Freight Forwarder from US to CAN?
02-19-2012, 02:04 PM
#16
Burning Brakes
One of the issues US companies selling into Canada is that if they do that they technically open up their books for review by Canada Customs! Scary but it's true, they are deemed to be doing business in Canada then.
Also, technically they have actually file a Canadian Income Tax return. This works both ways with selling across the border. There is no income tax to pay, just file an information return that shows the total $ value of your shipping into the other country and the fact you do not have a permanent location in the other company and they're exempt from tax. If a Canadian company shipping to the US does not file the information return the penalty from the US can be $10,000!
This is why many US companies don't want to ship into Canada.
I have a number of clients (I have an accounting practice in Vancouver) where we have to file these cross border exemption returns.
When I have something I have it sent to a business just across the border and go get it. Sometimes an issue with certain US vendors with that as it's not an approved address for shipping when it's not the billing address. I'm going to have to try and get my bank to add that address to my US $ credit card somehow. Fortunately the border crossing I use is relatively close to some clients I visit frequently so no big travel time. Use a Nexus card to get into the US quickly and avoid the line up.
John in Vancouver
Also, technically they have actually file a Canadian Income Tax return. This works both ways with selling across the border. There is no income tax to pay, just file an information return that shows the total $ value of your shipping into the other country and the fact you do not have a permanent location in the other company and they're exempt from tax. If a Canadian company shipping to the US does not file the information return the penalty from the US can be $10,000!
This is why many US companies don't want to ship into Canada.
I have a number of clients (I have an accounting practice in Vancouver) where we have to file these cross border exemption returns.
When I have something I have it sent to a business just across the border and go get it. Sometimes an issue with certain US vendors with that as it's not an approved address for shipping when it's not the billing address. I'm going to have to try and get my bank to add that address to my US $ credit card somehow. Fortunately the border crossing I use is relatively close to some clients I visit frequently so no big travel time. Use a Nexus card to get into the US quickly and avoid the line up.
John in Vancouver
