Effective September 1, 2022, Canada has implemented a luxury tax on luxury cars, boats, and aircrafts under the Select Luxury Items Tax Act (SLITA). The SLITA has been implemented to target those who can afford to buy luxury good.
The SLITA will introduce a luxury tax on the sale and import of certain cars, boats, and aircrafts. The items will have to meet a certain price tag. For boats the threshold is $250,000 and for cars and aircrafts it’s $100,000.
The tax will be equal to the lesser of; 20% of the total price above the price threshold and 10% of the total price of the subject item.
The way the tax is applied is either the sale of the good or the importation. This is done by a mandatory registration by the wholesaler, retailer, manufacturer, or the importer. It is only when the sale occurs that the consumer will pay the luxury tax. If the person is not registered than the tax must be paid to the Canada Border Service Agency.
The following is a list of goods that are subject to the luxury tax:
- Aircraft: aeroplane, glider or helicopter which has been manufactured after 2018 that has certain seat configurations of fewer than 40. Military and aircrafts intended for transportation of goods is excluded.
- Vehicles: Manufactured after 2018 with the capacity of holding no more than 10 people. The weight must not exceed 3,856 KG (8501.03 LBS). Medical vehicles, hearses and certain recreational vehicles are excluded.
- Boats: Manufactured after 2018 that are used for leisure or sport. Floating homes and commercial boats used for fishing, ferries and cruises are excluded.
The luxury also includes any improvements made to the above listed goods.
A purchaser may apply for exemption by completing an exemption certificate. This can be done through the CRA and must provide proof as to why the purchase is to be exempt.
The luxury tax can only be charged once. When the purchase is made, the purchaser is given a certificate from the CRA indicating that luxury tax has been paid. Any sale of the goods will not be subject to the luxury tax again.
This is general comment, and you should contact Tax Partners for any questions by sending an email to [email protected] or (905) 836-8755.
#coinbase #forextrading #finance #bitcoinprice #xrp #forexsignals #ripple #altcoin #success #hodl #binary #motivation #cryptoworld #stockmarket #dogecoin #forexlifestyle #mining #blockchaintechnology #wealth #cryptoinvestor #nft #financialfreedom #altcoins #bitcoinexchange #cryptomining #trade #wallstreet #usa #daytrader #millionaire #cryptotax #bitcointax #crataxcrypto #cracrypto #crabitcoin #capitalgainstaxcrypto #vdpcrypto #cryptoaccountant #cryptolawyer #canadacrypto #canadacryptocourse #cpacrypto #cpabitcoin #vdpetherium #vdpETH #cpacryptotax #cryptoaudit #craauditcrypto #crypto #bitcoin #cryptocurrency #blockchain #btc #ethereum #forex #money #trading #bitcoinmining #cryptotrading #investing #cryptocurrencies #investment #cryptonews #bitcoinnews #bitcoins #entrepreneur #invest #business #eth #forextrader #bitcointrading #trader #investor #bitcoincash #litecoin #binance #binaryoptions #bhfyp #sol #FTM #AVAX #canadacrypto #Barrie #Belleville #Brampton #Brant #Brantford #Brockville #Burlington #Cambridge #Clarence-Rockland #Cornwall #Dryden #Elliot Lake #Greater Sudbury #Guelph #Haldimand County #Hamilton #Kawartha Lakes #Kenora #Kingston #Kitchener #London #Markham #Mississauga #Niagara Falls #Norfolk County #North Bay #Orillia #Oshawa #Ottawa #Owen Sound #Pembroke #Peterborough #Pickering #Port Colborne #Prince Edward County #Quinte West #Richmond Hill #Sarnia #Sault Ste. Marie #St. Catharines #St. Thomas #Stratford #Temiskaming Shores #Thorold #Thunder Bay #Timmins #Toronto #Vaughan #Waterloo #Welland #Windsor #Woodstock #Ajax #Amherstburg #Arnprior #Atikokan #Aurora #Aylmer #Bancroft #Blind River #Bracebridge #Bradford West Gwillimbury #Bruce Mines #Caledon #Carleton Place #Cobalt #Cobourg #Cochrane #Collingwood #Deep River #Deseronto #East Gwillimbury #Englehart #Erin #Espanola #Essex #Fort Erie #Fort Frances #Gananoque #Georgina #Goderich #Gore Bay #Grand Valley #Gravenhurst #Greater Napanee #Grimsby #Halton Hills #Hanover #Hawkesbury #Hearst #Huntsville #Ingersoll #Innisfil #Iroquois Falls #Kapuskasing #Kearney #Kingsville #Kirkland Lake #Lakeshore #LaSalle #Latchford #Laurentian Hills #Lincoln #Marathon #Mattawa #Midland #Milton #Minto #Mississippi Mills #Mono #Moosonee #New Tecumseth #Newmarket #Niagara-on-the-Lake #Northeastern Manitoulin and the Islands #Oakville #Orangeville #Parry Sound #Pelham #Penetanguishene #Perth #Petawawa #Petrolia #Plympton-Wyoming #Prescott #Rainy River #Renfrew #Saugeen Shores #Shelburne #Smiths Falls #Smooth Rock Falls #South Bruce Peninsula #Spanish #St. Marys #Tecumseh #Blue Mountains #Thessalon #Tillsonburg #Wasaga Beach #Whitby #Whitchurch-Stouffville #Burk’s Falls #Casselman #Hilton Beach #Merrickville-Wolford #Newbury #Oil springs #Point Edward #South River #Sundridge #Thornloe #Westport #corporatetaxes