Transferring ownership of a used vehicle between unrelated persons will trigger a sales tax collection and payment to be given to the government.
A transfer of a used vehicle between related family members as a gift can prevent payment of tax to the government upon submission of the following documents to Service Ontario centre:
The Sworn Statement for a Family Gift of a Used Motor Vehicle can be signed and sealed by a Lawyer, Notary Public, Commissioner of Oaths or a Justice of the Peace for a fee. Pursuant to the city bylaws, most municipal councilors will also have the legal authority to sign and seal this form for free if you are able to arrange a meeting with your local councilors.
A transfer of a used vehicle between related family members as a gift can prevent payment of tax to the government upon submission of the following documents to Service Ontario centre:
- a completed sworn statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario form
- proof of Ontario insurance
- your Ontario driver's licence
- Safety Standards Certificate (not required for spouse to spouse transfers)
- emissions test (if applicable)
- vehicle ownership permit with the completed portion on the back, and
- a completed plate transfer declaration if you are also transferring the licence plate (this is required on spouse to spouse transfers in order to exempt them from the Safety Standards Certificate and the Drive Clean emissions test requirements).
The Sworn Statement for a Family Gift of a Used Motor Vehicle can be signed and sealed by a Lawyer, Notary Public, Commissioner of Oaths or a Justice of the Peace for a fee. Pursuant to the city bylaws, most municipal councilors will also have the legal authority to sign and seal this form for free if you are able to arrange a meeting with your local councilors.
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