Home improvement retailer IKEA Canada has launched a second-hand tax (SHT) initiative across all IKEA “As is” marketplaces, in which second-hand and ex-display items and discontinued ranges are re-sold, in Ontario, Canada. 

The innovative move, co-inciding with Earth Month, aims to promote sustainability and affordability by saving customers from paying harmonised sales tax twice on second-hand items. 

Canadians have previously been subject to tax on pre-owned goods, despite tax having been paid upon first purchase.  

The SHT initiative, which runs from 2 to 11 April 2024, offers a 13% discount to those with IKEA Family memberships on purchases in the As is marketplace, effectively nullifying the HST for a more sustainable and cost-effective shopping experience. 

IKEA Canada CEO and chief sustainability officer Selwyn Crittendon said: “We believe in doing more with less. With our second-hand tax initiative, we’re making sustainable choices that also save people money more attractive to average Canadians. It’s our little way of making a big difference.” 

IKEA Canada acknowledges that the SHT is not a long-term fix. The company is calling on the government and other businesses to join in putting an end to the redundant taxation on second-hand items, enabling all Canadians to benefit from more affordable circular shopping. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The introduction of SHT comes amid the cost-of-living crisis.  

The annual IKEA Life at Home report reveals that two-thirds of Canadians (67%) worried about the general economy and more than half (57%) about household finances.  

In February 2024, IKEA Canada announced plans to enhance its retail presence in the country with two new plan-and-order points.