- It is equipped only with one or more pilot seats and cannot have any other seating configuration;
- It is equipped only with one or more pilot seats, or is not equipped with any seats, and cannot have a seating configuration of 40 seats or greater (excluding pilot seats);
- It is equipped with one or more pilot seats and one or more passenger seats and has a seating configuration of 39 seats or fewer (excluding pilot seats).
An aircraft equipped for military activities or solely for carrying goods is not subject to the luxury tax.
“Subject vessel” means a vessel with a manufacturing date after 2018 and designed for leisure, recreation, or sport activities. Generally, floating homes, commercial fishing vessels, ferries, and cruise ships are not included in the definition.
Applying for registration and failure to apply when required
The Act provides that the luxury tax applies to manufacturers, wholesalers, retailers, and importers of vehicles, aircraft, or vessels within the tax regime’s scope and priced above the relevant price thresholds. They are required to register with the CRA as vendors.
Registration should be made by the earlier of the day the sale is completed. In the case of an importation, it should be done by the earlier of the day the subject item is accounted for under s. 32 of the Customs Act.
If the CRA has reason to believe that a person was required to register but did not, it may notify the person in writing that it is proposing to register that person as a vendor. If the person neither applies for registration nor proves they are not required to register, the CRA may register the person as a vendor 60 days after the notice was sent.
