Transferring a vehicle to a family member in Ontario is an exciting milestone, whether you are passing down your family car to a child, gifting a vehicle to a sibling, or transferring ownership between spouses. In Ontario, qualifying vehicle transfers between eligible family members are exempt from retail sales tax (RST). However, to claim this exemption at ServiceOntario, you must provide a properly executed sworn statement.
Historically, this required booking an in-person meeting with a commissioner or notary public, coordinating schedules between family members, and travelling to an office. Today, thanks to Ontario's remote commissioning framework, you can complete and commission your Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario (Form 1157E) entirely online from the comfort of your home.
Here is a complete guide on how Ontario vehicle gift affidavits work, the rules for qualifying, and how online commissioning can save you time and money.
Understanding the Ontario Family Gift Vehicle Exemption
When a vehicle changes ownership in Ontario, the purchaser normally pays the 13% retail sales tax portion of the HST based on the purchase price or the wholesale book value (Canadian Red Book value), whichever is greater. However, the Ontario Ministry of Finance allows an exemption when the vehicle is transferred strictly as a bona fide gift between specific eligible relatives.
To prove to ServiceOntario that no money changed hands and that the recipient is entitled to this tax exemption, both the donor (giver) and the recipient must execute an official sworn statement under oath.
Who Qualifies as an Eligible Family Member?
Under Ontario regulations, the tax exemption applies only to specific qualifying family relationships. Eligible relationships include:
- Spouse (legal or common-law)
- Parent or step-parent
- Grandparent or step-grandparent
- Child or step-child
- Grandchild or step-grandchild
- Son-in-law or daughter-in-law
- Father-in-law or mother-in-law
- Sibling (brother or sister)
Transfers between cousins, nieces, nephews, aunts, or uncles do not qualify for the family gift tax exemption. In addition, the vehicle can only be gifted once tax-free within a 12-month period for the same vehicle.
What Is Form 1157E (Sworn Statement for a Family Gift)?
The required document is the official Ontario Ministry of Finance Form: "Sworn Statement for the Family Gift of a Used Motor Vehicle in the Province of Ontario" (Form 1157E).
This document requires specific information regarding:
- The Vehicle: Vehicle Identification Number (VIN), make, model, year, and current odometer reading.
- The Donor and Recipient: Full legal names, residential addresses, and phone numbers.
- The Relationship: The exact qualifying legal relationship between the giver and receiver.
- The Declaration: A solemn oath affirming that the vehicle is given strictly as a gift without any financial payment or consideration.
Because this is an official legal declaration, making a false statement on Form 1157E carries serious penalties under the Ontario Evidence Act and the Criminal Code of Canada.
Is It Legal to Commission Form 1157E Online in Ontario?
Yes. Under Ontario Regulation 431/20 (Administering Oath or Declaration Remotely) under the Commissioners for Taking Affidavits Act, commissioners for taking affidavits are authorized to administer oaths, affirmations, and statutory declarations remotely using live two-way audio-visual communication.
ServiceOntario accepts electronically signed and remotely commissioned copies of Form 1157E, provided the remote commissioning meets Ontario regulatory standards, including an explicit statement of remote commissioning in the jurat.
Clarifying the Terms: Online Commissioning vs. Online Notary
Many Ontarians look for an "online notary public" or "online notarization" when dealing with this form. While online notary and virtual notary are common everyday terms, Ontario law specifically regulates this process as remote commissioning by an authorized commissioner for taking affidavits. An Ontario commissioner administers your oath or solemn declaration and signs the commissioner jurat electronically. The resulting commissioned document has full legal standing and is accepted at ServiceOntario counters.
What You Need Before Your Online Commissioning Appointment
To make your virtual commissioning session smooth and fast, ensure you have the following ready:
- Completed Form 1157E (Unsigned): Fill out all vehicle details, donor information, and recipient information beforehand. Leave the signature lines blank, as you must sign in front of the commissioner via video.
- Government-Issued Photo ID: Both the donor and recipient must present valid, unexpired photo identification (such as an Ontario Driver's Licence or Canadian Passport) to the commissioner over camera.
- Vehicle Ownership Document: Have the vehicle registration permit (green slip) handy to verify the VIN and ownership details.
- Stable Internet and Device: A smartphone, tablet, or computer equipped with a functional webcam, microphone, and internet browser.
Note on Signatures: Both the donor and recipient must participate in the commissioning session. If both parties cannot be in the same room, many online commissioning platforms allow multi-party video calls so each party can join from their respective location.
Step-by-Step: How to Commission Your Vehicle Gift Affidavit Online
1. Upload Your Unsigned Document
When you book your appointment with an online commissioning service, upload your completed PDF of Form 1157E along with digital scans or photos of your identification.
2. Join the Secure Two-Way Video Call
At the scheduled time, click your meeting link to enter the virtual room with an authorized Ontario commissioner. The commissioner will verify your identity by inspecting your physical government ID over video and confirming your visual match.
3. Take the Solemn Declaration
The commissioner will ask both the donor and recipient standard questions to ensure understanding and voluntary agreement. You will be asked to solemnly declare or swear that the statements in the document are true, confirming that no money, trade, or compensation was exchanged for the vehicle.
4. Apply Electronic Signatures
Using secure digital signing software, both parties will apply their electronic signatures to the document while on screen with the commissioner.
5. Receive Your Commissioned PDF Instantly
The commissioner completes the jurat with their signature, appointment details, and digital commissioner seal, noting compliance with O. Reg. 431/20. The finalized, tamper-evident PDF is returned to your email immediately.
Next Steps: Finalizing the Transfer at ServiceOntario
Once your Form 1157E is commissioned, the recipient can proceed to complete the vehicle registration transfer. Remember that the vehicle transfer must be completed within 6 days of the transfer date indicated on the permit.
Bring the following documents to a ServiceOntario centre:
- The Commissioned Form 1157E: A printed copy of your digitally commissioned affidavit.
- The Vehicle Permit: Signed by the previous owner on the back transfer application portion.
- Safety Standards Certificate (SSC): An existing vehicle safety inspection certificate from a licensed mechanic (spousal transfers may be exempt under certain conditions, but transfers between other family members require safety certification).
- Proof of Ontario Auto Insurance: Valid insurance policy card in the new owner's name.
- Ontario Driver's Licence: For the recipient.
- Current Odometer Information: Written on the back of the registration permit.
Once submitted, ServiceOntario updates the vehicle ownership into the recipient's name without assessing retail sales tax on the transfer value.
Frequently Asked Questions (FAQ)
Can the donor and recipient attend the online session from different locations?
Yes. A remote commissioning appointment allows multiple participants to connect from different devices, cities, or even countries, making it straightforward if the family members do not live in the same household.
Will ServiceOntario accept a printed copy of a digitally commissioned Form 1157E?
Yes. Under Ontario Regulation 431/20, remotely commissioned affidavits are legally valid across provincial administrative bodies, including ServiceOntario. When you print your finalized digital PDF, the commissioner’s jurat and credentials satisfy their statutory requirements.
Do we need a Safety Standards Certificate if the vehicle is a gift?
For transfers between parent and child, grandparents, or siblings, a Safety Standards Certificate is required to register the vehicle with valid plates. Only transfers between spouses are generally exempt from providing a safety certificate, provided a spousal declaration is completed.
What happens if money was exchanged for the car?
If any money, loan takeover, or trade was given in exchange for the vehicle, it is not a bona fide gift. Misrepresenting a purchase as a gift is an offence under Ontario tax laws. If any payment occurred, standard used vehicle transfer procedures and RST rules apply.
Commission Your Vehicle Gift Affidavit Online Today
Don't waste time driving across town or coordinating multiple appointments at a physical office. With our online commissioning service, you can have your Ontario Family Gift of a Used Motor Vehicle Affidavit (Form 1157E) sworn, signed, and stamped by an authorized commissioner in under 15 minutes.
Book your online commissioning appointment today and get your vehicle transfer ready for ServiceOntario without leaving your desk.
