RST Guide 207, March 2001
- The information in this Guide explains how Retail Sales Tax (RST) applies to taxable goods sold privately by one person to another. Please note that this Guide replaces the previous version dated November 1995.
Taxable Goods
Examples of Taxable Goods
RST must be paid by the purchaser of taxable goods. The following are examples of items that are taxable whether new or used:
- adult clothing
- antiques, art, jewellery, coins and stamps
- boats, watercraft, aircraft and vehicles of all kinds, including trailers and snowmobiles
- bicycles and motorcycles
- cameras, radios, stereos and televisions
- camping and sporting equipment
- computer hardware and software
- construction equipment, machinery and tools
- furniture and appliances
- gardening tools and lawn ornaments
- handicrafts
- pets
- tools and machinery
- toys, games and musical instruments.
Payment of RST
A person buying taxable goods privately is responsible for paying the RST on the fair value of the goods. Payment of the RST due should be made by cheque or money order, payable to the Minister of Finance. The payment, along with details such as the consumer's name, address, and a description of the goods bought, should be sent to the nearest Ontario Ministry of Revenue Tax Office, or directly to:
Ministry of Revenue
Retail Sales Tax
PO Box 646
Oshawa ON L1H 8X2
Trade-in Value
With the exception of motor vehicles, RST is payable on the difference between the fair value of the taxable goods sold and the credit allowed for taxable goods accepted as a trade-in. If tax-exempt goods are accepted as a trade-in, RST applies to the full fair value of the taxable goods. For more information on how RST applies to used motor vehicles, refer to RST Guide 209 - Used Vehicle Information Program.
Goods Brought Into Ontario
RST, including any applicable tax for fuel conservation on vehicles, is payable on taxable goods bought outside Ontario and imported for use in Ontario. See RST Guide 202 - Goods Brought Into Ontario for further details.
Sales Between Family Members
RST is payable on taxable goods sold privately between family members, just as it is on goods sold between people who are not related. RST is payable on the fair value of the taxable goods. If payment is to be made by taking over the balance of a loan, RST is to be paid on the full amount of the balance at the time the loan is taken over.
Gifts, estate bequests, and other ownership transfers, except for motor vehicles, are not subject to RST if there is no payment of any kind involved. For more information on how RST applies to used motor vehicles, refer to RST Guide 209 - Used Vehicle Information Program.
More Information
Telephone
- 1 866 ONT-TAXS (1 866 668-8297)
- 1 800 263-7776 for teletypewriter (TTY)
Written Interpretation
To obtain a written interpretation on a specific situation not addressed in this publication, please send your request in writing to:
Ministry of Revenue
Tax Advisory Services Branch
Retail Sales Tax Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5
Disclaimer
The information contained in this publication is provided only as a guideline and is not intended to replace the legislation.
© Queen's Printer for Ontario, 2001
ISBN 0-7794-0811-X
