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BDO service package helps auto dealers with new luxury tax


Canada's new luxury tax will take effect on September 1, 2022. After this, automobile dealers will be required to pay luxury tax on sales of subject vehicles where the sale price, including improvements, exceeds $100,000. Learn more about what Canada's new luxury tax means for auto dealers.

The luxury tax is generally a tax on dealers rather than purchasers. And dealers should prepare by building their luxury tax cost into the sale price of subject vehicles.

Let BDO help you navigate the new luxury tax system

BDO Canada can help dealerships prepare with our luxury tax systems review, registration, and compliance package.

We'll evaluate how the application of the luxury tax pertains to your situation and how it can impact your costs and cash flow obligations.

The information in this publication is current as of August 2, 2022.

French translation is in progress.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.

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