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Explain the sales tax on vehicle purchases in NU?
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Explain the sales tax on vehicle purchases in NU?

In Nunavut, vehicle purchases are subject to the 5% Goods and Services Tax (GST) only. Unlike most other Canadian provinces and territories, Nunavut does not levy a Provincial Sales Tax (PST) or a Harmonized Sales Tax (HST), making its vehicle taxation structure one of the most straightforward in the country. This 5% GST applies uniformly to both new and used vehicles when purchased from a registered dealership. However, for private sales between individuals, GST is generally not applicable, which can represent a significant difference in the total cost for consumers. Understanding this distinction is crucial for buyers, as the sales tax directly impacts the overall purchase price and the amount that needs to be financed, helping to prevent unexpected expenses. While direct rebates on the GST for vehicle purchases are uncommon, buyers should always confirm the final price with the seller and be aware of any potential manufacturer incentives that might indirectly reduce the taxable amount.

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