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This article applies to selling in: Canada

Tax Calculation Services Terms

The following terms apply to the Tax Calculation Services Amazon makes available to Amazon.ca Professional sellers who list products for sale on Amazon.ca, have an obligation to calculate tax on their Amazon.ca orders, and have valid tax registration(s) with the relevant taxation authority.

Registration: Registration occurs when you have provided all required information and your Tax Settings are saved. To save your tax settings you must accept the Amazon Tax Methodology, Tax Calculation Services Terms and confirm the configurations you provided are valid and based on your obligation to calculate tax.

Jurisdiction Configurations: Tax Calculation Services can calculate Goods and Services Tax/Harmonized Sales Tax (GST/HST); and British Columbia Provincial Sales Tax (BC PST); Saskatchewan Provincial Sales Tax (SK PST); Manitoba Retail Sales Tax (MB PST); and/or Quebec Sales Tax (QST), (collectively, “Taxes”).

Apart from what is listed above, no other taxes, regulatory fees, duties, or fees of any kind are calculated as part of the Tax Calculation Services.

You agree to maintain a valid tax registration number for each Canadian jurisdiction you have configured to calculate tax. Amazon may request registration documentation or additional information from you to support your tax setting configurations. You agree to remove your tax settings configurations and stop calculating Taxes immediately if/when your registration is invalid for any reason. Failure to remove invalid tax calculation configurations or provide requested documentation may result in the suspension or removal of your selling privileges.

Product Tax Codes and Associated Information: Tax Calculation Services uses a product tax code (PTC), in conjunction with your jurisdiction configuration, to accommodate and calculate jurisdiction specific tax rules such as an exempt or zero-rated product. A list of product tax codes and jurisdiction specific product tax rules are available in your Tax Settings.

You are responsible to understand the taxability of your products, and to assign a valid PTC in the format and manner we require, to enable the proper tax calculation of your products for different jurisdictions. If you do not assign one of our product tax codes, you understand a zero rate calculation will occur using product tax code A_GEN_NOTAX and no Taxes will be calculated for that product.

Amazon Tax Exemption Program: You automatically participate in the Amazon Tax-Exemption Program (ATEP) when you save your Tax Settings, unless you opt-out by unchecking the box next to “Enroll in the Amazon Tax Exemption Program”. This program allows pre-enrolled ATEP buyers to apply a tax exemption to a participating seller’s offer, at the time of purchase. The buyer’s exemption document is made available in the seller’s account, approximately 48 hours after order completion. Taxes will calculate according to your Tax Settings when a buyer exemption cannot be applied at the time of purchase, or if a seller does not participate in ATEP. Buyers may request accommodation of their exemption through a post-order refund of Taxes charged.

By participating in the Amazon Tax Exemption Program, you agree to accept a pre-enrolled buyer’s ATEP exemption document for an exempt zero-rated tax calculation. For post-order concession refunds of amounts equal to Taxes, you agree to accept the refund decision and exemption document/information obtained by Amazon Customer Service supporting Amazon Fulfilled orders. Further, you agree to communicate with a buyer to obtain, validate, and retain exemption document/information and process a post-order refund when a valid exemption request is received for Merchant Fulfilled orders.

Calculation Services: Tax Calculation Services will use your tax calculation settings, product tax code assignment, and Amazon Tax Methodology to calculate Taxes for orders placed on amazon.ca for delivery within Canada. Tax Calculation Services do not apply to any other taxes, regulatory fees, or destinations outside of Canada.

Tax Calculation Services Fees: The tax calculation service fee is 2.9% of the total Taxes calculated by our service for a transaction. This fee is non-refundable and will be retained by Amazon in the event of any refund on related transactions.

Transaction Refunds and Taxes: A post order refund of Taxes may be requested from a buyer when Taxes were incorrectly calculated, or the buyer was unable to apply their exemption during the time of purchase. Responsibility of processing a tax refund depends on the type of refund, who fulfilled the order, and your participation in ATEP.

  • Merchant Fulfilled Orders: Merchants remain responsible for communicating with customers via buyer-seller messaging, determining what type of refund may be required, processing the refund, and issuing any required documentation to the customer, such as credit notes.
  • Amazon Fulfilled Orders: With the exception of ATEP buyer exemption requests for orders from sellers who do not participate in ATEP,Amazon Customer Service (CS) is responsible to communicate with a buyer, determine what type of refund is issued, and process the refund. Responsibility for the creation and issuance of documentation is dependent upon the type of refund issued.
    • Transaction Refund: When a transaction is refunded (whole or in part), Taxes calculated on the transaction will be automatically refunded to the buyer, equal to the refund amount. See Tax Invoicing section below for Credit Note information.
    • Concession Refund: Concession refunds are a lump sum refund that may be given to a customer for a variety of reasons, including a request for a Tax-Only refund. Any Taxes previously collected will not be refunded or adjusted for any concession refund, however, the lump sum refund may include an amount equal to Taxes previously paid. For all concession refunds, the creation and issuance of a credit note to the customer, or other required documentation, remains the responsibility of the seller
      • ATEP Buyer Exemptions (Seller participates in ATEP): Amazon CS will only process a buyer post-order concession refund equal to the taxes paid when you participate in ATEP and supporting exemption documentation is provided by the buyer.
      • ATEP Buyer Exemptions (Seller does not participate in ATEP): Amazon CS is unable to assist buyers with a request for post-order refund of Taxes if you do not participate in ATEP. Sellers remain responsible to communicate with buyers via Buyer-Seller Messaging about your choice to accept exemptions and determine if a refund is due. Sellers may use the Concession Refund process and are responsible for issuing any required documentation to buyers.
      • Non-ATEP Buyer Exemptions: Amazon CS will process a buyer post-order concession refund equal to the taxes paid for any non-ATEP Buyer exemptions where supporting exemption documentation is provided by the buyer.

Tax Invoicing: Beginning 9 October 2019, a tax invoice will automatically be generated for customer orders from sellers who participate in Tax Calculation Services. A credit note may also be automatically generated for a transactional refund of Taxes for Amazon-fulfilled orders. This does not apply to concession refunds, or to any refunds for Merchant Fulfilled Orders. The invoice will be made available to both buyer and seller and includes your seller account legal entity information and your tax setting jurisdiction registration number(s). In certain circumstances, the customer may be required to contact you to receive a copy of the Tax Invoice or Credit Note. A regenerated tax invoice or credit note, or invoice or credit provided in addition to any Amazon-generated tax invoice or credit note must be clearly marked as “Duplicate”. The ability to edit or change a tax invoice is not available. If an error exists, cancel or return the order to generate a credit note, and then create a new transaction.

For any order prior to 9 October 2019, or in circumstances when a tax invoice or credit note is not generated (e.g. concession refunds, refunds for Merchant or Amazon Fulfilled Orders) or is generated but not provided to a buyer, it remains the seller’s responsibility to create and/or provide the required documentation (such as a tax invoice or credit note) to a buyer via Buyer-Seller Messaging only.

You agree to all tax invoicing requirements, and that your information, including your legal entity name, legal address, and tax registration numbers, you provide to Amazon are accurate and valid, and that your information can be provided to buyer on a tax invoice or credit note.

Remittance of Taxes: Taxes calculated on transactions using the Tax Calculation Services are remitted to you with your account disbursement and are recorded in your payments and sales tax reporting. Amazon does not remit Taxes, or amounts collected as or on account of Taxes, (collectively “Tax Amounts”) on your behalf to any tax authority.

You agree to accept the amounts we remit to you as full satisfaction of our obligations in connection with the Tax Calculation Services. You agree to remit all Tax Amounts, on your transactions to the proper tax authority.

Customer Service: Amazon Customer Service is unable to address buyer questions related to your Tax Calculation Settings. It is your responsibility to respond to any buyer concerns related to your tax settings.

Customer Information: All buyer information available to you through your seller account, various Seller Central reports, exemption documents, tax invoices, credit notes, or any other format, MUST be stored and maintained in accordance with Amazon’s Customer Data Privacy policy.

Your Responsibilities: You are solely responsible for your use of the Tax Calculation Services, including ATEP and Tax Invoicing. Your responsibilities include:

  • Understanding and complying with your obligation to register with a tax authority, calculate, report, and remit any Tax Amounts (“Tax Obligations”).
  • Configuring your tax jurisdiction settings based on your Tax Obligations.
  • Providing a valid tax registration number for each jurisdiction (federal and/or provincial) where you have enabled Tax Calculation Service.
  • Determining and assigning the correct product tax code to your products and ensuring any product tax code assignments to your products are maintained and updated, as may be required in connection with your Tax Obligations.
  • Ensuring any tax refund or exemption provided to a buyer, through ATEP or otherwise, meets the conditions for the refund or exemption offered as required by the relevant taxation or revenue authority.
  • Understanding, obtaining, issuing, and maintaining all required documentation necessary to meet your Tax Obligations.
  • Reporting and remitting all Tax Amounts, and other transaction-based fees to the applicable taxation or revenue authority for your transactions and maintaining all required supporting information and documentation for your Tax Obligations, such as sales data, customer exemption documentation, tax invoices and credit notes.
  • Responding to buyer requests for information about your tax calculation settings, post-order refund requests, copies of tax invoices or credit notes, including obtaining and validating any information necessary to comply with all applicable laws and regulations related to tax-exempt transactions and tax calculations.
  • Ensuring all your seller account information, tax registration numbers, legal entity information, jurisdiction selections, and product tax code assignments are accurate, valid, and maintained to reflect your Tax Obligations.

Amazon disclaims all responsibility for your use of the Tax Calculation Services, including ATEP and Tax Invoicing.

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