B.C. Announces 5-Year Provincial Sales Tax Exemption for Used EVs

As part of its continued efforts to boost electric vehicle sales in Canada, the province of British Columbia has announced a 5-year provincial sales tax (PST) exemption for used zero-emission vehicles (ZEVs), starting February 23, 2022, until 2027 (via Tesla North).

Model 3 hero blue

At the same time, the province has also increased the threshold for its luxury surtax on passenger ZEVs, which now starts at a base of $75,000 CAD, up from the previous $55,000 CAD. The change affects the Tesla Model 3, making it cheaper to buy as the RWD starts at $61,990 CAD and Long Range from $68,990 CAD.

With customers paying 7% PST instead of 10% PST, it would mean savings of up to $2,010 CAD on the Tesla Model 3 Long Range. According to a Tesla customer, the company has already started accommodating the changes.

The province already offers up to $3,000 CAD in rebates towards the purchase of new battery-electric or hydrogen fuel cell vehicles.

Now, PST will be exempt on “used” EVs, defined as those with over 6,000 km driven. This means if you can find a used Tesla or any used EV, you can save PST on your purchase.

Additionally, B.C. will also add $79 million CAD to the Go Electric program, which offers rebates for EV charging systems and funds hydrogen refueling infrastructure and commercial vehicle pilot projects.