NON-REGISTRANT
Must
pay 7% GST on taxable goods at time of import.
The Flow Through Method of GST
recovery must be used by your firm to pass
on the GST paid at the border. A Registered Canadian
customer can take advantage of the GST paid
by you and use it as their own Input Tax Credit
(ITC).
Flow
Through Method of GST Recovery
- Commercial
Invoice – Non-Registrant includes GST
in their Selling Price to Canadian customers.
A Non-Registrant is not legally allowed
to collect GST from their Canadian customer,
therefore, GST should be included in the Selling
Price as a Cost. GST must not
be indicated as a separate line item on
the Commercial Invoice.
Canada
Customs Invoice – Non-Registrant
declares the same Selling Price (GST
included) as indicated on their commercial
invoice, however, in Field 9 of the
Canada Customs Invoice, Conditions
of Sale, it must state "Selling
Price includes GST".
- GST
is paid on goods entering Canada at time
of import; GST is calculated on the Duty
Paid Value of the goods.
- Non-Registrant
must supply Canadian customer with a copy
of their B3 (Canadian Import Entry) to substantiate
the GST paid status of the goods purchased.
It
is important to ensure that your Canadian customers
understand and accept the Flow Through Method of
claiming an Input Tax Credit. It is
also important to ensure that the tax you pass
on will match the amount paid at the border.
The current GST rate of 7% is collected by
CCRA at time of import on the Duty Paid
Value of the goods.
Canadian
Government Publications with more detailed
information can be obtained from our NRI Service
Department in Fort Erie, Ontario.
Titles:
Doing Business in Canada – GST/HST Information
for Non-Residents
General
Information for GST/HST Registrants
Guide
to GST/HST Tax Return for Registrants
General
Rebate Application Guide
|
