I am breeder in Ontario and I have a buyer in Florida interested in one of my horses. Does anyone know if there would be any taxes or duties charged at the border when the horse is brought over? Horse will be shipped with a commercial hauler.
No there wont
BUT … to protect your rear end, I had this discussion with Revenue Canada a few months ago with regards to hst being charged on the selling price
If you are selling outside of Canada, YOU have to control making sure the animal leaves Canada otherwise you are suppsoed to charge hst and the buyer is supposed to request a refund with proof that the animal did in fact leave Canada
So - if they come to pick up the horse from your farm or THEY arrange the pick up, technically speaking you need to charge hst to them
If YOU arrange shipping with the commercial hauler and you load the animal on the van, you dont need to charge hst to them
Clear as mud - right?! 
Huh. I’ve bought 2 horses (on separate occasions, in 2005 and 2009) from Canada and picked them up & hauled them home myself. Never paid taxes of any kind on either one.
[QUOTE=Lisa Cook;6284384]
Huh. I’ve bought 2 horses (on separate occasions, in 2005 and 2009) from Canada and picked them up & hauled them home myself. Never paid taxes of any kind on either one.[/QUOTE]
That doesn’t mean Revenue Canada would be very happy. What is quoted above is correct- canadian sellers must arrange shipping out of the country go to avoid hst.- Or at least this is the way it too has been explained to me.
You would have been forced to at least paid 5% GST…and simply were not aware of it. It was likely included with your brokerage fees at the border. Normally the brokers just lump everything into one charge.
Daventry - but you WOULD have gst that has to be paid in Alberta
At the end of the day, the Canadian seller can do whatever they want. IF Revenue Canada audits them, and the seller says “Lisa Cook - this American from XX State picked up the 2 horses she bought from me in October 2011 and she was taking them back home to the States” Revenue Canada is then going to ask:
“Okay - what proof do you have that Lisa didnt actually drop the horses off 5 miles up the road at a Canadian residence? Since YOU did not control the shipping arrangements as the seller?”
and truly - you have “0” proof and Revenue Canada will then ding you for the hst that you should have collected on that sale and you can argue it out with them all you want.
I also sell a little product called Bossys Bibs that I bring in from the UK and sell throughout North America. Since I address the envelope and drop it off at Canada Post myself, I dont have to charge hst on the sale to an American client. I have controlled the fact that item is leaving the country
BUT … if Lisa Cook showed up on my doorstep to buy one and even if I KNEW 100% that she was American and gave me an American cheque for one clearly showing her American address, I legally and technically HAVE to charge hst to her because once again I have no idea if she will take it over the border with her or if she will drop it off to the neighbour up the road instead to avoid having them pay hst on it. I no longer control the exportation of that product out of Canada by allowing Lisa to make the decision on where it goes
Same with any commodity purchased in Canada
Correct. As long as the buyer takes possession of the horse once it enters the United States.
If the buyer drives up to Canada to pick up their new horse, they will have to pay Canadian taxes at the border. Once paid, they can submit a form to the Canadian government to have the tax refunded. If they are using a commercial shipper who will transport the horse down to the buyer in the United States, they are exempt from paying Canadian taxes. Here is the link and the exact quote from the website. https://canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-and-collecting-sales-tax/
“Foreign customers (outside of Canada)
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada.”
We have always arranged shipping for all of the horses & ponies sold from our farm and heading to the U.S. and have never had a buyer come up to pick up their horse so it has never been an issue for us.
Sorry Daventry - should have clarified further …
If a US client bought something from you and insisted on picking it up from your farm themselves, legally and technically, you would need to charge them gst on the purchase price. Or - on an audit, if you couldnt provide records that a commercial hauler picked that horse up from your farm on the way to the States, you are legally liable to pay the gst out of your own pocket
I didnt mean if they bought something and you arranged the shipping, you would still charge them gst
Sorry for the confusion …
Thank for the info about HST. That is not my question though. My question is about what US taxes and duties may be due when they cross the border. Anyone know about that?
Forte - there are none at all.
Only a brokerage fee if it goes with a commercial hauler and they range from about $100.00 - $150.00 per entry - depending on the broker
