Ontario Form 1157E, the Sworn Statement for a Family Gift of a Used Motor Vehicle, is the affidavit that lets a qualifying family member receive a used vehicle without paying the 13 percent Retail Sales Tax. Both the donor and the recipient fill it in, sign it in front of a commissioner, and hand it to a ServiceOntario clerk along with the vehicle permit, a Safety Standards Certificate, and proof of insurance. The form itself is one page; the process trips people up mostly on the signing step and the supporting documents.
Who Counts as Family for the Exemption
The tax exemption only applies if the donor and recipient are in one of the relationships printed on the form. Anything outside that list is treated as a private sale and taxed on the vehicle’s fair market value or Canadian Red Book wholesale value, whichever is higher.
The qualifying relationships are spouse (including common-law partner), parent or step-parent, child or step-child, grandparent or step-grandparent, grandchild or step-grandchild, father-in-law, mother-in-law, son-in-law, daughter-in-law, and brother or sister (including half-siblings and adopted siblings sharing a common parent).1Government of Ontario. Sworn Statement for a Family Gift of a Used Vehicle in the Province of Ontario
Cousins, aunts, uncles, nieces, nephews, brothers-in-law, and sisters-in-law are not on the list. Neither are step-siblings who share no common parent. If your relationship isn’t there, Form 1157E is the wrong document for you.
One other limit: only one tax-exempt family gift transfer of the same vehicle is permitted within any 12-month period. If a parent gifts a car to a child and the child then wants to gift that same car to a sibling six months later, the second transfer is taxed.2Government of Ontario. Transfer Ownership of a Vehicle to a Family Member
What to Gather Before You Fill Anything In
Have everything ready before you sit down with the form or book a commissioner. A missing piece means a wasted trip.
- Form 1157E, either downloaded from the Ontario Central Forms Repository or picked up at any ServiceOntario centre.3Central Forms Repository. Sworn Statement for a Family Gift of a Used Motor Vehicle in the Province of Ontario
- The donor’s current vehicle permit. The donor also needs to complete and sign the Application for Transfer section on the back.
- A Safety Standards Certificate issued by a licensed mechanic. This is required for every family gift transfer except spouse-to-spouse, which uses a separate spousal declaration instead.4Government of Ontario. Safety Standards Certificate
- Proof of Ontario vehicle insurance in the recipient’s name.2Government of Ontario. Transfer Ownership of a Vehicle to a Family Member
- Government-issued photo ID for both parties.
A Used Vehicle Information Package is not required for family transfers, even though it’s mandatory for other private sales.5Government of Ontario. Used Vehicle Information Package
Filling In the Form
Complete every information field on the form, then stop. Do not sign yet. Signatures have to be witnessed by the commissioner, and any signature made beforehand voids the affidavit.
The form asks for:
- Full legal names and residential addresses of the donor and the recipient, matching their ID exactly
- The vehicle’s year, make, and model
- The 17-digit Vehicle Identification Number, found on a plate at the base of the windshield on the driver’s side or on a label inside the driver-side door jamb
- The current odometer reading
- The family relationship, worded as it appears on the form (father, daughter, spouse, brother, and so on)
Check the VIN and the spelling of both names against the ID you plan to present. A single wrong digit or a mismatched name will hold up the transfer at ServiceOntario.
Swearing the Form Before a Commissioner
Form 1157E is a sworn statement, which makes it a legally binding affidavit. Both the donor and the recipient must appear before an authorized commissioner, confirm that everything on the form is true, and sign while the commissioner watches.
The form authorizes several categories of commissioners:1Government of Ontario. Sworn Statement for a Family Gift of a Used Vehicle in the Province of Ontario
- A lawyer or notary public
- A Justice of the Peace
- A municipal or town clerk, deputy clerk, or treasurer
- The head of a municipal council, or a reeve or deputy reeve
- Anyone else appointed by the Lieutenant Governor to administer oaths
The form directs you to call 1-866-668-8297 if you need help finding a commissioner. Some ServiceOntario centres have a commissioner on staff who can swear the form on the spot, but not every location does. Call ahead.
If the donor and recipient can’t easily meet in person, Ontario Regulation 431/20 allows a lawyer or paralegal to administer the oath remotely by video, provided everyone can see, hear, and communicate with each other in real time. The commissioner verifies each person’s identity and uses a modified jurat that records the remote commissioning and each party’s location.6Law Society of Ontario. Remote Commissioning
Finishing the Transfer at ServiceOntario
Once the form is sworn, the recipient takes it to a ServiceOntario centre with the rest of the paperwork:2Government of Ontario. Transfer Ownership of a Vehicle to a Family Member
- The sworn Form 1157E
- The vehicle permit with the Application for Transfer section on the back signed by the donor
- A valid Safety Standards Certificate (not required for spouse-to-spouse transfers)
- Proof of Ontario vehicle insurance in the recipient’s name
The clerk reviews the affidavit and supporting documents and processes the ownership change. The recipient pays a $32 vehicle permit fee, plus a separate fee for new plates if they don’t already have plates to transfer.7Government of Ontario. Driver and Vehicle Fees The 13 percent Retail Sales Tax is waived in full.
A new vehicle permit is issued in the recipient’s name. Keep it in the vehicle.
Mistakes That Void the Form
Most rejections at the counter come from the same small set of errors.
- Signing before seeing the commissioner. Any signature already on the form when you arrive makes it void, and you’ll need a fresh copy.
- Forgetting the Safety Standards Certificate. The gift exemption waives tax, not the safety inspection.4Government of Ontario. Safety Standards Certificate
- Claiming a relationship not on the list. Closeness doesn’t matter; the list does.
- Trying to gift the same vehicle twice in 12 months. The clock runs on the vehicle, not on the people.2Government of Ontario. Transfer Ownership of a Vehicle to a Family Member
- Skipping the Application for Transfer on the back of the vehicle permit. Without the donor’s signature there, ServiceOntario cannot process the change.
False statements on the affidavit carry serious consequences under Ontario law, including exposure to perjury and tax fraud charges. The whole point of the sworn statement is to confirm that no money changed hands, so a disguised sale becomes a criminal matter rather than a tax dispute.