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This article applies to selling in: Canada

Tax Calculation Services

Our tax calculation services calculate Canadian federal and provincial taxes based on seller-determined calculation settings and any related information that we request.

Amazon uses a third-party system, the Vertex Indirect Tax O Series, to support tax calculations that are part of our tax calculation services.

Our services include support for the following tax calculations and related functions:

  • Canadian federal and provincial tax rates (including periodic updates)
  • Provincial tax area ID assignment (jurisdiction identification)
  • Tax jurisdiction determination (sourcing)
  • The ability to select a seller-defined default product tax code
  • The ability to specify tax calculation obligations for orders at the federal and provincial level
  • Shipping & handling taxability support
  • Item level tax calculation details

Set up tax calculation services

The Tax Settings page lets you do the following:

  • Review the tax methodology and product tax codes used by our systems
  • Set up your tax calculation settings
  • Provide other information we require to provide tax calculation services
  • You cannot assign a custom rate per state in marketplace.

Before you begin, select the correct marketplace (US or CA) from the drop-down list at the top of the page. You must configure your product tax codes (PTC) before the tax calculation settings will take effect. For more information, see Product Tax Codes.

To configure your tax calculation settings:

  1. On the Settings tab, select Tax Settings.
  2. Click View Tax Calculation Methodology.
  3. Review the Amazon Tax Methodology, and click Continue.
  4. On the View Product Tax Codes page, review the available Amazon product tax codes and associated information. For example, clicking the A_GEN_NOTAX link will show you a list of conditions that apply when using this code. When you are done, click Continue.
  5. On the Set Up Your Tax Calculation Settings page, do the following:
    • Select your seller-defined default product tax code.
    • Select the jurisdictions supported by our systems where you want to calculate tax (federal and provincial).
      Note: Goods and Services Tax (GST/HST) obligation is required prior to electing any provincial obligations.
    • Add your federal and provincial tax registration numbers (required).
    • Select your shipping & handling and giftwrap tax settings.
  6. Review the Tax Calculation Obligations table. You can set or clear your obligations here.
  7. Click the acknowledgment below the list of provinces.
  8. Click Continue.
  9. Review and confirm your tax calculation, and click Continue.
  10. After you complete your review, select the three check boxes, and click Confirm.

For additional questions about our tax calculation services, contact Seller Support.

How our Tax Collection Services work

See also

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