2

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?

9
  • 18
    I’m voting to close this question because it’s not about travel. – MJeffryes Oct 26 '20 at 22:46
  • It is about travelling of goods :D but it is just as applicable if you are the courier yourself and taking home stuff from Canada or the EU... – giorgio79 Oct 27 '20 at 5:46
  • Fyi VAT applies to goods made and bought within the EU including within a single country, so there's no reason it wouldn't apply to imports/exports. – Erwan Oct 27 '20 at 11:41
  • FWIW, even travelling within the EU sometimes you have to pay VAT - not all of the EU is in the EU VAT Area... – CMaster Oct 27 '20 at 11:43
  • 1
    "if you are the courier yourself and taking home stuff from Canada or the EU" - that's very different from the actual question: "if I order some goods online..." – Dmitry Grigoryev Oct 27 '20 at 12:28
23

No, the CETA free trade agreement applies to duty/tarifs not VAT.

VAT is consumer tax and when you are the final consumer, you must pay that tax.


Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
Important

Taxes. CETA applies to duties, but not taxes; therefore, any applicable GST/HST for imports into Canada, and any applicable VAT for exports to the EU, will be assessed accordingly. For VAT rates and details, visit the European Commission website.


Sources:

2
  • Ah too bad. Thanks for the explanation. – giorgio79 Oct 26 '20 at 19:06
  • You normally wouldn't have to pay Canadian GST (/HST) since the goods are exported from Canada. – Flydog57 Oct 27 '20 at 18:12
1
  • 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.

Not the answer you're looking for? Browse other questions tagged or ask your own question.