You can gift a car in BC to a family member without paying the 12% Provincial Sales Tax, but only if the recipient falls inside the province’s narrow definition of a “related individual” and the donor already paid a qualifying provincial tax on the vehicle (or was legitimately exempt).1ICBC. PST on Vehicles Miss either condition and the recipient pays PST at registration on the vehicle’s wholesale book value. The rules are stricter than most families assume, so it’s worth confirming both sides qualify before you visit an Autoplan broker.
Who Counts as Family for the Exemption
B.C. only waives PST on a gifted vehicle when the donor and recipient are “related individuals.” The qualifying relationships are:2Government of British Columbia. Provincial Sales Tax Bulletin – Gifts
- Spouse, child, grandchild, great-grandchild, parent, grandparent, great-grandparent, or sibling
- The spouse of your child, grandchild, or great-grandchild (so a son-in-law or daughter-in-law qualifies)
- The child, parent, grandparent, or great-grandparent of your spouse
A spouse means someone you’re legally married to or someone you’ve lived with in a marriage-like relationship for at least two continuous years.3Government of British Columbia. Provincial Sales Tax Bulletin – PST on Vehicles
The people who do not qualify catch many families off guard. Brothers-in-law, sisters-in-law, foster parents, foster children, aunts, uncles, nieces, nephews, and cousins are all excluded. So are former spouses who are no longer legally married or living together.2Government of British Columbia. Provincial Sales Tax Bulletin – Gifts Give a car to anyone outside the qualifying list and the recipient owes 12% PST on registration.
What the Donor Also Has to Prove
Being related is only half of it. The donor must also meet one of three conditions:3Government of British Columbia. Provincial Sales Tax Bulletin – PST on Vehicles
- Paid a qualifying provincial tax when acquiring the vehicle, without receiving a refund or credit. Qualifying taxes are PST, the former Social Service Tax (before July 2010), the Tax on Designated Property (July 2010 to March 2013), the provincial portion of the HST, or another province’s sales tax.
- Was legitimately exempt from PST, SST, or TDP when they got the vehicle.
- Received the vehicle as a gift in B.C. before April 1, 2013.
Federal GST on its own does not count.4Government of British Columbia. Gift of a Vehicle under the Provincial Sales Tax Act If a parent bought the vehicle in Alberta and only paid GST, the gift exemption won’t apply when they hand it down to a child in B.C. The qualifying taxes are provincial-level taxes or the provincial portion of the HST.5BC Laws. Provincial Sales Tax Exemption and Refund Regulation
One Tax-Free Gift Per Vehicle Per Year
A specific vehicle can only be gifted tax-free once in any 12-month period. If the car was transferred as a tax-exempt gift within the last year, gifting it again inside that window triggers the full 12% PST. The single exception: the recipient can gift the vehicle back to the original donor within that window without tax consequences.3Government of British Columbia. Provincial Sales Tax Bulletin – PST on Vehicles
No Money, No Loan Takeover
The province won’t treat a transfer as a gift if the recipient takes over a loan on the vehicle or hands over anything of value. Any money or consideration changing hands makes the transaction a private sale, and PST applies.3Government of British Columbia. Provincial Sales Tax Bulletin – PST on Vehicles
The Forms You Need
Two forms drive the whole process. Getting both filled out before you walk in prevents an unnecessary second trip.
FIN 319 — Gift of a Vehicle
FIN 319 is the current form and the one an Autoplan broker will ask for. Older guides sometimes reference a different number; ignore them. Download it from the B.C. Ministry of Finance forms page.6British Columbia Government. Provincial Sales Tax Forms The form asks for:4Government of British Columbia. Gift of a Vehicle under the Provincial Sales Tax Act
- Part A: full legal names, mailing addresses, and phone numbers for donor and recipient; the relationship between them; and the vehicle’s registration number, VIN, year, make, and model
- Part B (only for out-of-province gifts within Canada): documentation proving the donor paid a qualifying provincial tax, was exempt, or received the vehicle as a gift in B.C. before April 1, 2013
- Part C: signatures from both donor and recipient, with the date
An incomplete FIN 319 means the broker cannot grant the exemption and will collect 12% PST at the counter.4Government of British Columbia. Gift of a Vehicle under the Provincial Sales Tax Act
APV9T — Transfer/Tax Form
The Transfer/Tax Form (APV9T) is ICBC’s standard ownership-change document. Download it from ICBC or pick one up at any Autoplan broker.7ICBC. Sell a Used Vehicle It captures the odometer reading and includes a field indicating the vehicle was received as a gift. All four pages need original signatures, and both parties need to supply B.C. driver’s licence numbers.8Insurance Corporation of British Columbia. ICBC Transfer/Tax Form
Proof the Donor Paid Tax
The FIN 319 lists what counts as acceptable proof:4Government of British Columbia. Gift of a Vehicle under the Provincial Sales Tax Act
- If the donor paid tax: the original bill of sale showing tax paid, a receipt showing provincial tax paid to another province, or a copy of the ICBC APV9T showing tax was collected
- If the donor was exempt: the original bill of sale or APV9T showing an exemption was applied
- If the donor received the vehicle as a gift in B.C. before April 1, 2013: a copy of the APV9T showing proof of the gift, or a notarized statement confirming the pre-April 2013 gift
Without one of these, the broker has no basis to grant the exemption. Dig through old paperwork before your appointment; the APV9T from the donor’s original registration is often the easiest document to track down through ICBC records.
At the Autoplan Broker
Both parties should ideally attend together. If the donor can’t come, the recipient brings the completed and signed FIN 319 and APV9T. The broker reviews the forms, verifies identification, confirms the relationship qualifies, and checks the supporting tax documentation.
PST is waived, but the recipient still pays a vehicle registration fee, the cost of new plates if the old ones aren’t transferring, and a new Autoplan insurance premium. The broker issues a new registration certificate in the recipient’s name once everything is processed. If the recipient plans to drive off in the vehicle the same day, they should be ready to buy Autoplan insurance during the same visit.
Gifts from Family Outside B.C.
The exemption can still apply when a qualifying relative in another province gives you a vehicle you bring into B.C., as long as the donor conditions are met. PST applies to any gifted vehicle brought into the province unless the exemption qualifies.3Government of British Columbia. Provincial Sales Tax Bulletin – PST on Vehicles Part B of the FIN 319 handles this scenario and asks for proof the donor paid a qualifying provincial tax.4Government of British Columbia. Gift of a Vehicle under the Provincial Sales Tax Act A vehicle coming from outside B.C. will also likely need a passed inspection at a designated B.C. facility before it can be registered, though some vehicles from Alberta, Saskatchewan, or Manitoba may qualify for an inspection exemption under the New West Partnership Trade Agreement.9ICBC. Register a Vehicle in B.C.
When the Exemption Doesn’t Apply
If the relationship doesn’t qualify, the tax documentation is missing, or the vehicle was already gifted tax-free within the past 12 months, the recipient pays 12% PST at registration.1ICBC. PST on Vehicles Tax is calculated on the greater of the price paid (zero for a gift) or the average wholesale value from the Canadian Black Book.10Government of British Columbia. Notice 2022-005 – PST on Motor Vehicles Purchased at Private Sales or Imported from Outside Canada
If the Black Book value overstates what the car is really worth, because of high mileage or damage, you can get an independent appraisal on the Motor Vehicle Appraisal Form (FIN 320) and present it at registration. When both the appraised value and the price paid are below the Black Book average wholesale value, PST is calculated on the higher of those two lower amounts instead.10Government of British Columbia. Notice 2022-005 – PST on Motor Vehicles Purchased at Private Sales or Imported from Outside Canada On a vehicle the Black Book values at $15,000, that’s the difference between $1,800 in tax and potentially much less.
Search for Liens Before You Accept
A lien is a registered legal claim against the vehicle held by a lender or other creditor as security for a debt. If a lien exists, the debt follows the vehicle, not the previous owner. Search the B.C. Personal Property Registry before finalizing the transfer. You can search in person at a Service BC location, by mail for a $10 fee payable to the Minister of Finance, or through a third-party service provider. Public online access isn’t available.11Province of British Columbia. Personal Property Liens and Searches Ten dollars beats inheriting someone else’s debt.
Inherited Vehicles Work Differently
If the vehicle is coming to you because a family member has passed away, this isn’t the process. Estate transfers use ICBC’s Checklist for Estate Transfers together with a signed APV9T and the current registration, and are processed through an Autoplan broker.12ICBC. If a Vehicle Owner Has Passed Away Whether a PST exemption applies depends on the circumstances; confirm directly with the broker or the Ministry of Finance.
Federal Tax Side
Canada has no federal gift tax, so neither party owes income tax on the gift itself. If the vehicle has actually gone up in value since the donor bought it, which is unusual outside collector or classic cars, the CRA may treat the transfer as a deemed disposition at fair market value and create a capital gain for the donor. For a typical used car that has depreciated, this doesn’t come up.