GST Question

[godin33]

I am bringing in some surfacing equipment from the states......some used some new, and had a question regarding the GST. Someone I talked to said that the machines may be GST exempt? Is this true? I know that there is no duty, but GST too?

[eyemanflying]

Call your local GST office. I bought a used boat from the U.S. last year and brought it back over the border myself. Although there was no duty on the craft, they dinged me with the PST and GST. Go figure.

[Oedema]

Maybe your friend assumed they would be gst exempt b/c they are possibly classified as medical devices? Unfortunately medical devices intended for use by health care professionals are still subject to gst.

[mike.elmes]

Optical businesses are zero rated, and as such you would be required to pay the GST. However, when filing your quarterly GST return, you should get the tax back.
This is how it works for a retail dispensary that sells and dispenses a non taxable wigit to the consumer. We get back any GST paid on rent, office supplies or edging and surface equipment. If you are a wholesale lab, the rules may be different. Contact CRA.

[godin33]

Thanks everyone!
:D

[OpticLabRat]

Since the dollar in the states has dropped I have been getting a lot of experience in this matter. mike.elmes is exactly right. You have to pay the gst but you will get it back.

My biggest challenge has been getting people set up with customs brokers.

[Chris Ryser]

My biggest challenge has been getting people set up with customs brokers.

Set one up for your company and ship everything through that one and let him do the clearing, then charge the cost to customer. or include it in the price.

[OpticLabRat]

Set one up for your company and ship everything through that one and let him do the clearing, then charge the cost to customer. or include it in the price.

I have tried that but, because we are an American company, I would have to pay gst and duty which is very high on an 18K shipment. If you had your own broker in Canada, you would save thousands.
I would rather see my customers get the best deal and although I could easily pass that cost on, A few phone calls and some paperwork is really worth it.

[Lulubelle]

Hi Leo;

I used to do a lot of importing from the US into Canada. Many of the freight & courier companies can provide brokerage service if your customer doesn't have a customs broker. For the occasional shipment, this can be the best way to go.

Lulubelle

[OpticLabRat]

Hi Leo;

I used to do a lot of importing from the US into Canada. Many of the freight & courier companies can provide brokerage service if your customer doesn't have a customs broker. For the occasional shipment, this can be the best way to go.

Lulubelle

True, but if this is set up by me in the states, How can I get out of the GST and duty? I am told I cannot and I have to pass that to my customer. If the customer sets up the broker in Canada, they pay no duty and get the GST back later.

Is this not correct?

I have been beating my head againt the wall dealing with this issue.
My average sale in Canada is over $18000. There is a significant GST and duty charge for me. This can be avoided if my Canadian customer has a broker set up. I would love to find a better solution.

[Lulubelle]

Hi Leo;

You should find out which freight & courier companies ( such as UPS ) have a business operation in Canada. The larger companies that move goods across the border one a regular basis can usually provide this service. For example, when the goods are in transit, UPS will call your customer and ask them who their broker is, and if they do not have one, UPS can broker the shipment. They will clear the shipment and charge your customer for the duty, GST & brokerage. There would be no cost to you. This may require being selective about who handles your Canada-bound shipments. But it can be worthwhile if it helps you to make the sale and your customer to receive the goods without a hassle.

Lulubelle

[OpticLabRat]

Hi Lulabelle,

Thanks for all the advice. Maybe if I contract a Canadian based freight company who does a lot of business in the states, this could be easier. I am now dealing with only American based companies. I have to use freight because are orders are palletized and are usually very heavy.

The biggest problem for me is, trying to quote a customer. They always ask how much the duty, GST, and shipping will be. From what I understand these rates change more frequently than Bush can say terrah.

I will speak with our shipping manager monday and investigate this further.
Again, Thank you

[Chris Ryser]

Actually UPS does brokerage, if you send directly through them, and autromatically charges recipient with duties, GST and brokerage which is usually lower than the regular brokers.

Customer pays all and claims back GST which is not all refundable and higher for customs clearance.

[Chris Ryser]

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[OpticLabRat]

Actually UPS does brokerage, if you send directly through them, and autromatically charges recipient with duties, GST and brokerage which is usually lower than the regular brokers.

Customer pays all and claims back GST which is not all refundable and higher for customs clearance.

Unfortunately, I need the equipment to arrive in one piece. UPS is definately not an option for us.