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I am importing products for sale in my business from the USA into Ontario. When I am charged import duties, is the HST claimable as Input Tax Credits (ITCs) when I remit HST to the government?
The goods are being sent using UPS, and I am currently charged 13% plus a brokerage fee (and HST on top of the brokerage fee).
- HST on the product (13%) of value of goods
- Brokerage fee from UPS = $133.62
- HST on the $133.62 brokerage fee = $17.37
Can I claim both the HST on the product, as well as HST on the brokerage fee ($17.37) as ITCs?
Yes, you can claim both the HST on the product, as well as HST on the brokerage fee ($17.37) as ITCs.