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 » RockyTalky
»  » Cost Calculation for Importing Diamond from US to Canada
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Cost Calculation for Importing Diamond from US to Canada |
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| P: 7/9/2005 2:30:52 PM | |
Detox Rough Rock Total Posts: 66 Last Post: 8/18/2006 Member Since: 5/12/2005 |
Calling all Canadians (and those who know the answer) I am considering purchasing a diamond from a US Vendor and having the diamond shipped to Toronto, Canada. As I understand it; 1. I am not responsible for the state tax from where the diamond was purhcased 2. I am responsible for PST and GST 3. I am responsible for 10% excise tax (luxury tax) 4. Exchange rate of USD to CAD must be taken into account. Which Formula is correct: 1. Price(USD) x Exchange Rate x 1.25 (assuming 15% sales tax and 10% excise tax) or 2. Price(USD) x Exchange Rate x 1.10 (10% Excise tax) x 1.15 (15% sales tax) Basically my question is do you pay the PST and GST on top of the excise tax? (ie. tax on tax) Many Thanks Detox |
| Posted: 7/9/2005 2:30:52 PM | |
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There are 3 replies to this message. There are 3 replies on this page. |
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| P: 7/9/2005 9:52:30 PM | |
perl8429 Rough Rock Total Posts: 62 Last Post: 10/31/2005 Member Since: 2/8/2005 |
Yup! A friend of mine bought a ring from the states, and had to pay the excise tax, plus the GST and the exchange rate. I don't think he had to pay PST since he did not buy the diamond in Canada. Good Luck perl
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| Posted: 7/9/2005 9:52:30 PM | |
| P: 7/10/2005 8:52:41 PM | |
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bedubyah Rough Rock Total Posts: 8 Last Post: 7/24/2005 Member Since: 4/9/2005 |
Detox, Fellow Canadian here. This may come as a shock to you the excise tax is only 8% now  . Its kind of a misconception that it is still at 10% - I beleive its being phased out slowly or scaled back to a lower %. Check out the following link:http://www.cra-arc.gc.ca/E/pub/et/currate/currate-e.html Also, I think that you only pay PST on something if you buy it within your province (i.e. I live in Saskatchewan and if I was to order a diamond online fro a dealer in BC then I wouldn't pay PST). GST still apllies. As to which formula - I am not sure but I don't think you should have to pay tax on a tax?? I hear some people buy the diamond from a dealer in the US and then go on a holiday and pick it up and propose down there - if you decide to claim it as you come back is your choice 
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| Posted: 7/10/2005 8:52:41 PM | |
| P: 7/11/2005 1:31:43 AM | |
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Detox Rough Rock Total Posts: 66 Last Post: 8/18/2006 Member Since: 5/12/2005 |
Thankyou very much for the responses. I have finally settled on the specs of the diamond I am after, the issue now is cost and how to calculate it. Even using a worst case scenario of 10% excise tax and 15% sales tax, I still find that purchasing a diamond from a US Vendor is approximately $2000CAD cheaper. I understand that the all of the different vendors I have talked to need to make a profit, but when I ask for GIA or AGS certed stones I am always told, "you pay a premium for that" which is reflected in the price against the non GIA AGS certed stones. That being said, on the weekend I viewed an AGS000 stone and a similar spec's GEMSCAN stone and they both looked stunning. The AGS stone cost signficantly more than the GEMSCAN stone though. However, if I can purchase the AGS000 stone from the US for even less than the price of the GEMSCAN stone offered in Canada I would be assured a great stone at a lesser price. Wow I am confused.
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| Posted: 7/11/2005 1:31:43 AM | |
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