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Should I charge taxes to my Canadian customers for US products?

I'm in Canada, dropshipping from US suppliers, what if buyer is Canadian?

         

LadyNatsumi

3:19 pm on Dec 7, 2004 (gmt 0)

10+ Year Member



Hi everyone!

I'm new in this forum, and found it while trying to figure out how I should go about charging taxes.

I live in Quebec, but want to use dropshippers located in the US. These dropshippers agree to ship worldwide and that's great.

My problem is about shipping to Canadian customers. I know that whenever I buy an item from a US seller, I have to pay some duty charges and taxes that the Canadian customs charge me. But how do I proceed as a company?

I have to charge taxes to my Canadian customers, but since my supplier will ship directly to them, they might get charged again by the Canadian customs...

Should I charge them anyway? Or am I allowed not to charge them knowing that the Canadian customs will?

I'm still working on my website, and want to start selling soon, but can't sell to Canadians until I know how to proceed about taxes.

I tried contacting Revenu Quebec, but it takes forever to get an answer, so I tought I'd ask here.

Thanks!
- Diane

lorax

3:22 pm on Dec 7, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Welcome to WebmasterWorld LadyNatsumi!

I'm not sure what to tell you other than to check with the Canadian government but perhaps one of our Canadian ecommerce folks will chime in and help out.

kodaks

8:54 pm on Dec 7, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



This may help, from the Government Canada website:
[cra-arc.gc.ca...]

lgn1

2:42 am on Dec 9, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The answer is NO

Revenue Canada or Canada Customs and Revenue Agency as they like to be called will collect HST from NS,NB and NF and the GST from the rest of the provinces and the teritories. In addition CCRA will charge duties for non-NAFTA goods. The customer will also pay a $6 handling fee if the parcel was mailed from the US by USPS/Canada Post. If you use a courier such as UPS,DHL etc, the customer will pay a $29 brokerage fee instead, so its best to get your drop shipper to use the United States Postal service if possible.

The best solution is to find a Canadian supplier for your goods, for canadians, to remain competitive.