Sales tax charged twice for an exchanged lens

Started Sep 1, 2009 | Discussions thread
Neil V Contributing Member • Posts: 679
Re: Sales tax charged twice for an exchanged lens

Well answered, I couldn't really add a thing.

RedValley - Dispute the charges, it will take a bit of work so you will have to decide if it is worth your time and effort. Good luck.

StevieDgpt wrote:

RedValley wrote:

I have returned a lens for exchange to B&H and I had to pay sales taxes for the 2nd time at delivery, after paying for the 1st one (I live in Canada).
What should I do? Is it supposed to happen when receiving exchanged items?

Canadian Taxes?

Taxes are to be collected on the value of the goods crossing the border. With only minor exceptions the purpose of those goods crossing the border is not relevant to the taxes to be collected.

Canadian tax men are becoming especially suspicious of "claims" made by anybody shipping high value goods to the Canada, especially with regards to the traditional loopholes. B&H could properly fill out the export documents and the Canadian tax officials could still charge Canadian taxes on the shipment. A bit of "charge you and see if it sticks".

One of the traditional methods of avoiding taxes (loophole) was to claim the goods were "samples, not for resale or consumption". That loophole has been tighten down tighter than f/32 and claiming "samples" these days is tantamount to waving a red flag at the bull of a tax collector.

Another means of avoiding taxes (loophole) was to claim the goods were returns/defectives/replacements. That loophole has enough restrictions in place that it is difficult to properly document the qualifying goods.

DIFFICULT, not impossible. Your process for reconciliation is with the Canadian tax officials. You will need to provide proof the original goods were indeed returned to the original seller and that the seller has accepted the goods as being defective (just returning is not enough) and replaced the goods with an identical unit.

Identical. If the original lens was a CZ16-80 the replacement lens had better be a CZ16-80. Oh, and the 2nd transaction (B&H receipt) had better say defective product, no charge exchange etc. to make the Canadian tax men happy.

PS: I am South of your border. I don't speak Canadian Tax Men lingo. I just get caught up in your perverse tax laws from time to time because I ship products in and out of Canada. All information provided is based upon information provided to me by a Canadian business associate.

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