A question about using stamps

I usually take all my mail the the P.O. but now I am using stamps. My question is about tax on the shipping. I have been adding tax it to the cost of the item,like 100g lettermail to Canada, 1.94, and have been putting 2.19 in stamps, but then I realize that I have already paid tax on the stamps, so I don't need to add extra stamps for the tax right?

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A question about using stamps

in a word yes,

you are correct- tax already paid...the correct amount of postage is the face value of the stamps

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A question about using stamps

in a word yes,

you are correct- tax already paid...the correct amount of postage is the face value of the stamps

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A question about using stamps

On of the advantages of buying discounted mint stamps on eBay is that some sellers do not add GST or shipping to your cost.

 

Other costs avoided by avoiding the PO counter include the "fuel surcharge"  although with gas prices dropping below 75c in Ontario reportedly, that may be less of a saving.

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A question about using stamps

Just to be perhaps over the top:

 

Based on the tax rate it looks like you are in Ontario.

 

It costs $1.94 to ship the item.

 

You only have to put $1.94 of stamps on the package.

 

If you purchased physical stamps from the post office to put on the package, they would cost you $2.19 ($1.94 plus 13% HST)   This is where you pay the tax, the PO collects it and remits it to the government.

 

As the others have said, if you already have stamps in hand, you or someone before you paid the taxes, you only have to put the amount of the postage on the package, $1.94 here.

 

 

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A question about using stamps


@ricarmic wrote:

Just to be perhaps over the top:

 

Based on the tax rate it looks like you are in Ontario.

 

It costs $1.94 to ship the item.

 

You only have to put $1.94 of stamps on the package.

 

If you purchased physical stamps from the post office to put on the package, they would cost you $2.19 ($1.94 plus 13% HST)   This is where you pay the tax, the PO collects it and remits it to the government.

 

As the others have said, if you already have stamps in hand, you or someone before you paid the taxes, you only have to put the amount of the postage on the package, $1.94 here.

 

 


Thank you so much, that is exactly what I wanted to know. I just ordered $80 worth of stamps from Canada Post and there is almost $11 HST added, that was when I realized that I have been putting too much on my lettermail.

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A question about using stamps

If you are using stamps for domestic oversize lettermail 100g and under affix 2 permanent plus 1 ten cent.
(2x 0.92) + 0.10 = 1.94
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A question about using stamps


@kawartha-ephemera wrote:
If you are using stamps for domestic oversize lettermail 100g and under affix 2 permanent plus 1 ten cent.
(2x 0.92) + 0.10 = 1.94

Great, my husband has a roll of those, we were not sure what the actual value was.

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