The Tesla Cybertruck is about to make its first deliveries in Canada. But there is important news shortly before the launch: In the province of British Columbia, the Cybertruck will be subject to luxury tax, which could mean additional costs of up to 20% of the purchase price for buyers.
Background on the luxury tax
In British Columbia, there is a luxury tax on vehicles above a certain price. For Zero Emission Vehicles (ZEVs) such as the Tesla Cybertruck, special rules apply:
- Vehicles under 75,000 CADStandard 7% Provincial Sales Tax (PST)
- Vehicles over 75,000 CADIncreased PST, which can be up to 20% of the purchase price
Why is the Cybertruck affected?
Although the Cybertruck is exempt from luxury tax at the federal level because it has a high gross vehicle weight rating (GVWR) of over 3,856 kg, the province of British Columbia regards it as a passenger vehicle as a passenger vehicle. This means:
- No exception due to the weight
- Application of the higher PST rates for vehicles over 75,000 CAD
Specifically, this means for buyers:
-
Dual-Motor Foundation SeriesPurchase price of 137,990 CAD
- PST of 15 %Additional costs of approx. 21,129.60 CAD
-
Cyberbeast: Higher purchase price
- PST of up to 20: Even higher additional costs
What can buyers do?
- Awareness of additional costs: Factor in all taxes before buying
- Check alternatives: Possibly switch to another Tesla-model like the Model Y or Model 3 dodge
- Observe the legal situationPossible future changes could influence the tax burden
Conclusion
The luxury tax in British Columbia is a major concern for potential buyers of the Tesla Cybertruck represents a considerable financial burden. It is essential to obtain comprehensive information before making a purchase and to take all additional costs into account.
Keywords: Tesla, Tesla Cybertruck, Tesla Model Y, Tesla Model 3, Tesla accessories, Tesla Store, Shop4Tesla, Tesla news
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