Does anyone have first hand experience purchasing a car from WN where a sales contract was dated 4 years ago and deposit placed is paying the luxury tax today?
Question Wilson Niblett and the luxury tax
- Thread starter Red Devil
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from the Government of Canada web page on vehicle luxury tax. Consultation on the Select Luxury Goods Tax - Canada.ca
Overall paying this tax sucks,
Its long and complicated and I don't believe any car dealer has any choice but to follow the legislation.
Broadly speaking, the Luxury Tax would apply on the delivery in Canada, or the importation into Canada, of a specified vehicle if the following conditions were satisfied:
Also they state that a trade in value does not effect the tax as noted below
To determine whether the total price, or the value at importation, of a select good exceeds the relevant price threshold, the applicable GST/HST or provincial sales tax of general application in relation to the select good would not be taken into account. In addition, any deduction for a trade-in or down payment would not reduce the total price of a select good for the purposes of determining the applicable Luxury Tax.
All other taxes, duties, charges, fees and amounts paid in respect of the delivery, or importation, of the select good would be included in the total price for the purposes of calculating the Luxury Tax.
Overall paying this tax sucks,
Its long and complicated and I don't believe any car dealer has any choice but to follow the legislation.
Broadly speaking, the Luxury Tax would apply on the delivery in Canada, or the importation into Canada, of a specified vehicle if the following conditions were satisfied:
- the specified vehicle has a total price upon delivery in Canada, or a total value upon importation into Canada, exceeding $100,000;
- the specified vehicle was not put into service in Canada (i.e., it was never previously registered with a motor vehicle authority in Canada), other than in connection with the delivery or importation; and
- the delivery is to, or the importation is by, a non-registered person.
Also they state that a trade in value does not effect the tax as noted below
To determine whether the total price, or the value at importation, of a select good exceeds the relevant price threshold, the applicable GST/HST or provincial sales tax of general application in relation to the select good would not be taken into account. In addition, any deduction for a trade-in or down payment would not reduce the total price of a select good for the purposes of determining the applicable Luxury Tax.
All other taxes, duties, charges, fees and amounts paid in respect of the delivery, or importation, of the select good would be included in the total price for the purposes of calculating the Luxury Tax.
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