Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Canadian X Refresh Orders

This site may earn commission on affiliate links.
From the gov website...

"The luxury tax will not apply to the sale of a subject vehicle priced above the price threshold where a purchaser and a vendor have entered into a written agreement for the sale of the subject vehicle before 2022 in the course of the vendor’s business of selling subject vehicles."

So nothing to worry about if you ordered in 2021. Tesla just needs to correct their site.
hopefully… but there’s probably deliveries happening the next week to two that won’t have a chance. Not sure there’s any mechanism to challenge the tax once levied/paid.
 
Can you ask the SA to explain why they believe the tax applies, when the government says it does not if the "Motor Vehicle Purchase Agreement" that I can download from my Tesla order page is dated in 2021?

"The luxury tax will not apply to the sale of a subject vehicle priced above the price threshold where a purchaser and a vendor have entered into a written agreement for the sale of the subject vehicle before 2022 in the course of the vendor’s business of selling subject vehicles."

 
Can you ask the SA to explain why they believe the tax applies, when the government says it does not if the "Motor Vehicle Purchase Agreement" that I can download from my Tesla order page is dated in 2021?

"The luxury tax will not apply to the sale of a subject vehicle priced above the price threshold where a purchaser and a vendor have entered into a written agreement for the sale of the subject vehicle before 2022 in the course of the vendor’s business of selling subject vehicles."


From my discussion with the SA - it appears that Tesla has taken the position that the online reservation process that we all had to go through does not constitute a “written agreement for the sale of the subject vehicle” per the law and rather just a reservation.

My analysis is that the luxury law was very badly rolled out with lots of room for interpretation and it appears that Tesla has chosen to interpret it in the most narrow way so as to minimize their risks.

Not sure what options we have as future buyers to try to get Tesla to change their interpretation. But would love to hear other people’s thoughts.
 
From my discussion with the SA - it appears that Tesla has taken the position that the online reservation process that we all had to go through does not constitute a “written agreement for the sale of the subject vehicle” per the law and rather just a reservation.
Even though the title of the document literally says "Purchase Agreement".

Any lawyers here?

I don't see any mention of methods to appeal to Gov to get a refund. So if you pay it to Tesla, you probably won't get it back.
 
Luxury Tax Discussion Continued…..

So I called the CRA group that administers the Luxury Tax and explained that I entered an agreement to buy a car worth more than a $100k prior to 2022 and that I had a MVPA to prove it. The lady on the phone confirmed that I was not the first to call and seemed to suggest that I should not have to pay the luxury tax.

She recommended that I write them with a copy of the MVPA and ask for a written interpretation of the law in my case. Just wrote the letter that I will send this weekend. Will keep you posted when I hear back. If anyone wants to do the same, this is the link to the page with the groups phone number and address.

 
Luxury Tax Discussion Continued…..

So I called the CRA group that administers the Luxury Tax and explained that I entered an agreement to buy a car worth more than a $100k prior to 2022 and that I had a MVPA to prove it. The lady on the phone confirmed that I was not the first to call and seemed to suggest that I should not have to pay the luxury tax.

She recommended that I write them with a copy of the MVPA and ask for a written interpretation of the law in my case. Just wrote the letter that I will send this weekend. Will keep you posted when I hear back. If anyone wants to do the same, this is the link to the page with the groups phone number and address.

Thanks for your effort, if you get this sorted I’ll be sure to send a tip 🤣
 
Finally got to test drive a new Model X LR this week with my wife. My wife hated the yoke steering wheel. Too big for her hand and uncomfortable to use. So we decide to go with Mercedes GLS instead. Now I have a reservation with pricing locked in before the last price increase. I am looking to sell the reservation if anyone interested.