Guide to the Sworn Statement for a Family Gift of a Used Vehicle in Ontario

Key Takeaways

• In Ontario, you can transfer ownership of your used vehicle to a family member without paying sales tax.
• You can transfer specifically to parents, grandparents, siblings, spouses, children, in-laws, and step or adopted relatives.
• The Sworn Statement for a Family Gift of a Used Vehicle must be commissioned to authenticate the transfer.
• NotaryPro offers online notary services, enabling 7-minute commissioning from your home or office.

In Ontario, you can transfer ownership of your used vehicle to family members without paying retail sales tax on the transfer. For your family to receive a tax-free transfer, you’ll need a commissioned Sworn Statement for a Family Gift of a Used Vehicle. Here, we examine this sworn statement, which family members can enjoy a tax-free ownership transfer, and how to get it commissioned.

What Sworn Statement for a Family Gift of a Used Vehicle in the Province of Ontario?

A Sworn Statement for Family Gift of Used Vehicle in Ontario is a government form that confirms that you (the donor) are gifting your used vehicle to a family member (the recipient). This form allows an individual to transfer ownership of their used vehicle to a family member free of charge, in a tax-free manner. Ultimately, this form exempts the recipient of the used vehicle from paying any retail sales tax on it.

Which Family Members Can You Transfer Vehicle Ownership To? 

Retail sales tax is waived when the vehicle transfer is made between any of the following family members:

• parent or step-parent
• spouse (including a common-law spouse)
• grandparent or step-grandparent
• son or step-son
• daughter or step-daughter
• grandson or step-grandson
• daughter-in-law
• sibling
• granddaughter or step-granddaughter
• son-in-law
• father-in-law
• mother-in-law
• adopted siblings (siblings with a common parent through adoption)
• half-siblings (siblings with a common parent)

How to Complete a Vehicle Ownership Transfer

While the process is simple, you’ll need to prepare a few documents before you pay a visit to Service Ontario. You’ll need: 

• A completed Sworn Statement for a Family Gift of a Used Vehicle Form with quick seal from a Notary to authenticate your signature
• Proof of Ontario vehicle insurance
• Your Ontario driver’s license
• Safety Standards Certificate (please note that this is not required for spouse-to-spouse transfers)
• Vehicle Ownership Permit with the completed portion on the back and,
• A completed plate transfer declaration if you are also transferring the license plate (this is required on spouse-to-spouse transfers in order to exempt them from the Safety Standards Certificate).

To make this process easier and more affordable, NotaryPro offers fully remote signing and digital commissioning of this Ontario government form with our Online Notary service.

Note: Only one exempt transfer of the same vehicle between family members is allowed within a 12-month period.

Does a Sworn Statement for a Family Gift of a Used Vehicle Need to Be Commissioned?

Yes, a Sworn Statement for a Family Gift of a Used Vehicle must be commissioned. This statement needs to be sworn or affirmed before an authorized official, like a notary public. It’s a criminal offence to swear a false or misleading statement, and it’s your responsibility to ensure all the information you provide is true. 

Until recently, sworn statements needed to be signed and witnessed by an authorized official in person. As of September 2020, the Government of Ontario confirmed that it will accept electronically signed copies of the Sworn Statement for a Family Gift of a Used Vehicle in Ontario. Once your sworn statement is complete, you can book an appointment and complete your statement using our online notary platform.

Commission Your Sworn Statement for a Family Gift of a Used Vehicle Today

At Notary Pro, we can help you commission your sworn statement before a notary public, online, from the comfort of your home or office. We offer convenient online notary services, with virtual appointments that take just 7 minutes.

Don’t let legal obligations derail your schedule — meet a notary online today!