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Canadian Taxes

Just about everything individuals import into Canada is subject to the Goods and Services Tax (GST) of five percent. The GST is calculated after customs duties have been applied.

You will also have to pay the applicable Canadian Provincial Sales Tax (PST) or Quebec Sales Tax (QST). The provincial retail sales tax rates vary from province to province, as do the goods and services to which the tax is applied and the way the tax is applied.

In Canadian provinces with a Harmonized Sales Tax (New Brunswick, Nova Scotia, and Newfoundland and Labrador), you'll be charged a flat 13 percent, rather than separate GST and PST.

Customs Brokers Fees

Fees for customs brokers services are the charges that can really catch you by surprise. Courier companies and postal services use customs brokers to get packages processed through Canada Customs at the Canadian border. Fees for that service will be passed along to you.

Canada Post automatically applies a $5.00 processing fee ($8.00 for Priority Post) for each package to clear Canada Customs.

Customs brokers fees for courier companies vary, but are usually a good deal higher than the Canada Post fee. Some courier companies may absorb the custom brokers fees (including them in the courier service price), depending on the level of courier service you have selected. Others will add the customs brokers fees on top and you will have to pay those before you can get your parcel. If you select a courier service for shipping to Canada, check whether the level of service provided includes customs brokers fees. If it is not mentioned on the shopping site you are using, you can check the service guide on the individual courier company site or call the local number of the courier company to find out their policies.

 


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