importing private sale item

macrider

macrider

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Here is a question I can't seem to find an answer for, perhaps someone here has done this?
I am buying a motorcycle exhaust system from a guy in Chicago.
This is a private sale, person to person not affiliated with any store, and the exhaust is new.
He is shipping it to CBI in Niagara Falls.
Do I have to pay duty and PST and HST at the border even thou this is a private sale?
If it was a used exhaust system would there be taxes on it?
 
Thanks, theres good info there but it still did not mention anything about private sales ?
Unless I am not reading it right, I still do not have an answer.
So from what you can see here do I pay HST and PST on private sale items? Yes or No?
 
Note: I recently picked a bracket (for a top case) from CBI and, on the way back to Toronto I had to pay taxes on the part plus THE SHIPPING (in your case it would be the shipping from Chicagoland to Niagara falls).


I told the agent that charging me taxes on a service that was rendered within the USA doesnt make any sense (I am willing to pay taxes on a part that is coming into Canada, but a service? How do you "import" a service that was already done? Why do they tax on that?). The agent did not care to listen to me, and insisted that I have to paid taxes on the grand total, and I didn't want to argue over approx. $3, so I paid for it.

Solution? I don't know. Get the seller to write you a bill of sale for $1? I don't know.
 
That I will do, because it is a private sale I will ask the seller to write up a note saying perhaps $100.
I am actually paying $600 + $50 shipping for a new exhaust system that is retailing for $1200.
But paying HST on something being bought privately from the U.S. is a piss off.
Buying something privately within Canada you do not have to pay taxes. (unless its a vehical)
 
macrider said:
That I will do, because it is a private sale I will ask the seller to write up a note saying perhaps $100.
I am actually paying $600 + $50 shipping for a new exhaust system that is retailing for $1200.
But paying HST on something being bought privately from the U.S. is a piss off.
Buying something privately within Canada you do not have to pay taxes. (unless its a vehical)
Click to expand...

You don't pay taxes on private purchases within Canada as the taxes were collected when the item was first sold. Purchases out of the country were never assessed any taxes, hence the collection of them when you import the item.
 
MarcosSantiago said:
Note: I recently picked a bracket (for a top case) from CBI and, on the way back to Toronto I had to pay taxes on the part plus THE SHIPPING (in your case it would be the shipping from Chicagoland to Niagara falls).


I told the agent that charging me taxes on a service that was rendered within the USA doesnt make any sense (I am willing to pay taxes on a part that is coming into Canada, but a service? How do you "import" a service that was already done? Why do they tax on that?). The agent did not care to listen to me, and insisted that I have to paid taxes on the grand total, and I didn't want to argue over approx. $3, so I paid for it.

Solution? I don't know. Get the seller to write you a bill of sale for $1? I don't know.
Click to expand...

Thats strange. I just had some goods shipped in from the States (private seller). Before the courier company could deliver though I had to go to the CBSA in Oshawa and pay the duties. The value on the shipping ticket was $300 which included the shipping cost. I had my receipt that stated the item was $225 and the guy said they only charge on the value of the goods not the shipping so only paid about $29 tax.
 
What grinds my gears when importing stuff is having to pay taxes on the taxes I paid in the US.. I spent $1000 in the US last week and had topay $70 US taxes, come to Canada and had to pay taxes on $1070..
 
I've always only paid on the value. Not the total (shipping, taxes, etc). In fact, half the time they just ask me an approximate value and I pay on whatever I say without showing any proof.
 
I thought it was a mistake at first, but two officers wrote the same total, so let it slide. Will be more prepared to question them on it next time.
 
macrider said:
That I will do, because it is a private sale I will ask the seller to write up a note saying perhaps $100.
I am actually paying $600 + $50 shipping for a new exhaust system that is retailing for $1200.
But paying HST on something being bought privately from the U.S. is a piss off.
Buying something privately within Canada you do not have to pay taxes. (unless its a vehical)
Click to expand...

Your trouble here is the taxation is on the 'Canadian dollar value of the goods', not the sale amount. They can look up the value and tax on that, I've heard of them finding actual purchase prices from internet auction items and taxing on that, I don't know if they can go as far as ignoring something you declare but clearly there is some leeway on declared values.

My question is, what is the 'Canadian dollar value' exactly? Is it based on MSRP or current sale prices? Does it matter if they same item is available in Canada at a different price?

Not applicable here but if the goods in question are a warranty replacement they become non-taxable on that logic that tax was already paid the first time.
 
geoff-9 said:
What grinds my gears when importing stuff is having to pay taxes on the taxes I paid in the US.. I spent $1000 in the US last week and had topay $70 US taxes, come to Canada and had to pay taxes on $1070..
Click to expand...

Check the state you purchased the items in as many of them allow you to submit receipts and receive your sales tax back. There is a minimum spend in many cases, but worth a shot.
 
macrider said:
That I will do, because it is a private sale I will ask the seller to write up a note saying perhaps $100.
I am actually paying $600 + $50 shipping for a new exhaust system that is retailing for $1200.
But paying HST on something being bought privately from the U.S. is a piss off.
Buying something privately within Canada you do not have to pay taxes. (unless its a vehical)
Click to expand...

If you wanna risk losing your car, as well as having your exhaust confiscated go for it, and over what? 70$ worth of tax?
Everybody thinks they can beat the system, and many folks found out otherwise.

You're gonna say you paid 100 and they'll call the guy you bought it from will also say 100 for you. Now when he asks you what bills you paid him with and ask him the same question will your answers match?

There's plenty of other things they do on a regular basis that wouldn't pop into your head to get to the bottom of it.

How lucky are you feeling? :D
 
Paul1000RR said:
If you wanna risk losing your car, as well as having your exhaust confiscated go for it, and over what? 70$ worth of tax?
Everybody thinks they can beat the system, and many folks found out otherwise.

You're gonna say you paid 100 and they'll call the guy you bought it from will also say 100 for you. Now when he asks you what bills you paid him with and ask him the same question will your answers match?

There's plenty of other things they do on a regular basis that wouldn't pop into your head to get to the bottom of it.

How lucky are you feeling? :D
Click to expand...

This ^^^^ ! At least declare a reasonable amount on the receipt. Happened to me once. I was crossing the border with a pair of fairly expensive *used* speakers. Border agent googled the model number to verify the price, then went on craigslist/ebay. My declared value was reasonable and well researched.
 
DownUnder said:
Thats strange. I just had some goods shipped in from the States (private seller). Before the courier company could deliver though I had to go to the CBSA in Oshawa and pay the duties. The value on the shipping ticket was $300 which included the shipping cost. I had my receipt that stated the item was $225 and the guy said they only charge on the value of the goods not the shipping so only paid about $29 tax.
Click to expand...


If I read your post correctly, my situation is a little bit different. The item, a brand new part, could not be shipped directly to me. I drove into the USA to pick it up myself (at CBI Niagara Falls). On the way back into Canada, I showed the invoice (distributor in Miami charged me for the part, plus shipping from Florida to NY).

The officer asked me to go inside to pay, then the guy inside insisted that I have to pay taxes on the item plus the shipping Florida to NY (taxes on the grand total).
 
revrandy said:
You don't pay taxes on private purchases within Canada as the taxes were collected when the item was first sold. Purchases out of the country were never assessed any taxes, hence the collection of them when you import the item.
Click to expand...

Is it the same for private purchases from the USA? Would you have a quick link to a website showing this?
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