The one at the CRA told exactly what you posted. You do not collect GST or HST. Customers pay duties and taxes imposed by the CBSA which is collected from them by the Canada Post.
However, he told me that I must collect GST/HST for other provinces and PST for Saskatchewan residents. Customers should not pay taxes imposed by the CBSA as they will end up with paying taxes twice. My broker agent should release the package on my behalf and my business should pay import duties and taxes.
The 3rd agent at the GST office told me that I do not collect any GST or HST but the PST only for the Saskatchewan residents. My broker agent should release the package on my behalf and my business should pay import duties and taxes.
I called CBSA and the agent told me that I must collect GST or HST from other provincial residents and the GST, PST for the Saskatchewan residents. My broker agent should release the package on my behalf and my business should pay import duties and taxes. Now, the taxes imposed by the CBSA will be credited back to me when I file taxes.
Another friend of mine also called and different agents told him different rulings.
roysommerfeld wrote:Hi Folks,
I am located in Canada and want to start a small online retail business and want to try drop shipping for the first time. I'd like to drop ship from China, to Canada (Canada wide) and have only two questions about Business registration and Customs
I called and asked 3 different People who (I thought) should know everything about it and guess what,.... 3 different answers. If this is not confusing,... I don't know.
However,... Now I ask one of you , who is dealing with it on his/her daily basis, hoping that there is someone from Canada out there who knows a little about it.
OK, here are my 2 questions
1. since I'm going to sell online (inside Canada only) I was been told I have to register my Business in all Provinces and Territories.
Bullshitt or truth ?
2. Since I'm planning on doing drop shipping (mainly from China for now) , do I have to have an Import permit for this and have to clear and pay the duties for the Items coming into Canada or is the purchaser responsible for this ?
I don't know if I will have the time, to clear all these (most times) single Items, I don't mind at all paying the duties and fees and so on, I just like to know, what is the best way to get a product to the client with as less inconvenience as possible. Hiring a Customs Broker would make a single Item or even a small amount of Items of lower value exorbitant expensive.
So, what do I have to do ?
Thank you in advance for your answers.