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This article applies to selling in: Canada

Set up tax calculation services

Before you set up tax calculation services, ensure the following:

  • You have identified an obligation to calculate tax in Canada for one or more jurisdictions.
  • You have a valid tax registration number from each tax jurisdiction authority where you intend to calculate tax. Refer to Canada Tax Registration Numbers for more information.
  • You understand the taxability of your products and are ready to assign the appropriate product tax code to your offers. Refer to Product Tax Codes for more information.
  • You are prepared to determine acceptance of buyer exemptions. Refer to How Amazon Tax Exemption Program Works for more information.
  • You understand Tax Calculation Services is available to Professional sellers and downgrading from a Professional Selling plan or closing your account will remove your enrollment in Tax Calculation Services, including access to tax related reporting. Refer to Downgrade or upgrade and Tax Calculation Service for more information.
  • You agree to the Amazon Tax Methodology and Tax Calculation Services Terms.

Follow the steps below to configure or modify your tax calculation settings:

  1. In Seller Central, go to the Settings drop-down menu and click Tax Settings
  2. Skip Step 3 if you are a returning user
  3. Tax Methodology: First-time users must review and accept Amazon’s Tax Methodology that explains how tax calculations occur using your tax calculation settings and the types of tax calculations supported by our service.
  4. Jurisdiction Settings: Your jurisdiction settings tell us a tax calculation should occur when a product ships to a particular jurisdiction. Our Tax Calculation Service can calculate Federal Goods and Services Tax / Harmonized Sales Tax (GST/HST) and Provincial Sales Taxes.

    By entering your GST/HST registration number, you enable calculation of the Federal Goods and Services / Harmonized Sales Tax.

    Your GST/HST registration number will only calculate GST/HST rates. Separate registration numbers are required for all other provincial sales tax calculation obligations.

    To enable provincial sales tax calculations, enter your provincial registration number for each of the sales provinces below where you have a tax obligation:
    • British Columbia (PST)
    • Quebec (QST)
    • Non-Resident QST (NR QST)
    • Manitoba (RST)
    • Saskatchewan (PST)

    You are responsible to maintain a valid tax registration number for each Canadian jurisdiction you have configured to calculate tax.

  5. Shipping & Handling and Gift Wrap taxability: By default, any tax calculation on Gift Wrap and Shipping & Handling charges will occur using the same tax settings and rules that were used to calculate tax for products in the order to which the charges apply.
    • Uncheck the box for each, in line with the related jurisdiction to disable calculation of taxes on order Gift Wrap and/or Shipping & Handling charges.
  6. Tax Calculation Rules > Default Product Tax Code: Your product(s) may be “always taxable” in one province and have a reduced rate, exemption, or zero-rate in a different province. Our Product Tax Codes (PTCs) are used to calculate tax rates and accommodate jurisdiction specific tax rules for your products. Review our PTCs to understand which will work best for your products. A PTC assignment is required to calculate tax for your products.
    • To review our Product Tax Codes and find out which will work best for your products, click View Product Tax Codes.
    • To assign a Default Product Tax Code, under Default Product Tax Code, click the drop-down menu and select your default PTC.

    Your default PTC is useful to apply a single tax rule to multiple products with the same taxability. Products with different taxability rules than your default PTC can be assigned their own PTC on the individual offer edit detail page. You do not need to assign an offer level PTC to every product, only those with rules that differ from your default PTC assignment.

    Note: If you do not select a default PTC, an offer level PTC should be assigned. If neither are assigned, the tax calculation will be made using the non-taxable (A_GEN_NOTAX) product tax code.
  7. Amazon Tax Exemption Program (ATEP): The Amazon Tax-Exemption Program is an optional program in which a seller can participate to accept a pre-enrolled buyer exemption. By default, you automatically participate.
    • To opt-out of participating in (or opt-in) ATEP, uncheck (or check) the box next to“Enroll in the Amazon Tax Exemption Program”.
  8. Once you have configured your tax settings, click Save Settings.
While Amazon’s Tax Calculation Services provide a means to determine and apply sales and use taxes to orders, sellers are responsible for their use of the Tax Calculation Services. For complete details about your responsibilities, see the “Your Responsibilities” section of the Tax Calculation Services Terms.
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