Shipper Billing Question

[Broker101]

Hi Guys,

Wondering if you can clear the confusion for me - I was speaking with a cdn based broker discussing the HST/GST rules and have some confusion around billing our customers (i.e shippers)

My understanding is that:

Lets say we have brokered a load from MB to ON @2K. When we bill our shipper we are going to charge them 2k +13% = 2260.00 and the 260 goes to the gov't (ON HST rate). Is that correct? i.e any loads brokered within Canada are taxed at the destination tax rate.

Loads brokered going from Canada to the US are zero taxed?

Loads brokered from US to Canada are also zero taxed?

Looking to get some clarity on this.

Thanks

 

[loaders]

You got it! Cross border zero rated. Domestic HST charged at destination province rate.

 

[MikeJr]

It's been a while since I had to look at tax because the system does that itself. I do recall the only exception to the rules mentioned are that loads originating in QC and delivering in QC tax rate differs if the load originated
out of the province (but still within Canada) and delivers in QC.

Keep well,
Mike

 

[loaders]

Right, the applicable HST is the rate of the destination province. BC to Ontario- HST at Ont rate. NF to PQ -HST at PQ rate. MB to AB - HST at AB rate.