Trade in tax question Re: Canada

[Cachette]

Question for those Canadians who traded in their stone to upgrade with the same vendor that you originally purchased from:

Do you pay taxes at the border for the total "new" value of the ring (diamond) or just the difference between of the two stones?

Thank you!

Cachette

 

[two_little_birds]

Any chance you are in Ontario? Near the border? If so, take a drive to PA and have your ring picked up there. No taxes!

 

[Dreamer_D]

Technically you should only be charged for the difference in price, which should be indicated on the commercial invoice that GOG provide to you. But its complex. Border agents are not used to dealing with such things. basically it would be an exchange, and you would need documents to show a) that you shipped TO GOG a ring of X value, b) that you paid taxes on X value, c) an invoice from GOG on the shippig information indicating that you were only charged for the difference in price. And you would need to argue to customs that you should only pay tax on the difference.

Another simpler option would be to have GOG issue a receipt showing you returned and were refunded for the first diamond, once they receive it. You can then use that reciept along with your shipping label showing the return, and your receipt showing the taxes you paid on initial import, and submit it all to Canada Customs using a form they have for "casual refunds" and get your original taxes refunded. Then you can just pay tax again on the new diamond.

Here is the casual refund link:
http://www.cbsa-asfc.gc.ca/import/courier/crp-prio-eng.html
And the form:
http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/b2g.pdf

I've done the refund thing a few times and its simple and painless, just takes a few weeks to process.

Or drive accross the border and pick up the new ring, though that is complex because of all the paperwork and documents that accompany the ring. At least if you drive, you can talk to the customs agent personally and show they all your documentation. You would need a receipt from the original purchase from GOG, a receipt from customs showing taxes paid on the original amout, a receipt showing you shipped the first ring back, a receipt from GOG showing the credit for ring 1 and new price of ring 2 and the differene you paid. I think if you showed all that to customs they would see it was an eschange and you would be fine.

 

[Cachette]

Any chance you are in Ontario? Near the border? If so, take a drive to PA and have your ring picked up there. No taxes!

I am from Ontario but unfortunately about 12 hours north of the border. Sure would come in handy to live closer though!!

Cachette

 

[Cachette]

Technically you should only be charged for the difference in price, which should be indicated on the commercial invoice that GOG provide to you. But its complex. Border agents are not used to dealing with such things. basically it would be an exchange, and you would need documents to show a) that you shipped TO GOG a ring of X value, b) that you paid taxes on X value, c) an invoice from GOG on the shippig information indicating that you were only charged for the difference in price. And you would need to argue to customs that you should only pay tax on the difference.

Another simpler option would be to have GOG issue a receipt showing you returned and were refunded for the first diamond, once they receive it. You can then use that reciept along with your shipping label showing the return, and your receipt showing the taxes you paid on initial import, and submit it all to Canada Customs using a form they have for "casual refunds" and get your original taxes refunded. Then you can just pay tax again on the new diamond.

Here is the casual refund link:
http://www.cbsa-asfc.gc.ca/import/courier/crp-prio-eng.html
And the form:
http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/b2g.pdf

I've done the refund thing a few times and its simple and painless, just takes a few weeks to process.

Or drive accross the border and pick up the new ring, though that is complex because of all the paperwork and documents that accompany the ring. At least if you drive, you can talk to the customs agent personally and show they all your documentation. You would need a receipt from the original purchase from GOG, a receipt from customs showing taxes paid on the original amout, a receipt showing you shipped the first ring back, a receipt from GOG showing the credit for ring 1 and new price of ring 2 and the differene you paid. I think if you showed all that to customs they would see it was an eschange and you would be fine.

Thanks Dreamer! My head is spinning with this info!! Just glad it can be done. I got all panicky thinking about my next upgrade and trade-in and thought that I'd have to pay big taxes again!! It`s 13% HST for Ontario and that's a big chunk of change on a big purchase to begin with and I thought I'd have to pay it again and more!

I appreciate your help Dreamer!

Cachette

 

[JaneSmith]

Work out how much tax you will pay, then look on west jet for cheap deals to Vegas or NYC. If one is cheaper, go with that.
Or if you have trusted friends or family in a cheaper tax province, send it there.

 

[Enerchi]

Work out how much tax you will pay, then look on west jet for cheap deals to Vegas or NYC. If one is cheaper, go with that.
Or if you have trusted friends or family in a cheaper tax province, send it there.

YUP!!! I know no one who has EVER done that...

 

[Dreamer_D]

Just be sure to keep the document from customs that shows you paid import taxes on your ring. It would have been on the FedEx box.

 

[chamois]

I did an upgrade...... and If I remember correctly I ony paid the difference in tax between the old cost and the new cost which was fair. My purchases (upgrade) were with GOG and they took care of making sure the paperwork was in order to avoid any problems.

 

[Cachette]

Work out how much tax you will pay, then look on west jet for cheap deals to Vegas or NYC. If one is cheaper, go with that.
Or if you have trusted friends or family in a cheaper tax province, send it there.

clever! Unfortunately, I have no one that I could send it to.

Cachette

 

[Cachette]

Just be sure to keep the document from customs that shows you paid import taxes on your ring. It would have been on the FedEx box.

I certainly did keep it! Good thing!

Cachette

 

[Cachette]

I did an upgrade...... and If I remember correctly I ony paid the difference in tax between the old cost and the new cost which was fair. My purchases (upgrade) were with GOG and they took care of making sure the paperwork was in order to avoid any problems.

Thank you chamois!! This is good to hear (read!)

Cachette

 

[chamois]

You're welcome. I hope it goes well for you.

 

[maccers]

Send it to alberta! It's only 5% here.

But seriously, the cost of flying to pick up isn't a bad idea especially if you're in need of a vacation.