Did you know? 

By Adam Hunt

A COPA member called to say that the provincial government had sent him a bill for provincial sales tax on his recently completed and registered Glasair. The province was demanding PST on the airplane, since it had just appeared on the Transport Canada Civil Aircraft Register. The problem is that PST had been paid on all the parts that went into the plane, either upon retail purchase, or at the border, when importing parts. He hardly wanted to pay another eight per cent on top of that or on his own labour.
In cases like this, if you write a letter to the provincial tax people and explain that you assembled the airplane from parts and that taxes have already been paid on the parts, then they should be satisfied. You may be required to show the receipts for the PST paid on each item. This is an instance where good record keeping and retaining receipts can save you a lot of money. 
These same principles do not apply to completed aircraft that you purchase used, whether homebuilt or not. Many provinces will charge PST each time that an airplane is sold – so budget accordingly.