Dear Licensees,
The Canada Revenue Agency (CRA) has issued clarification on how third-party manufacturer rebates to consumers affect the calculation of the federal luxury tax. VSA licensed dealers must note that such rebates do not reduce the taxable amount used to determine the luxury tax.
The federal luxury tax is calculated on the total value of the vehicle, and without manufacturer rebates factored in. Please ensure your processes reflect this to avoid any miscalculations or penalties.
For detailed information and example calculations, please refer to the resources below:
