Yes, you can absolutely gift a car to someone in Ontario. The process is straightforward but requires specific steps to transfer ownership legally and avoid future tax or liability issues. The most critical step is correctly completing the Used Vehicle Information Package (UVIP) and the vehicle transfer portion of the vehicle permit, signed by both the giver (donor) and the receiver (donee). For family members, a significant benefit is the exemption from paying the Provincial Sales Tax (PST) on the transfer. The key to a successful car gift in Ontario is proper documentation. You must obtain a UVIP from a ServiceOntario centre or online. This package includes details about the vehicle's history and is mandatory for any private sale or gift transfer. Both you and the recipient need to sign the transfer section on the vehicle permit (the ownership document). The recipient then takes these documents, along with their own insurance slip for the vehicle, to a ServiceOntario office to register the car in their name. Tax Implications are Crucial: * Gifting to Family: If the recipient is your spouse, parent, child, grandchild, sibling, or grandparent, you can apply for a PST exemption. You'll need to sign a sworn statement (Affidavit for Family Gift) affirming the gift is genuine with no money exchanged. * Gifting to a Non-Family Member: In this case, the recipient is required to pay 13% Harmonized Sales Tax (HST) on the vehicle's wholesale value (the average price a dealer would pay), as determined by the Ministry of Transportation, not on a nominal $1 value. Before the transfer, ensure there are no outstanding liens (loans) against the car. The UVIP will show this. The recipient must also have a valid safety standards certificate and an emissions test pass report (if required) ready for the registration, unless you are gifting the car to be used solely for parts (which requires a different "Fit" status).
