Free Prince Edward Island Car Bill of Sale

Prince Edward Island Car Bill of Sale — What You Need to Know

Tax Details

Prince Edward Island charges 15% Retail Sales Tax (RST) on private vehicle sales, not HST. RST is calculated on the greater of the declared sale price or the Canadian Red Book average wholesale value. If the book value looks too high, the buyer can use a written appraisal dated within 90 days instead.

Exemption: Transfers to listed family members are taxed on the actual price paid, even $0, instead of the book value. This needs a Sworn/Affirmed Statement for Family Transfer. Confirm eligibility before the transfer.

Inspection Requirements

The vehicle must pass a Motor Vehicle Inspection (MVI) in the seller's name before the sale, unless it already has one in their name. The MVI is done at an official inspection station on the Island. If the vehicle does not pass, the seller removes the plates and the inspection sticker and writes "SOLD NOT INSPECTED" on the registration permit. Without a valid approval sticker, the buyer cannot register the vehicle. Inspections are due at least every 12 months — check the sticker before completing the sale.

Prince Edward Island Car Sale — Step-by-Step Checklist

1. Get a Motor Vehicle Inspection (MVI) in your name at an official PEI inspection station before the sale, unless the vehicle already passed one in your name
2. Complete the transfer on the back of the registration permit — the seller signs and writes in the buyer's name, address and the date
3. Prepare a bill of sale: full legal names and addresses, VIN, year/make/model, odometer reading, sale price, and date
4. Remove your licence plates — PEI plates stay with the seller and can be transferred to a replacement vehicle
5. Buyer brings the signed registration permit, bill of sale, PEI driver's licence, and proof of insurance to Access PEI — the vehicle needs a valid inspection sticker
6. Buyer pays 15% RST on the greater of the sale price or the Red Book wholesale value, with a copy of the bill of sale
7. Buyer must transfer the registration within 7 days of the sale date; the seller also has 7 days to notify the Registrar
8. Both parties retain a signed copy of the bill of sale for at least 6 years

Common Pitfalls

• Letting the inspection lapse before closing — inspections are due at least every 12 months; check the sticker date and complete the sale before it runs out.
• Assuming the price you write sets the tax — PEI charges RST on the greater of the price or the Red Book average wholesale value. Only a written appraisal dated within 90 days can replace a book value that is too high.
• Missing the 7-day transfer deadline — the seller remains the registered owner until transfer is complete. PEI's close-knit community makes post-sale liability issues particularly visible.
• Selling without a valid MVI and without marking the permit — a vehicle that has not passed must be sold with the plates and sticker removed and "SOLD NOT INSPECTED" written on the registration permit, or the seller faces a $100–$500 fine. Without a valid sticker, the buyer cannot legally plate the vehicle.
• Access PEI centres can have wait times in busy seasons — there are ten across the Island, so plan ahead and pick the one that suits you.

Pro Tip

Access PEI has ten centres across the Island, and the buyer can pay the RST at any of them or by mail. For most Islanders, the entire purchase-to-registration process — MVI, bill of sale, and transfer — can be completed in a single day. Get the MVI done early in the transaction to avoid last-minute scheduling issues at inspection stations.

Prince Edward Island Car Bill of Sale — FAQs