Lee Valley prices and purchasing in Canada

[Günter VögelBerg]

I am in USA and I will be taking a trip to Canada in a few days. I am looking at the Lee Valley site and have my eye on a pair of edge trimming planes. They are listed as 255 CAD or 229 USD. Right now 255 CAD exchanges to 195 USD. When I have been to Canada in the past I have only bought consumables and never really paid attention to prices or exchange rates. Is the price I see on the Lee Valley likely to be what I pay in the store or will there be additional VAT like there is in most European countries? I am asking now because Lee Valley has free shipping, and if I don't save any money by buying in Canada I'll just order the planes.

[Barry McFadden]

You will pay an additional 13% HST......

[Doug Garson]

Depending on which Canadian province you make the purchase in, you will pay federal sales tax (GST) and in some provinces, I think all but Alberta, you will pay provincial sales tax (PST). In some provinces the PST and GST are combined into a harmonized sales tax (HST). I believe there is a process to get refunds on all these taxes if you are a resident outside of Canada and take the goods out of the country.

https://www.canada.ca/en/revenue-age...residents.html

[Gary Ragatz]

I believe Canada has a VAT that, between the National and Provincial levels, is around 13%. Unlike Europe, VAT is usually not included in quoted prices in Canada. On the bright side, I believe purchases of the size you are looking at are eligible for a VAT refund (but there's paperwork involved).

The other thing to think about is how you are going to pay. Many retailers in Canada will accept US dollars, but you won't get the "official" exchange rate. If you exchange your USD for CAD at a bank before you go or after you're in Canada, you'll still pay a premium (that's how the banks doing the exchange make money). If you use a credit card, there's likely to be a "foreign transaction fee" of around 3%, plus you still won't get the "official" exchange rate.

My guess would be that when all is said and done, you might save $20 on each plane - plus having to do the paperwork for the VAT refund.

[Günter VögelBerg]

I'll be in Ontario and we might wander into Quebec if we have time.

It sounds like I'll break even unless I want to go through the process of getting the taxes refunded. I have found that when travelling in Europe that is almost never worth the effort involved. I will probably buy them in the store just for fun.

In the stores do they let you play with the toys like a Lie-Nielsen event? I really want to try out the shooting board plane.

[Frank Pratt]

I believe Canada has a VAT that, between the National and Provincial levels, is around 13%. Unlike Europe, VAT is usually not included in quoted prices in Canada. On the bright side, I believe purchases of the size you are looking at are eligible for a VAT refund (but there's paperwork involved).

The other thing to think about is how you are going to pay. Many retailers in Canada will accept US dollars, but you won't get the "official" exchange rate. If you exchange your USD for CAD at a bank before you go or after you're in Canada, you'll still pay a premium (that's how the banks doing the exchange make money). If you use a credit card, there's likely to be a "foreign transaction fee" of around 3%, plus you still won't get the "official" exchange rate.

My guess would be that when all is said and done, you might save $20 on each plane - plus having to do the paperwork for the VAT refund.

No, there is a federal Goods and Sevices Tax that is 5%, which everyone pays (with certain exceptions), nation wide. Each province may or may not have a provincial sales tax, which varies. In Alberta, there is no provincial sales tax, so we just pay the 5%

[Frederick Skelly]

I really want to try out the shooting board plane.

You'll love it Gunter. Took me a year to decide to buy one, but I've always been glad I did.
Fred

[Gary Ragatz]

No, there is a federal Goods and Sevices Tax that is 5%, which everyone pays (with certain exceptions), nation wide. Each province may or may not have a provincial sales tax, which varies. In Alberta, there is no provincial sales tax, so we just pay the 5%

Hi Frank,

My understanding is that Alberta is the "exception to the rule," among the more populous provinces. Mostly, it seems to be 11-15%, total.

Not sure where Gunter will be shopping - if not Calgary or Edmonton, there's most likely ~+13% VAT. But in the end, if he can recover it as a "visitor," I guess it doesn't matter much for his decision.

[Grant Wilkinson]

The document that Doug Garson linked to applies only if you are a non-resident of Canada doing business in Canada. It does not apply to your situation.

[Doug Garson]

The document that Doug Garson linked to applies only if you are a non-resident of Canada doing business in Canada. It does not apply to your situation.

Oops, I was under the understanding that non residents can get a refund of GST when they take the goods home with them and assumed the link I provided would explain how to get it. According to this link that program was eliminated in 2007, and as far as my limited research can find not replaced so the only way to avoid GST for non residents is to have the supplier directly ship the goods out of the country.
https://www.fin.gc.ca/drleg-apl/06-049_1-eng.asp
" Non-resident consumers that purchase goods in Canada on which the GST becomes payable after March 31, 2007, would no longer be eligible for a rebate of GST in respect of those goods. However, GST would continue not to apply where goods are shipped directly by the Canadian supplier to the non-resident's residence. (The shipping charges are also not subject to GST.)"

[Mike Kees]

Kind of crazy how this all works out. I buy all kinds of stuff in the U.S. online and ship to a border business.When I personally cross the border to pick up what I have ordered I very rarely end up paying GST at all. If I ship to Canada I end up paying 3 times as much for shipping,GST and duty usually doubling the cost of the order. Needless to say I do not ship to Canada. Also have noticed Grizzly charges about 40% more for products than the actual exchange rate if you buy in Canadian dollars. I have always wondered why there are not more Americans shopping here in Alberta with the favorable exchange rate there are lots of things cheaper here. Most of the population close to me here in Southern Alberta head to Montana on a pretty regular basis on holidays and shopping forays,crazy as it sounds there are quite a few things we buy in the U.S. that are still cheaper even with the skewed exchange rate.

[Aaron Rosenthal]

Like you, Mike, when I need to order from the American supplier, I send it to a mailbox processer just within the USA and pay a nominal processing fee. Collect it, fill up with gas, buy a few groceries, and go to the border. Declare it and I'm off home.

[Günter VögelBerg]

I went ahead and ordered the planes. I figure I won't save enough to make it worth weighing down my checked bag and I have to assume that I would not be allowed to bring them in a carry on.