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 Replies: 9 / Views: 1,367 |
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Pillar of the Community
Canada
2495 Posts |
Occassionally, I've sent a few coins to PCGS and NGC for grading.
My question is for those of you who have done the same and I'd like to know if you've been charged for HST (and of course a 'handling fee') when your items are returned to you back in Canada.
PCGS (because they have private insurance) only states the grading service fee on the customs form (say, $500) and this is what the charge of HST is based on (in this case it would be $65), plus a $9 handling fee.
My problem is that my accountant says I should not have to pay this charge as it is a 'service' fee, however the Canada Border Service Agency says I should have to pay it.
Does anyone have any further information?
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Pillar of the Community
Canada
4944 Posts |
I think there is a form that you fill out, showing that you have not bought any merchandise.
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Pillar of the Community
 Canada
2495 Posts |
The Canadian Border Service Agency understands there has been no purchase of goods and they also understand the value of the coins need not be reported because they are being returned.
My original post stipulates they are charging HST on the 'service' of grading fees.
My question is 'are they right in doing so'?
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Pillar of the Community
 Canada
9866 Posts |
GST = Goods and SERVICES tax
The remainder may vary by province.With the new $ exemptions and because CBSA is swamped,your package may just sail thru.
"Dipping" is not considered cleaning...
-from PCGS website
Edited by DBM
10/30/2012 3:39 pm
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Valued Member
Canada
475 Posts |
I have direct submission privs with NGC and have also used ANACS on many occasions. The deal is that we have a GOODS and SERVICES Tax and CBA CRA has the right to charge the tax on the SERVICE as you have VALUE added to your numismatic items. I have found that personally I have never been charged but know others that have. It is very similiar to lets say buying cool wheels and tires for your hotrod in the USA driving around for three weeks and coming back to Canada................you theoretically still owe the tax man. Just saying!!  LOL LOL |
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Pillar of the Community
Canada
686 Posts |
54dollar - Question for you, since you seem to know your stuff.
If you get new wheels/tires added to your hot rod, and it increases the value of it, I know that it can no longer be considered Canadian-made, and the whole value is subject to tax (whether this happens in practice, I don't know).
I don't think anyone would dispute that a coin in a MS-65 holder is worth more than the coin in a 2x2 marked MS-65, so would the entire value of the coin (in holder) not be subject to tax as well?
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Pillar of the Community
Canada
2495 Posts |
Maybe I can add some info since I just spent aover an hour talking to two managers (one in Scarborough, the other in Ottawa) from the CBSA.
Their whole basis of charging HST on the grader's fee is because the coin is returned in a different way (encased in plastic) and hence is subject to HST.
I then asked them both (on separate occassions and received the same answer) the question "when I send a raw coin to PCGS and let's say hypothetically, I received the coin back still RAW and an added document from PCGS stating the coins's grade, would I be charged HST?".
Both said "NO".
Then I asked "if PCGS could put on the returning customs document a breakdown of their fees one for their grade opinion and two the actual cost of the plastic case (example for a $500 grading fee it would probably be something like $450 opinion and $50 plastic case), then both managers said the HST would apply ONLY to the plastic cost.
Very interesting I thought to myself......
Next submission I'll try and talk PCGS into doing this.
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Pillar of the Community
Canada
2495 Posts |
As an added note of the second question, both managers said we're getting into a grey area.
But I think I have proven my accountant was correct in stating the CBSA can not charge HST for the service of an 'opinion'.
A few posters should make note of this fact.
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Valued Member
Canada
475 Posts |
Sure they can! When you get your lawyers bill it says plus HST at the bottom of it and that is an opinion albeit a legal opinion.Same thing ! When you send your coins to a foreign TPG and the bill is for 800 or whatever they CAN,not necessarily will charge GST/HST. You are IMPORTING a service. |
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Pillar of the Community
Canada
9866 Posts |
Grading of coins is not tax exempt whether it's done in Canada or elsewhere.The CBSA can charge HST for services and intangibles,they just don't when it is impractical.In such cases the CRA requires that you self-assess and remit the HST if the services or intangibles are for commercial purposes.If you are a private collector I don't think they would hunt you down for the taxes owing.
"Dipping" is not considered cleaning...
-from PCGS website
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Replies: 9 / Views: 1,367 |
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Posted 10/30/2012 3:16 pm
