Ontario Luxury Tax

[EVTruckSeeker]

Hi guys,

I am new here. After tesla's lack of announcement on CT yesterday, I am now deciding on whether to put a deposit on R1T. I am wondering for those who pre-ordered in Ontario, there is a new luxury tax for vehicles above $100k. Based on current conversion, the R1T could go above or below depending on the configuration. In my case, the camp kitchen package will throw it above the threshold. I am wondering if the package itself can be installed separately after. Has anyone talk to Rivian on whether or not they can bill add-on options separately to avoid the tax?

Thanks.

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[electruck]

The camp-kitchen will be available for purchase separately in Rivian's Gear Shop. There are warranty implications, however. So it would appear to be a choice between the luxury tax and losing 3 yrs of warranty (2 yrs instead of 5 yrs).

 

[EVTruckSeeker]

Oh thanks for responding. Did Rivian give an indication on what the pricing will be if installed afterwards. The luxury tax is 20% above the $100k threshold. So in my case, it will be an additional $1400 just for the camp-kitchen.

 

[electruck]

Oh thanks for responding. Did Rivian give an indication on what the pricing will be if installed afterwards. The luxury tax is 20% above the $100k threshold. So in my case, it will be an additional $1400 just for the camp-kitchen.

Unfortunately that is still TBD, as are things like shipping and installation charges. Not sure if it would put you over the tax threshold but you might at least consider getting the gear shuttle from the factory as the camp kitchen would then just be drop-in. If you get the shuttle after purchase with the camp-kitchen, it will require a visit to a Service Center for installation.

You would need to review all of the avilable options with your Guide when they reach out to you closer to delivery. You also should not hesitate to reach out to Customer Service now with these same questions.

 

[Zool]

I'm in BC and our luxury tax is similar but I believe the tax is on every dollar above 100K, not an extra 20% on the total.

So if your build is 116,000$ you'll pay an additional 3200$ on that 16k.

 

[EVTruckSeeker]

It's the same for Ontario. For my configuration, it's just the camp kitchen package that puts it over $100k. That's why I am deciding whether to pay the 20% premium on the kitchen package. That's another $1400. Crossing my finger that our dollar doesn't take a nose dive at time of delivery.

 

[aAlpine]

I'm in BC and our luxury tax is similar but I believe the tax is on every dollar above 100K, not an extra 20% on the total.

So if your build is 116,000$ you'll pay an additional 3200$ on that 16k.

I'm not sure this is true. I interpreted it as "you go a dollar over, you're screwed": https://www.rivianforums.com/forum/threads/canadian-ev-incentives-pricing-taxes.847/

Hopefully I'm wrong.

 

[aAlpine]

Would be nice if Rivian considers local regulation when setting pricing and what is/isn't possible with regards to options and addons. I realize this maybe isn't a fair comparison due to volume and size of company, but Hyundai Ioniq 5 pricing in Canada has been set very specifically so that it is right under the limits for federal and provincial rebates (I think the Ultimate trim only qualifies for the former, in BC).

 

[techm0logy]

Hi guys,

I am new here. After tesla's lack of announcement on CT yesterday, I am now deciding on whether to put a deposit on R1T. I am wondering for those who pre-ordered in Ontario, there is a new luxury tax for vehicles above $100k. Based on current conversion, the R1T could go above or below depending on the configuration. In my case, the camp kitchen package will throw it above the threshold. I am wondering if the package itself can be installed separately after. Has anyone talk to Rivian on whether or not they can bill add-on options separately to avoid the tax?

Thanks.

Technically, you’re on the hook for any “improvement” to the vehicle for a period of 1 year after purchase, so you’ll have to pay the luxury tax on the kitchen regardless. The code was written this way expressly for situations like what you are trying to do (eg. Expensive wheel or other upgrades that can be applied after assembly)

However, how the government is going to enforce this is anyone’s guess.

There has been some chatter about the R1T being exempt from the luxury tax because it exceeds the maximum weight classified under the code.

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