Do I have to pay Canadian taxes on an engagement ring my fiancé got me in the US?
My fiancé proposed last week in Arizona (said yes!) and I now have the ring on my finger. The ring has a value of over the $800 personal exemption. Do I need to declare and pay Canadian taxes when returning home to Canada?
There seems to be a lot of anecdotal posts around the internet and I'm unsure of what to do when I return by air.
Best Answer
Canadian law regarding importation of and duty due on articles acquired abroad by persons normally resident in Canada is described on this Canadian government webpage. If the ring was originally acquired by your fiancé in Canada, and your fiancé can so demonstrate upon your return to Canada, no duty will be due.
If the ring was obtained by your fiancé in the US, it is not possible to answer your question without knowing the duration of your stay outside Canada.
Different exempt amounts (and the method for their computation) apply depending upon the duration of your trip outside Canada. The above-cited page presents four duration categories: less than 24 hours outside Canada, 24 hours to 48 hours outside Canada, 48 hours to 7 days outside Canada, and more than 7 days outside Canada. Each duration category has different terms for computation of duty.
No matter the duration, you must declare the ring (and anything else you acquired while out of Canada) to the Canadian Border Services officer when you reenter Canada.
EDIT 2-13-22
In Comments, @mlc has pointed out that the cited Canada customs page also contains this:
Duty
Under the North American Free Trade Agreement (NAFTA), no duty is payable on goods imported for personal use if the good is marked as made in Canada, the United States of America (USA) or Mexico, or if there is no marking or labelling indicating that it was made somewhere other than in Canada, the USA, or Mexico.
Thus, the original answer is incorrect if the goods imported for personal use are marked as made in Canada, the USA, or Mexico.
However, it is not known how Canada Border Services will choose regarding an item, like a ring, which is likely too small itself to contain a "marked as made" label or engraved text.
Pictures about "Do I have to pay Canadian taxes on an engagement ring my fiancé got me in the US?"
Are engagement rings taxable?
The cost of your engagement ring can't be deducted as a write-off on your personal income taxes. When you purchase an engagement ring, it is not only a very personal choice, but it is also a personal expense. While that personal expense may be expensive, it is not deductible on your tax return.Do I have to declare jewelry at Canada Customs?
When you return to Canada, the CBSA does not consider the ring to be "returned" jewelry and the ring must be declared accordingly. Depending on where you had the work done, you may be required to pay duty and taxes on the full value of the ring or on only the cost to have the work done.Can I take a diamond ring through customs?
Do I need to declare the ring at customs? If you purchased the ring in the U.S. and plan on bringing it abroad and back with modifications, there is no need to declare the ring as it is considered a personal good.How much do you have to declare at customs Canada?
Anytime you cross the border, you must declare any currency or monetary instruments you have valued at Can$10,000 or more. This amount includes Canadian or foreign currency or a combination of both. Monetary instruments include, but are not limited to, stocks, bonds, bank drafts, cheques and traveller's cheques.Should You Give Back Your Engagement Ring If You Seperate? | Loose Women
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