1% GST reduction if bought last year but not yet in Canada?

Issues relating to the purchasing, importing, and inspection of JDM vehicles in Canada

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delicat
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1% GST reduction if bought last year but not yet in Canada?

Post by delicat »

Hi,

I bought my Delica in November and got charged 6% GST but it's still in Japan for a few days. Should I only pay 5% as it will only enter Canada next month?
Also, in the landed cost the importer charged me $24 for VIN application. I'd like to confirm that this is no longer required (so I've been told before).
And finally, the soil inspection at $43... is it still a hit and miss or are we no longer required to have it done? Again this was included in the landed cost so if it's not done I'd like to recover this cost.

I know I sound cheap trying to squeeze out every penny but hopefully we can all benefit from it and use this money for a couple extra tanks of fuel... My total would come close to $125

Thanks in advance!
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TardisDeli
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by TardisDeli »

Hi Delicat, for the GST, it is charged at the rate at time of purchase. So if you purchased item in November, it is the 6%, as the 5% was effective 1 January 2008. I had to look up this for work, lotsa info gov.bc.ca website, search word gst. Don't know the rest of your very interesting questions. Cheers, Christine of the TardisDeli.
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coach
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by coach »

I bought mine in November and it arrived on January 4th paid 5% GST on the day it cleared customs, Jan 14.
The bad part was that it looks like the took the exchange rate on that day as well, which wasn't as good as it was in November.
Price from Japan (converted to Can$)+ Duty + Air Condition fee ($100) X 5%= your GST total. I have the bill right here.

Solid exam charged separate, I was told everyone is charged it, but only some are inspected.

Was told yesterday that the VIN fee and attaching of a new VIN was no more on Delicas.
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by Green1 »

GST on the vehicle is charged as it clears customs, so if it clears customs in 2008 it's 5% whereas 2007 was 6%
HOWEVER, if you buy through an importer, they are obligated to charge you GST on the full price of the vehicle including their fees at whatever time you paid them, if you paid them in 2007 before the vehicle left Japan, you still need to pay the 6% tax.
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delicat
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by delicat »

Good morning Green1,

I was under the impression (and hope) that if I ask my importer/broker to separate the vehicle price from the shipping cost I would reduce the duties to be paid by close to $2000 (shipping cost).

As well, I read on IVOAC that the soil exam is no longer handled by the Canadian Food Inspection Agency but by CBSA and that they don't always do the inspection. And if they don't do it they don't charge you for it? (at least some IVOAC members didn't end up getting charge for it).

Any other way out there to save on the import process? It'd be nice if we could all benefit from it!

Cheers,
'93 Nissan Patrol
'94 Mitsubishi Pajero
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"If it ain't broken, modify it!"
Green1
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by Green1 »

it doesn't matter how the importer separates the invoice, all that matters is the payment date, any payment made in 2007 must be charged 6% GST, and any payment made in 2008 must be charged 5% GST. As far as Ottawa is concerned you are buying from the importer, what fees the importer pays to get the vehicle in to the country are not relevant to the amount of tax you have to pay.

The only thing I can think that *MIGHT* work (though I can't guarantee it) would be if the importer were to refund the money you paid in 2007 and re-bill you in 2008... I'm honestly not sure if that would work though, you'd need someone with a better knowledge of accounting and the tax system than I...
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delicat
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by delicat »

Too bad!

And definitely not worth to try to get them to refund the money so you'd pay in 2008. It'd be a royal pain for them and the 1% saved would be greatly offset by the exchange rate anyway.

And here I thought I'd get a couple fuel tanks out of it...
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'94 Mitsubishi Pajero
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PolyTek
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Re: 1% GST reduction if bought last year but not yet in Canada?

Post by PolyTek »

Solid exam charged separate, I was told everyone is charged it, but only some are inspected.
I presume that you meant "soil" exam. Canada Border Services should NOT charge you for the application, only for the actual physical inspection/sample process. That is to say that if they waive the exam, you do not pay. Anyone who tells you otherwise and charges you for a soil exam that has not been performed is ripping you off.

D
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