The one at the CRA told exactly what you posted. You do not collect GST or HST. Customers pay duties and taxes imposed by the CBSA which is collected from them by the Canada Post.
This is exactly how it is!
Since I am not the importing entity, and I do not buy or own and not even store any Stock at all, at any time, I am only a Person in the middle who makes/provides a connection between the Customer and the Wholesaler/Manufacturer from overseas who drop ships the item to the customer.
I only add (some sort of) a commission to the product I arbitrate.
When I called GST office, one repeated same as above. The 2nd agent spoke to me for around 35 minutes explaining the whole dropshipping situation for taxes. He was explaining about the general rules for taxing in case of drop ship situation rather than directly telling me the rules set out for dropship business. It seemed there is no written regulations in Canada for the dropship business.
Those people I had enough on the phone last year. confusing ,... they just talk about taxation in general but don't have a clue what YOU actually want.
It is important to explain exactly what you do and how you make money with your business.
However, he told me that I must collect GST/HST for other provinces and PST for Saskatchewan residents. Customers should not pay taxes imposed by the CBSA as they will end up with paying taxes twice. My broker agent should release the package on my behalf and my business should pay import duties and taxes.
I do not have to collect SK PST until $10K and not Register and collect GST/HST until $30K ( I can, but I don't have to)
and as soon as you hit the $30K you have 28 or 29 days to register for GST.
I DO HAVE TO REGISTER FOR SK PST FOR ANY TYPE OF BUSINESS I DO, LOCATED HERE IN SK.
The 3rd agent at the GST office told me that I do not collect any GST or HST but the PST only for the Saskatchewan residents. My broker agent should release the package on my behalf and my business should pay import duties and taxes.
A broker-agent? Who wants to pay this Guy for every single Item, try to imagine the price you have to put on the (single) item you are trying to sell. Let the customer pay for it, that keeps the costs low for both, you and the customer.
Unless you buy/own stock then it does make more sense.
I called CBSA and the agent told me that I must collect GST or HST from other provincial residents and the GST, PST for the Saskatchewan residents. My broker agent should release the package on my behalf and my business should pay import duties and taxes. Now, the taxes imposed by the CBSA will be credited back to me when I file taxes.
We are still talking about drop shipping, right? And again, I am not the person importing the Product.
I just provide a connection and take care of those things like, when the customer has a problem with the product etc.
Another friend of mine also called and different agents told him different rulings.
LOL !!! isn't it ridiculous? You think these people should be all on the same page and the answers you'll get will be the same at all times.
It is like cutting off your finger, going to a doctor and he tells you that can happen during flu season.
My 5 cents to this: these people just do not know what drop shipping really is and what the rules and regulations are for this type of
business. If there are any,... The more people you call, the more confusing it will be for you, as you found out yourself if you ask 10 people you'll get 10 different answers. I've been through this too.
If you want to be on the safe side, buy stock, even if YOU have to import the goods, pay for all this and ship it from your warehouse or so, collect all the applicable taxes.
Roy