UPDATE ON THE LUXURY TAX ON BOATS.

Here is the latest news from the federal government regarding the luxury tax on boats, it is expected to be applicable from September 1, 2022.


The Canadian government had initially decided to delay the application of its luxury tax on new & pre-own boats which was to start on January 1, 2022, it will finally be implemented for September 1, 2022.

Therefore, all vessels entering Canada after September 1, 2022 will be subject to this new tax regardless of whether the contract was signed before September 1.

However, it appears that contracts signed before December 31, 2021 are exempt.

The tax is calculated on 10% of the value of the vessel, or 20% of the value over the C$250,000 threshold, whichever is lower. 

This new tax is (will be) calculated before the GST and QST taxes are calculated.
 
But don’t forget that this new tax will only apply to new boats, specifically for boats with a year of manufacture after 2018.

For the moment, it is difficult to know if this will apply only boats of 2019 or more or for any boat of 2019 (new or used) and more, it remains to be confirmed when we have the texts of the law.

Follow this link for more details.

Do not hesitate to consult us for any questions. The brokers at Ita Yachts Canada are at your disposal.