Canada

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Compliance Categories

5+

Possible Compliance Items

250+

Compliance Complexity

Tier 3
Tier 1
Tier 1
Tier 2
Tier 2
Tier 3
Tier 3
Tier 4
Tier 4
Tier 5
Tier 5

Basic Insights

VAT Rate (Standard)
5-15% (GST/PST/HST)
De Minimis Value
CAD 20 (duty), CAD 40 (tax)
Excise Taxes
Alcohol, tobacco, cannabis
Special Import Procedures
CBSA clearance; health permits for food/drugs; province-specific rules

Advanced Insights

Aerospace & Aviation
Art & Antiques
Automotive (Parts)
Defense & Military Equipment
E-commerce & Express
Electronics & Semiconductors
Fashion & Luxury Goods
High-End Industrial Machinery
Medical Devices & Equipment
Perishables (Food & Flowers)
Pharmaceuticals & Healthcare
Industry Sector
Avg Duties
Notes
0%
0%
0–6.1%
0%
0–6.1%
0–6.1%
17–20% (textiles)
0–6.1%
0–6.1%
0–6.1%
0%
Aircraft and parts duty-free; GST/HST applies
Certified antiques may be exempt
Higher for luxury vehicles
Exemptions for government/defense use
Duty/GST on all imports; de minimis CAD 20
Most electronics at standard rate
High duty on luxury items
Exemptions for investment/infrastructure
Many medical devices duty-free
Biosecurity applies
Many medicines duty-free
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FAQ's About

Canada

What happens to GST I paid before registering

It is generally not recoverable as an input tax credit, because entitlement depends on being a registrant when the tax was payable. This is why registration comes before shipping.

What is CARM?

CARM is the CBSA's system for assessing and collecting duties and taxes on commercial imports. It became the system of record in October 2024 and made importers directly responsible for registration, financial security, and payment.

Do I need a Canadian company to be the importer of record?

No. A non-resident business can be the importer of record in Canada. Since CARM's transition measures ended, it needs its own BN15, CARM registration, and financial security to do so.

Can a US company reclaim GST paid on imports into Canada?

Yes. A US business registered for Canadian GST/HST that imports goods for its commercial activity can claim input tax credits for the 5% GST paid at the border. No Canadian entity is required (as of July 2026).