I was thinking of buying a game from USA
Anyone knows what to expect from import taxes
Thanks

GST and PST on the declared value after exchange rate assuming you are bringing it across yourself in a vehicle. If you have it shipped in then add brokerage fees also. Do a search on here - there have been a few threads in the past.

If you have it shipped in, try to use a service like Forward Air etc that you can pick up at a terminal and clear customs yourself. Saves brokerage fees.

ME

Hey Thanks alot
found good information..
here on MAACA...

Quoted from medvet

GST and PST on the declared value after exchange rate assuming you are bringing it across yourself in a vehicle. If you have it shipped in then add brokerage fees also. Do a search on here - there have been a few threads in the past.

If you have it shipped in, try to use a service like Forward Air etc that you can pick up at a terminal and clear customs yourself. Saves brokerage fees.

ME

Not exactly Medvet. Pacman1 is from Quebec, so if he passes through the Ontario border to the U.S. he will pay only the Federal taxes (5 %), which is what happens almost every trip to the U.S., but if he passes the Quebec border to the U.S. then he will pay both taxes, federal and provicial (5 % and 7.5 %).
On the other hand, if he has his own company (any) he can pass the game under his companies name and save on taxes, even if he passes the Quebec border he will only pay federal taxes (5 %).


The shipping part is correct though.

Keep in mind that you can get the pin shipped to a UPS store in a US city near the border, like Ogdensberg, NY and then pick it up there, saving on brokerage and probably shipping costs too. I haven't done it myself, but was considering it at one point at it only cost $15 for them to hold the machine for a couple weeks.

More info on UPS Store in Ogdensburg FYI.

http://blog.quay.net/stuff/ogdensburg/

Quoted from ALJO

On the other hand, if he has his own company (any) he can pass the game under his companies name and save on taxes, even if he passes the Quebec border he will only pay federal taxes (5 %).

I suggest that you avoid doing this...a 'big' collector did this and he's regretting doing this right now...

I might look tempting, but payback is a b*tch...

Quoted from RedFive

More info on UPS Store in Ogdensburg FYI.

http://blog.quay.net/stuff/ogdensburg/

Those are good instructions, but I don't think they would work for a pin. When I called there, they said they only accept boxes that would fit through the door, so they recommended it be sent to their warehouse location nearby. I don't remember the address, but I think it was only $15 for them to keep it, which seemed reasonable.

Quoted from frosken

I suggest that you avoid doing this...a 'big' collector did this and he's regretting doing this right now...

I might look tempting, but payback is a b*tch...

I've done dozens of times, never ever hiding it to the customs agents and I never had any problems what so ever, it's not illigal at all.

If you are importing a good, and claiming it will be resold by your business and therefore exempt from taxation, and you have no intention to resell it (and charge tax), I believe that's tax fraud. I wouldn't admit that in a public forum if I were you.

Quoted from jonny_eh

If you are importing a good, and claiming it will be resold by your business and therefore exempt from taxation, and you have no intention to resell it (and charge tax), I believe that's tax fraud. I wouldn't admit that in a public forum if I were you.

I did not admit what you are saying...I never claimed that it would be resold, I never even claimed that it was for my company, I just pass the games under my companies name to not pay the federal taxes, and when customs agents ask questions I answer the truth. Never had a single problem, so, i am not afraid at all to post this on a forum.

I used to work for revcan when they were part of CBSA (and vice versa), I did not work on anything tax related (I was in IT) but I was around people who did.  The following is my understanding on how it works but note I am not an expert.  The following is not said in a chastising way, rather just as an information tidbit.

The law does not state "if you are asked by the custom agent, you must confirm all imported goods", rather the law states "you must declare all goods". You do not need a customs agent to do this, there are forms you can fill out, etc.  This means the onus is not on you to be asked.  If one waits for the customs agent to ask the questions, this is in effect fraud.  The customs agent is irrelevant, he's a representative of the federal government and the CBSA/CRA.  Therefore, when one does not declare items they important in, they are in effect defrauding the fed gov, not the customs agent and are liable for any fallout from that.

I am not certain of your company and the issue of selling pins, I'm just providing info on what is allowed or not, clarifying on the issue of waiting for the customs agent to ask".  Once again, I am not saying this in any way to as judgemental, I don't know all the rules, but be careful, ignorance may be bliss but it can't be used as a valid excuse in a court of law.

Quoted from The Loafer

I used to work for revcan when they were part of CBSA (and vice versa), I did not work on anything tax related (I was in IT) but I was around people who did.  The following is my understanding on how it works but note I am not an expert.  The following is not said in a chastising way, rather just as an information tidbit.

The law does not state "if you are asked by the custom agent, you must confirm all imported goods", rather the law states "you must declare all goods". You do not need a customs agent to do this, there are forms you can fill out, etc.  This means the onus is not on you to be asked.  If one waits for the customs agent to ask the questions, this is in effect fraud.  The customs agent is irrelevant, he's a representative of the federal government and the CBSA/CRA.  Therefore, when one does not declare items they important in, they are in effect defrauding the fed gov, not the customs agent and are liable for any fallout from that.

I am not certain of your company and the issue of selling pins, I'm just providing info on what is allowed or not, clarifying on the issue of waiting for the customs agent to ask".  Once again, I am not saying this in any way to as judgemental, I don't know all the rules, but be careful, ignorance may be bliss but it can't be used as a valid excuse in a court of law.

I understand where you are coming to, I always declare everything I import. What I meant by "when the agent asks questions" is when they ask additional information on, my work, why I bought the game, where am I going with it, and that type of questioning.

Realistically, if you bring a game thru customs whether by car or shipping company in the name of your business, it is now considered inventory and as such must be "on your books" since you used your business to avoid paying personal taxes. As such, if the game is sold, it must then have the taxes charged and declared on your business finances and appropriate taxes remitted to the government. It is no different than any other goods you buy thru a business and resell.

Anybody can claim anything thru their small business but when Revenue Canada comes knocking, looking for supporting documents or worse - an audit- , any products bought thru the company that can not be justified for the sole use of the business will be disallowed and taxes and penalties applied and most important - you will then be on Revenue Canada's radar for a very long time. In my opinion as a longtime small business owner - DEFINITELY not worth the risk - but that's just me

My 0.02
ME

Quoted from medvet

Realistically, if you bring a game thru customs whether by car or shipping company in the name of your business, it is now considered inventory and as such must be "on your books" since you used your business to avoid paying personal taxes. As such, if the game is sold, it must then have the taxes charged and declared on your business finances and appropriate taxes remitted to the government. It is no different than any other goods you buy thru a business and resell.

Anybody can claim anything thru their small business but when Revenue Canada comes knocking, looking for supporting documents or worse - an audit- , any products bought thru the company that can not be justified for the sole use of the business will be disallowed and taxes and penalties applied and most important - you will then be on Revenue Canada's radar for a very long time. In my opinion as a longtime small business owner - DEFINITELY not worth the risk - but that's just me

My 0.02
ME

That's not what my broker told me.
My company is a company that offers services, not goods, maybe that makes all difference.
I'll ask my broker tomorro about this.

Claude

Ask your accountant, not your broker. You may very well be able to justify under your business - trust me, if I could justify putting a pinball into my vet hospital - I would . Personally I think Bad Cats and Mousin Around are perfect for a vet hospital but that's me .

Your accountant is the one with the knowledge in this case - they know your business and Revenue Canada tax laws so can advise you the best.

ME

ME provides great advice, an accountant would be the proper expert to pass on good advice.  Well, a good accountant anyway .

Quoted from medvet

Claude

Ask your accountant, not your broker. You may very well be able to justify under your business - trust me, if I could justify putting a pinball into my vet hospital - I would . Personally I think Bad Cats and Mousin Around are perfect for a vet hospital but that's me .

Your accountant is the one with the knowledge in this case - they know your business and Revenue Canada tax laws so can advise you the best.

ME

OK, thanks for the advice. I just hope I'm, not doing something illegal.

As someone who had to live with a Chartered Accountant for 22 years of his life, I think I have a good instinct for tax stuff like this. I'm pretty sure that any pins that you imported under your business, needs to be sold with GST charged. If there's one lesson that I learned from my dad, it's that you cannot escape from paying taxes! I echo ME's recommendation, speak to an accountant. By catching this now, you can pay the GST on the pins you imported and avoid big trouble down the road. That is a good thing! We're trying to look out for you, don't take it personally

I just talked to an accountant, he says that importing a pin under my company's name, without deducting any taxes, and without putting it in the books, plus it does'nt give any revenue....he was confused and told me to contact Revenue Quebec, which I did, they say that if I would of deducted the pins on my income taxes that it would of been a serious case... but they were'nt, they don't generate any revenue, so they say that it does'nt matter much.

I heard a guy had big problems with this kind of thing, but he must of put the pins in his books and deducted them from income taxes.

End of of story, and I'm happy to know that I won't be in trouble with this all.

Quoted from frosken

I suggest that you avoid doing this...a 'big' collector did this and he's regretting doing this right now...

I might look tempting, but payback is a b*tch...

The key here is that you have to be "reselling" the pinballs as part of your business, not "collecting" them (which attracts sales tax at some point in the way that using inventory for your own personal or family use would).

Quoted from websherpa

The key here is that you have to be "reselling" the pinballs as part of your business, not "collecting" them (which attracts sales tax at some point in the way that using inventory for your own personal or family use would).

I've contacted directly those to who I would of owed money which is the governement themselves and they say, quote,  "no problem".
I think they know better than anyone. You can be sure that I've told them every single detail of the story...."that I imported pins for me personelly under my companies name" and still they say no problem.

Quoted from ALJO

I've contacted directly those to who I would of owed money which is the governement themselves and they say, quote,  "no problem".
I think they know better than anyone. You can be sure that I've told them every single detail of the story...."that I imported pins for me personelly under my companies name" and still they say no problem.

That's good, but I recommend getting it in writing, just to be safe.