Canada Border Services Agency Publishes Fact Sheet on HST & Imports
The Canada Border Services Agency has published a Fact Sheet entitled "The Canada Border Services Agency's Implementation of the Ontario and British Columbia Harmonized Sales Tax" (June 2010), which sets out some of information importers should know about HST.
In short, HST will be applied in respect of non-commercial goods (a.k.a things individuals import for personal use). The "official definition of a "non-commercial good" is: "Non-commercial goods" means "all goods, other than goods imported into Canada for sale, or for any commercial, industrial, occupational, institutional, or other like use."
Beginning July 1, 2010, the importation into Canada of non-commercial goods by or for a consumer that is a resident of Ontario or British Columbia, will be subject to the HST. The HST will apply to non-commercial goods destined for Ontario and British Columbia, regardless of where the goods enter into Canada. NOTE: Goods destined for Nova Scotia, New Brunswick, and Newfoundland/Labrador are also subject to HST.
MORE IMPORTANTLY - As is the case today, the provincial component of the HST will not generally apply to commercial goods that are imported by an HST registrant for consumption, use or supply exclusively in the course of the commercial activities of the registrant.
For more information, please see the Fact Sheet.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
I would like to know how it is possible for Canada legally to charge sales tax (HST) for goods imported from the U.S., when the goods have not been purchased in Canada. It does not seem at all reasonable that one pays sales tax in a U.S. state, then must pay sales tax again on import to Canada.
AFAIK this is a cash grab by Canada, aimed partly at discouraging cross-border shopping, and partly at ensuring the government gets "its share" regardless.
Has this scam never been challenged?
Its amazing how many people aren't aware of these changes. There is definitely is a problem in how information is diseminated to the general importing public.
John, It is exactly because the goods were not purchased here that taxes and or duties are charged. It is how we protect our economy. It is meant to discourage or at the very least help our local business stay competitive. Even if is not produced here...there may be a company here trying to sell the same goods who has to charge the HST... this affects Government revenue.
But I do agree that it seems unfair to charge sales tax on top of sales tax. The fair thing would be to charge taxes on the value net taxes already paid.
Cheers
I have items in Canadian Customs from an estate in England, which were left to me in a will, valued at $2400.
Should they be subject to HST?
Like many dental offices in the province of Ontario, we are purchasing supplies from the USA, but the vendor in the USA insists on adding on the 13% HST, despite our efforts to advise them that goods and supplies purchased for commercial activities in the province of ONTARIO are only subject to the federal portion [5% gst] of the HST currently at 13% in ONTARIO..the vendor claims that inquiries to CRA have lead to advice that the HST [13%] should always be charged on goods entering Canada
can you please give a technical bulletin reference by CRA and/or CBSA to help clarify to the vendor the correct application GST/HST to commercial sales into ONTARIO..
what if any consequences and/or penalties could the vendor face if they continue to charge the 13% HST on goods for commercial use..
does the buyer have any recourse to obtain a refund of the 8% PORTION OF THE of HST [8% + 5%] FROM CRA..please note that most dental offices do not have a HST or GST registration number as these taxes are not applied to dental services provided to patients
thanks
Cyndee's response - I think the seller may be right - you need to get specific advice.
I want to buy a hard top for my GM Tracker do I have to pay duty or HST if bringing it in from the U.S. The top is made in the U.S.
I just learned about this earlier tonight upon crossing the border with my friend. We have crossed several times since the alleged implementation of this rule. My wife and I have also crossed a few times since the implementation of this rule. Several of our friends have crossed since the implementation of this rule. And this is the first time that anyone had even suggested that this is the rule. All of the items we had purchased were exempt from any US tariff whatsoever according to the CBSA website, which would suggest that if true cross-border free trade were to take place, then there would be no restrictions or taxes whatsoever.
We didn't lie about anything that we bought. We didn't smuggle any alcohol, tobacco or firearms into the country. Yet the trunk was popped open and searched, and then we had the rule explained to us when the border guard went from bad cop to good cop, realizing we were telling the truth the whole time. We didn't have to pay any HST, as has been the case previously. It doesn't look like the border guards are set up to act as collection agents, which isn't their primary duty anyway.
Can anyone imagine how ridiculously long border lineups would be if guards had to start acting as cashiers? That's just insane, especially at this time of year. People are going to come back with $100-$150 worth of things, and a border guard has to spend a few minutes with each car reading all the receipts, adding them up, presenting a subtotal, adding the HST to that subtotal, asking the customer to pay for it, having to process a transaction (which would detract from the HST collected as fees would be incurred), and then somehow getting everyone to move through efficiently. Queenston/Lewiston is ill-equipped to handle weekend traffic without this burden...imagine how bad it would be with the burden.
The whole "helping local business" angle doesn't fly, either. If government truly wanted to help local business, it would remove many of the business-killing aspects that it implements such as the HST itself and higher personal taxation levels that force the average consumer to require higher wages from...yep, the businesses that hire them. Therefore, the only help the government is providing local business is assistance with the very problems it has created.
They're not equipped for this. They shouldn't be forced to do this. And I never thought I'd say this, but I'm glad the border guards haven't taken on that responsibility, generally speaking. They probably didn't get any kind of raise to compensate them for their additional duties, so why should they have to perform them?