Collecting GST/PST in Canada

Is it possible for a US firm to collect and remit these taxes?

[CernyM]

One of the barriers to my company trading more with Canada is the GST/PST issue. Canadian customers are forced to pay these taxes + customs brokerage fees upon receipt of shipped products, rather than at the time of purchase.

Customers would far prefer to pay all taxes and fees when purchasing. Does anyone know if it is possible for a foreign firm (US based, in this case) to collect and remit Canadian taxes on behalf of the customer?

Same question applies to the various VATs in the UK and Europe...

[lgn1]

You can't do it by Canada Post. If you are using a courier service like UPS, you can check the Free Domicile box. But this means that you will pay the taxes, and brokerage fees (which is ussually more than the taxes).

The problem is that Canada Customs will charge duty and taxes on any item greater than $20. In the USA, Customs don't bother for anything less than $200.

For example ($25.00 item, GST collected $1.75, Brokerage fee $29.95).

Being from Canada, I enjoy this unfair trade advantage, as it keeps the American competiion out of the Canadian Market, while allowing us easy access to the US market.

Maybe someday, Canada Customs will figure out that it cost more to collect anything under $200.00, and raise the limit.

Canada will only represent about 9% of a typical US market, so it will probably be more hassle than its worth.

[fiu88]

There is no Duty on US made goods entering Canada....
UPS/FedEx will charge duty if you do not provide a NAFTA certificate...They will also charge a brokerage or clearance fee unless you prepay or use an expedited service....
Upon importation, all recipients will be charged GST only, collected by the courier.....

Just tell your cuastomers of the added cost upfront, be sure to include the right paperwork..

[Rugles]

>>Being from Canada, I enjoy this unfair trade advantage

Damn straight!

The only way around it would be to get a fulfillment operation up here in the great white north. But, that means your company will now have to deal with Canadian laws and paperwork.

Your other option is to get a Canadian distributor, and let them deal with it.

So if I were you, ship goods via postal service and make your customer aware they will be responsible for sales taxes.
If a Canadian customer stills complains about sales tax, they probably have not lived here very long.

[CernyM]

There's no duty on the goods, as they are produced entirely within the NAFTA trade zone.

I was hoping to be able to charge and collect the GST/HST as part of the order and then remit it. Some Canada governmental website seemed to indicate such a thing was possible, though without specifying how.

Our Canadian customers are all aware that goods are taxed, but every little bit of extra convenience ('I need to remember to have money to pay the delivery service') = more sales.