Tax on high-end pleasure boats
For several months now, the Canadian federal government has been planning to tax a series of products considered luxury goods. Alongside planes and cars worth more than $100,000 are new boats worth more than $250,000 (about 180,000 euros). After being announced in April 2021, presented in August 2021, its implementation initially planned for January 1, 2022 had been postponed.
The advertised value of the tax is the smaller of the values between :
- 20% of the sales price above the tax limit (C$100,000 for cars and airplanes and C$250,000 for boats)
- 10% of the total value of the property.
Some adjustments have been made to the original text following initial feedback from stakeholders. In particular, the tax will not apply to improvements made after the purchase of boats bought under the tax threshold.
New implementation schedule
Canadian parliamentary procedure allows Canadians to comment on the proposed legislation by April 11, 2022. If it is then passed by Parliament as part of the Budget 2022 legislation, the recreational boat tax will apply as of September 1, 2022.
While the Canadian boating market is made up of many small boats, the new tax will affect a number of new large boats and could have an impact on local boating.
