reselling items free of duties?

[Davidl]

2 part question:

When reselling items do you have to pay duties on the items on my end. Are they not added or have to be recorded and claimed? What about if they are raw materials used for production?

When buying items for resale or production, same question as above do I have to pay the sales tax, do I have to record or claim or its not claimable.

Any info would help.

[Fulcrum]

It all depends on where you're located. If I recall correctly you're in Ontario. This makes answering your questions quite easy - a big ole yes to both.

As for the sales tax on imported goods, you will pay the 5% federal GST + duty + shipping. If you're importing on a regular basis, get yourself a broker as they will save you a ton of money (and you won't have to answer a the phone for each package to clear it).

[Davidl]

I was told by someone that there shouldn't be tax (when I purchase inventory) on any thing that you are reselling and also raw materials, so now I'm a bit confused.. The info may be outdated though.

Wouldn't the product need to be taxed once on the customers end, rather than be taxed once by the manufacturer that buys the raw material, another time that is taxed by the wholesaler that buys the item, then to the retailer that is also taxed and then the consumer is taxed.

Is there ever a time that duties or taxes are exempt for businesses buying raw materials, tools, and inventory - I think its called a wholesale license.

[Fulcrum]

I honestly don't know if that exemption is still valid. I pay tax on what I resell but I can deduct what I paid out when I file quarterly HST returns. The only exemptions that I know of are food products.

[Davidl]

thanks that makes sense