Guide to the Sworn Statement for a Family Gift of a Used Vehicle in Ontario
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Summer weather is just around the corner, which means it’s first-car season for many young drivers. If you’ve been planning on gifting a loved one a used car, you’ll be happy to know that you can save a few dollars with a sworn statement and an online visit to a notary.
In Ontario, the ownership of your vehicle can be transferred to any of your family members without paying the retail sales tax on the transfer.
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 notarization of this Ontario government form with our Remote Online Notary service.
Note: Only one exempt transfer of the same vehicle between family members is allowed within a 12-month period.
Affirm Your Sworn Statement for a Family Gift of a Used Vehicle Online with a Notary Public
Until recently, sworn statements were required to be signed and witnessed in-person. As of September 17, 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 (Form 1157E – Download link) form.
The Ontario Ministry of the Attorney General is now permitting lawyers and notaries to virtually witness the physical signing of sworn statements.
Once your sworn statement is complete, you can book an appointment online to notarize the form using our remote online notarization service.
It’s important to remember that your statement must be sworn or affirmed, and that the information is true in the presence of a notary public. It is a criminal offense to swear a false or misleading affidavit, and it is your responsibility to make sure that the information is true.
Notarize Your Sworn Statement for a Family Gift of a Used Vehicle Online
At Notary Pro, we can help you to notarize your sworn statement before a notary public. We offer convenient online notary services in under 7 minutes, and over 250 in-person notary locations across Canada.