BREAKING: Changes to Vehicle Tax Collection
Tax changes on zero emission vehicles – effective Feb. 23, 2022.
The B.C. Government has released tax changes to the purchase and transfer of zero emission vehicles (ZEV). Vehicles that are eligible for the exemption include:
battery electric vehicles,
hydrogen fuel cell vehicles and,
plug-in hybrid electric vehicles.
Effective Feb. 23, the purchase or lease of used zero emission vehicles will be exempt from provincial sales tax (PST). The new tax exemption applies to both private and dealer sales.
Government changes on electric vehicle tax. More reason to go electric!
EXCLUSIONS:
For private sales, where ICBC collects the PST, the zero emissions vehicle must have 6,000 km or more showing on the vehicle's odometer to be eligible. (Note: the 6,000 km requirement does not apply to sales by GST registrants, such as a dealership, or vehicles imported from outside Canada).
The Government also announced changes to the way the graduated vehicle tax is calculated. Also beginning Feb. 23, the value of new zero emission vehicles are subject to the graduated vehicle tax which has increased to $75,000 from the previous $55,000. This change means new zero emission vehicles valued under $75,000 are not subject to the graduated vehicle tax. Note, the taxable threshold amount of $55,000 will remain in effect for non-ZEV vehicles.
(graduated income tax structure assesses greater tax rates on greater levels of income.)
Now, the change for new zero emission vehicles primarily impacts the B.C. motor vehicle dealers, as they collect the PST at time of purchase in the vast majority of new vehicle sales; however, us Autoplan brokers may need to collect the graduated vehicle tax on new vehicles purchased outside of B.C. If you’re purchasing a vehicle outside of B.C. or are moving to B.C. and have questions regarding tax collection, please give us a call!
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