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03-20-2016 01:57 PM #1
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Is there sales tax (GST/PST) on used items if buying from USA and shipping to Canada?
I am interested in buying a used launch monitor from someone in the USA on eBay. Given that I live in Canada, would I be charged sales tax when the item crosses the border into Canada? I have read that it's best to use US postal service and not UPS because UPS charges insanely high brokerage fees. Again, not sure if those charges would apply on used goods bought from private individuals as opposed to from a business. Any advice/info on this would be greatly appreciated. Thanks
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03-20-2016 04:02 PM #2
use USPS if possible. re: sales tax, it depends usually on how much the item costs? I find if it's less than $100 no tax, otherwise expect to pay it.
I got a fever. And the only prescription is more golf equipment.
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03-20-2016 09:38 PM #3
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Okay. Good to know. Thanks for the info jeffc.
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03-20-2016 09:43 PM #4
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I guess you didn't like my answer. It's pretty easy to look for import duties on Google.
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03-20-2016 09:57 PM #5
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Hey mthunt. Thanks again for your answer over on the 'other forum'. I found conflicting information when googling this topic online, which is why I posted the question in this and the other forum. Most of the information I found via google seemed to be about purchasing new items from companies, so wasn't sure if it applied to buying used from individuals. I was hoping people who had had personal experience purchasing items from people in the states would be able to clarify it for me. And you and jeffc have done that for me. Thanks very much. What appeared to be a really good deal (because I thought I would save myself the gst/pst) is not as good a deal as I originally thought. Thanks again.
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03-26-2016 09:51 AM #6
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I am 95% sure that GST will be charged at the border based on the declared value of what you are importing regardless of whether it is new or used.
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03-27-2016 11:48 AM #7
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Hey soccerdude, I import and export ALOT. Anything shipped via UPS or FedEx valued over $20 CDN there will be charges. I see your in the wack, why not have stuff shipped to you in WA state and pop across the Sumas border to get it? Cheaper shipping, but yes, you'll still have to pay PST/GST. I have to take a ferry and go to Point Roberts, WA.
Best to use USPS as other poster mentioned. I found anything under $60USD will go through no problem without taxes. CBSA - Canada Border Service Authority will charge a $5.00 handling fee plus the GST and PST. There are other factors like the chosen tariff code used by the exporter, value of goods (gift usually makes zero difference if there's a high dollar value).
I live in BC and I go to WA state to do my imports. I have goods shipped to WA state and then I fill out my B3 import paperwork and I only pay GST. PST is provincially based so if your buying goods coming into AB then your only going to pay the GST. Obviously HST to those provinces who charge that tax.
Again, your best bet is always to get shipper to ship via USPS.
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03-27-2016 03:52 PM #8
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He was asking about shipping a launch monitor. Would you recommend shipping something that high in value via postal?
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03-27-2016 07:40 PM #9
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I missed that in the OP. For something that high value he should have it shipped to SUMAS and go pick it and save the UPS/FedEx charges. NO I WOULDN'T ship something that costly via USPS/Canada Post (they beat up packages).
If he can't drive across border (for whatever reason), then definitely have it shipped via Fedex or UPS.
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03-30-2016 01:03 PM #10
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First, let me say that I deal with importing and exporting professionally so I know of what I speak.
The official limit for individuals importing duty and tax free into Canada is $20 Canadian (not goods brought in as a part of a personal exemption after being absent from Canada for the specified time). That is not to say that you may escape without paying tax on items over $20 but it depends on the situation and how lucky you are.
Understand that UPS, FedEx, DHL, etc. import goods under the low value shipment program (LVS) and they are responsible to the CBSA to declare the correct value and classification to the CBSA and if they do it incorrectly they may be subject to penalties. That is to say that there is incentive to make sure everything is declared.Also, it is important to understand that the courier company will normally charge for brokerage and admin fees etc. and these fees can be outrageous.Some of the admin fees might not be charged for premium shipping, e.g. other than basic ground shipping but check the terms to be sure.
Another thing to watch out for with courier companies is that they have the ability to use tariff provisions that allow them to classify goods under a general entry provision for goods imported by courier and these can be subject to duty when in fact if the goods classified correctly, carry no duty. I say this as it happened to me when I imported some golf shafts/heads (which are duty free regardless of origin) the courier charged me duty.Fortunately, because I know this to be incorrect I got my money back.
Now when goods are imported through USPS/ Canada Post the packages are sent to the postal exchange offices in Vancouver, Toronto or Montreal depending upon where the goods are coming from. It is the CBSA themselves that decide whether or not duties and taxes will be charged.So while the limit is $20 it is possible that something of a little higher value might be let go and particularly so when there are high volumes of packages.More importantly, the cost of processing through the CBSA is set and is not based on the value of the goods being imported (as is the case when the courier clears the goods).
On a high value item such as a launch monitor I can certainly understand why you would not want to import by mail and in any case I don’t think that it matters insofar as to whether or not HST/GST will be owed. Any goods valued over $20 imported by individuals (non-commercial shipments) are subject to GST or HST if you are in an HST province (excluding food and other GST exempt goods).Due to the item goods being a relatively high value item you should expect to be charged HST/GST regardless of the mode of importation.
One last thought and one often overlooked is that you can import by a courier and clear the goods yourself (with a little more effort) and you will not have to pay for the services that the courier charges to clear the goods. You will still have to pay the HST.
I hope this helps.
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