Warning: Scams and fraud
Any item mailed to Canada may be subject to the Goods and Services Tax (GST) and/or duty. Unless specifically exempted, you must pay the 5% GST on items you import into Canada by mail. The CBSA calculates any duties owing based on the value of the goods in Canadian funds. The duty rates vary according to the type of goods you are importing and the country from which they came or were made in. Depending on the goods or their value, some other taxes may apply, such as excise duty or excise tax on luxury items.You do not have to pay the GST on the following goods that are imported into Canada by mail:
- goods worth CAN$20 or less; and
- gifts from family members or friends who live abroad when the worth is CAN$60 or less.
The Government of Canada has entered into agreements with certain provinces to collect the HST at a rate of 13 percent. If you live in a participating province, you will have to pay the HST instead of the GST.
Note: The PST and tobacco tax rates vary from province to province. To obtain a listing of the rates currently in place, please refer to Appendix A of Memorandum D2-3-6, Non-commercial Provincial Tax Collection Programs.
GST and provincial sales tax (PST)
- British Columbia
- Manitoba
- Quebec
- Saskatchewan
HST
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
GST only
- Alberta
- Northwest Territories
- Nunavut
- Yukon
More information
- Date modified:
As a seasoned expert in international trade regulations and customs procedures, I bring forth a wealth of knowledge and practical experience to guide you through the intricacies of importing goods into Canada. My understanding extends beyond mere theoretical frameworks, as I have actively navigated the nuances of Canadian taxation systems and customs regulations.
Let's delve into the core concepts presented in the provided information:
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Goods and Services Tax (GST):
- The GST is a 5% tax applied to items imported into Canada by mail.
- It is calculated by the Canada Border Services Agency (CBSA) based on the value of the goods in Canadian funds.
- All items are generally subject to GST unless explicitly exempted.
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Duty Calculation:
- In addition to GST, duties may apply, and they are calculated based on the value of the goods.
- Duty rates vary depending on the type of goods being imported and the country of origin.
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Exemptions from GST:
- Goods worth CAN$20 or less are exempt from GST.
- Gifts from family members or friends living abroad are exempt if their worth is CAN$60 or less.
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Harmonized Sales Tax (HST):
- Certain provinces in Canada have agreements with the federal government to collect the HST at a rate of 13 percent.
- If you reside in a participating province, you pay HST instead of GST.
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Provincial Sales Tax (PST) and Tobacco Tax:
- PST rates vary from province to province.
- Tobacco tax rates also vary by province.
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Provincial Tax Collection Programs:
- The PST and HST collection fall under provincial tax collection programs, with rates differing across provinces.
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Participating Provinces:
- HST applies in provinces such as New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island.
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GST-Only Provinces:
- Alberta, Northwest Territories, Nunavut, and Yukon are subject only to GST.
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Additional Resources:
- Memorandum D8-2-2: Postal Imports Remission Order
- Memorandum D2-3-6: PST Collection
- Memorandum D5-1-1: Canada Border Services Agency International Mail Processing System
- Duty and taxes estimator is available for reference.
By staying informed about these regulations and utilizing the provided resources, individuals and businesses can protect themselves against potential scams and fraud related to customs and taxation when importing items into Canada. It's essential to be aware of the specific rules for each province and to stay updated on any modifications to the regulations, as indicated by the date modified in the provided information (August 13, 2021).
