eBay

3islanders · ‎02-20-2017

I couldn't find a complete answer on Revenue Canada's site or googling... if you buy something from an American company, should they be charging GST/HST? I don't know if they have a Canadian office or warehouse, or if they just chose to apply for a tax number. Which I guess they can do.

But, at the very least, shouldn't they be charging that tax in CAD? I thought I was getting a good price on an item which is more expensive everywhere else, but now it appears it would have 15% tax on it, AND, in U.S. dollars. So with the exchange and all, it's not such a good deal after all.

When I inquired, they said "the good news" is that they pay this tax to Revenue Canada. Oh! boy! Joy!!!!

I think I'll ask for their GST number and whether they have an office here.

reallynicestamps · ‎02-20-2017

I think I'll ask for their GST number and whether they have an office here.

I believe the GST number should appear on any invoice where GST is charged.

I don't think any government would turn down remitted taxes. They are more concerned about taxes that should be remitted but are not.

But do let us know the results, you have raised some interesting questions.

momcqueen · ‎02-20-2017

I encountered that once too outside ebay, a seller charging Canadian sales tax on an item listed and sold in USD. I agree it seems sketchy. I would assume that the tax needs to be charged on a CAD equivalent (not USD as if it were par) or it's inaccurate.

ypdc_dennis · ‎02-20-2017

@3islanders wrote:
I couldn't find a complete answer on Revenue Canada's site or googling... if you buy something from an American company, should they be charging GST/HST?

But, at the very least, shouldn't they be charging that tax in CAD? I thought I was getting a good price on an item which is more expensive everywhere else, but now it appears it would have 15% tax on it, AND, in U.S. dollars. So with the exchange and all, it's not such a good deal after all.

I think I'll ask for their GST number and whether they have an office here.

Taxes are a percentage -- conversion to Canadian dollars is not required until the seller (or their agent) remits the tax to the CRA.

They don't need an office in Canada to collect tax.

...

Method 1: Registered with the CRA. Collects the tax and remits directly to the CRA. Do have a GST number (which must be on all invoices valued over $30).

Method 2: Collects the tax. Pays the shipping company to handle the taxes when crossing the border and the shipping company remits to the CRA. To the best of my knowledge, no GST number involved. Be suspicious of a company that collects tax, has no GST number and ships using USPS (which does not offer this service).

Method 3: Global Shipping Program. Similar to 2, except Pitney-Bowes bills you, not the seller. No GST number involved.

...

Confirming a GST number:

http://www.cra-arc.gc.ca/gsthstregistry/

-..-

marnotom! · ‎02-20-2017

Is the item being shipped in a manner that avoids the possibility of Canada Border Services assessing and charging you those same taxes?

3islanders · ‎02-20-2017

Well, they replied that they have no physical location in Canada, and that because they are an American company they charge in U.S. dollars. (Both the replies have implied that the guy thinks I'm a bit slow, haha)

He says that in order to ship things to Canada, Revenue Canada "requires" that they collect GST. (Hmm, that would be probably the first U.S. seller I've ever encountered claiming that.) Shipping is by "economy air service". He didn't provide a GST number.

This is an established business, so I don't think it's a scam exactly... some sort of bureaucratic loophole perhaps... but, I think I'll try "make an offer" from a different seller and see if they'll accept an offer that will make up for the exchange rate and initially higher price.

momcqueen · ‎02-20-2017

The seller may plan to pre-pay your duty and/or import charges. That's the only reason that I can think of that business such as that which you described would need a gst collection. Perhaps it is in your best interest to clarify that.

marnotom! · ‎02-20-2017

@mjwl2006 wrote:

The seller may plan to pre-pay your duty and/or import charges. That's the only reason that I can think of that business such as that which you described would need a gst collection. Perhaps it is in your best interest to clarify that.

That's probably the case. As far as I know, items sent through the mail are the only ones where taxes and duties are levied on them (if valued over C$20 and CBSA bothers calculating and billing for them) in the customs clearance process and later paid by the importer. All other shipping methods involve either the taxes/duty being paid at the border or else some sort of guarantee is made by the shipper or importer that they will be paid.

Even items sent by UPS Ground and its ilk have taxes/duty paid for by the carrier. The recipient is merely paying the carrier back. That's why in the laundry list of charges one faces with a UPS Ground shipment you'll find "advancement" and/or "disbursement" as line items.