joined:Nov 12, 2017
We have a company that sells horizontal garage doors. We are certified for U.S. and Canada. We have not made a sale yet in Canada so I am trying to understand the GST, Duties, payments etc.
First question; our typical sale will be $5000 to $15000 USD. All of our parts except for the garage door motor, are made in the USA. The value of the motor is approximately $400 USD. In consideration of NAFTA, would we pay duties only on the motor or have to pay on the full value as it includes on part that is not made in the U.S.A. We could always ship the motor separately if that makes a difference.
Second, I see that there will be a 5% GST or PST/HST depending on the province. My question is, we are shipping via common carrier. Will we pay that GST/PST/HST or will our customer when it is delivered?
Lastly, does incorporating our business in Canada help us at all? At this time we have no intention of opening an office or a warehouse etc as all of our products (besides the motor which is made in Germany and we purchase it in the U.S) but just curious if incorporating in Canada has any benefits for us. I have inquiries out to our merchant processor as I do not know if we can accept Canadian credit cards or not so thinking I may need to open a Canadian bank account which means I would have to incorporate in Canada.