, so it often needs clarification. When buying a used vehicle, you may be most concerned about the test drive results, purchase price, odometer reading, and sales tax but don't forget about the bill of sale.

Simple car bill of sale template