Luxury tax on aircraft and vessels effectively suspended; registration and filing requirements wound down

Plain-language summary · AI-assisted · not legal advice

The Select Luxury Items Tax Act has been amended to stop the luxury tax from applying to subject aircraft and subject vessels going forward. Any tax that would have become payable under Division 2 of Part 1 in respect of those items after November 4, 2025 is now explicitly not payable. Vendor registration obligations for aircraft and vessels are also removed after that same date, and all existing registrations covering aircraft and vessels will be automatically cancelled on February 1, 2028. Registered vendors who deal only in aircraft or vessels (and not subject vehicles) are relieved from filing returns for reporting periods beginning after December 2025, provided no tax became payable in that period. Separately, the Digital Services Tax Act has been removed from the list of Acts whose outstanding returns must be filed before a rebate or security payment can be made — the list of required filings for rebate eligibility is otherwise unchanged. Businesses that sold or imported luxury aircraft or vessels should confirm they have no remaining tax obligations and be aware that their vendor registrations will lapse automatically.

Who this affects: sellers and importers of luxury aircraft · sellers and importers of luxury vessels · registered vendors under the Select Luxury Items Tax Act · businesses claiming rebates under the Act