Are export businesses qualified for claiming input tax credits for the inventory/ products they purchased for resale?
I have provided CRA the purchase invoices and sales receipts, and also the shipping waybills with tracking information to show the packages were shipped out of Canada to other countries. But CRA still says it’s not sufficient to prove my business is making zero rated sales so they will treat all my sales at the 13% GST rate and want me to remit this amount of money to them.
I had been doing this export business in Montreal for several years, I had been auditted as well, I provided the same kinds of documents and not one single questions were asked, I don’t know why it’s a problem after moving to Toronto 2 years ago.
Since it’s an export business, I never charged any sales tax to my customers from other countries, the third party couriers handles the shipping and custom declaration so I only got shipping waybills and tracking information from the couriers.
Does anyone have any idea what more I can do to save my business? If this is the case I have to shut down my business. Thank you very much.
Get a professional to assist. Yes, it will cost money. There is a process to follow.
Advice on a public forum will not help you.
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I will follow up and reiterate what @SmallBizGuy says, get a professional to help! I am an accountant who also runs such a business in addition to my accounting practice. I get another accountant to help with the import business, because it’s worth it. Best to get an expert in that!