For individuals:
- There is no provision for GST refund for individuals.
- Also, there is no provision for GST off-set and you will not be able to reduce the value of the new item by a trade-in value.
- GST will be assessed on the full purchase price.
For businesses:
- If the item was purchased by a registered company. That company would have taken the input tax credit at time of importation.
- When exporting, it would be zero rated for export.
- When the new item comes into Canada, it would be subject full GST, however the company would get to claim the input tax credit.
- Valuation wise they would still have to pay on the full purchase value.