Tax Question

PackRat

Site Supporter
20
Here's a good one for discussion:

Customer brings up a Full Load (Stepdeck) from PA going to BC.
US Carrier takes it to the Customer's Toronto Facility for unloading (BOL give the Toronto Address)
Customer cannot unload the shipment (stepdeck freight...too big and heavy) at their Toronto Facility so they have it taken to their Western Canada Stepdeck provider who transloads the freight to one of their own stepdecks and delivers it to BC for the Customer. Does the Customer pay the GST/HST on the load even thought it was shipped from PA?
 

whatiship

Well-Known Member
20
I believe that the ruling is that any freight that is part of a "continuous" movement to or from outside of Canada regardless of how many carriers are involved is exempt from HST. The delivering carrier should show on their bill of lading PA as the origin point and their Toronto facility as the ship from point only to protect them in the event of an audit.
 

PackRat

Site Supporter
20
that's what kinda "begs" the question though...the original BOL shows deliver to Toronto. We have a new BOL that shows Toronto to BC.
 

Freight Broker

Well-Known Member
30
Doesn't matter how many bills of lading are involved... the shipment is international therefore zero GST/HST..
 

Michael Ludwig

Well-Known Member
20
Not too sure about that donkey ... seems to me that the issuance of new bill of lading requires the addition of GST.
How does a CRA auditor know any different? They only go by the paperwork in front of them. He/she sees a B/L from the US to Toronto. He/she sees another B/L from Toronto to BC. It's immaterial that it's the same product.
Regardless, the question of GST should never be an issue anyways ... it's a through and through tax for all involved.
When in doubt, charge it the GST. Everyone gets to claim it back anyways.
 

ShawnR

Site Supporter
10
if the original bill from the shipper shows PA to BC then no tax, we transload freight like this all the time, no tax.
 

whatiship

Well-Known Member
20
I am assuming there will only be one invoice to your customer so charging HST on part of the order will just confuse everyone. I would bill without HST and simply make a note or attach a copy of the first "leg" to your copy of the invoice in the event of an audit.
 

ShawnR

Site Supporter
10
Well if this was supposed to go from PA to BC then the original BOL should show that, if not then the person who made the first BOL made a decent mistake.
In this case just get the shipper and receiver to sign off on a corrected BOL showing Origin PA and Destination BC since the Ontario part was a simple transfer and not actually dropping & loading other freight.

"Customer brings up a Full Load (Stepdeck) from PA going to BC."
 

misto27

Site Supporter
15
For the Transport portion ( the actual move ) no tax are to be paid at all. ON-BC-QC whatever, it doesn't changed anything as it's from US!

If you had any warehousing fees, then YES, tax would apply ( reference to whatever destination there's on the BOL )

But as for the portion of transport - no tax what so ever is applicable.
 
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