Policy Statement : Luxury taxes will apply exclusively to vehicles priced above $200,000.
Dealers must:
- Provide detailed pricing records to CRA.
- Collect and remit luxury tax on applicable sales.
Enforcement: Dealers failing to remit taxes will face penalties up to $250,000 and suspension of business licenses.
- PurposeTo ensure the federal luxury tax applies only to ultra-high-value goods, protecting middle-class consumers.
- ScopeThis policy applies to all automotive dealers and buyers of luxury vehicles in Canada.
- Definitions
- Luxury Tax: A tax imposed on non-essential high-value goods.
- Luxury Vehicle: Any automobile priced above $200,000.