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-   -   GST refund -- buyer beware (https://www.fodors.com/community/canada/gst-refund-buyer-beware-441212/)

rheamarie Jun 10th, 2004 11:17 AM

GST refund -- buyer beware
 
When applying to have your GST tax refunded -- be sure to pick up the form directly from the Canada customs and revenue dept. It is the only form which does not include a processing fee. You will find other tax refund forms at the airports and at your hotels -- but these carry a service charge -- between a $7 to a 20% fee. Be sure to read the fine print and the back of the form to know you are using another company to process your refund.

To learn more go to : www.ccra.gc.ca/forms


We never found the Toronto tax refund station -- as we were continuing our flights back into the states and it seemed that after we cleared customs and had our luggage re-scanned -- they went back on the belt to the airplane cargo hold. Luckily, we had our purchase receipts stamped at the Montreal airport before checking our luggage. The agent in Montreal was not going to stamp it because of the Toronto plane change. However, I am glad she did because the Toronto connection for U S travellers is complicated and problematic if you have a tight plane connection. [I think you have to go to a different terminal to have your purchase receipts stamped]

I just think that Canada is not making it convienent for U S travellers to obtain this refund -- which frustrates visitors who are unacustom to this kind of run around. I would appreciate hearing from seasoned travellers if there was a better way to figure this out. We flew from Montreal to Toronto -- plane change then on to our destination in the US -- via Air Canada.

FainaAgain Jun 10th, 2004 02:08 PM

Do they have different rules now? I flew San Francisco - Toronto -Montreal RT in 1999 and had no idea I need a stamp! Came home, printed out a form from that website you mentioned, and mailed it all. Don't remember how soon a check came in. Did not take long.

Flyboy Jun 10th, 2004 07:13 PM

FainaAgain, yes, they do have different rules now than they did in 1999 and rheamarie is providing some good advice concerning the requirement to have receipts stamped before leaving Canada, as well as warning people to avoid the many exploitive "services" offered in visitor publications that extract a substantial fee for being the middleman in the transaction. I also agree that the changes have made it more difficult to claim the refund and it is doubtful that it's an accident.

bettyo70 Jun 10th, 2004 10:14 PM

I totally agree that Canada has all these "fuzzy" rules surrounding the claim of tax refunds. At one store I went to in Montreal, they were using the refund as a big selling point, but on none of the forms that we filled out was it indicated the exact amount one needed to spend in one store to actually qualify for the refund. It ended up in a lot of wasted time filling out forms for nothing! Frustrated, I later called a Canadian tax refund representative when I got home in NYC, and she even apologized for the lack of clarity and information provided to tourists!

FainaAgain Jun 11th, 2004 01:56 PM

Thank you, that's nice to know as I'm sure I'll go back for a visit!

Lovejoy Jun 13th, 2004 05:51 PM

Here is a link to an offical Canadian Govt. site that explains all the rules in order to receive your GST refund.The site also has a link where you can download the actual form.
http://www.cra-arc.gc.ca/tax/nonresi...ors/tax-e.html

waltd Jun 14th, 2004 04:20 PM

Perhaps I have been misinterpreting the GST refund regs, but I've never stopped off at the border to have my receipts stamped. On the other hand, we've never spent enough on the carry-about items to warrant refunds. Our only refunds have been from hotels, and we waited til we returned home, downloaded the GST refund form from the official Canadian gov't website, attached our receipts and mailed them in. Always received our refunds within a few weeks.

rheamarie Jun 14th, 2004 06:01 PM

Lodging receipts do not need to be stamped, however if you purchase articles (clothing etc.) they will qualify for the refund if the purchase is $50 or greater. The reason for the stamping of the original receipt is to make sure the articles on which the GST has been paid (and is going to be refunded) actually leaves the country. You must have the articles with you for inspection when you go through the tax refund office. My sister had to present the wedding dress she purchased before the officer stamped the receipt.

My question still remains in the Toronto airport -- for a U S connecting passenger -- where is the tax refund office. We arrived in one terminal and had to be bussed to another, go through customs, and then be transported back to our departing terminal.

Judy_in_Calgary Jun 15th, 2004 09:03 AM

Being a citizen and resident of Canada, I've never applied for GST Refund, so have no personal experience of this. However, according to a website that provides information on Ontario, the locations of the Customs booths at which you can get your receipts stamped are in the following locations in Pearson International (Toronto) Airport:

* Terminal I - Customs Information Center, Arrivals level

* Terminal II - Customs Information Center, Arrivals level beside Area A

* Terminal III - Customs Information Center, Arrivals level beside Area C

http://www.2ontario.com/traveltips/tips22.asp

FainaAgain Jun 15th, 2004 11:49 AM

Waltd, now I remember there is a question in the tax refund form - how did you cross the border? Last time we took a bus, that's why we did not care for a stamp, and got the refund from home. I heard the rules are different now if you take a plane. What a pain :)

waltd Jun 16th, 2004 08:27 AM

FainAgain: For refund on lodging, I think the rules are the same any way you exit Canada - no need to visit Canadian customs before exiting. We've driven and have taken airplanes and have never bothered with Canadian Customs. The website which Judy has referenced should clear it up for retail purchases. While some commentators suggest that Canada makes it difficult intentionally so as to save money on the refunds, I don't think that's the case at all. The Canadian government earns vastly more on other taxes paid by tourists than they refund through the GST. The GST refund program is a tool used by Canada to lure tourists and it's a good program. As rheamarie suggests, the government does want to ensure that the refunds are legitimate. Even though we tend to spend more than we figure on gifts and such, we buy them along the way and not from the same store or vendor, so we never have enough on one purchase to rate the refund -ha!

josie23 Jul 28th, 2004 09:55 AM

Could you clairify this Tax Stamp and where to get it if we are traveling to Canada by car. We will being going through customs near Waterton Park one way and probably International Falls the other (don't know which way where yet). Is there an office near these sites we should stop at first before crossing?

Thank you for your help.

djkbooks Jul 29th, 2004 06:13 PM

There is a customs desk at nearly every border crossing for having your receipts for purchases stamped, usually within a duty-free shop. There's a website (do a search) listing the "facilities" at all the border crossings.

As noted above, hotel receipts do not require stamps. If you've made qualifying purchases, since you have to have your receipts stamped, you may as well just have your refund processed right then and there. No matter how long the line, it moves very quickly.

As noted above, if you have only hotel receipts, be SURE to use an official form, which you can download from the website. The one time I inadvertently used a third-party form, I never did get the refund (though they probably did). This was before stamps were required on receipts for purchases.

I read that the stamps are required now a) to prevent visitors from getting ripped off (when you get the stamps, they provide the official form, whereupon you can mail it in or just process it on the spot) and b) because receipts were being mailed to the USA for processing for goods that never left the country.

If you're flying home, your refund must be processed at your last Canadian airport, though you can have your receipts stamped at any airport. You must allow adequate time, and look carefully for the desk/window as soon as you enter the terminal so as not to miss it. Most airports have websites with maps so you can easily find the customs desk.

antlori Aug 2nd, 2004 03:36 PM

I had the same problem in England with not spending enough in any one store to qualify for the rebate, so I don't think it's just a Canadian way to make it difficult to get your money back.

Dick Aug 2nd, 2004 04:18 PM

As I stood in line waiting for the person to stamp our slip arrive...I asked people which for they had.

Out of 6 people in line, not one had the official form. they all had the, more readily available, "for profit form". None of them realized that they would be giving up as much as 20% of their rebate.

Of course with the official form, Canadaian form you must supply your own envelope.

After I explained the difference, all but one person switched to the official form.

rheamarie Aug 2nd, 2004 06:23 PM

I wish to report that I recieved my refund check promptly in the mail. The system works as long you know the rules -- hence the reason for the initial posting.

I think some of the confusion I experienced in the Toronto airport was due to the fact that from Montreal, Quebec City to Toronto -- Air Canada hub, those routes use large planes. Our U S destinations -- Toronto to Detroit and Cleveland used much smaller prop planes -- and they use a different terminal for arrival and departures. $75 refund check I received was definately worth the extra effort.

snowmountain Aug 3rd, 2004 03:14 AM

I was told by canadian customs at Ottawa airport that lodging receipts also had to be stamped. It seems the rules change depending on who you talk to.

rheamarie Aug 3rd, 2004 08:26 AM

I did not have our lodging receipts stamped. However, I was concerned because one of the lodging places we stayed at gave us a 3" by 4" receipt simply stating 3 nights, amount paid, signed by the proprietor (this was in Neuville Quebec). It did not separately state the tax with which we are accustom to seeing on our receipts in the States. However, on an larger hotel near the Montreal airport, the tax was clearly stated on the bill.

Moral of this story,

If the tax is not separately stated, then you subconsiously think you are not paying it. It is a good method to avoid the gripes from both the local citizens and tourists alike. However, I prefer to have it broken out -- it would then be easier to see exactly how much my refund should be.

RufusTFirefly Aug 8th, 2004 04:02 PM

Lodging receipts do NOT have to be stamped, but they must show the tax amount. The only reason anything has to be stamped is to prove you took the items out of Canada--and, of course, you can't take your lodgings out of Canada. We just got our refund yesterday.

cheftrav Sep 2nd, 2004 07:09 AM

We just returned from Niagara Falls and found the whole GST refund to be a Canadian ploy to extort even more money from tourists. The only person we encountered in Canada who even mentioned the GST refund was our waitress at dinner one night. On our drive home, we stopped at the duty-free store right before the border to get our refund. The process took 45 minutes to an hour. There were no road signs telling you where to go, and I'm sure the vast majority of tourists leave Canada without getting their refund. I felt we'd paid sufficient taxes while in Canada to more than cover our visit. It was well worth waiting for our $60 refund, and I hope more visitors will go to the trouble to obtain their refunds in the future.

Patrick Sep 2nd, 2004 07:37 AM

I'm not much of a shopper, so merchandise tax refunds don't mean much to me, although I did buy a good watch in Montreal once and easily got my refund at the border driving back to Vermont.
The hotel tax refunds really do add up, however. I usually have mailed them in with the official form and received a very prompt refund. One time I did it in person at Windsor, Ontario, and it was really quick also.

Dick Sep 2nd, 2004 07:42 AM

<found the whole GST refund to be a Canadian ploy to extort even more money from tourists.>

How did you come to that conclusion? Does anyone in the states refund taxes to Canadian tourists? I thought it was a big plus to get anything back. They even refund the GST on hotels.

As for waiting for 45 mins to an hour...that was unecessary. I sent the receipts back with the gov't provided form and received a check (in USD)a few weeks later.

HAd you looked at a tour book or checked this forum, you would have realized there was an easier way.

cheftrav Sep 2nd, 2004 07:17 PM

Honestly, Dick, where in the U.S. would Canadians be subjected to taxes as high as those in Canada? Do you expect me to give three cheers because I got a refund for excessive taxes? Yeah, it's great I got some money back, but, for heaven's sake, the taxes were too high to begin with. What would I have gotten had I read the boards before going? Contradictory information, that's what. Some said receipts must be stamped, others did not. The information I received in Canada said receipts had to be stamped. Therefore, I waited in line, got my money back and went home. End of story.

Dick Sep 3rd, 2004 06:49 AM

Cheftrav, the idea is to do the research before you left for Canada.
I got this information prior to going to Canada.

ALmost evey website relavant to Canadian Tourism talks about the tax refund requirements.

http://www.cra-arc.gc.ca/tax/nonresi...rs/menu-e.html

Or this site regarding Ontario( you said you went to Niagara Falls).

http://www.ontariotravel.net/TcisCtr...amp;linkType=I

Your anger is misdirected

The hotel tax in NYC is over 13% and you don't get any refund.

IF Canada wil refund the GST, the only tax left is the Provincial tax and that isn't unlike a sales tax in the states

laverendrye Sep 3rd, 2004 08:33 AM

In fact, provincial sales tax is also refunded for most provinces (except, BC, PEI, Sask, and Alberta). For Ontario, as the Ontario website shows, you have to apply separately and PST for accommodation is not refundable.

The OP is right to warn about private companies offering refunds. They charge a fee in return for providing you an instant refund. Canada Customs and Revenue charges nothing.


I find Cheftray's opinions interesting. He thinks the taxes in Canada are excessive and too high, and he's welcome to that opinion. But what is "excessive"? They may be higher than in the U.S., but while no one in Canada likes to pay taxes, we have chosen to pay from our taxes for a number of government services which are not covered in the U.S. It's simply a matter of choice. The province of Alberta has no sales tax because it is awash in royalties from oil and gas, and the people of Alberta would never accept one. Many other countries have even higher consumption taxes than Canada because their citizens because they expect their governments to do even more. Americans have chosen low taxes and fewer government services, but I wouldn't critcize the U.S, for what I might consider inadequate services. That's your choice.

As far as tourists are concerned, a good portion of these goods, services, and sales taxes are refundable, and the process is reasonably simple, and information is readily available on how to do it. Let's face it, the government needs some proof before sending out refunds. I don't see any reason to complain.

Carmanah Sep 3rd, 2004 09:57 AM

I agree with laverendrye. In a way, it's like getting free money. Why would you complain? You're paying into it, but you're the rare few that have the luxury of getting that money back.

Patrick Sep 3rd, 2004 10:19 AM

Frankly, while I appreciate the refunds, I've always thought it was odd to stupid for the Canadian government to refund those hotel taxes to foreign tourists. We use a lot of services when we visit and I think that's a good way to help pay for them. And I find it hard to believe that if we didn't get it back, that would discourage us from going!

By the way, the one bit of confusion I had was that the initials of some of those taxes did not match between the provinces and what was on the forms. I know there are several -- GST and PST, but hotel bills had itemized taxes with initials that didn't match any of the forms. I had to call and find out that two sets of names were actually interchangeable, although the form didn't state that.

Richelle Sep 3rd, 2004 10:23 AM

We went to Nova Scotia last September and I kept our receipts and then just mailed them in with the form when we returned home.

I got my refund check very promptly without paying any fees or hassle.

Very good deal in my opinion.

We're traveling to Quebec for our honeymoon in three weeks and I will gather our receipts again and mail them in for our refund.

Takes about 10 minutes of your time and a 37 cent stamp to get back lots of money. Time well spent in my opinion.

atilla Sep 3rd, 2004 02:32 PM

Hi cheftrav -
I think I understand your frustration with our high taxes here, especially if it was an unexpected surprise.
I think you have to realize though that there are many factors to contribute to the fact that we have higher taxes than the U.S.

Firstly, we are a huge country (area wise) with only 30 million people. This means all of our vital services such as roads, railways, park maintenance etc, etc is paid for by a relatively few number of people as compared to the vastness of the task.

Also, as troubled as our Health Care system is, I will take it over the U.S. system any day. There are many advantages to us for paying a little more in taxes.

I visited New York earlier this year, and researched ahead of time what I could expect as far as taxes, prices of food, well prices of almost everything that I could research. That way there was no unexpected financial burdens.


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