{"id":1247,"date":"2022-09-13T19:21:05","date_gmt":"2022-09-13T19:21:05","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/hendersonandassociates\/?p=1247"},"modified":"2023-09-06T18:15:20","modified_gmt":"2023-09-06T18:15:20","slug":"aircraft-vessels-and-vehicles-the-new-luxury-tax","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/hendersonandassociates\/aircraft-vessels-and-vehicles-the-new-luxury-tax\/","title":{"rendered":"Aircraft, Vessels and Vehicles: The New Luxury Tax"},"content":{"rendered":"

Download this article as a PDF.<\/a><\/p>\n

First announced in the 2021 Federal Budget, the new luxury tax will apply to sales, leases, and imports in Canada of certain luxury recreational aircraft, vessels, and vehicles delivered on or after September 1, 2022.<\/strong><\/p>\n

What is subject to the tax?<\/strong><\/p>\n

The sale, lease or import of new vehicles, private aircraft, and leisure vessels with a sale price* or value exceeding the price threshold of:<\/p>\n

$100,000<\/strong>
\nfor vehicles and aircrafts<\/strong><\/p>\n

$250,000<\/strong>
\nfor boats and yachts<\/strong><\/p>\n

*The price includes taxes, duties, levies and fees, except GST\/HST.<\/p>\n

Modifications of \u2265$5,000 within 1 year of sale can also attract the tax.<\/p>\n

Who <\/strong>pays the tax?<\/p>\n

The Vendor<\/strong>. Where the vendor is a federal, provincial, or Indigenous government, the purchaser pays.<\/p>\n

Vendors making qualifying sales, leases and imports must register, file quarterly returns, and remit the tax.<\/p>\n

Sales between registered vendors are generally exempt.<\/p>\n

The luxury tax cost will be passed on to consumers \u2013 expect to pay GST\/HST on that cost.<\/p>\n

How<\/strong> much is the tax?
\nThe lesser of:<\/p>\n

10%<\/span> of sale price<\/strong> or value; and<\/p>\n

20%<\/span> of the excess<\/strong> over the price threshold<\/p>\n

When<\/strong> is the tax paid?<\/p>\n

Upon Delivery<\/strong>. The tax becomes payable at the earlier of:<\/p>\n