Bookkeeping for importers and distributors in BC
Published on Published
Duty and GST at the border, PST that may need self-assessing, and the true landed cost of what you sell. We keep it straight every month.
Short answer: a BC importer needs a CRA business number with an import-export (RM) account, records of the GST at 5% paid at the border so it can be claimed back, PST on imported goods handled because it gets no credit and may need self-assessing, and a landed cost for each shipment. Orbis Accounting Ltd. keeps those books monthly, files GST and PST, runs payroll and prepares the year-end return.
What is hard in an importer’s books?
- Landed cost. Freight, duty and brokerage belong in the cost of the goods, not in general expenses, or the margin is wrong.
- GST at the border. It is paid on import and claimed back as an input tax credit, so the customs records have to be kept and matched.
- PST on imports. PST on goods brought into BC gets no credit, and if no one collected it, the importer self-assesses it.
- Inventory across shipments, warehouses and currencies.
- Suppliers paid in other currencies, with exchange differences recorded.
What we do each month for an importer
- Record each shipment with its duty, GST, freight and brokerage, from the customs documents.
- Claim the import GST on the GST return and self-assess PST where it is due.
- Track inventory and cost of goods sold.
- Reconcile foreign-currency accounts and supplier payments.
Who this fits, and who it does not
It fits BC importers, wholesalers, distributors and trading companies, including those buying from Asia. It does not cover customs brokerage or tariff classification, which a licensed customs broker handles.
Can I claim back the GST I pay at the border?
Yes, if you are a GST registrant using the goods in your business, as an input tax credit. The importing guide explains the records you need.
Do I pay PST on goods I import into BC?
Generally yes, and PST gets no credit. If the CBSA, Canada Post or the seller did not collect it, you self-assess. The importing guide explains how.
What account do I need to import?
A CRA business number and an import-export (RM) program account with the CBSA.
Do you handle customs clearance?
No. A customs broker clears the goods. We record the result in your books.
Importing goods: GST and PST →
PST when your business sells goods →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca