Alex asked:

I have the following two questions.

Let me give you some back round on our business we are registered Business in Ontario Canada we are currently working with manufacturer around the world Importing and Exporting Goods.There are some products we don't have in stock, and we would like to have the products drop-shipped from our suppliers directly to our clients.

Here are the two questions I have

1. If we make sale in USA and ship the product to the US Client Directly from our Supplier or Manufacturer and we invoice the Client Here in Ontario, What happens to the taxes from my understanding there will be no taxes, we would just need the Invoice the Client and just need the purchase Invoice.

2. If we make sale here in Ontario & Canada, But have our Supplier ship the product directly from France to Our Clients here In Ontario & Canada, FedEx Or UPS Will charge the client the GST and if is Retail Purchase going to person and not Business they are charged the GST and PST, How do we bill our clients? Should we charge the GST or The PST if yes then what happens when the carrier drops off the product.

Cynthia Romero answered:

Shipments are subject to the importing laws of the country they are being imported to. If a shipment imports into the U.S., it is subject to any applicable duty/taxes as determined by U.S. Customs. If a shipment imports into Canada, it is subject to any applicable duty/taxes as determined by Canada Customs. In Canada importers pay GST on commercial shipments; GST and PST on personal shipments.

As for who pays for these charges, it depends on the billing terms selected on the shipping documents. We recommend you review our international billing options. They are available at the following link: http://www.ups.com/content/ca/en/resources/pay/international_billing.html

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