How is the GSP applicable on USED items.

Wouldn't GSP on used items be like taxing an item twice?

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How is the GSP applicable on USED items.

NO

 

GSP applies to goods coming from the USA, nothing to do with double taxation.

 

Even within Canada used goods are taxable.  If you buy a used car from a car dealer, you pay tax on the purchase price.  Whether the car is new or used does not matter.  The same is true when you buy goods are Value Village (for example) where most goods are used.

 

Some exceptions exist for exempt organizations (non-profit or religious) such as Trift stores operated by Salvation Army, St-Vincent de Paul, etc... where the price paid for goods is considered a donation.  But those are the few exceptiions.  The majority of taxable items are taxed, whether used or new, when imported or purchased from a GST/HST registered seller/merchant.

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How is the GSP applicable on USED items.

For example, last week you purchased from a US seller a (used / pre-owned) RALPH LAUREN Light Cotton Paisley Print Ruffled Smocked 3/4 Blouse Shirt Top for US$ 23.50.

 

Technically, when arriving by mail, since the item is worth more than Cdn$ 20.00, GST/HST should be charged on the Canadian value (appx $24.50).  The rate charged depends on your province of residence. In addition, when tax is assessed, Canada Post charges a $9.95 administration fee.

 

http://www.cbsa-asfc.gc.ca/import/postal-postale/duty-droits-eng.html

 

Now, it is well known and accepted that not all taxable items arriving by mail are assessed by Canada Customs. But that is another story.

 

 

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