Proposed Elimination of Luxury Tax on Aircraft and Vessels Effective November 5, 2025

• The luxury tax on subject aircraft and vessels priced above $100,000 and $250,000 respectively will be eliminated effective November 5, 2025.
• The luxury tax will continue to apply to subject vehicles priced above $100,000.
• Filing and reporting requirements for the luxury tax on aircraft and vessels apply for the period up to November 4, 2025, with final returns due by December 31, 2025.
• Exemption, tax, and special import certificates for aircraft and vessels will no longer be required after November 4, 2025, but must be retained for six years.
• Vendors’ registrations for aircraft and vessels will be cancelled automatically on February 1, 2028, and the CRA may still inspect or audit records for six years.

Source: canada.ca

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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