Canada TAX & DUTY REQUIREMENTS

TAX

Goods and Services Tax (GST) threshold for Canada is CAD20 and the current GST rate is 5% (correct at 3 April 2023).  Parcels shipped to Canada over CAD20 will incur this GST charge.

Some provinces require the payment of the HST instead of GST. And others require payment of a PST (provincial sales tax) along with the GST.  Due to taxes changing within Canada please check the appropriate Canadian government website for updates regularly.

DUTY

The Duty threshold for Canada is currently set to CAD20. The duty rates vary depending on the type of goods being shipped to Canada and their origin.

Parcels shipped to Canada with a value over CAD20 will incur duty charges.

COLLECTION OF TAXES AND DUTIES

SEKO suggests retailers collect taxes and duties from customers at shopping cart level.  An example of platforms to facilitate these services are Zonos, Shopify, Eurora and Avalara. Retailers can then use a DDP service to maximise customer experience.

With SEKO, retailers have the following Canada service options...

SEKO Delivered Duty Paid (DDP)

For parcels valued over CAD20, all Duties and taxes will be charged to the retailer along with a fee of CAD1.75 per parcel.

DDP minimises delays and returned parcels.  Duties and taxes applicable to each parcel shipped will be calculated at border-level and invoiced to the retailer.  The parcels will not be stopped.