• Most goods imported into Canada are subject to the Goods and Service Tax (GST) or the Harmonized Sales Tax (HST).The GST was implemented in Canada on January 1, 1991. Most Canadian businesses and Non-Resident Importers are registered with the Canadian government to collect the GST/HST. The GST/HST is a tax on final consumption, however, unlike a retail sales tax, the GST/HST has a multistage collection process.

• GST is applied at the border to all imported Commercial goods destined or supplied to all provinces within Canada.

• Registered firms collect the GST on the sale in Canada of taxable goods and services supplied to all provinces with the exception of New Brunswick, Nova Scotia or Newfoundland at a rate of 7%. Registered firms collect the HST on the sale in Canada of taxable goods and services supplied and destined to New Brunswick, Nova Scotia and Newfoundland at a rate of 15%.

• In certain instances, a registered Non-Resident Importer may be paying 7% GST at the border on the commercial goods destined for, i.e. New Brunswick, however, will be collecting 15% HST from the customer. This would then require a remittance of tax by the NRI to the Government.

• Registrants are entitled to claim tax credits or rebates on the tax paid on all purchases or imports.

• For Non-Residents who decide to register, it is important that their registration number be quoted on all invoices. This allows the Non-Resident’s GST/HST registered customers to claim their own GST/HST credits or rebates.

• A Non-Resident who does not have a permanent establishment in Canada may be required to provide security when applying to be registered. The security can be in the form of cash, certified cheque or a surety bond.

Again, while most goods are subject to GST/HST, the following is a short list of goods that are zero-rated or not subject to the GST/HST:

• Basic groceries and foodstuffs, most farm product/livestock
• Prescription drugs and medical devices
• Most major farm and fishing purchases
• Fresh caught fish and seafood
• Canadian exports
• Transborder shipping costs

As the Importer of Record, you will be responsible for payment of the GST on any taxable commercial goods entering Canada. Your option is to register or not to register. We offer the following information to assist you in deciding.