What do I need to know before starting to sell from the USA to Canada?
Canada is a large market that loves U.S. goods. The consumer base is over 33 million people. This equates to a market potential of 15% for your U.S. sales. Canada is also the least expensive country to export from the USA because of its close proximity. Nearly 80% of Canadians are located within 60 miles of the U.S.-Canada border.
How can I get started?
First, you will need to become a Non-resident Importer (commonly referred to as an NRI) – meaning that although you will not have a physical presence in Canada such as a residence or storefront, you will perform the role of the importer to make it easier for your potential customers to purchase your goods online.
We recommend that you contact Pacific Customs Brokers. Also, you need to obtain a Business Number and most importantly a Goods and Services Tax Number (which is a sub number of the Business Number). We help you with that part.
What are my Tax reporting responsibilities?
As the non-resident selling into Canada, you will collect sales taxes from your Canadian customers and remit them to the federal and provincial authorities. We help you get set up with those systems and train you to do them in your accounting team after we have guided you through the first few returns.
How do I become a properly registered business to sell into Canada?
You will need to register for doing business in Canada, which primarily means getting a federal business number but can also mean getting provincial sales tax numbers and other related registrations such as income tax and payroll tax if you have staff in Canada.
Do we provide services for all setup requirements for non-residents selling to Canada?
Yes! With a little help from our friends, we can help you sort out sales taxes, income taxes, importing and customs, legal business structure, immigration and transportation moves from all over the world. Our tax experts can review where you are located and where you are selling to maximize the tax savings in the tax treaties available to you.
If you have questions regarding this post, please contact a member of the EPR Maple Ridge Langley team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. EPR Maple Ridge Langley, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.