Luxury boating in Canada is about to get more expensive.
The Department of Finance Canada recently released its draft legislative proposals to implement a luxury tax on some pleasure yachts as well as aircraft and luxury cars.
The new tax is going to affect all pleasure craft with a value of $250,000 or more which are built after 2018. On top of fulfilling all importation requirements, such as paying import duty and GST, luxury yachts will be subject to an additional tax once the law is passed.
The amount of the tax will be the lower of 20 per cent of the value of the yacht above $250,000 or 10% of the full value of the yacht.
The draft proposals also include registration requirements for vessel vendors, such as manufacturers, distributors, and retailers, to register under the new law.
What this will ultimately mean for boat buyers is that the nicer, bigger and newer vessels will soon become more expensive in Canada. There is still time though - the tax is not expected to be implemented until September 1, 2022!
As always, after a vessel is imported into Canada it also should be registered or licensed. Given the size and value of vessels falling into the luxury tax category, registration in the Canadian Register of Vessels is likely the better action to take.Previous post Next post