Is GST payable on shipping charges?
On One Hand: US Buyers Can Avoid GSTThe goods and services tax (GST) applies to shipping costs inside GST countries, such as Canada. But, a United States resident ordering merchandise from Canada and other GST countries does not pay tax on the shipping cost or the purchase, according to the Canadian Revenue Agency.On the Other: US Shippers May Pay GSTA visitor or resident in Canada, who orders a product from a Canadian vendor, is charged 5 percent GST on the purchase and shipping cost. Within the same province, provincial sales tax (PST) or the HST (a combined GST and PST) also applies. A US resident who sends a gift to Canada will also pay GST on packages worth more than $60, according to the Canadian Border Services Agency.Bottom LinePaying GST on shipping depends on where you are. Many countries, such as Australia (10 percent) and New Zealand (12.5 percent), charge GST on goods and shipping. Most European countries apply the similar value-added tax (VAT). If you order merchandise fo
