Importing goods into BC: GST at the border, and PST

Short answer: to import commercial goods you need a CRA business number and an import-export (RM) program account with the CBSA. GST, at 5%, is collected at importation on the value of the goods including duty, and a GST registrant can claim it back as an input tax credit when it meets the requirements. BC PST, at 7% on most goods, gives a business no input credit. If the CBSA or Canada Post does not collect it, the importer has to self-assess it.

What you need before the first shipment

• A nine-digit CRA business number. Importers need it before they can register for an import-export program account.
• An import-export (RM) program account with the CBSA. The account number is your nine-digit business number, then the letters RM, then a four-digit reference number, for example 123456789 RM 0001.
• Access to the CBSA’s CARM Client Portal, which is the system of record for duties and taxes on imported commercial goods.

GST at the border

The importer of record pays the GST. It is calculated on the Canadian-dollar value of the goods including duty and excise tax, and collected at the time of importation. A registrant importing goods for its commercial activity can claim the GST paid as an input tax credit, if it meets the requirements. A fictional example: goods valued at CAD 10,000 with CAD 500 of duty. GST at 5% is calculated on CAD 10,500, which is CAD 525, and a registrant can claim that amount back. The figures are invented. How import GST is accounted for can differ for registrants, so read the CRA’s page on GST/HST on imports before relying on the border payment described here.

PST on goods brought into BC

• Most goods carry 7% PST on the purchase price, with higher rates for some goods, such as 10% for liquor.
• Unlike GST, a business gets no PST input tax credit for goods it buys.
• If the CBSA or Canada Post, or the seller, does not collect the PST due, the importer has to self-assess it.
• The province’s bulletin says that with a PST number you self-assess on your next PST return, and that without one you use a Casual Remittance Return (form FIN 405), due on or before the last day of the month after the month the goods entered BC. Read the bulletin for your own case.
• Goods bought to resell can be exempt from PST under the province’s resale rules, which have their own conditions. Read the province’s bulletin on goods for resale before you rely on that.

What your books need to show

• Each shipment’s value, duty, GST paid at the border and PST, as separate figures.
• The GST paid at the border kept apart from the cost of the goods, so it can be claimed as an input tax credit.
• The PST that was paid or self-assessed, treated as part of the cost, because it cannot be claimed back.
• The import documents behind each entry, filed with the invoice.

GST and PST in BC, side by side →

GST registration and input tax credits →

Registering for PST in British Columbia →

Ask for a written quote →