Tax Rules for US Suppliers and US buyers but Based in Canada

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kndarcy
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12 Nov 16 12:03:14 am
I am thinking about starting a drop shipping business in Canada. What do I need to know about taxes in Canada and if I were to sell to the USA? Any info would be greatly appreciated.

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fudjj
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Joined: 27 Jul 07
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12 Nov 16 04:49:09 am
Hi Kathleen and welcome to the forum,

In regards to selling in the US, applicable import duties would be the only taxs and those would be charged to your customer as they would be the ones receiving the package. In regards to your full taxation requirements in Canada, you can ring T.I.P.S. (Tax Information Phone Service) 1-800-267-6999, they will be able to advise.

Cheers


Mark (fudjj)

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kndarcy
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15 Nov 16 02:55:35 pm
If I am from Canada but my wholesaler is in the US and I sell a product to a US customer do I pay income tax in the US?

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fudjj
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15 Nov 16 06:33:19 pm
Hi Kathleen,

No, if there is any import duties applicable in the US then those are charged to the customer on delivery of the goods. Your income tax is only payable in Canada.


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petemandude
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26 Nov 16 04:54:07 am
nice info,,how would one find out how much taxes they would pay for import tax...i would imagine it would work both ways when shipping from canada to U.S.A and U.S to canada.Probably by weight?

Do most web sites state this to their customers?

thnks,Pete

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fudjj
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26 Nov 16 07:54:46 pm
Hi Pete,

There will be (I assume) some import duty threshold, but I'don't know what that is personally. Best to get accurate advice from US Customs and Border Protection themselves to be 100%. They'll also be able to clarify what can and what can't be brought into the country as well if you are in doubt.

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In regards to websites displaying import duty information, it would be rare to find that sort of information on supplier websites.


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petemandude
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27 Nov 16 07:04:21 am
cool,,thanks.

Do most web sites state this to their customers? What i meant here was my own site posting this...


Thanks

Peteman

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fudjj
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27 Nov 16 07:18:10 pm
Ahh, OK, got it.

If you're only selling into that single US market, then customs information for US customers on your site would be a good idea I think. Keeping your customers well informed through your website can only be a positive thing, but you just have to always be aware of keeping your information sectioned.

For example, information such as that should go under the "Shipping Category". You wouldn't want to just cram everything under something like "About Us" like many do. All that does is make a site messy and makes it hard for a customer to find details on the relevant info they are looking for.

Having a clean and concise website design is like being served by a clean and concise sales consultant in a bricks and mortar store. When you ask a question, you want a good straight to the point response, you don't want a sales rep that waffles on about nothing before getting to the point. No different to online, customers want the information they are looking for as quickly and concise as possible.


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petemandude
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27 Nov 16 10:47:04 pm
awesome advice...ya the more babble the more you want too walk away.

Thanks fudjj

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