# Buy laptop in states, return to Canada, what taxes?



## James L (Jun 7, 2007)

Hey all,

Quick question for those familiar with the border.

If I buy a new laptop next week in San Francisco, what duty do I have to pay at the border?

Is it GST AND PST?

Related questions: 

My wife and I will each have the $750 exemption for the amount of time we will be down there. If I spent $2200 on a new machine (fictitious number), does this mean I can deduct my $750 from it, and only pay the taxes (whatever they are) on the $1450 difference?

Can I combine our two $750, and only pay the taxes (whatever they may be) on the $700 difference?

Cheers all, thanks for the help!

James


----------



## RunTheWorldOnMac (Apr 23, 2006)

I don't think you could combine the allowance. I do believe you would be able to pay taxes on 2500 - 750... not 100% sure, but I think this is how it would work.

You owuld pay both taxes and duty if there was duty on it. Check the Border Agency website for information on duty.


----------



## winwintoo (Nov 9, 2004)

I'm pretty naive about these things, but why would you buy a computer in the states and take a chance at the border? With the current exchange rate the same computer will cost you the same up here and you won't have to deal with cross-border warranty and stuff.

But what do I know.

Margaret


----------



## Seoulkid (Mar 18, 2006)

Honestly....I would just take it out of the packaging and then say its yours and you took it down for a family trip. 

That way you dont pay anything.


----------



## zen.state (Nov 29, 2005)

Not sure where I saw it but I remember reading something a couple months ago about Canada having the cheapest apple hardware anywhere in the world.

We pay at least 5-10 less for iPods after exchange so it would be even more with a mac. 

In my opinion you should buy it here and give your tax dollars to your own country and not George Bush.


----------



## cdnbacon (Feb 26, 2001)

I did it last fall with my MacBook Pro 17". I was down there for a week, bought the MBP, and took advantage of my $750 exemption. What they do is convert US to Canadian $, then subtract your exemption (you cannot combine exemptions for the same item), then charge you GST and PST on the remaining amount. After all was said and done, I ended up saving a few hundred dollars, nothing significant. Don't know if the strengthened Canadian dollar makes this worthwhile or not.


----------



## winwintoo (Nov 9, 2004)

> 1 U.S. dollar = 1.06030034 Canadian dollars





> 1 Canadian dollar = 0.943129 U.S. dollars


Margaret


----------



## FeXL (Jan 2, 2004)

Seoulkid said:


> Honestly....I would just take it out of the packaging and then say its yours and you took it down for a family trip.
> 
> That way you dont pay anything.


And, when you are unable to offer any proof at all that you took it down w/ you (like registering it at Canadian customs on the way down), they confiscate your brand spanking new hardware.

Brilliant!

(And crooks wonder why they get caught...)


----------



## zen.state (Nov 29, 2005)

FeXL said:


> And, when you are unable to offer any proof at all that you took it down w/ you (like registering it at Canadian customs on the way down), they confiscate your brand spanking new hardware.
> 
> Brilliant!
> 
> (And crooks wonder why they get caught...)



what they said..


----------



## winwintoo (Nov 9, 2004)

I knew I had read this somewhere.

http://store.apple.com/Catalog/US/Images/salespolicies.html



> U.S. SALES ONLY
> The Apple Store sells and ships products only within the continental United States, Alaska, and Hawaii. No shipments can be made to APO or FPO addresses, United States territories, or addresses outside the United States. *You may not export any products purchased at the Apple Store*.


Margaret


----------



## wing (Jan 4, 2006)

FeXL said:


> And, when you are unable to offer any proof at all that you took it down w/ you (like registering it at Canadian customs on the way down), they confiscate your brand spanking new hardware.
> 
> Brilliant!
> 
> (And crooks wonder why they get caught...)


Although I agree smuggling is a BAD idea. I would severely doubt they would question a laptop, I travel all the time and they don't ask and I never register my camera equipment or laptop.


----------



## FeXL (Jan 2, 2004)

wing said:


> Although I agree smuggling is a BAD idea. I would severely doubt they would question a laptop, I travel all the time and they don't ask and I never register my camera equipment or laptop.


I can't afford to find out. I frequently travel stateside w/ $20K+ of photography & computer equipment. Absolutely everything over $100 is registered.


----------



## brett (May 27, 2007)

winwintoo said:


> I knew I had read this somewhere.
> 
> Sales and Refunds Policy
> 
> ...


hmmm, last time I was in the states I asked in an apple store whether I could buy a computer there and then return it or have it serviced in Canada. The guy went to ask his manager and they told me it was no problem. I also told them I lived in Canada.


----------



## Oakbridge (Mar 8, 2005)

winwintoo said:


> Margaret


That is the base rate, the actual rate we pay is about 4% higher.


----------



## Oakbridge (Mar 8, 2005)

I'm not sure if there are any duties on computer equipment. 

Last month I ordered a pair of Golf Shoes from the Chicago Blackhawks Charities and I got dinged for the usual sales taxes and brokerage fees AND I think it was $30 or so of duties. If I remember correctly there are duties to protect what is left of the Canadian show manufacturing industry. 

Next time I'll just have them shipped to a UPS office in Buffalo and go down and pick them up myself. Golf shoes I would bring across. A $2000+ laptop I would never cross without registering it with Canadian customs first. If you try to bring it back without proof of purchase in Canada I agree and support Canadian Customs seizing the laptop on you.


----------



## mycatsnameis (Mar 3, 2000)

There are no duties on electronics (in contrast to clothing). Technically you are supposed to pay PST and GST for purchases made in the US with (if I recall) a $750 exemption for stay longer than ?7days.

And no one will confiscate your hardware if you come across the border and without declaring. They get to decide on the value if they think it has been purchased while you were away (as they can choose to do with anything that has not been registered) and you get dinged for that there and then.


----------



## mycatsnameis (Mar 3, 2000)

winwintoo said:


> I knew I had read this somewhere.
> 
> http://store.apple.com/Catalog/US/Images/salespolicies.html



This has nothing to do with the warranty. I bought a G4 PB at the Palo Alto Apple Store and had it serviced a number of times in Canada with no difficulty.


----------



## winwintoo (Nov 9, 2004)

Oakbridge said:


> That is the base rate, the actual rate we pay is about 4% higher.


I don't know what you're responding to here since you just quoted my name, but any figures I quoted are not "base rate".

I did quote the current rates of exchange for yesterday and I took my money to the bank to exchange it, that's what I would get.

Maybe you need a different bank?

Margaret


----------



## Marsh (Jun 8, 2007)

zen.state said:


> Not sure where I saw it but I remember reading something a couple months ago about Canada having the cheapest apple hardware anywhere in the world.


I don't know how true that is.

I'm in the market for a black Macbook. The US Apple Store lists them at $1499.00 whereas the Canadian Apple Store lists them for $1649.00. When you do the conversion on the US price (I use xe.com which shows the Canuck buck at 0.94175 today) You're looking at $1592.44CDN. Not to mention the sales tax in San Fran at 8% is just over half of what one would pay in Ontario.

So, $1499USD plus San Fran tax is $1618.92USD which is $1719.85CDN
$1649CDN plus Ontario tax is $1879.86CDN

A difference of $160.01CDN.

Granted, that's not a huge savings but would cover some of your Applecare cost, no?


----------



## GratuitousApplesauce (Jan 29, 2004)

If you intend to buy with your credit card, check with the issuer about their exchange rate. I had a Visa a few years back that gave a horrible exchange rate. I didn't learn that until I had ordered something from the States and saw the rate later on my credit card bill, it was 10% worse than the going rate.


----------



## Theseus (Jun 6, 2006)

I just checked my credit card, and they charge bank rate + 2.5% admin fee. Not too bad!


----------



## CanadaRAM (Jul 24, 2005)

winwintoo said:


> Margaret (exchange rates)


Except -- if you use a charge card, you will be paying 2.5% worse than the bank 'sell' rate (client buy rate). Each institution takes a cut out of your money, and in each direction.

The TDCanadatrust rate today is 1.0822, so a TD Visa will be 1.105 or thereabouts



> I don't know how true that is.
> 
> I'm in the market for a black Macbook. The US Apple Store lists them at $1499.00 whereas the Canadian Apple Store lists them for $1649.00. When you do the conversion on the US price (I use xe.com which shows the Canuck buck at 0.94175 today) You're looking at $1592.44CDN. Not to mention the sales tax in San Fran at 8% is just over half of what one would pay in Ontario.
> 
> ...


You are going to pay BOTH San Francisco tax and GST/ON PST at the border on the US purchase if you do it legally. If you can get a PST/GST exemption on the first $750 that helps, but remember that means you have to pay on whatever other purchases you bring in.

1618.92USD * 1.105 = CAN$1789 plus ON and GST taxes = more than Apple.ca


----------



## satchmo (May 26, 2005)

CanadaRAM said:


> Except -- if you use a charge card, you will be paying 2.5% worse than the bank 'sell' rate, which is itself 2- 3% worse than the Bank of Canada rate.
> 
> Each institution take a cut out of your money, and in each direction.


On the other hand, some credit cards will provide you with an additional warranty on the item purchased.


----------



## CanadaRAM (Jul 24, 2005)

satchmo said:


> On the other hand, some credit cards will provide you with an additional warranty on the item purchased.


Which is equally true if you use that charge card for a Canadian purchase in Canadian dollars without the exchange premium.


----------



## billwong (Jan 6, 2002)

The idea that Canada has one of the lowest hardware costs for Apple products was based on the relative value and buying power of the Canadian Dollar versus the cost of the product in Canada. Not only based on the relative currency exchange. Here was the headline:

*iPods: Cheap in Canada, costly in Brazil*








By Reuters 

Published: January 18, 2007, 7:58 AM PST 


A global survey takes the pulse of currency markets and worldwide purchasing power by comparing prices for the Nano.

____________

This is different from straight currency exchange comparisons. This survey looked at what the purchasing power of the currency was.

Now that the Can$ and US$ are approaching equal parity, a Canadian shopping in the US has more purchasing power. Canadians are thinking of purchasing in the US more now. Hopefully we'll see some correction in the Canadian pricing.

I recently did a purchase with PayPal in the US. They exchanged my Can$ for US$ at a rate of 1 CND = 0.921 USD. Not the 4% premium as others have suggested. This is not a retail bank, but I wouldn't expect PayPal to be a bargain, either. And remember, the banks are middle men, taking their cut of the transaction.

Bill


----------



## CanadaRAM (Jul 24, 2005)

billwong said:


> I recently did a purchase with PayPal in the US. They exchanged my Can$ for US$ at a rate of 1 CND = 0.921 USD. Not the 4% premium as others have suggested. This is not a retail bank, but I wouldn't expect PayPal to be a bargain, either. And remember, the banks are middle men, taking their cut of the transaction.
> 
> Bill


You must have timed it exceptionally well - that's 1.086. I usually plan on PayPal taking an additional 2% in each direction on exchange.

Of course PayPal adds their own fees of 2.9% - 5% to the seller on top of the exchange both when accepting the money and when withdrawing.


----------



## Demosthenes X (Sep 23, 2004)

I thought you could file to have your taxes repaid once you come home? So US taxes will be returned...?

I've never registered anything when going to the States, but if confronted, never even occured to me.


----------



## RobTheGob (Feb 10, 2003)

Theseus said:


> I just checked my credit card, and they charge bank rate + 2.5% admin fee. Not too bad!


Keep in mind - that 2.5% admin fee is on the purchase price. That is about the 1/4 of the current exchange rate!

Not good to me... Also, that fee varies a fair bit from CC to CC.


----------



## wing (Jan 4, 2006)

Demosthenes X said:


> I thought you could file to have your taxes repaid once you come home? So US taxes will be returned...?
> 
> I've never registered anything when going to the States, but if confronted, never even occured to me.


No the US doesn't do that, going the other way though (US citizens buying in Canada) they can do this.


----------



## zen.state (Nov 29, 2005)

If you buy it from the US your Applecare will be no good in Canada..


----------



## MacDoc (Nov 3, 2001)

That is entirely incorrect.


----------



## Deep Blue (Sep 16, 2005)

winwintoo said:


> But what do I know.
> 
> Margaret


I have no idea, Margaret. Please elaborate...what do you know?


----------



## Makr (Jul 21, 2005)

Heck, I've registered a gameboy colour and a cd player with customs just in case.


----------

