HST On Imports And Services

HST On Imports And Services

With the arrival of Harmonized Service Tax (HST), a number of goods and services have been affected. Customs Brokerage fees are one of those services that importers will now have to pay the greater tax of HST rather than GST (in most cases). Whether or not you pay the HST is based on the rules of supply and if you are importing commercial or personal goods. The Canada Revenue Agency (CRA) Bulletin B-103 on the rule of supply is a good source. It is recommended all importers with questions take a few moments to review here.

A basic breakdown of whether or not you pay GST or HST is below:

GST/HST On Customs Brokerage Charges

Non-Commercial Imports

  • GST/HST on Brokerage charges will be the same rate as the Customs GST/HST rate (the rate imposed by the recipient resident's province).

Commercial Imports

GST/HST On Brokerage Charges Applies As Follows

  • Non-Resident Importers (NRI) will continue to be zero rated if not registered for GST/HST
  • Resident Importers are subject to the GST/HST rate in the province of entry (where actual Customs clearance takes place).
  • Refunds/drawbacks/consulting fees are subject to place of supply rules, meaning GST or HST rate is charged based on recipient?s province.

GST/HST On Imported Goods

  • Non-commercial (casual) goods - GST/PST/HST applies to imported goods at the rate imposed by the recipient resident?s province.
  • Commercial goods- only subject to the GST at time of import. HST and/or PST are not applicable to the commercial goods.

If you have questions feel free to contact our Client Services Team at 888.538.1566.

Trade Advisor Compliance Regulations
Disclaimer: While reading, kindly note the date of this blog. At PCB we do our due diligence to write on the most relevant topic every week and naturally content may become dated as developments in a certain program/topic occur. For this reason, we greatly appreciate your readership and hope you continue reading with the posting date in mind. For the latest information on this topic please use our website's search function, or better yet, subscribe to our "Trading Post" newsletter to receive these updates directly to your inbox.
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About the Author
Taryn Hannah

Taryn Hannah is General Manager for PCB Canadian Operations, directly overseeing the Release, Trade Compliance, and Office Administration teams. Taryn has been a trade professional since 2005, specializing in strategic and operational process building and management. She began her career with PCB in release operations, which built a strong foundation in many entry modes. In 2010 Taryn became the Supervisor of our Trade Compliance Group, working with staff and clients to understand regulatory documentation, labeling, data, and timing requirements for all imports into Canada. Over the years, she has become an expert in Participating in Government Agency dealings and has been called upon to speak at events such as Vancouver Fashion Week and various customized courses for industry and associations. Taryn has been recognized for her expert knowledge by receiving the designations of Customs Compliance Specialist (CCS) and Certified Trade Compliance Specialist (CTCS) from the Canadian Society of Customs Brokers.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.