Canadian picking up ring and proposing in U.S. - GST/PST?

[mcmolineux]

I read recently on an online forum that, as a Canadian, if you bought/picked up an engagement ring in the U.S., and proposed there, it would not be subject to GST/PST when you return to Canada because of some loophole. This is of great interest to me, as I am planning on doing just this in early March. I am on a bit of a tight budget so saving the taxes would be huge as it would allow me to spend more on the ring without worrying about getting dinged at the border.

The person got their information from this Pricescope forum, but wasn''t sure of the specifics.

Does anyone have any more information, or a reference link, on why a ring that was bought and "presented" in the U.S. would be exempt from Canadian taxes? I have never heard of this being the case before, so I want to make sure before I remove the allowance for taxes from my budget.

Thanks to anyone who can offer insight!

 

[anitabee]

are you really that honest, that you would declare it at the border? hmmmm...? would they really notice if you didn''t bring it up? uh, NO! have them mail off the cert & receipt, etc to your cdn address and no one would be the wiser. not saying i''ve ever done anything like this

i am in no way endorsing or suggesting that one should not claim stuff bought in the us at candian customs. or am i? hmmm??

paying taxes/duties isn''t one of my favorite activities.

 

[Dreamer_D]

I have never heard of this. If you are in the US for a week you can bring back up to $750 without paying taxes though.

 

[IceExplorer]

Date: 2/18/2010 8:20:18 PM
Author:mcmolineux
I read recently on an online forum that, as a Canadian, if you bought/picked up an engagement ring in the U.S., and proposed there, it would not be subject to GST/PST when you return to Canada because of some loophole. This is of great interest to me, as I am planning on doing just this in early March. I am on a bit of a tight budget so saving the taxes would be huge as it would allow me to spend more on the ring without worrying about getting dinged at the border.

The person got their information from this Pricescope forum, but wasn't sure of the specifics.

Does anyone have any more information, or a reference link, on why a ring that was bought and 'presented' in the U.S. would be exempt from Canadian taxes? I have never heard of this being the case before, so I want to make sure before I remove the allowance for taxes from my budget.

Thanks to anyone who can offer insight!

I don't know of any such loophole.

I'm Canadian and I plan on doing the same thing you are. The difference I have, my GF is American. American's crossing into Canada aren't bound by tax laws that Canadians are.

If one of you could stay with friends (cheaper than a hotel) for 7 days you can legally declare $700.00 tax free.
If you stay 48 hours you can legally declare $400.00 tax free.

I don't know what all the repercussions are if you choose not to declare your purchase. I know at minimum you'll have to pay the taxes. If you don't get caught, there won't be any. It's unfortunate, I know taxes can significantly cramp your budget.

I hope this helps.

 

[mcmolineux]

Have the online diamond shop mail the stuff to my Canadian address, and just the ring and a second box for my U.S. pickup, you're saying? Then present the ring and throw out the box before crossing?

Edit: That reply was for Anitabee.

 

[CharmyPoo]

Nope - never heard of this loop hole and I doubt it exist. I have read the "I Declare" phamplet several times and a gift needs to be declared.

You can mail everything back home except for the ring. All the boxes and extra stuff are not really worth anything - you can mark as a gift. Gifts under $60 I believe will not be taxed.

 

[anitabee]

sure. why not? how will one know a purchase was made if there is nothing to prove such (ie receipt, cert, papers, etc). you can even mail the papers to your home yourself from the us mailing destination if you''d prefer.

no, i''m not endorsing smuggling. this is all a *cough cough* hypothetical situation, right?

 

[IceExplorer]

Date: 2/18/2010 9:36:47 PM
Author: anitabee
sure. why not? how will one know a purchase was made if there is nothing to prove such (ie receipt, cert, papers, etc). you can even mail the papers to your home yourself from the us mailing destination if you''d prefer.


no, i''m not endorsing smuggling. this is all a *cough cough* hypothetical situation, right?

LOL

I heard of someone who bought a very expensive pair of ear rings in the USA. Before they came home they stopped at a department store and bought another pair for 19.99. They declared their purchase because that is the law....for 19.99!!!

I would NEVER do this...
When I was in grade school my parents would take us shopping in the USA for school clothes. We''d stay over night so we could declare more. It was funny to go on vacation with no clothes in the suit case and be told: you''re not allowed to wear your nice shoes.