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Cross border shopping doesn’t always involve driving and visiting malls in person. Shopping on-line is most convenient today. Thanks to the extension of Internet Tax Freedom Act, US mail order companies will not charge US sales tax for orders coming to Canada. However cross border mail order has its pitfalls that you should consider and investigate carefully.
- Warranty. Some products do not have international or North America warranty.
- Return of defective products. Some mail order firm only handle defective products for a limited period of time. After that, you’ll have to deal with the manufacturer directly. Of course, you’ll pay for all the shipping charge.
- Satisfaction guarantee. Unlike the friendly local companies, mail order companies usually have a limited satisfaction guarantee and may charge a restocking fee for returned items.
- Shipping cost. Without exception, free shipping cross border never applies.
8 responses so far. Leave a comment
I want to order a Golf GPS from a US store. I believe there is no duty on it but will I have to pay taxes since it costs $399USD. If so, will the taxes be based on the $399 value or on the converted value in Canadian dollars or the value for which it is being sold in Canada ($499CAN)?
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BoB
Reply:
November 24th, 2009 at 3:59 pm
Tax will be calculated based on the recipe price converted to CA$, based on a government published exchange rate.
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Hi,
I’m selling a horse saddle on Ebay, and the Canadian bidders want to know how much shipping will be; before I can tell them, I need to figure out what the tax and/or duty fees will be on the saddle. Is there a standard tax/fee rate or does it go by the dollar amount or what? I can’t figure it out using this site ( I may be stupid, but this site is a bit obtuse it seems…Can’t seem to find a simple answer) Can you help?
[Reply]
Dan
Reply:
February 19th, 2010 at 3:26 pm
You won’t pay the duty the buyer will when they take delivery of the item. The Canadian Border Services (http://www.cbsa-asfc.gc.ca/menu-eng.html) is the place to confirm the duty / taxes.
I am not 100% sure but if the item is made in the USA all the buyer should be on the hook for is 5% GST and any provincial sales tax on the item.
The real kicker is if you ship it by FedEx or UPS. They both charge VERY high ‘customs broker’ fees to handle the item at the border. The USPS / CanadaPost does not. On small items the fees can be more than the item it self.
Offer USPS to us Canadians if you can and be clear that they are resposible for determining / paying any duty and / or tax atthe border.
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i buy cigarettes online from a bonded warehouse in Ukraine. I just got a duty bill of $250. (yes you read that right) on 4 cartons including $160 flat ($40 each) for “provincial tobacco and/or alcohol taxes”… is there a reason why i’m being charged this? what’s the point of buying online if they can still charge me duty – from a Bonded Warehouse??
[Reply]
Dan
Reply:
February 19th, 2010 at 3:19 pm
‘bonded’ has nothing to do customs. It just means that the warehouse is claiming that they take extra security measure (background checks etc) with their employees.
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on line i purchased hand drums (tabla) worth 200 canadian dollares , do i have to pay duty on it. please reply me.
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does anyone know what taxes i pay on shipping from the USA to Alberta Canada. i am coming from UK and want to purchase some jeans while there from American Eagle
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