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?
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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)
ImportantTaxes. 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.
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Mark Johnson
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- 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.
EBlake
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