Customer pays GST twice?

[onlineseller00]

If I am a Canadian store using an american drop shipper, does it mean the Canadian customer has to pay GST twice? First, I would charge the customer GST and second, the customer would have to pay GST again when he receives the package. If I charge GST to the customer, is there a way to make the customer exempt from paying it a second time? Thanks.

[Rugles]

So you are having goods drop shipped from the USA to Canada?

That sounds like it could lead to several problems including the GST problem. What if they get hit with a brokerage fee?

But yes, if you invoice a Canadian customer and you are a Canadian business, you absolutely have to charge GST. Then when the goods enter the country, they will again charge the customer GST. It will be a bookkeeping nightmare.

The only way I can think of to get around it, have to goods shipped to you, then forward it to your customer. That way you could considate the shipment coming in and pay only 1 brokerage fee (if applicable) and the GST once (which eventually gets covered by the end user, like the tax was intended to do).

Or, eat the GST yourself and let the customer pay for it too. Double paying the tax might be your only option to avoid a mountian of paperwork to claim back the GST back later.

[lgn1]

It's also gets more complicated, as sometimes Canada Customs does not charge any GST at all. Sometimes they are strict about the $20 dollar limit, sometimes they don't bother for stuff up to $50 dollars.

Fortunately our distributers have both Canadian and American warehouses, so I dont have to worry about the logistics.