GST/HST

[by8dr_8]

Purchased an item from the USA coming to Canada and getting charged GST/HST?? Also looks like going to be charged duties on top of that? Doesn’t seem to make sense.

[marnotom!]

Purchases of items purchased from out of the country are subject to taxes and duties, if applicable. The tax/duty free limits and how they apply vary depending on whether the item is considered a postal import or one shipped by courier, but the charges you’re seeing are very likely legit.

If you’ve purchased orders shipped by mail before and haven’t been hit with tax or duty charges, you’ve either purchased an extremely inexpensive item or else your items went unassessed by Canada Border Services.

More information can be found on these pages. Note that the first page actually refers to just mailed items, not ones shipped with a courier:

https://www.cbsa-asfc.gc.ca/import/courier/menu-eng.html

https://www.cbsa-asfc.gc.ca/import/courier/lvs-efv/prsn-eng.html

[ypdc_dennis]

Depending on value and how it is shipped there may be sales taxes and a processing fee.  Duty is less likely if made in USA (many things made there are duty free to import to Canada).

Side comment: The last FedEx Ground shipment I had from the USA had FedEx collecting 13% HST  plus a little over 15% in FedEx processing fees and no duty. The same shipment had it been sent via the post office would have only had a $10 processing fee.

[by8dr_8]

Appreciate the response. I’ve purchased lots of things from the states over the years and this is the first time I’ve ever been charged tax at the time of purchase, also in US dollars. I’ve paid plenty of customs fees and taxes to the courier upon delivery but never to the seller directly.

[zee-chan-jpn-books]

You didn't pay tax to the seller directly. The tax is actually collected by eBay. The seller doesn't get your tax. You can read the invoice again and it should say the tax was collected by eBay. 

[marnotom!]

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@by8dr_8 wrote:

Appreciate the response. I’ve purchased lots of things from the states over the years and this is the first time I’ve ever been charged tax at the time of purchase, also in US dollars. I’ve paid plenty of customs fees and taxes to the courier upon delivery but never to the seller directly.

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Thanks for the clarification, @by8dr_8.  As @zee-chan-jpn-books said, you weren't paying the seller directly, you were paying eBay in a manner similar to what you'd be paying at checkout for a transaction with a Canadian seller (who doesn't charge or collect the taxes in that instance, either).

Many countries now have eBay charge and remit taxes on sales made on the site now, such as the United States, Australia, Norway, and the European Union.  Canada's a bit wishy-washy in that department; it happens with sales from Canadian sellers, but not necessarily for international sales.  What's likely happening in your situation is that you're purchasing an item that the seller is having forwarded through the eBay International Shipping system and sometimes purchases through eIS will have taxes and duty charged at Checkout or give the buyer that option.

The novelty of having duty charged on your item is likely the result of the eBay and eIS calculators not finding a CUSMA country in the country of origin section for the "Items Specifics" section of the listing or the seller failing to enter that information in the first place.

[marwo507547]

The taxman wants their cut as well.  I bought something from the USA and was hit with custom fees for each of the items I bought from the USA that was half the price of the item I bought - if I knew there was going to be custom charges it would have been cheaper and also faster to buy it in Canada. 

[marnotom!]

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@marwo507547 wrote:

The taxman wants their cut as well.  I bought something from the USA and was hit with custom fees for each of the items I bought from the USA that was half the price of the item I bought - if I knew there was going to be custom charges it would have been cheaper and also faster to buy it in Canada. 

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eBay inserts a notice on listings from outside of Canada that customs charges may be a possibility.  My rule of thumb is to assume that I'm going to see customs charges and budget for them, and then consider it a bonus if it doesn't happen.

Usually customs charges include the same taxes that you'd pay on the same item you'd purchase from a Canadian seller.  You may see a duty charge if it can't be determined that the item was manufactured in or originated from a CUSMA country.  The wild card is the charges the carrier will levy for advancing and collecting the taxes and duty due, and those vary from carrier to carrier.

Some listings for items that are shipped through eBay International Shipping will have the customs charges paid at checkout or give the buyer the option of doing this, and I'd say that paying them at checkout is the better way to go in most cases.

[reallynicestamps]

- if I knew there was going to be custom charges it would have been cheaper and also faster to buy it in Canada.

One reason to charge duties is to encourage shopping in Canada.

And sales taxes are charged to even the playing field between imports and Canadian goods.

Canada Post and CBSA tend to ignore low value/ small shipments as too expensive to process, but if you are charged, there will be a service fee of $9.95.

By contrast, all couriers /carriers must charge those import fees and their "customs brokerage" fees often start at $25.

[7687kenny]

Do ebay weiver the taxes on purchases from the USA  if your a Registered Indian in Canada ?

[reallynicestamps]

I doubt they are that sophisticated.
You would be in the same situation as a business registered as a collector of sales taxes.

Keeping your receipts and making it part of your annual (quarterly?) tax return.

devon@ebay   Canadians who have Registered status and live on reserve do not pay federal or provincial sales taxes.

Does eBay have a way of waiving these on imports going to reserves?