GST is applied at the border to all imported Commercial goods destined or supplied to all provinces within Canada. In turn you will also collect the GST from your Canadian customers by billing them GST Sales Tax on your invoice to them. All Firms with (Canadian) annual sales exceeding $30,000 must register and must post what’s know as a GST 114 Bond, GST Bond or NON-RESIDENT G.S.T. BOND. You will be issued a Business Number (BN) with an annex code of “RT” for GST and “RM” for importing. Remember, even if you do not need to register for GST you must still register for a BN for importing into Canada, which will include an annex code of RM for importing only.
Registered firms collect the GST on the sale in Canada of taxable goods and services supplied to all provinces. After registering you would prepare and submit a GST return quarterly showing the amount of tax you charged and the amount of tax you paid. If the amount of GST charged is greater than the amount you paid, the difference would be owed to the Government of Canada. If the amount of GST paid is larger, you could claim a refund. Transborder shipping costs are not subject to the GST/HST.
