Cdn Tax on Freight for Items Delivered to U.S. Border Point?

eeyore · Post by **eeyore** » Fri Apr 03, 2015 11:42 am

Not sure if this is the correct forum to ask this question, but I don't know where else to turn.

I live in Canada. I purchase an item from a U.S. source and ship to a border point within the U.S. I then pick up the item in the U.S. and transport it across the border into Canada myself. At the border, do I pay taxes to Canada and my province on the shipping charges I paid to get the item to the U.S. border point, or just on the value of the item, apart from shipping?

I've scoured CBSA's website, and I can't see anything that matches this scenario, yet it happens all the time, given eBay, etc.

Thanks.

nelsona · Post by **nelsona** » Fri Apr 03, 2015 11:43 am

It should be only the item value including tax.

eeyore · Post by **eeyore** » Fri Apr 03, 2015 12:27 pm

[quote="nelsona"]It should be only the item value including tax.[/quote]

That's what I thought. But the border guy said I had to pay tax on the total amount I paid, including what it cost me to get it to the border.

I was sure I had seen this scenario explained on the CBSA website in the past, but I can't see it any more. Do you know if there a web doc I can reference?

Thanks.

nelsona · Post by **nelsona** » Fri Apr 03, 2015 1:25 pm

Well, since you can't exactly argue with the border guy. I would suggest you keep looking.
I would understand paying tax on the shipping if it were sent to Canada; if it is the case, then I guess you wasted youyr time shipping it to the border.

eeyore · Post by **eeyore** » Fri Apr 03, 2015 1:57 pm

[quote="nelsona"]I guess you wasted your time shipping it to the border.[/quote]

Not quite. Shipping and brokerage charges to Canada can be outrageous, compared to a U.S. border point. (Try shipping UPS to Canada, and you'll see what I mean.)

nelsona · Post by **nelsona** » Fri Apr 03, 2015 4:23 pm

I said time, not money. Gas is still expensive too.