Shopping Discussion

After paying the custom duty, do I still have to pay tax?

  • Last Updated:
  • Apr 8th, 2020 4:05 pm
[OP]
Deal Addict
User avatar
Apr 30, 2005
3219 posts
908 upvotes
Mars

After paying the custom duty, do I still have to pay tax?

is there any regulation on "brokerage and admin fee", or the brokers could just set any arbitrary fee, like 30% of the value of the goods?
3 replies
Deal Expert
Mar 25, 2005
21860 posts
2677 upvotes
Brokers can set the fee they wish.
Deal Addict
Nov 12, 2006
1819 posts
402 upvotes
Tax is based on landed cost - yes, you need to pay tax.
Deal Expert
Feb 7, 2017
15890 posts
13113 upvotes
Eastern Ontario
Everyone pays the applicable Taxes / Duties
Based on what it is you are importing, where it was made, what it is worth in CDN $
And how long ... if at all, the importer / end user has been out of the country

So the cheapest way is to be bring goods back with you after being outside of Canada
(Be that a few hours or days / weeks / months)

Second cheapest ... self clear an item.
But that requires some knowledge & organization on part of the purchaser

The first two are with a SELF DECLARATION

Third ... Import via the post to Canada Post.
And in addition to Taxes & Duties there is also a $ 9.95 CDN Processing Fee
(Although it can be waived )

This one is a WRITTEN DECLARATION

And last ... Import using a Courier or Freight Co
Where they do the Customs Clearance on your behalf
So they act as your representative
That’s what the Brokerage Fee is

Of course that’s just one of the fees of going this last route
There is also ... Shipping Cost, and still any applicable Taxes & Duties
That’s what makes going this route the MOST EXPENSIVE ONE

The trade off is ... that it’s the fastest, and usually the most convenient
And often times door to door service
From the supplier to the end user

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