Free Ontario Gift Bill of Sale
Gifting a car in Ontario to a close relative can remove the 13% retail sales tax (RST). It only works through the family-gift route. The giver and the person getting the car both swear a one-page form: the Sworn Statement for a Family Gift of a Used Motor Vehicle (form 013-1157). The recipient then takes it, with the signed ownership permit, to a ServiceOntario centre in person. The tax is waived, but normal registration fees are still charged. Below: who qualifies, what to bring, and what changes when the person is not on the family list.
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Ontario Gift Bill of Sale — What You Need to Know
Tax Details
A private transfer in Ontario normally carries 13% RST (retail sales tax), paid at ServiceOntario. A true gift to a qualifying relative is exempt when the giver and recipient both swear form 013-1157. Registration fees are still charged.
Exemption: Qualifying relatives: spouse (including common-law), parents, step-parents and parents-in-law, children, stepchildren and children-in-law, siblings (including half and adopted), and grandparents and grandchildren (including step and great-). Only one exempt family transfer of the same vehicle is allowed in 12 months.
Inspection Requirements
A gifted car needs a Safety Standards Certificate before it can be plated, unless it goes to a spouse, who completes a spousal declaration instead. The certificate comes from a DriveON inspection centre, is valid for 36 calendar days, and each centre sets its own fee.
Ontario Gift Sale — Step-by-Step Checklist
- Check that the person getting the car is on Ontario's family list (see the FAQ below).
- Get form 013-1157 from Ontario's Central Forms Repository or a ServiceOntario centre.
- Fill in both names, the year, make, model and VIN, the relationship and the gift date. Do not sign yet.
- Sign it together in front of a commissioner for taking affidavits, such as a lawyer, notary or municipal clerk. Some charge a fee.
- The giver fills in and signs the transfer part on the reverse of the green vehicle permit.
- Complete a gift bill of sale listing the VIN, odometer reading, gift date, relationship and a $0 price. Both people sign and keep a copy.
- Get a Safety Standards Certificate from a DriveON inspection centre. Spouses sign a spousal declaration instead.
- The recipient buys Ontario insurance, then visits ServiceOntario within 6 days with the sworn statement, permit, proof of insurance, driver's licence and safety certificate.
Common Pitfalls
- Asking for a token payment. The sworn statement says the car was given "for no consideration". If your relative pays anything, even $1, it is a sale and RST applies.
- Guessing who counts as family. Parents-in-law and sons- or daughters-in-law are on the list. Aunts, uncles, cousins, nieces, nephews and brothers- or sisters-in-law are not.
- Passing the same car along twice in a year. Only one tax-free family transfer of a vehicle is allowed in any 12-month period.
- Forgetting a co-owner. If two people own the car, the recipient must be a qualifying relative of both.
- Moving the plates without paperwork. Plates can go with the gift only between spouses or a parent and child, with a plate transfer declaration. Otherwise the giver keeps them.
- Signing the sworn statement at home. A commissioner must witness it, and a false statement is an offence under the Retail Sales Tax Act.
Pro Tip
A tax-free family gift in Ontario needs three things: a relative on the list, a sworn statement signed before a commissioner, and a ServiceOntario visit within six days. Our gift bill of sale records the car, the odometer and the $0 price. Not sure your case fits? Call ServiceOntario at 1-800-387-3445, or the Ministry of Finance at 1-866-668-8297 for tax questions.