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GST Exemption on Canadian-Built Vehicles

Home GST Exemption on Canadian-Built Vehicles

Policy Statement : All vehicles that are manufactured or assembled in Canada will be exempt from GST at the time of purchase by Canadian consumers.

This exemption will remain in effect until any existing or pending tariff threats against Canadian automobile exports are resolved. The policy aims to strengthen local manufacturing, preserve domestic jobs, and provide Canadian consumers with financial incentives to support the national auto industry.

  1. Purpose To stimulate domestic automobile manufacturing, support Canadian auto industry jobs, and encourage consumers to purchase vehicles assembled in Canada by providing tax incentives.
  2. ScopeThis policy applies to all new vehicles that are manufactured or assembled in Canada and sold to individual Canadian consumers for personal or business use.
  3. Definitions
      Canadian-Built Vehicles: Any vehicle assembled in Canada by recognized automobile manufacturers.
    1. GST Exemption: A full exemption from the GST on the purchase price of eligible vehicles.
    2. Tariff Disputes: Any ongoing or potential trade restrictions that impose unfair tariffs or barriers on Canadian-built vehicles in foreign markets.