I frequently receive consultations from people who want to sell high-quality Korean products in Canada but feel lost on where to begin. When entering the Canadian market, checking taxes, customs clearance, and sales channels in advance is just as important as preparing the products themselves. I have compiled a basic checklist that is helpful to verify before entering the market.
Pre-departure preparation checklist
- Deciding on the sales method The required registration and scope of liability vary depending on whether you establish a subsidiary in Canada to sell directly or through a local partner. You can also start by testing market reaction with small-scale test sales.
- Check GST/HST registration status — If you sell taxable products or services to Canadian consumers, you may be required to register for GST/HST if your 12-month sales exceed C$30,000. Even if you sell from inventory held in a warehouse (fulfillment center) within Canada, registration requirements may apply, so it is necessary to check in advance.
- Product requirements check — Labeling, safety certification, and import declaration requirements vary by product category. Failure to verify these requirements before shipment may result in delays during customs clearance.
- Logistics and Returns Planning Due to Canada's vast size, shipping costs, delivery times, and return processing methods significantly influence purchasing decisions. It is advisable to design your logistics flow before starting sales.
Areas where G-Kor Consulting helps
G-Kor ConsultingBased in Toronto, we support Korean companies in entering the Canadian market. We organize the necessary tasks for each stage of market entry, ranging from consultation on company incorporation to connecting with local sales channels, distribution and sales support, and initial marketing. The information above is general in nature, and we recommend consulting with professional accountants or lawyers regarding tax and legal assessments for individual products.
G-Kor Consulting | Inquiries: korcanbiz@gmail.com | https://gkorcon.com
source: Canada.ca — GST/HST E-commerce FAQ, VAT Update — Summary of Tax Requirements for Sales in Canada
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