Buying goods online from Canada to EU is VAT free?

score:23

Accepted answer

No, the CETA free trade agreement applies to duty/tarifs not VAT.

VAT is consumer tax and when you are the final consumer, you must pay that tax.


Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
Important

Taxes. CETA applies to duties, but not taxes; therefore, any applicable GST/HST for imports into Canada, and any applicable VAT for exports to the EU, will be assessed accordingly. For VAT rates and details, visit the European Commission website.


Sources:

Upvote:1

  • GST/HST/PST should never be charged on goods being exported from Canada (the vendor would get an input tax credit).
  • Depending on the goods, Duty/Tariff/Excise may be applicable upon import to the EU (this is regulated by CETA).
  • VAT (which is the EU equivalent of Canadian GST/HST) would be payable by the buyer upon import to the EU.

More post

Search Posts

Related post