Imports of Property
Property imported into Canada is generally subject to GST, and property brought into Québec is generally subject to QST. Zero-rated property is excepted, as are items designated as non-taxable importations (GST system) or as non-taxable property brought into Québec (QST system).
Such items include:
- medals, trophies and other prizes
- goods donated to a charity that are subsequently imported by the charity
- replacement parts or replacement property under warranty that is provided free of charge and sent to a person in Québec or elsewhere in Canada
As a rule, GST is collected on taxable goods (excluding zero-rated goods) imported into Canada, when the goods go through customs. The amount of GST is calculated on the value of the goods, including any applicable customs duties. If you are a GST registrant, you may claim an input tax credit (ITC) for the GST paid on goods imported in the course of your commercial activities.
QST is collected on taxable property (excluding zero-rated property) that is brought into Québec from outside Canada and is intended for consumers. In the case of property brought into Québec from another place in Canada, the person that brings the property into Québec must remit the corresponding QST to Revenu Québec immediately after the property arrives in Québec, unless the person is a registrant and the property is for consumption or use exclusively in commercial activities. In other words, the person is not required to pay QST on property brought into Québec where an input tax refund (ITR) could be claimed if the person paid the tax.