Canada Luxury Vehicle Tax Question

[cbrcanuck]

Does anyone know if the inclusion of the wall charger counts towards the vehicle luxury tax threshold? Or is that counted differently because it's not technically part of the truck?

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[Marty]

I was under the impression that the luxury tax would not apply to Rivian vehicles as the GVWR is above the 3,856 kg. Customer service told me that both R1T and R1S were sitting at 3,870 kg. So, technically, because the weight, the luxury tax would not apply

 

[cbrcanuck]

Interesting. I don’t know the fine print at all. Maybe I’ll try and take a closer look…

 

[Marty]

Here is what the CRA defines as vehicles subject to the luxury tax:


Under subsection 2(1), subject vehicle means a motor vehicle that meets all of the following conditions:

• it is designed or adapted primarily to carry individuals on highways and streets
• it has a seating capacity of not more than 10 individuals
• it has a gross vehicle weight rating that is 3,856 kg or less
• it has a date of manufacture after 2018
• it is designed to travel with four or more wheels in contact with the ground

 

[MountainBikeDude]

In BC, i think you're still paying the 10% pst as well as 5% gst because the purchase price is within the 75k-124,999 pre tax MSRP bracket. Not sure if the weight will preclude you from paying that additional 3% or not.

 

[Marty]

In QC, if you were to pay the luxury tax, you would end up paying GST & PST (adding up to 14.99%) + the 10% luxury tax. After speaking with someone who purchased a F150 lightning Lariat ER in mid-september, he told me he didn’t have to pay the luxury tax based on the fact that the F150 was not meeting all of the conditions (ie: weight). Will be able to ask that question soon enough to our new canadian customer support service. I guess they have updated info on that.

 

[cbrcanuck]

I wonder how long it'll take them to change the weight threshold... Long enough I hope!

 

[1SikhRivian]

In BC, i think you're still paying the 10% pst as well as 5% gst because the purchase price is within the 75k-124,999 pre tax MSRP bracket. Not sure if the weight will preclude you from paying that additional 3% or not.

I gotta call up the cra about this but I think the Rivian is exempt from the upper bracket as its a bit heavier than a 3/4ton

 

[crashmtb]

I gotta call up the cra about this but I think the Rivian is exempt from the upper bracket as its a bit heavier than a 3/4ton

You don't need to call them, it very clearly is juuuust over the GVW required.

Here is what the CRA defines as vehicles subject to the luxury tax:


Under subsection 2(1), subject vehicle means a motor vehicle that meets all of the following conditions:

• it is designed or adapted primarily to carry individuals on highways and streets
• it has a seating capacity of not more than 10 individuals
• it has a gross vehicle weight rating that is 3,856 kg or less
• it has a date of manufacture after 2018
• it is designed to travel with four or more wheels in contact with the ground

 

[1SikhRivian]

You don't need to call them, it very clearly is juuuust over the GVW required.

I’m not talking about the lux tax, my reply was to the bracketed pst values which the above person was talking about

 

[crashmtb]

I’m not talking about the lux tax, my reply was to the bracketed pst values which the above person was talking about

CRA doesn’t handle PST.

 

[1SikhRivian]

CRA doesn’t handle PST.

BC uses cra definitions for vehicle descriptions including GVWR.

 

[cbrcanuck]

I’d hesitate to make any phone calls that might alert some bureaucrats to a way to collect more tax!

 

[Haulin Oats]

In BC, the additional PST(for vehicles priced above $55,000) is not applicable to 1 tone pick ups/vans etc. I don’t know if the Rivian will fall into this category though. This is why a ford F250 isn’t as common to see as the f350.

 

[crashmtb]

BC uses cra definitions for vehicle descriptions including GVWR.

https://www2.gov.bc.ca/assets/gov/t...6-motor-vehicle-dealers-leasing-companies.pdf

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