Tax exemption at Canada Customs?

Question

I know that, if a Canadian citizen/resident stays in USA for more than 7 days, then when he returns to Canada by car, he qualifies for a personal duty & tax exemption of $750 CAD. My question is that, does that amount include tax charged in USA?? I mean, suppose I buy something at around $710, but after the USA state tax, the total is $760. Is that eligible for the exemption?

Also, if I had to pay tax, would that tax on the total amount ($760) or the excess amount ($760 - $750 = $10)?

Thank you.

Answer 1

Your declaration amount at Canada customs would be $760, and you aren't eligible for any tax exemptions. Unless they are items you purchased at duty free, and those would have already been built into the price. It is the place you are purchasing from (US State) that is most likely provider of saying tourists are exempt from our tax. Canada GST use to have a visitor program like that. And like I said, that is the idea behind duty free - local tax not charge because the purchase is leaving the country.

Answer 2

If you go over the limit you can be charged duty on the difference between your exemption and the amount you go over. It is the first, in your case, $750 that is exempt from duty. You should claim the total you spent however it is unlikely that you would be charged duty on such a small amount. Any taxes as well would be charged on the difference. Any goods, as long as they are legal, can be brought into Canada under a duty free allownce. In a Duty Free Store they exempt you from certain taxes which serves to reduce the price of certain items, generally alcohol, tobacco, and perfume although some also sell electornics and or items.

Remember that htere are also limits as to the amount of certain items such as alcohol that can be brought in duty free, no matter how long you stay.

Answer 3

first of all i could be very, VERY skeptical that there is toddler stuff obtainable in the Buffalo area that may no longer offered in Ontario. unquestionably that grew to become into the case for my Quebecoise important different (despite if we did circulate to Vermont and New Hampshire simply by fact it grew to become into greater fee-effective - and in New Hampshire no taxes - to purchase stuff for the duration of romantic week-end journeys). Secondly, why do you no longer (additionally) take your important different (and your new child if born) to delight in a matching northern great apple weekend get away so all your stuff may be under your own exemptions? looks lots greater logical to me.