The import of property into Canada is generally subject to 5% GST, and the bringing into Québec of property is generally subject to 9.975% QST.

This excludes the supply of goods designated as non-taxable importations (GST system) or as goods not subject to tax brought into Québec (QST system).

Non-taxable goods include:

• certain medals, and certain trophies and other prizes
• goods donated to a charity that are subsequently imported by the charity
• goods that are provided free of charge and are sent to a person in Canada (or in Québec, for QST purposes), as replacement parts or as replacement property under a warranty

Collecting, reporting and remitting the taxes

As a rule, GST/HST applies on taxable imports (other than zero-rated imports) of goods into Canada and is collected when the goods go through customs. The amount of GST/HST is calculated on the value of the goods, including any applicable customs duties. If you are a GST/HST registrant, you can claim an input tax credit (ITC) for the GST/HST paid on goods imported in the course of your commercial activities.

If you are registered for the QST, you do not have to pay QST on property if you meet the following two conditions:

• You are bringing the property into Québec from outside Canada exclusively for use in your commercial activities.
• You can claim an input tax refund (ITR) for the QST payable on the property.

If you do not meet the conditions, you must report the QST payable in your return.

In addition, QST applies when the bringing into Québec of property (other than zero-rated property) by consumers from outside Canada is taxable, and the tax is collected when the property goes through customs.

For property brought into Québec from another place in Canada, the person that brings the property into Québec must remit the corresponding QST to us 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 ITR could be claimed if the person paid the tax. Otherwise, the person must report the QST payable in their return.

A person that is not registered for the QST that has to pay the QST after bringing a property into Québec must report the tax using form FP-505-V, Special-Purpose Returns, and form FP-505.D.D-V, QST Return Respecting Property or a Service Brought into Québec by a Person That Is Not a QST Registrant.