Canada's Upcoming 20% Surtax [Closed For Politics]

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alan auerbach

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Starting Jan 1 of next year, if you spend over $100k Canadian on a vehicle, you pay an extra tax of (your choice) 20% of the amount over $100k or 10% of the whole cost. Sadly, it will be well into next year before Canadians start getting their CTs, and I'm sure many will exceed $100k.

Anybody have ideas about, for instance, paying in full for, getting the VIN of, and registering a CT that won't be produced and delivered for a few weeks or months?
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VI Tesla

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Starting Jan 1 of next year, if you spend over $100k Canadian on a vehicle, you pay an extra tax of (your choice) 20% of the amount over $100k or 10% of the whole cost. Sadly, it will be well into next year before Canadians start getting their CTs, and I'm sure many will exceed $100k.

Anybody have ideas about, for instance, paying in full for, getting the VIN of, and registering a CT that won't be produced and delivered for a few weeks or months?
Really only effects the Tri-Motor CT. Dual motor with FSD would only be ~ another $800 if you chose the %20 over $100K, depending on when you locked in the FSD.
Silly thing is the governments should be providing incentives. If the aim is to reduce emission why incentivize vehicles that are only commuters?
 

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Starting Jan 1 of next year, if you spend over $100k Canadian on a vehicle, you pay an extra tax of (your choice) 20% of the amount over $100k or 10% of the whole cost. Sadly, it will be well into next year before Canadians start getting their CTs, and I'm sure many will exceed $100k.

Anybody have ideas about, for instance, paying in full for, getting the VIN of, and registering a CT that won't be produced and delivered for a few weeks or months?
Only the Tri-Motor should be around $100,000 CDN.
If it comes out at $110,000 that's an extra $2,000 tax, but the numbers I've read was that the Tri should be just shy of six figures. The Dual-motor will do more than enough for me so I'm not too worried about the tax myself as it should come in around $70K (although I can't say I had heard of the tax before so thanks for brining it up!).
 
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alan auerbach

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Only the Tri-Motor should be around $100,000 CDN.
If it comes out at $110,000 that's an extra $2,000 tax, but the numbers I've read was that the Tri should be just shy of six figures. The Dual-motor will do more than enough for me so I'm not too worried about the tax myself as it should come in around $70K (although I can't say I had heard of the tax before so thanks for brining it up!).
It was just announced in the federal budget, and applies to boats and planes too. Don't bet on that $70k because we don't know what the exchange rate will be or how Tesla will translate the US-dollar price. Or what they will charge for delivery.

I'll try to get more unannounced details. Is the new tax calculated on the vehicle's cost before or after other taxes? If there's a trade-in, does that effectively lower the price of the new vehicle? How does it work if you lease rather than buy?

O Canada.
 

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It was just announced in the federal budget, and applies to boats and planes too. Don't bet on that $70k because we don't know what the exchange rate will be or how Tesla will translate the US-dollar price. Or what they will charge for delivery.

I'll try to get more unannounced details. Is the new tax calculated on the vehicle's cost before or after other taxes? If there's a trade-in, does that effectively lower the price of the new vehicle? How does it work if you lease rather than buy?

O Canada.
Interesting. I guess I was just basing the cost on exchange rate, hadn't thought of enough extra fees to really worry about. The tax should be based on a before tax cost - unless the Canadian government was being an a$$hole and double dipping?!
 


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It's still unclear if CT will be subject to this new tax:

Here are some exclusions:
  • Motorcycles and certain off-road vehicles, such as all-terrain vehicles and snowmobiles.
  • Off-road, construction and farm vehicles are excluded.
  • Certain commercial and public sector vehicles and hearses are excluded.
 

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Curious how trade-in value would work in this case, as the calculation for taxes go that trade-in value is deducted before taxes. Which then may drop the tri-motor below $100k.
 
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alan auerbach

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Curious how trade-in value would work in this case, as the calculation for taxes go that trade-in value is deducted before taxes. Which then may drop the tri-motor below $100k.
Got a little more info.

This "luxury tax" is in the proposed federal budget -- which has not been passed, and could have changes. But as it stands:

The "$100k" trigger is the pre-tax list price so apparently trade-ins or discounts would be irrelevant. Applies to most road vehicles; exceptions include RVs and off-roaders. Leases require paying the full luxury tax at the outset. The other customary taxes (around 13%, GST and HST) are applied to the luxury-taxed amount, so that would be a tax on a tax.

Didn't find out if the new tax would apply to re-sales or only once to new vehicles, or whether a federal "green-vehicle" rebate (which will not change) would in-effect lower the list price.
 

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I did some Excel calculations using the conversion rate that Tesla uses as of today on their other vehicles. According to the results (view link below for full spreadsheet), the luxury tax would only affect Tri-motor if you chose the full self driving option.

And the price would only go up between 500$ to about 2500$.

The grand total is calculated using Quebec's taxes so your results may vary depending which province you're in.

For me, it's a Tri-motor with FSD so it's not great news I'm gonna have to shell out some extra dough but I was already expecting a pretty steep price once converted so... I'll just have to deal with it. I try to rationalize by saying to myself (and my GF) that I'll keep this truck until I die.

 
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alan auerbach

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Got a little more info.

This "luxury tax" is in the proposed federal budget -- which has not been passed, and could have changes. But as it stands:

The "$100k" trigger is the pre-tax list price so apparently trade-ins or discounts would be irrelevant. Applies to most road vehicles; exceptions include RVs and off-roaders. Leases require paying the full luxury tax at the outset. The other customary taxes (around 13%, GST and HST) are applied to the luxury-taxed amount, so that would be a tax on a tax.

Didn't find out if the new tax would apply to re-sales or only once to new vehicles, or whether a federal "green-vehicle" rebate (which will not change) would in-effect lower the list price.

Expect to see various vehicles listing for $99,998 in Canada.
 


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alan auerbach

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I did some Excel calculations using the conversion rate that Tesla uses as of today on their other vehicles. According to the results (view link below for full spreadsheet), the luxury tax would only affect Tri-motor if you chose the full self driving option.

And the price would only go up between 500$ to about 2500$.

The grand total is calculated using Quebec's taxes so your results may vary depending which province you're in.

For me, it's a Tri-motor with FSD so it's not great news I'm gonna have to shell out some extra dough but I was already expecting a pretty steep price once converted so... I'll just have to deal with it. I try to rationalize by saying to myself (and my GF) that I'll keep this truck until I die.

Thanks for all the good work. I wonder if Tesla would sell a new owner the FSD or other add-ons after purchase.
 

TessP100D

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Thanks for all the good work. I wonder if Tesla would sell a new owner the FSD or other add-ons after purchase.
Or even better, simply don‘t order and pay for FSD. Save money, save taxes, be happy.
 

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Thanks for all the good work. I wonder if Tesla would sell a new owner the FSD or other add-ons after purchase.
They are generally available at a higher price as over the air upgrades.

No one seems to know Canada's Revenue Agency's view on OEM upgrades.

-Crissa
 

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Hopefully the preorder date will help you guys out. If the vehicle was actually preordered in 2019.
 

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It really only affects the Tri-Motor CT. Dual motor with FSD would only be ~ another $800 if you chose the %20 over $100K, depending on when you locked in the FSD.
The silly thing is the governments should be providing incentives. If the aim is to reduce emissions, why incentivize vehicles that are only commuters?
You are correct; The Federal Party should be giving us 10,000. In tax incentives, not taxing us more on our purchases of EVs. From Soultimacy "Up In Canada.Us"
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