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Tax on privately acquired vehicles in B.C. The general PST rate on private vehicle sales and gifts of vehicles is 12%.

The luxury tax applies to certain vehicles and aircraft priced above $100,000 and certain vessels priced above $250,000. The luxury tax comes into effect on September 1, 2022.

How to avoid paying taxes on a used car in British Columbia New Residents. If you're a new resident to BC and bring a vehicle into the province solely for non-business use, you may be eligible for a PST exemption. ... Gifts to Related Individuals. ... Inheritance. ... Used Zero-Emission Vehicles (ZEVs) ... Get a Vehicle Appraisal.

The PST imposed by British Columbia, Manitoba, and Saskatchewan is not a recoverable tax. PST is a consumption tax, designed to be paid by the end-user of the product or service. Some exemptions may be applicable, such as the sale for resale exemption.

The luxury tax applies to certain vehicles and aircraft priced above $100,000 and certain vessels priced above $250,000. The luxury tax comes into effect on September 1, 2022.

Unfortunately, there is no way to avoid the Canada luxury tax. This is because the tax applies to goods and services considered to be non-essential.

How is the Luxury Tax Calculated? The tax will be calculated as the lesser of: 20% of the retail sale price above the relevant price threshold ($100,000 for vehicles); or. 10% of the retail sale price of the subject vehicle.

The Luxury Tax, originally proposed in the 2021 budget, received Royal Assent on June 23, 2022. The tax will apply to new cars and aircraft with a retail sales price over $100,000 and to vessels over $250,000.