as you know, last Friday, The Prime Minister of Canada announced a postponement of the payment of duties and taxes on imports until June 30th. This is good news for Canadian importers.
However, the details and conditions of this announcement have not yet been confirmed and the guidelines are not official.
As soon as we have precise information on this subject, we will communicate all of it promptly.
For the GST portion only, if you wish to benefit from the deferrals announced by the government, you must be GST direct. It is the quickest and most efficient program to process the collection of the GST.
Attached, you will find the letter to this effect. This letter must be completed for you to benefit from the deferred payment. The benefits of GST direct include a monthly payment covering the full amount of your GST on your government statement of account.
We desire to be a good business partner and given the current situation, we advise you that it will be impossible for us to advance the TPS funds for your business until June 30th. Therefore, the direct GST payment becomes essential.
Also note that the government has been preparing the implementation of the CARM program. It should start next fall.
With CARM, the payment of your GST and Customs duties will be made automatically to the government through the portal for this purpose. Signing up for GST direct now will give you a head start for the CARM program.
To avoid slowing down or even stopping the normal flow of your shipments, it is imperative that you immediately return the GST direct form signed by a person authorized to do so by your company.
Please send the completed letter to firstname.lastname@example.org
Document in French : HERE
Document in English: HERE
We are available to answer your questions regarding the GST direct and the payment of import duties and taxes.
President and CEO
Frequently Asked Questions
- If I sign up for GST direct, how do I pay my Brokerage fees and duties?
Nothing changes regarding the payment of Brokerage fees and duties. You must respect the established terms and limits.
- If I join GST direct, what is the procedure?
As soon as we receive the signed letter, we will send you a written procedure. But simply put, on the 25th of each month, you will receive a GST payment report by email. Payment is due directly to the Canada Border Services Agency on the last business day of the month. The payment must be made via online banking with your financial institution.
- If I do not subscribe to TPS direct, what will happen?
You will not be able to take advantage of the GST payment deferral and the current credit limits and terms will remain in effect.
- If I do not subscribe to GST direct, will you continue to clear my shipments?
In order not to slow or stop the flow of your shipments, we recommend you register quickly to GST direct.
- I am not currently registered for the GST program and I have already paid my duties and taxes. Are you going to reimburse me?
No, payments received are nonrefundable.
- Why don’t we continue with the current terms?
If you wish to benefit from the payment deferrals announced by the government, you must be GST direct. It is the fastest and most efficient program to process the GST collection.
- What happens to the Customs duties that I must pay?
In order to benefit from the deferral of payment of the Customs duties, you must obtain a bond from an insurance company authorized to do so. Axxess can help you with this, please contact your representative. While waiting for your deposit, the fees are payable according to your current terms.
- Will the GST amounts per shipment be shows on your invoices?
If you are not on GST direct, the amounts of owed GST per shipment appear on your service charge invoices. If you are GST direct (or as soon as you are) the GST amounts will no longer appear on your invoices, only on your Canadian Customs Coding form (B3).
- Can I pay the Brokerage fees at the same time as the GST?
If you are not on the GST direct program, Brokerage fees and GST are payable according to your current terms. IF you are on the GST direct program, your current terms apply to your Brokerage fees.
- If on June 30th, 2020 I am unable to pay the GST due, what will happen?
If you are on the direct GST program, we suggestion that you contact the Canada Revenue Agency. If you are not on the GST direct program, your current terms apply, and we will have already contacted you to that effect.
- As of June 30th, 2020 will you send me a monthly statement of the total of what I will have to pay?
If you are on the GST direct program, on the 25th day of each month, you will receive a GST payment report via email.
12. Following the information provided in your statement, can I immediately claim a credit on the input tax that will be payable on June 30th, 2020?
Since you are an importer, you must pay and claim the GST on the import (as of June 30th). Continue to produce your input credit as usual.
Updated : April 1st, 5:00 pm< Return