Do I pay HST when I import goods into Ontario for my business?

Yes. Importing goods into Canada triggers GST/HST at the border, collected by the Canada Border Services Agency (CBSA) at the time of importation. For goods entering Ontario, the applicable rate on most commercial goods is the 5% federal component (GST portion of HST), not the full 13%. The provincial HST component is typically assessed separately through your HST return under self-assessment rules for certain types of intangible and imported services.

Registered importers can generally recover the GST paid at the border as an input tax credit on their HST return, as long as the imported goods are used in commercial activities. Keeping customs documents (B3 import entries, CBSA receipts) is essential to support the ITC claim.

For imported services and intangible property (software licences, consulting services from foreign suppliers), the rules are different: there is no border collection, and instead the registered Canadian recipient is required to self-assess HST and report it on their HST return, with an offsetting ITC if the service is used in commercial activities. This self-assessment obligation is often overlooked by businesses that pay foreign software vendors without thinking about HST.