Which dealers exempted Luxury Tax for orders before 2022

GM MUSL

GM MUSL

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Only for those who had a written sales agreement dated before Jan. 1 2022 - I want to survey which dealers charged or exempted the Luxury Tax. What is your experience?

FYI From the Government of Canada Website;
"The luxury tax will not apply to the sale of a subject vehicle priced above the price threshold where a purchaser and a vendor have entered into a written agreement for the sale of the subject vehicle before 2022 in the course of the vendor’s business of selling subject vehicles."

Subject Vehicles Under the Select Luxury Items Tax Act - Canada.ca

www.canada.ca www.canada.ca
 
Finch Chevrolet on London, ON. Deposit placed in April '21. For tax purposes the bill of sale was left with the date the deposit was made, no luxury tax paid. However in order to register the car and to allow me to reclaim the provincial tax portion of the HST (ON) since I paid the QST in Quebec, I also asked to have the same BOS with the date I picked up the car (June '23). Was grateful they were able to honour the '21 deposit date, that saved me a ton as the fully loaded '23 3LT HTC Z51 came up to around $145K ($121K before tax), so guessing it would have been 20% on one of those 2 numbers. No luxury tax paid.
 
Cariboocreek said:
Maybe not a great idea to put on the interweb, “interpretive” luxury tax work arounds. Just sayin….
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IMO Its not a work around because, post #1 is a quote from the Government of Canada website. I have heard of a few situations where the dealer charged the luxury tax even though the purchaser agreed to purchase the car before the 2022 deadline. May not be worth arguing over the tax if it isn't too much but if you are buying a loaded Z06 it is significant.
 
CamsC8 said:
Its based on sales contract date not deposit.
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Not sure about all cases dating back to '21 or early '22, but when some of us put down our deposit, in some cases it was written up as a generic contract with a fictitious vehicle entered onto the contract just to confirm that a deposit was made and a date stamp was captured to track the place on their list. For example in my case, dealer did not enter my current vehicle details (3LT, Z51, HTC, Front Lift, MRC, etc), it was just for a base car with no options. The contract details were updated once the allocation was secured, but the date remained the same (at time of deposit).

Either way, this subject is probably only valid for another year or so until everyone who put deposits prior to Sept '22 gets their car delivered. My guess is each dealer will handle things (deposits/contracts) differently. For example, for another one of my previous deposits, it was simply a screenshot of a credit card transaction that went thru, in that case there was no contract (in '21) so I would have likely paid the luxury tax had I gone thru with that dealer.

The luxury tax is a tough pill to swallow. The C8 was coined as a somewhat affordable car (compared to its exotic counterparts), with a (then) starting price of $70K CAD. Got everyone excited, and many ran out to put deposits based on that premise. Several increases later (and a luxury tax for the more expensive versions), and that same base $70K car is likely $90K today (if not more). Move to a 2LT or 3LT or HTC, or combination of any of those, plus some options, and it climbs into luxury tax territory quickly, and in some cases, may not make the C8 the affordable car it started out to be (for some).
 
Murray20c8 said:
One can still get a reasonably equipped Stingray for less than $100K.
A 2LT coupe with Z51 is around 97K and a 2LT HTC non z51 is around the same price.
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Very true Murray but you also have to go with getting a Red car!!! LOL. I responded to a post on this matter back when I picked up my car, and was met with some haters while I only tried to inform. So I will stay quiet now. Good luck to everyone on the Luxury Tax.
 
SONSH1NE said:
Very true Murray but you also have to go with getting a Red car!!! LOL. I responded to a post on this matter back when I picked up my car, and was met with some haters while I only tried to inform. So I will stay quiet now. Good luck to everyone on the Luxury Tax.
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No haters, just contrarians! LOL
F-n power failure right now. TG4 UPS
 
Finch does it right because they submit the order into the system with the pricing at the time as well as a sales agreement. This allows them to bypass the luxury tax if you submitted a build to them and got on their waitlist before it came into effect.

The same thing occurred with my Blackwing, which I bought from Finch with a deposit and order submitted in '21 of June but my allocation didn't come up until September a week after the luxury tax came into effect. I didn't pay luxury tax because I had a signed sales agreement with options and everything.

If a dealer didn't give you a sales agreement before the luxury tax came out you will most likely not be exempt unfortunately. My local dealer does this, they won't submit a build into the system unless you're next in line and won't give you a sales agreement of your build because your #15 in line and whatever build you want pricing wise won't be accurate by the time your turn comes up a full model year later so they don't bother.

However its this sales agreement you need in order to avoid the luxury tax. Assuming you did it before September 2022. This is my understanding anyway, I don't believe a deposit is enough.
 
GM MUSL said:
Only for those who had a written sales agreement dated before Jan. 1 2022 - I want to survey which dealers charged or exempted the Luxury Tax. What is your experience?

FYI From the Government of Canada Website;
"The luxury tax will not apply to the sale of a subject vehicle priced above the price threshold where a purchaser and a vendor have entered into a written agreement for the sale of the subject vehicle before 2022 in the course of the vendor’s business of selling subject vehicles."

Subject Vehicles Under the Select Luxury Items Tax Act - Canada.ca

www.canada.ca www.canada.ca
Click to expand...
I just received a letter from the CRA regarding the luxury tax. According to the letter the gm dealer is the purchaser and the vender is GM. Therefore if you have a written agreement with the Gm dealer dated before 2022 it doesn’t qualify for a luxury tax relief. According to them you are not the purchaser the dealer is. If the dealer has a written agreement for the vehicle with GM they are exempt and they could pass on the exemption amount on to you. I don’t think any dealer would have a written purchase agreement with gm prior to 2022 as the vehicle wasn’t available at that time
 
The CRA also isn't liable for giving bad information if you call them with a tax question and they give you wrong info.

The point stands that some of us did avoid luxury tax on our vehicles and we didn't have to do anything different.

At this point it probably doesn't matter anymore anyway. Very few dealers have you sign a sales agreement when you put a deposit down to be #15 in line for a Z06 you won't get for 3 years.
 
Katless said:
I just received a letter from the CRA regarding the luxury tax. According to the letter the gm dealer is the purchaser and the vender is GM. Therefore if you have a written agreement with the Gm dealer dated before 2022 it doesn’t qualify for a luxury tax relief. According to them you are not the purchaser the dealer is. If the dealer has a written agreement for the vehicle with GM they are exempt and they could pass on the exemption amount on to you. I don’t think any dealer would have a written purchase agreement with gm prior to 2022 as the vehicle wasn’t available at that time
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My sales contract shows me as the purchaser and the dealership as the vender. GM doesn't sell vehicles directly to the public and the government knows that.
Dealers do not send written agreements to GM to order a car. They order mostly for customers through a computer. A written purchase agreement does not exist and this government clearly has no knowledge of how the ordering system within GM works. Companies order through GM Fleet sales in volume by computer as well not by written agreement.
 

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