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This article applies to selling in: Canada

Tax calculation services

Our tax calculation service is an optional fee-based service available to professional sellers designed to help you meet your sales tax obligation for Canadian Goods and Services Tax/Harmonized Sales Tax (GST/HST); 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).

  • Canada Federal GST/HST collectively is “GST/HST”
  • BC PST, SK PST, MB PST, and QST collectively is “PST”
  • GST/HST + PST collectively is “sales tax”

Federal and provincial tax rates and product taxability options used by our tax calculation service are updated frequently by our third-party provider Vertex.

Updates include:

  • Federal and provincial taxing jurisdiction(s) and tax rules (order origin/destination addresses and tax rule sourcing)
  • Canadian federal and provincial jurisdiction tax rates (based on jurisdiction sourcing)

The Canada tax and regulatory considerations help page includes current Canadian tax rates.

Tax calculation service sourcing and product taxability are controlled by your tax setting inputs, our tax methodology, and tax calculation services terms. Inputs available to you are:

  • Designate a ship-from address for products you fulfill (default shipping address)
    • If you use Fulfilment by Amazon (FBA), we will use the fulfilment centre location as the ship-from address.
  • Ability to assign Amazon’s product tax codes (PTC) to individual item(s) and/or as a default that will apply to all items you do not assign a specific PTC to at the item level
    • Use the item-level PTC on the item detail page to define taxability for a specific product(s)
    • Use the default level PTC to define taxability for all products without an item-level PTC
  • Option to select when shipping & handling charges should be taxed
  • Option to accept buyer exemptions through participation in the Amazon Tax Exemption Program (ATEP)
    • This is popular for B2B sellers who wish to accept buyer exemptions

Once tax calculations are set up and calculating tax on your items, you will have access to the sales tax report in your tax document library which contains all the tax calculation details we used to calculate sales tax on the items you sell.

  • The tax calculation service fee will be 2.9% of the tax amount calculated on your products, and is non-refundable
  • Your sales tax report contains all the tax calculation details (jurisdiction, rate, ship to/from, etc.) used to make a tax calculation on every item sold in an order
    • This report is useful when you are filing your sales taxes with a tax authority

Setting up your tax calculation services

We offer Tax Calculation Services (TCS) in the Canadian store. Before you begin, be sure you have the Canadian store selected ( in the store selector drop-down, located near the upper-right corner of Seller Central.

When navigating to Settings > Tax settings for the first time, you will be prompted to:

To configure your product tax code(s) (PTC), you will need to understand the taxability of your products. It is important to note that before your tax calculation settings will take effect, you must assign a product tax code. For more information, see product tax codes.

To configure your tax calculation settings:

  1. From Settings, select Tax settings
  2. Review the Amazon tax calculation methodology, accept, then click Continue
  3. Under Canada tax jurisdictions settings, add your Canada tax registrations numbers to activate each of them
    • First: Activate your Federal Goods and Services/Harmonized Sales Tax (GST/HST)
      • Enter your GST/HST registration number
      • Note: GST/HST registration/activation is required to activate provincial jurisdictions
    • Second: Activate your provincial sales tax jurisdictions
      • Enter your provincial tax registration numbers for each province you wish to activate
      • Note: You will be unable to activate TCS for Saskatchewan when Marketplace tax collection begins
    • Third: Select the taxability of giftwrap and shipping & handling charges for each province
      • Next to each province, under “Additional PST settings,” check the box for taxable, uncheck non-taxable
  4. Under Tax calculation rules, review PTCs available, then make your default PTC and ATEP elections
    • For detailed information about PTCs or ATEP, click the Learn more link
    • Click “View product tax codes” for a comprehensive list of available PTCs you can assign
    • Assign a default PTC that will apply to all items you do not assign an item-level PTC to (item-level PTCs are assigned on each item detail page in the catalogue)
    • ATEP enrolment is automatically checked. Uncheck the box if you wish to unenrol (at any time) and be excluded from the program
  5. Before saving your settings, check the acknowledgement box that you have reviewed and accept the Amazon tax methodology, service terms, and tax settings you provided
  6. Click Save settings

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

Links to tax calculation service topic-specific help pages

See also

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