#logistics-operations

Thread

Stewart May 28, 2024 at 10:42 PM

DTC Shipping from US to Canada: Any US brands collecting provincial sales tax on Canadian orders to avoid broker fees associated with the shipment? I think I've figure out that collecting the duty from my customer at checkout (DDP) will avoid any broker agent needed for the transaction, just need to courier to transport to the customer. This does require you to remit tax to CA government quarterly or something like that but certainly makes shipping US to CA a less scary purchase for customers, as there won't be any surprise brokers holding parcels hostage for added fees. those experience in this space, please let me know if I am missing something here. Thanks!

Ryan Bennett May 29, 2024 at 12:13 AM

No, you covered it off well. You shouldn't have to remit until you hit $30k in sales.

https://www.trade.gov/canada-non-resident-importer-program#:~:text=The%205%20percent%20GST%20is,to%20post%20a%20GST%20bond.

Ryan Bennett May 29, 2024 at 12:13 AM

You could also find a Canadian company to act as an agent for you and manage tax obligations

Stewart May 30, 2024 at 12:57 AM

@Ryan Bennett I think so. What do you mean 'act as agent? For importing or filing? Our Accountants are actually based in Canada but specialize in cross border taxes

Ryan Bennett May 31, 2024 at 02:34 PM

Importing and filing. Some companies will act as IOR and/or VOR for non-resident importers.

Ryan Bennett May 31, 2024 at 02:35 PM

It's not something companies usually advertise, because everyone would ask for it as it essentially removes all the risk from the importer/brand.