hiener
Member
I asked the BC gov't site a while back, sent them the screen from the Tesla online order summary.
Thank you for your inquiry.
You are correct that the “Federal Air Conditioner Tax” will increase the total purchase price of the vehicle to more than $55,000. As a result, the applicable rate of provincial sales tax will be 8%.
The rate of PST you pay on a passenger vehicle that you purchased from a GST registrant (e.g. a motor vehicle dealer) depends on the purchase price of the vehicle:
Purchase Price Rate of PST
Less than $55,000 7%
$55,000—$55,999.99 8%
$56,000—$56,999.99 9%
$57,000—$124,999.99 10%
$125,000—$149,999.99 15%
$150,000 and over 20%
The purchase price is the total price a customer pays to purchase the vehicle before a deduction for a trade-in or down payment, and includes:
The estimate you provided below charges 12% “sales tax” on $55,080 for a sum of $6,609.60. It appears that this sale tax percentage includes 7% PST and 5% GST.
However, this is incorrect as you must pay 8% PST as the purchase price of the vehicle is between $55,000—$55,999.99.
As a result, you will need to pay an additional $550.80 in PST (i.e. 1% of the total purchase price).
For additional information, please see Bulletin PST 116 - Motor Vehicle Dealers and Leasing Companies.
Thank you for your inquiry.
You are correct that the “Federal Air Conditioner Tax” will increase the total purchase price of the vehicle to more than $55,000. As a result, the applicable rate of provincial sales tax will be 8%.
The rate of PST you pay on a passenger vehicle that you purchased from a GST registrant (e.g. a motor vehicle dealer) depends on the purchase price of the vehicle:
Purchase Price Rate of PST
Less than $55,000 7%
$55,000—$55,999.99 8%
$56,000—$56,999.99 9%
$57,000—$124,999.99 10%
$125,000—$149,999.99 15%
$150,000 and over 20%
The purchase price is the total price a customer pays to purchase the vehicle before a deduction for a trade-in or down payment, and includes:
- Charges for financing, interest, customs and excise
- Documentation charges
- Service charges
- Air conditioning fees and other environmental fees (e.g. tire levies)
- Delivery or other transportation charges (including shipping and handling) incurred at or before the time that title to the vehicle passes to the purchaser (see Bulletin PST 302, Delivery Charges)
- The value of any services or goods accepted by the seller on account of the purchase price
- Charges for warranties, service contracts and maintenance agreements if the warranty, contract or agreement is mandatory (see Bulletin PST 303, Warranties, Service Contracts and Maintenance Agreements)
- Amounts paid by third parties as partial or full consideration for the vehicle, such as rebate offers, coupons and other discounts, including cash-back offers, graduation recognitions or credit card rewards, but not manufacturers’ rebates or manufacturers’ coupons (see below)
- Accessories, including truck campers that slide-on or mount onto pickup trucks (accessories are generally taxable at a rate of 7% PST)
- Any other fees a customer pays to purchase the vehicle
The estimate you provided below charges 12% “sales tax” on $55,080 for a sum of $6,609.60. It appears that this sale tax percentage includes 7% PST and 5% GST.
However, this is incorrect as you must pay 8% PST as the purchase price of the vehicle is between $55,000—$55,999.99.
As a result, you will need to pay an additional $550.80 in PST (i.e. 1% of the total purchase price).
For additional information, please see Bulletin PST 116 - Motor Vehicle Dealers and Leasing Companies.