When importing a car into Canada, is the GST based on current value or the original price?
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Some provinces add their own taxes and they are combined and called “Harmonized Tax” because the rule book is the same for both. That’s a fantastic time saver for the vendor/employer because they only have to deal with one tax system — not two. Note that BC rejected this and we have both GST and a separate PST with completely different rules and regulations. PST sucks from an administrative point of view.
GST replaced the hidden and poorly understood Manufacturers Tax. Consumers didn’t even know they were paying this, and it was 13.5% and then PST went on top of that. That tax-on-tax action doesn’t happen now.
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