Buying goods online from Canada to EU is VAT free? [closed]

I read that Canada and EU now have a free trade agreement. Does this mean that as a private person, if I order some goods online, like a laptop, or a TV, or anything will be VAT free if it comes to the EU?

Best Answer

GST/HST/PST should never be charged on goods being exported from Canada (the vendor would get an input tax credit).
Depending on the goods, Duty/Tariff/Excise may be applicable upon import to the EU (this is regulated by CETA).
VAT (which is the EU equivalent of Canadian GST/HST) would be payable by the buyer upon import to the EU.

Pictures about "Buying goods online from Canada to EU is VAT free? [closed]"

Buying goods online from Canada to EU is VAT free? [closed] - A Customer Paying for Groceries Using a Smartphone

Buying goods online from Canada to EU is VAT free? [closed] - Person Using Black and Silver Laptop Computer

Buying goods online from Canada to EU is VAT free? [closed] - Woman in Gray Coat Using White Laptop Computer

Do I have to pay VAT on goods from Canada?

You'll also need to pay customs duty on gifts or other goods from Canada if they're worth more than a certain value. You'll need to know the tariff or HS code to calculate the exact rate due. If you also need to pay VAT, it'll be charged on the total value of your goods, including import duty.

Does VAT apply to online purchases?

Consumers don't really notice the applicable VAT rate on their digital purchases because the VAT amount is included in the retail price.

Is VAT charged on sales to EU countries?

For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. Likewise, VAT is charged on services at the time they are carried out in each EU country.

Do Canadians pay EU VAT?

For EU, VAT is collected according to the international rules of VAT and then sent to the state the purchaser is from. For Canada, the GST/HST is collected and paid to the Government of Canada.

New EU VAT rules are here! Check out VAT changes on dropshipping and distance selling

Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.

Images: Gary Barnes, Kampus Production, Peter Olexa, cottonbro