It is no big secret that cross border shopping is all the rage. It is not uncommon for a citizen of Canada to pay a Toronto taxi service to take them on a quick run across the border for a shopping trip. You might stay for a day or two and while there take advantage of the huge reductions in price over Canadian goods. It's no secret that the bigger market in the United States means better deals on common items. With the dollars close to parity, there is better shopping for Canadians below the border than ever before.
However, this is something that Canadian officials are well aware of. If everyone were able to shop across the border for whatever they wanted, it would harm the Canadian economy. Therefore, duties and taxes have been placed on people entering Canada with goods purchased in the United States. On your way back to your Scarborough condos, expect to be questioned at the border about what you bought in Michigan and how much it cost. If you just had a big shopping trip, you won't have avoided the HST or other applicable Canadian taxes. However, if you know what you are doing, you may be able to claim an exemption for your trip.
From west to east, the same exemptions apply to Canadian border shoppers. As a general rule, you can avoid paying taxes depending on the length of your stay in the United States. Staying for two days offers the best returns, as far as goods you can purchase as well as in monetary increments as well. Canadian law at the border says that if you have been in the United States of America for two days, you can claim up to $400 tax free as you return home to your Markham real estate.
After the two days, the tax exemptions get a lot stingier. If you were stateside for a week, you are allowed $750, but it doesn't get any higher than that. That's bad news for snowbirds who like to take their RV units down to Arizona for the winter, because more than likely you will have a household worth of goods on your return back. Because you can't combine the exemptions, you won't be allowed to claim anything as tax exempt. That's right, if you have $1000 worth of goods on your return to Oakville condos, expect to pay full tax. You can't even claim the first $750!
There is another exemption time period, but it is so small it's hardly worth mentioning. If you are returning to Toronto condominiums after a day or less in America, you can claim $50 of new goods as tax exempt. Good news for smokers with just a few tobacco products, but hardly any use to the rest of us shoppers!
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