Shopping Discussion

ROCKAUTO Has Begun Charging Tax On Shipping Fees

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  • Mar 18th, 2021 12:56 pm
[OP]
Sr. Member
Feb 18, 2014
503 posts
300 upvotes

ROCKAUTO Has Begun Charging Tax On Shipping Fees

Just letting everyone know Rockauto has begun charging tax (13% in Ontario) on their shipping fees to Canada. I placed an order on the 30th and everything was normal (tax was only charged on the parts total/duty total included in the shipping), today I went to place another order and i found something odd when totaling everything up, the tax wasn't adding up correctly, after trying to figure out what was going on it finally became evident that Rockauto was/are charging tax on the shipping fees.

I realize tax is added on the shipping fees if it's within the same country/province but i'm not sure if Rockauto, who ship from the US can charge tax on shipping fees if those packages are being sent out of country.
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Deal Expert
Mar 25, 2005
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Can you post a copy of the order confirmation?
Sr. Member
Jan 4, 2019
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Just another reason to buy local and pay a little extra for some real customer service.
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Jan 9, 2011
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bobby621 wrote: Just letting everyone know Rockauto has begun charging tax (13% in Ontario) on their shipping fees to Canada. I placed an order on the 30th and everything was normal (tax was only charged on the parts total/duty total included in the shipping), today I went to place another order and i found something odd when totaling everything up, the tax wasn't adding up correctly, after trying to figure out what was going on it finally became evident that Rockauto was/are charging tax on the shipping fees.

I realize tax is added on the shipping fees if it's within the same country/province but i'm not sure if Rockauto, who ship from the US can charge tax on shipping fees if those packages are being sent out of country.
Yes this is normal. When importing goods you pay GST/HST on the total amount you paid, inclusive of shipping. CBSA/CRA doesn't care how much of your payment is for the shipping and how much is the actual item. You paid X amount for the item, so that's what is taxed. I put a $3.23 thermostat in, with $12.70 shipping the total is $15.93. The GST/HST added is 79¢, which is 5%; the normal tax rate for BC.

Looks like Rockauto is using a customs broker to import stuff into Canada ("If tax is identified by name (GST/HST in Canada, VAT in the EU, etc.) on your order, we will pre-pay it (and any applicable import duties) for the package to which it applies . The carrier will deliver that package with no additional charges"), so this is actually a good thing. Much better to pay Rockauto the taxes in advance than to leave it up to Fedex, who will make you pay the taxes, and then charge you brokerage fees on top of that.
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Mar 25, 2005
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Kiraly wrote: Yes this is normal. When importing goods you pay GST/HST on the total amount you paid, inclusive of shipping. CBSA/CRA doesn't care how much of your payment is for the shipping and how much is the actual item. You paid X amount for the item, so that's what is taxed. I put a $3.23 thermostat in, with $12.70 shipping the total is $15.93. The GST/HST added is 79¢, which is 5%; the normal tax rate for BC.

Looks like Rockauto is using a customs broker to import stuff into Canada ("If tax is identified by name (GST/HST in Canada, VAT in the EU, etc.) on your order, we will pre-pay it (and any applicable import duties) for the package to which it applies . The carrier will deliver that package with no additional charges"), so this is actually a good thing. Much better to pay Rockauto the taxes in advance than to leave it up to Fedex, who will make you pay the taxes, and then charge you brokerage fees on top of that.
bobby621 wrote: Just letting everyone know Rockauto has begun charging tax (13% in Ontario) on their shipping fees to Canada. I placed an order on the 30th and everything was normal (tax was only charged on the parts total/duty total included in the shipping), today I went to place another order and i found something odd when totaling everything up, the tax wasn't adding up correctly, after trying to figure out what was going on it finally became evident that Rockauto was/are charging tax on the shipping fees.

I realize tax is added on the shipping fees if it's within the same country/province but i'm not sure if Rockauto, who ship from the US can charge tax on shipping fees if those packages are being sent out of country.
I think I've figured out whats going on here. OP is concerned HST was charged "on shipping" which is technically correct since its part of the landed cost. However you are not directly paying "tax on shipping," otherwise you'd pay tax twice.

Tax is charged on the landed cost which includes: Parts + Shipping + Duty

Lets say we order a $10 brake part made in a non-except country and therefore duty applies:

Part: $10
Ship: $10
Duty: $2
Total import value: $22
HST on import value of $22: $2.86
Total paid to RA: $24.86

HST was not applied to the shipping charge itself, rather to the import value. HST is zero rated since its an international package.
[OP]
Sr. Member
Feb 18, 2014
503 posts
300 upvotes
Kasakato wrote: Can you post a copy of the order confirmation?
Sure, posted.
Order was placed April 30, Subtotal for parts before the discount was $314.05.

When placing an order now you are charged tax on the full shipping fee (in my case) $56.63, an extra $7.36 added to the total.
ReadAllTheDeals wrote: Just another reason to buy local and pay a little extra for some real customer service.
I only buy local if I need a few things, if I'm buying lots of stuff I'll use Rockauto. If i were to buy everything i just ordered from Rockauto locally it would've cost me easily over $550, I compared already.
Kiraly wrote: Yes this is normal. When importing goods you pay GST/HST on the total amount you paid, inclusive of shipping. CBSA/CRA doesn't care how much of your payment is for the shipping and how much is the actual item. You paid X amount for the item, so that's what is taxed. I put a $3.23 thermostat in, with $12.70 shipping the total is $15.93. The GST/HST added is 79¢, which is 5%; the normal tax rate for BC.

Looks like Rockauto is using a customs broker to import stuff into Canada ("If tax is identified by name (GST/HST in Canada, VAT in the EU, etc.) on your order, we will pre-pay it (and any applicable import duties) for the package to which it applies . The carrier will deliver that package with no additional charges"), so this is actually a good thing. Much better to pay Rockauto the taxes in advance than to leave it up to Fedex, who will make you pay the taxes, and then charge you brokerage fees on top of that.
When and from who did you order the thermostat from?
They just began doing this within the last few days, something must have changed on their end, I've been ordering from them for the last 10 years.
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[OP]
Sr. Member
Feb 18, 2014
503 posts
300 upvotes
Kasakato wrote: I think I've figured out whats going on here. OP is concerned HST was charged "on shipping" which is technically correct since its part of the landed cost. However you are not directly paying "tax on shipping," otherwise you'd pay tax twice.

Tax is charged on the landed cost which includes: Parts + Shipping + Duty

Lets say we order a $10 brake part made in a non-except country and therefore duty applies:

Part: $10
Ship: $10
Duty: $2
Total import value: $22
HST on import value of $22: $2.86
Total paid to RA: $24.86

HST was not applied to the shipping charge itself, rather to the import value. HST is zero rated since its an international package.
That's the way they are calculating it presently but for as long as I can remember tax was only added to the parts purchased (see the picture i posted) as well as the duty (if any). In your example tax should only apply to the $10 (brake part) and the $2 (duty on that part), tax would be $1.56. Total would be $23.56, this is the way it was being calculated as of April 30, now it has changed.
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bobby621 wrote: Sure, posted.
Order was placed April 30, Subtotal for parts before the discount was $314.05.

When placing an order now you are charged tax on the full shipping fee (in my case) $56.63, an extra $7.36 added to the total.



I only buy local if I need a few things, if I'm buying lots of stuff I'll use Rockauto. If i were to buy everything i just ordered from Rockauto locally it would've cost me easily over $550, I compared already.



When and from who did you order the thermostat from?
They just began doing this within the last few days, something must have changed on their end, I've been ordering from them for the last 10 years.
Never ordered from Rockauto before. Just tested it out today to see what the charges would be.
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ReadAllTheDeals wrote: Just another reason to buy local and pay a little extra for some real customer service.
It's going to be a lot more than a little extra compared to Rock Auto!!!!!
Sr. Member
Oct 22, 2006
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Ontario
In that image you posted OP, you didn't get charged gst on the shipping. It even says the $56.63 is non-taxable at the bottom.

You got charged $39.58 which is 13% of $304.44.
[OP]
Sr. Member
Feb 18, 2014
503 posts
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Kiraly wrote: Never ordered from Rockauto before. Just tested it out today to see what the charges would be.
It makes sense to order from them only if your getting alot of stuff that you think you'll be using in the next few years, planning is a plus.
The pads i got would end up costing me easily over $30 locally, the rotors cost me $20 each, similar ones from PerfectStop cost me $45 5 years ago.
Problem is here in Canada there is no competition, while there are many parts stores around many of them sell parts at list.
I've got a Honda and every dealer has different prices, some of them charge above list, Sisley Honda (Young and Steeles) is notorious for this.
[OP]
Sr. Member
Feb 18, 2014
503 posts
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dollarsign wrote: In that image you posted OP, you didn't get charged gst on the shipping. It even says the $56.63 is non-taxable at the bottom.

You got charged $39.58 which is 13% of $304.44.
That's my order from April 30, as of a few days ago it changed, go to the site, add in a few parts, calculate shipping and you'll see what I'm talking about.
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Oct 22, 2006
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bobby621 wrote: That's my order from April 30, as of a few days ago it changed, go to the site, add in a few parts, calculate shipping and you'll see what I'm talking about.
Ya, just realized that. I tried a few parts and it appears they are taxing the delivery.
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Jan 4, 2019
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lennyandcarl wrote: It's going to be a lot more than a little extra compared to Rock Auto!!!!!
It depends. My last order was significantly cheaper locally.
[OP]
Sr. Member
Feb 18, 2014
503 posts
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dollarsign wrote: Ya, just realized that. I tried a few parts and it appears they are taxing the delivery.
It doesn't make a huge difference, even if you place an order and shipping is $100, that's an extra $13 on the total compared to before.
I'd like to know who is receiving that extra money, is it the Canadian government or Rockauto? I'm pretty sure Rockauto has to pay the GST/HST they collect to the Canadian government yearly, maybe this change has to do with something the Canadian government implemented in the past and has just come into effect in May, I wouldn't put it past our government to do anything to collect more tax from us.
Last edited by bobby621 on May 7th, 2020 5:12 pm, edited 1 time in total.
[OP]
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Feb 18, 2014
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ReadAllTheDeals wrote: It depends. My last order was significantly cheaper locally.
I was checking out some prices on Upper control arms and other suspension parts, I was surprised Rockauto was more expensive then partsavatar.ca, but all the stuff I got this previous order was all cheaper, i saved close to 37%. If the border was open i would've had my order shipped to a depo in Buffalo and save even more. i know so many guys who buy rims and tires from the US, have them shipped to a depo or shop in the States, have the shop install them, and then drive back home.
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bobby621 wrote: I was checking out some prices on Upper control arms and other suspension parts, I was surprised Rockauto was more expensive then partsavatar.ca, but all the stuff I got this previous order was all cheaper, i saved close to 37%. If the border was open i would've had my order shipped to a depo in Buffalo and save even more. i know so many guys who buy rims and tires from the US, have them shipped to a depo or shop in the States, have the shop install them, and then drive back home.
I buy all my rims/tires there and bring them back with me duty free (up to $800) when I visit the USA
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[OP]
Sr. Member
Feb 18, 2014
503 posts
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engineered wrote: I buy all my rims/tires there and bring them back with me duty free (up to $800) when I visit the USA
How long do you have to be in the States to do that?
Do you declare the value and then the CBSA just tell you to "Have A Nice Day"
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Oct 31, 2017
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bobby621 wrote: I was checking out some prices on Upper control arms and other suspension parts, I was surprised Rockauto was more expensive then partsavatar.ca, but all the stuff I got this previous order was all cheaper, i saved close to 37%. If the border was open i would've had my order shipped to a depo in Buffalo and save even more. i know so many guys who buy rims and tires from the US, have them shipped to a depo or shop in the States, have the shop install them, and then drive back home.
Thanks for the heads up on partsavatar. Never heard of them before. Seems like pretty good prices!
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bobby621 wrote: That's the way they are calculating it presently but for as long as I can remember tax was only added to the parts purchased (see the picture i posted) as well as the duty (if any). In your example tax should only apply to the $10 (brake part) and the $2 (duty on that part), tax would be $1.56. Total would be $23.56, this is the way it was being calculated as of April 30, now it has changed.
bobby621 wrote: It doesn't make a huge difference, even if you place an order and shipping is $100, that's an extra $13 on the total compared to before.
I'd like to know who is receiving that extra money, is it the Canadian government or Rockauto? I'm pretty sure Rockauto has to pay the GST/HST they collect to the Canadian government yearly, maybe this change has to do with something the Canadian government implemented in the past and has just come into effect in May, I wouldn't put it past our government to do anything to collect more tax from us.
Cool thanks for posting. You're right, the invoice you posted has HST for import calculated incorrectly.

Nothings changed legislatively, the Customs Act has always required the transportation value to be included in the "duty-paid value." I suspect there was an audit that found the discrepancy, so RA must now charge correctly.

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