Is there a limit on the HST input tax credit I can claim when my business buys an expensive vehicle?

Yes. When a business buys a passenger vehicle for use in the business, the input tax credit available isn't necessarily based on the full HST paid on the purchase price, it's generally tied to a prescribed capital cost ceiling that caps how much of a passenger vehicle's cost is recognized for tax purposes in the first place, regardless of what the vehicle actually cost. Above that ceiling, the extra HST paid on the portion of the price beyond the prescribed limit generally isn't recoverable as an input tax credit.

This catches business owners who buy a higher-end vehicle and assume the full purchase price, and the full HST paid on it, flows through as an input tax credit the same way it would for a modestly priced vehicle used the same way in the business. The restriction applies specifically to passenger vehicles as defined for tax purposes, rather than to commercial vehicles like trucks or vans used for actual delivery or trade work, which are typically treated differently.

Because the specific dollar ceiling is a figure that's periodically adjusted and shouldn't be assumed from memory or older information, confirm the currently applicable limit with your accountant before finalizing a vehicle purchase if maximizing the input tax credit matters to your decision.