Participants of the Courier Low Value Shipment (CLVS) program and e-commerce companies are responsible for paying any applicable provincial sales tax (PST) and harmonized sales tax (HST) when importing casual goods.
“Casual goods” refers to goods that are not intended to be sold commercially and must be properly reported, and accounted for, as such. Specifically, these goods will attract PST or HST, where applicable, as well as customs duties and the goods and services tax (GST) upon importation into Canada.
The Government of Canada has signed agreements with provincial governments to have the Canada Border Services Agency (CBSA) collect and remit the PST/HST on behalf of these provinces. The applicable rates for the PST, HST and provincial tobacco tax on casual goods and rates can be found in Memorandum D2-3-6, Non-commercial Provincial Tax Collection Programs.
The collection of PST is based on the point of importation into Canada. If the goods are imported through the province in which the buyer resides, the relevant PST rate for that province will be applicable. The HST (combination of PST and the GST) will be charged on all taxable non-commercial importations by residents of participating provinces. The HST rate will be collected regardless of where a resident resides or where the goods enter into Canada.
In order to account for casual goods processed through the CLVS program, importers/brokers must present or transmit a properly completed Form B3, Canada Customs Coding Form.
Reporting and Accounting for Low Value Commercial Goods (Not Exceeding CAD$2,500)
Accounting for the Harmonized Sales Tax, Provincial Sales Tax, Provincial Tobacco Tax and Alcohol Markup/Fee on Casual Importations in the Courier and Commercial Streams
Courier Low Value Shipment Program
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