How to claim paid tax back when I removea vehicle out of Canada?

[GriffinMartin]

Hello folks, I am in a business to transport new vehicles from Canada to the USA. Now I wonder when I remove a new vehicle only titled under my company name out of Canada, how to do GST and PST or HST refund?

Anyone knows it? Because I asked lots of accountant and what they said were different. So please advise me if anyone knows it, I appreciate it!:)

[blownz]

So when you purchased the vehicle, you paid GST but claimed it as an ITC on your return so you would have received the GST back at that time. Now selling to the US, you invoice someone without GST so I don't see what the issue is? :dunno:

[codetrap]

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[GriffinMartin]

@blownz
Thanks for the reply. Claiming as ITC is what I meant, but how? Sorry I'm new in this industry :burnout: Also can I claim PST part back? My accountant told me I must claim it within 7 days after I purchased the vehicle. But this timing is too short I will not be able to arrange shipping.

[codetrap]

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[gretz]

Originally posted by codetrap

Or maybe you don't want to talk to CRA because you're being shady?

My thoughts exactly...

I am in business of cars, how do I do the business where i get money?

[blownz]

Originally posted by GriffinMartin
@blownz
Thanks for the reply. Claiming as ITC is what I meant, but how? Sorry I'm new in this industry :burnout: Also can I claim PST part back? My accountant told me I must claim it within 7 days after I purchased the vehicle. But this timing is too short I will not be able to arrange shipping.

Lets say you bought a vehicle for $50,000CDN plus GST ($2,500) and then sold it out of the country for $60,000CDN to someone in the US the same month.

You complete your GST return by putting:

$60,000 on line 101 for sales
$2,500 on line 108 for ITC
-$2,500 on line 109 for net tax and on line 114 for refund claimed

Wait a few weeks and you will get a refund from CRA.

I am not familiar with PST so will not comment, but sounds like you have an accountant so I would use him/her. But the GST really is that simple.

One thing to keep in mind though, is you will have to keep copies of the export documents because when you get audited for GST (and you will if you always have refunds like this and no GST collected on revenue on line 105 of your return) they will want proof that the vehicle left the province otherwise they will assess GST on all of your sales and you will be stuck with the bill. I have dealt with that one and it isn't easy getting documentation after the fact so make sure you keep it.