Subject: Re: American companies that offer to take Canadian sales tax payments
On Saturday, 23 December 2017 09:02:50 UTC-5, Alan Browne wrote:
> On 2017-12-23 01:29, RichA wrote:
> > The way it works is that you pay for an item from an American source,
> > and include the sales tax you'd normally pay once it reached you.
> > UPS, the post office, mostly always charge a tax, if the item is over
> > $50 in value (ballpark) and if it comes from an "official" (invoice
> > is included) source like a store. I've had private sales go through
> > Ebay where no tax was levied up to $300 value of the item. Now, Ebay
> > has its "global shipping program" (items are shipped by the seller to
> > Kentucky where Pitney Bowes processes them, levying the end sales tax
> > normally by the consumer paid to a Canadian province and a
> > supplemental fee as well. It even shows as a separate billing from
> > the retail price and vendor on Paypal. But companies like B&H have a
> > system like it too. The benefit is that there is no scam "brokerage
> > charge" (this is a sleazy charge levied in addition to the shipping
> > charge when low-priced ground services are used. So you might as
> > well go with an express service on cheap items). You pay the
> > Canadian provincial tax up-front. But I'm wondering if the tax is
> > actually fully-remitted to the tax authorities in those provinces?
> > Apparently, a story appeared recently that some companies were taking
> > the tax but not remitting all of it. I don't exactly know how that
> > would be possible.
> The Legal Way:
> If a company has operations in Canada then they can apply tax credits
> against Canadian VAT collected in the US against sales taxes they pay in
> Canada. You don't remit all of the sales tax, only the difference
> between sales tax collected and sales taxes paid (for all things). That
> is the nature of Value Added Tax: only the end consumer pays the full VAT.
> So, if Amazon in the US collect a Canadian sales tax, they may be able
> to legally keep a chunk of it against their Canadian operations costs
> (sales taxed in Canada). (This is not a good example as it's actually
> not easy to buy from Amazon in the US from Canada. Easier to use the
> Canadian site).
Side issue; the prices on the Canadian site are often horrifically higher than on the U.S. site so