Free Newfoundland and Labrador Car Bill of Sale
Private car sales in Newfoundland and Labrador involve 15% Retail Sales Tax (RST) and a Canadian Red Book wholesale floor, plus a safety inspection before the transfer. The inspection certificate is valid for only 30 days, so buyers should check its date and request maintenance records before purchase to avoid transfer surprises.
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Newfoundland and Labrador Car Bill of Sale — What You Need to Know
Tax Details
Newfoundland and Labrador charges 15% Retail Sales Tax (RST), not HST, on private vehicle sales. RST is calculated on the higher of the declared sale price or the Canadian Red Book wholesale value — the same book-value floor used in Nova Scotia. Writing a below-market price on the bill of sale will not reduce RST if the Red Book value is higher, unless both parties swear an affidavit. No affidavit is needed when the wholesale value is about $1,200 or less.
Exemption: A gift to an immediate family member in NL is not taxed. Immediate family includes spouses, parents, children, siblings, grandparents, grandchildren and any in-law. Bring proof the vehicle was registered to the family member and a completed RST declaration.
Inspection Requirements
Newfoundland and Labrador requires a safety inspection before a used car, light truck or van can be transferred. The certificate comes from an Official Inspection Station and is valid for only 30 days. Gifts to immediate family (unless the vehicle is imported) and vehicles whose expired plates were returned to MRD are exempt.
Newfoundland and Labrador Car Sale — Step-by-Step Checklist
- Complete the Bill of Sale or Statement of Gift on the back of the Vehicle Registration Document — every registered owner and the buyer sign
- Prepare a bill of sale recording: full legal names and addresses, VIN, year/make/model, odometer reading, sale price, and date
- Confirm with MRD (1-877-636-6867) whether the licence plates stay with the vehicle or go with you
- Buyer brings signed registration document, bill of sale, valid NL driver's licence, and proof of insurance to a Motor Registration Division office, or transfers online at MyGovNL
- Buyer pays 15% RST (not HST) — calculated on the higher of declared sale price or Canadian Red Book wholesale value, unless both parties swear an affidavit
- Get a safety inspection certificate from an Official Inspection Station before the transfer — it is valid for only 30 days
- Both parties retain a signed copy of the bill of sale for at least 6 years
Common Pitfalls
- Overlooking the Red Book floor — NL uses the Canadian Red Book wholesale value as an RST floor. A buyer who negotiated a low price on a high-mileage vehicle may still face RST on a higher Red Book value unless both parties swear an affidavit.
- Guessing about the plates — NL's official pages do not say plainly whether plates stay with the car. Confirm with MRD before handing over the keys.
- Vehicle that cannot pass inspection — a safety inspection certificate is needed before the transfer, so a vehicle in poor mechanical condition may fail and cannot be transferred until repaired. Disclose known issues.
- Missing the 10-day deadlines — the buyer must transfer within 10 days, and the seller must file a Notice of Sale within 10 days. Until then the seller stays liable for tickets and impound fees.
- Out-of-province vehicles require additional checks — confirm with MRD whether an out-of-province vehicle requires an NL inspection before registration.
Pro Tip
The St. John's area is served by the Motor Registration office at 149 Smallwood Drive in Mount Pearl. Corner Brook serves western Newfoundland. You can also submit the transfer online at MyGovNL. Bring all documents — signed registration document, bill of sale, insurance card, and driver's licence — so one trip is enough.