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).
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.