Canada TAX & DUTY REQUIREMENTS

TAX

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

Some provinces require the payment of the HST instead of GST which has a current rate of 13%. And others require payment of the PST (provincial sales tax) along with the GST.

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.

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

SEKO Delivered Duty Unpaid (DDU)

For parcels valued over CAD20, the retailer's customer will be notified and all Duties and taxes will be charged to the customer.  The parcel is held until payment is received.  If the customer rejects the payment, the parcel will be returned to the retailer.

A fee of CAD13.50 (+ 3.9% transaction fee) per parcel will be charged to the retailer for the SEKO DDU service.

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 CAD1.20 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.