I'm visiting Canada, can I claim back the GST for purchase made in the US, but shipped to Canada.?

Question

I just can't work this out, hope someone out there can help. I live in the UK and have ordered a piece of camera equipment from a US store, that I need delivered to me in Canada while i'm on holiday there. I'm only in Canada for a couple of weeks, then to the US, then back to the UK.

I've been told that I will have to pay Canadian taxes when the equipment is delivered. I don't understand why as I'll be paying a sales tax on the purchase already, and i'm only visiting Canada.....but ok.

Surely I can claim back the Canadian tax or should I not be paying it in the first place?

Answer 1

You'll have to pay it anyway. But so you don't have to pay duties, I would suggest taking the camera out of the box and putting it in a regular bag so that customs doesn't know its brand new

Answer 2

For GST purposes (i can't help you with provincial taxes ie. PST), GST will be charged at a rate of 5% on any supply of a good made in Canada (including importation of that good) unless there is a zero-rating or exemption provision for the item. In saying this, the piece of camera equipment is a taxable good that is being imported into Canada so GST will be assessed on it when it crosses the border coming into Canada from the USA. There is nothing you can do to stop the collection of the GST on this item.

There used to be a Visitor's rebate to claim any GST back on items taken back with you to a country outside of Canada, however this program ceased by the Canada Revenue Agency as of April 1, 2007.

So in essence, you will have to pay the GST tax of 5% on the item and there is no way you can get the GST tax back.

Sorry about your luck, but I hope to have answered your question here.