I am about to make a big ticket purchase online. The seller is in the USA. The product is to be delivered by mail. However I am pondering the idea of specifying a billing address in Alberta although the shipping address would be in Quebec to avoid the provincial sales tax that applies to my province of residence.
Simple question : is this legal or is there a way to make it so ?
Online orders vs provincial sales tax ?
- EmperorCoder
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Re: Online orders vs provincial sales tax ?
Generally speaking, the shipping address is the giveaway and controlling factor. Billing address less so.
For example, BC residents often buy a lot of their goods in Alberta, but unless they have a delivery address in Alberta for the goods, or the goods are picked up on site, Alberta merchants will charge BC PST. They do not wish to risk the wrath of the BC tax police.
For example, BC residents often buy a lot of their goods in Alberta, but unless they have a delivery address in Alberta for the goods, or the goods are picked up on site, Alberta merchants will charge BC PST. They do not wish to risk the wrath of the BC tax police.
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- scomac
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Re: Online orders vs provincial sales tax ?
AFAIK the shipping agent will charge taxes based on shipping destination. If the sum is big enough, they won't release the item until you've paid the tax and their brokerage fee which in my experience is usually one to one. The only way that I am aware of to escape the taxation is to have the item shipped to a US address and then bring the item across the border yourself. Even Canada Post will collect tax is the item is above the exclusion rate which for a big item it most certainly will be.
Once you realise the full cost of on-line foreign orders, factoring in shipping, taxes and brokerage, the cost advantage quickly disappears. Generally speaking I limit my foreign purchases to pre-owned, NOS from resellers or items that simply aren't available in Canada.
Once you realise the full cost of on-line foreign orders, factoring in shipping, taxes and brokerage, the cost advantage quickly disappears. Generally speaking I limit my foreign purchases to pre-owned, NOS from resellers or items that simply aren't available in Canada.
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Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
Re: Online orders vs provincial sales tax ?
Unless you stay for a few days AND stay under the exemption threshold there is no legal way to escape taxation. Picking up the item across the border only eliminates the brokerage fee, taxes and potential duties remain payable upon entry.scomac wrote:The only way that I am aware of to escape the taxation is to have the item shipped to a US address and then bring the item across the border yourself.