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  1. #1
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    Default Question about taxes in Canada

    Hello everyone!
    I'm a new member of this forum, but I'm in this theme long enough. Now I'm planning to move to Canada from Russia in this may. I work as industrial electrician but I've got a hobby - creating a CNC machine. I have my little own woodwork business and amber carving business. But it is only hobby which lets me earn money.
    In Canada I'm planning to continiue CNC hobby or to do something associated with this.
    Could you tell me how expensive to buy CNC parts in China? How much taxes will I have to pay? What per cent? Excuse me if this questions are stupid))))
    Thank you!









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  2. #2
    Community Moderator Al_The_Man's Avatar
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    Default Re: Question about taxes in Canada

    You can get alot of info from the CBSA site Canada Border services, there is no duty for MFN, most favored nation, and China is one.
    ARCHIVED - List of Countries and Applicable Tariff Treatments
    You will however pay GST and PST, but only if it gets checked by customs, the vast majority goes through unchecked.
    Large items may need a broker to clear customs and then it will cost, you can also clear your own if there is a CBSA/customs office where you move to.
    Al.

    CNC, Mechatronics Integration and Custom Machine Design

    “Logic will get you from A to B. Imagination will take you everywhere.”
    Albert E.


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    Default Re: Question about taxes in Canada

    There is no duty on machinery from anywhere in the world insofar as I know (this changed a couple of years ago). All goods are subject to GST (about the same as VAT in Europe) of 13% in Ontario and similar rates in the other provinces. If you are running a business any VAT paid is refundable although you must collect and remit VAT on all of your sales. In my experience small packages that weight less than 250 grams or so are not stopped by customs and no taxes are collected. As Al-the-man noted, larger items will certainly result in taxes being collected!

    Ask further if my comments are unclear.



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    Default Re: Question about taxes in Canada

    Thank you for your answers, collegues!



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    Default Re: Question about taxes in Canada

    You'll pay a reasonable shipping price when you order, then when it shows up at the door you have to pay the random price customs came up with, which is more often than not, more expensive than the shipping was.



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    Default Re: Question about taxes in Canada

    Quote Originally Posted by Browellr View Post
    You'll pay a reasonable shipping price when you order, then when it shows up at the door you have to pay the random price customs came up with, which is more often than not, more expensive than the shipping was.
    That is a rather jaded comment and inaccurate, if one takes time to investigate the process it is quite easy and not necessarily costly.
    Al..

    CNC, Mechatronics Integration and Custom Machine Design

    “Logic will get you from A to B. Imagination will take you everywhere.”
    Albert E.


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    Member kstrauss's Avatar
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    Default Re: Question about taxes in Canada

    The result that Browellr mentions is correct for items shipped via UPS. However, the blame is to UPS and not to customs. RULE 1: NEVER USE UPS FOR SHIPMENTS TO CANADA! If you have to use UPS use one of the premium services that includes customs processing. It is often cheaper to use overnight UPS rather than UPS Ground when the final cost tally is considered.

    For small items shipped by USPS virtually all arrive at my door with nothing owing. More expensive items shipped by USPS are assessed a flat $10 "handling fee" to Canada Post plus sales tax (HST/GST depending on where you live) based on the declared value plus shipping costs. Shippers who care about their Canadian customers (McMaster-Carr, L.L.Bean, B&H Photo, etc) encourage you to prepay sales tax and there are no surprises upon delivery.



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    Default Re: Question about taxes in Canada

    To be clear, I work 50 hours a week and don't mind spending a little extra.

    Yes I am jaded. I'm also ignorant and arrogant. No dis-respect Al, not trying to de-value your purpose and culture on this forum, just speaking of MY experience, be it pagan or not.

    I actually just yesterday paid $110 at the post office for parts from the US that I ordered using USPS. that was an $810 order originally.

    I ordered the chinese stuff through amazon, so yes, tax adjustments, handling fees, etc. aka surprise give me $200 at the door.

    Best advice for moving to Canada; make sure the local zoning laws allow you to operate.



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    Default Re: Question about taxes in Canada

    I can't resist...
    If you paid cdn$810 including shipping for your widget then you owed GST/HST (similar to VAT in other countries) depending on your province of residence. You also owed the usual $10 handling fee to Canada Post. In Ontario HST is 13% so $105.30 + $10 which is less than the $110 that you mentioned. Since you mentioned zoning laws I assume that you are running a business so the HST is a passthrough. That is it is deducted from the amount that you remit to your government based on your sales. What is your complaint?



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    Default Re: Question about taxes in Canada

    My complaint is that I did not know what the amount was going to be until it showed up. I looked over the bill, and yes, you're right, it is GST mostly, so it was inevitably my ignorance of the procedure that caused the fees to seem unreasonable. Problem solved, thanks guys, now I know.

    As for the zoning issue I'm facing, I cannot legally run a business because I live in a residential area where working in your garage for profit is illegal, and it's very hard to find those houses where you can unless you buy (due to supply and demand most likely), hence the advice on checking the zoning laws before moving. Mind you, I have a great job programming and running a 3+1 boring mill and don't currently need a business as I'm content with my hobbies as a learning process. However, should the time come where I can turn out good products, I cannot sell them unless I move to a neighbourhood where I can zone my garage for business. So all I'm saying is, if you want to sell the occasional products out of your garage, be weary of what kind of 'red tape' lies ahead.



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    Community Moderator Al_The_Man's Avatar
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    Default Re: Question about taxes in Canada

    I ran a business from a residential area for 15yrs with two CNC mills and a lathe, but the clincher is you do not need a business license in a residential area unless you have walk-in traffic, or the appearance of.
    .Al.

    CNC, Mechatronics Integration and Custom Machine Design

    “Logic will get you from A to B. Imagination will take you everywhere.”
    Albert E.


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