Select Luxury Items Tax Act

Marginal note:Qualifying sale

• 50 (1) For the purposes of this section, a person makes a qualifying sale of a subject item if

  • (a) the person sells the subject item to a purchaser;

  • (b) the subject item

    • (i) in the case of a subject vehicle, has never been registered with the Government of Canada or a province other than a registration that is done only because of the sale, and

    • (ii) in the case of a subject aircraft or subject vessel, has never been registered with the Government of Canada other than a registration that is done solely for a purpose incidental to its manufacture, offering for sale or transportation; and

  • (c) the price threshold in respect of the subject item is less than the greatest of

    • (i) the consideration for the sale,

    • (ii) the retail value of the subject item at the particular time at which the sale is completed, and

    • (iii) if the subject item has a manufacturer’s suggested retail price, the amount that would be the retail value of the subject item at the particular time if the fair market value of the subject item at the particular time were equal to the manufacturer’s suggested retail price of the subject item.

• Marginal note:Qualifying importation

  (2) For the purposes of this section, a person makes a qualifying importation of a subject item if

  • (a) the person imports the subject item;

  • (b) the subject item

    • (i) in the case of a subject vehicle, has never been registered with the Government of Canada or a province other than a registration that is done only because of the importation, and

    • (ii) in the case of a subject aircraft or subject vessel, has never been registered with the Government of Canada other than a registration that is done solely for a purpose incidental to its manufacture, offering for sale or transportation; and

  • (c) the price threshold in respect of the subject item is exceeded by the greatest of

    • (i) the taxable amount of the subject item determined under section 20 in respect of the importation,

    • (ii) the retail value of the subject item at the particular time at which the subject item is accounted for in accordance with section 32 of the Customs Act in respect of the importation, and

    • (iii) if the subject item has a manufacturer’s suggested retail price, the amount that would be the retail value of the subject item at the particular time if the fair market value of the subject item at the particular time were equal to the manufacturer’s suggested retail price of the subject item.

• Marginal note:Registration required

  (3) For the purposes of this Act, a person is required to be registered as a vendor in respect of a type of subject item if the person

  • (a) makes a qualifying sale, or a qualifying importation, of a subject item of that type in the course of a business of offering for sale in Canada subject items of that type that

    • (i) in the case of subject vehicles, have never been registered with the Government of Canada or a province, and

    • (ii) in the case of subject aircraft and subject vessels, have never been registered with the Government of Canada other than registrations that are done solely for a purpose incidental to the manufacture, offering for sale or transportation of the subject items; or

  • (b) is a prescribed person.

• Marginal note:Timing of application

  (4) A person that is required under subsection (3) to be registered as a vendor in respect of a type of subject item must apply to the Minister for registration on or before the earlier of

  • (a) the day on which the first qualifying sale of a subject item of that type made by the person is completed,

  • (b) the day on which, for the first qualifying importation of a subject item of that type made by the person, the subject item is accounted for in accordance with section 32 of the Customs Act, or

  • (c) if prescribed conditions are met, the prescribed day.

• Marginal note:Registration permitted

  (5) For the purposes of this Act, a person that is not required under this section to be registered as a vendor in respect of a type of subject item may apply to the Minister to be registered as a vendor in respect of that type of subject item if the person is a prescribed person.

• Marginal note:Registration not required

  (6) Despite subsection (3), a person is not required to be registered as a vendor in respect of a type of subject item for the purposes of this Act if the person is a prescribed person.