August 24, 2022
Canada's luxury tax takes effect September 1
The Government of Canada has enacted the Select Luxury Items Tax Act (the Act), which was included in Bill C-19, Budget Implementation Act, 2022, No. 1. Bill C-19 received Royal Assent on June 23. The Act imposes a "luxury tax" on the sale and import of subject vehicles, subject aircraft and subject vessels (collectively, subject items) that exceed specified price thresholds. The luxury tax takes effect on September 1. Vendors of vehicles, aircraft and vessels should carefully consider the provisions of the Act to determine their registration and reporting obligations.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert