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fenian · ‎10-19-2009

As all of you know who do a volume of "out of Canada" mailing, the Canada Post regulation with respect to GST reads in part: Mail addressed to foreign destinations requiring total shipping charges of $5.00 or more (single item or a cumulative purchase) and products ordered from and shipped directly by Canada Post to a foreign destination, such as philatelic and retail products, are not subject to the GST.
Many of us mail our overseas letters and packages using high value postage stamps, as a courtesy to collectors and fellow dealers. Where the problem lies is that the new POS counter system just introduced by Canada Post no longer has anything for the clerk to push to exempt the GST on the stamps purchased. Apparently when you accept postage labels there's no problem as the system will automatically deduct the GST when the total transaction is over $5.....it's just when you buy actual stamps.
I'm picturing all the stereotypical pensioners doing a volume of overseas Christmas card mailing, who like to use Christmas stamps on their letters, now being whacked with a "contrary to regulations and likely in breach of government legislation" extra 5%. Yes, I'm aware those of us with GST numbers can claim it back as input tax credits.....I just think there're a lot of 5%s being added where they shouldn't be added.
I've opened a case (File # 7667325) with Canada Post to investigate this "glitch" (at least that's what I'm told it is on the phone) and will let you know if and when I hear anything back.
Anyone else encountered this ? Pierre ?
Regards from the far west....................Michael

bcbeautiful · ‎10-19-2009

The clerk at my outlet, is aware of this glitch. They have to override the system when selling U.S. stamps.
The other glitch talked about on the other board is in regard to the Venture One number. If the clerk scans your card they must re-enter the number any time they go from the US to Canada or back. SO best to do all one country first, then the other.

pierrelebel · ‎10-19-2009

"Anyone else encountered this ? Pierre ? "

That's a new one. 😞

I never buy postage at the Post office in any case and always affix the stamps on the envelope and packages before heading to the PO.

For GST/HST registered sellers, it does not really make a difference as the GST/HST charged today becomes an Input Tax Credit (ITC).

For non-registered sellers, it would hurt.

Canada Post had a similar bug in their program about four/five years ago, following a major upgrade. It affected the fuel surcharge which could not be prepaid with stamps. I met with the CP area supervisor who acknowledged the programming mistake. It took Canada Post one full year to correct the problem.

Patience!

craftycatsattic · ‎10-19-2009

Hmmm. I went to a different post office than usual on Friday and the guy insisted on putting on stamps when my usual post office would have put on labels so I just pulled out my bill and they did not charge me the tax. Perhaps it's a matter of the person behind the cash register and how knowledgeable they are of this glitch.

Speaking of glitches, I have had terrible problems with Canada Post paypal refunds for canceled labels. Since over a year now, the refunds have not been coming through and I have to spend a good 20 minutes on the phone with paypal each and every time to get the refund. It's not always easy remembering to make the phone call either because they won't do anything until 45 days have passed and by that time I've long forgotten about my refund.

fenian · ‎10-19-2009

Thanks for the comments so far! In today's event, when at the PO, I was dealing with a clerk who rotates between outlets, so I thought she was just unfamiliar with the over $5 GST exemption. The other long-term clerk at the next wicket knows me very well and tried the same transaction - which would not allow her to exempt any GST on loose stamp sales, no matter where the mail was destined. Neither was aware of any glitch - "Marian" at the CP Customer Service 800 line was just guessing there might be one. It wouldn't be a glitch as we think of one (which implies a non-human error).....just a major oversight not to include an "exempt GST" space on the new and improved touch screen POS system which is a definite human error on the part of the collective of overpaid systems analysts who put this thing together. At least with a file number, if I don't hear back in several weeks, I can followup to see who's working hard to fix things. >>>>> Michael

bcbeautiful · ‎10-20-2009

Hmmm. I went to a different post office than usual on Friday and the guy insisted on putting on stamps when my usual post office would have put on labels so I just pulled out my bill and they did not charge me the tax.
I am really good friends with my local P.O. owners and this is what they told me.
They get sent stamps all the time from C.P. and are sent the bill for them, wether they need them or not. If they just print labels and no one buys the stamps, they continue stock pilling massive amounts of stamp inventory. So in order to get their "money" out of the stamps, they use them on parcels. They still have to print a label over $2.00 to get "paid" from C.P. as they get paid per label printed.
So, on my small packet air to the States, the postage is $8.90 , they put on a $2.00 label and then add $6.90 of stamps.
This helps their bottom line at the end of the month.

fatdane · ‎10-20-2009

With the new touch screen system there is a way to remove the GST on postage for letters going outside Canada, but the new system does ask for a name and tax number but it will apparently accept any "number" - I have used 1,2,3,4,5 and the system accepted the number. At some Post Offices the clerk knows how to cope with the system, and at some ( generally drug store type outlets) the clerk just responds to what the screen tells him or her to do. In many cases the clerk has to be reminded that GST/HST does not apply on mailings over $5 going out of the country.

Pierre I know that a GST registered dealer can claim any GST as an inout tax credit, but if I don't have to "loan" the government money I prefer not to. The refund cheque from the GST people can take eons to appear.