| Discussion Forum: Thread 311754 |
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| | | Author: | yoavheskia  | | Posted: | Oct 30, 2021 07:53 | | Subject: | How to calculate VAT to Canadian buyer? | | Viewed: | 64 times | | Topic: | Shipping | |
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| Hi,
Just got an order from a buyer from Canada. He chose manual invoicing method.
How can I know how much VAT to charge?
Is there any list of vat rules for each country?
Thanks,
Yoav
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| | | | | Author: | peregrinator | | Posted: | Oct 30, 2021 08:26 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 34 times | | Topic: | Shipping | |
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| In Shipping, yoavheskia writes:
| | Hi,
Just got an order from a buyer from Canada. He chose manual invoicing method.
How can I know how much VAT to charge?
Is there any list of vat rules for each country?
Thanks,
Yoav
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You don't charge any, the buyer will pay customs and HST when the package
gets to Canada. I'd recommend not using UPS as they charge additional brokerage
fees.
In general, if BrickLink is not charging VAT or sales tax, you shouldn't
either - you have no way to remit it. There may be exceptions to this but I don't
know what they are.
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| | | | | | | Author: | Emporiosa | | Posted: | Oct 30, 2021 08:47 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 33 times | | Topic: | Shipping | |
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| In Shipping, peregrinator writes:
| | In Shipping, yoavheskia writes:
| | Hi,
Just got an order from a buyer from Canada. He chose manual invoicing method.
How can I know how much VAT to charge?
Is there any list of vat rules for each country?
Thanks,
Yoav
|
You don't charge any, the buyer will pay customs and HST when the package
gets to Canada. I'd recommend not using UPS as they charge additional brokerage
fees.
In general, if BrickLink is not charging VAT or sales tax, you shouldn't
either - you have no way to remit it. There may be exceptions to this but I don't
know what they are.
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Thank-you for the kindly looking out for us by not recommending UPS  DHL/Fedex
are also in the same boat. We get dinged a really awful courier charge on top
of the taxes owed, and sometimes it'll be like $2 in taxes and a $10-15 courier
charge. CBSA also doesn't always tax us upon import (even though we have
a really low threshold of $20), so coming in via Canada Post (meaning it was
shipped with your country's national carrier) is always preferred unless
it's absolutely required (or the buyer requests a priority courier service).
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| | | | | Author: | SylvainLS | | Posted: | Oct 30, 2021 08:33 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 35 times | | Topic: | Shipping | |
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| In Shipping, yoavheskia writes:
| | Hi,
Just got an order from a buyer from Canada. He chose manual invoicing method.
How can I know how much VAT to charge?
Is there any list of vat rules for each country?
Thanks,
Yoav
|
Quite a few precisions & corrections needed here:
0. Taxes in Canada work the same way as VAT but is called GST/HST/PST (Goods
& Services Tax, Harmonized Sales Tax and Provincial Sales Tax).
1. When you are not registered to collect taxes in Canada, you have no rights
to collect taxes from Canadian buyers. How would you remit the taxes to Canada
if they don’t know you?
2. AFAICT, as a foreign seller on a marketplace, you have no obligation to be
registered in Canada. So you have no obligation to collect their taxes.
3. It’s BL, as a marketplace, that is sometimes obligated to collect taxes.
And when BL is obligated to collect taxes, BL is responsible for it, not you
(_you_ don’t collect, _BL_ does).
4. For the moment, the only taxes BL is set up to collect is UK VAT, EU VAT(s)
and US Sale taxes. Not Canada’s GST.
5. When BL has to collect taxes, it’s BL who calculates them and add them to
the amount. That invoices are manual or automatic doesn’t change that: that
part of the invoice is always automatic.
6. When BL has to collect taxes, the buyer can’t choose shipping methods that
don’t allow BL to collect taxes. IOW, BL only allows onsite payment methods
and removes shipping methods that can’t use them (leading to the confusing “seller
doesn’t ship to you” message that some buyer see). So if BL had to collect taxes
for your buyer, your buyer wouldn’t have been able to choose the “wrong” shipping
method. Therefore, if BL authorized the buyer to choose that manual method,
then the method is not “wrong” and works perfectly well.
TL;DR: your Canadian buyer will pay their taxes themselves at reception. You
don’t have to (and can’t) collect the taxes.
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| | | | | Author: | jbroman | | Posted: | Oct 30, 2021 08:34 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 36 times | | Topic: | Shipping | |
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| In Shipping, yoavheskia writes:
| | Hi,
Just got an order from a buyer from Canada. He chose manual invoicing method.
How can I know how much VAT to charge?
Is there any list of vat rules for each country?
Thanks,
Yoav
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BrickLink will automatically determine if there is a VAT charge, even in manual
invoicing (non IC) as long as you have an onsite payment method (i.e. PayPal).
There is no VAT in Canada, and Israel does not charge a VAT for exports.
The buyer may/will have to pay a customs fee and GST or HST (Goods and Services
Tax or Harmonized Sales Tax) (depending on Province).
Also use 9503.00.90 as the HS code.
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| | | | | Author: | yoavheskia | | Posted: | Oct 30, 2021 08:39 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 26 times | | Topic: | Shipping | |
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| Thank you so much for your replies.
Now I'm completely relaxed about it!
Yoav
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| | | | | | | Author: | peregrinator | | Posted: | Oct 30, 2021 08:55 | | Subject: | Re: How to calculate VAT to Canadian buyer? | | Viewed: | 33 times | | Topic: | Shipping | |
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| In Shipping, yoavheskia writes:
| | Thank you so much for your replies.
Now I'm completely relaxed about it!
Yoav
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You may want to put in your store terms that the buyer is responsible for any
customs duties, taxes, fees, etc. that aren't assessed at checkout
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Israel, Mehoz Tel Aviv
USA, New Jersey
Canada, Ontario
France, Nouvelle-Aquitaine
