Quebec Sales Tax to be charged to Quebec-based Sellers by Amazon on Amazon Selling Fees and Amazon Advertising fees Services
QST collection on Selling on Amazon Fees and Amazon Advertising to begin November 1, 2019 for Quebec-based sellers.
The Quebec Government has introduced new tax rules requiring non-resident companies providing digital goods and services to begin collecting QST on certain services when they are provided to Quebec residents who are not registered for QST who do not have a 16 digit QST registration number.
Taxable services include Selling on Amazon fees (including listing/referral services, monthly professional selling fees), and Amazon Advertising fees charged by Amazon Services International, Inc. or Amazon Services, LLC. Amazon has been paying QST on these fees on behalf of the seller since the rules came into effect, however, effective November 1, 2019, Amazon will no longer be paying QST on these services on behalf of sellers and will begin charging QST on such services to Quebec-based sellers who have not provided Amazon with their 16 digit QST number.
Unless a seller has provided Amazon with its QST number as evidence that it is QST-registered in Quebec, the rules requires Amazon to collect and remit QST at a standard rate of 9.975% on Selling on Amazon fees paid by sellers who are residents of Quebec.
Quebec sellers who provide Amazon with their QST number will not have the QST of 9.975% applied to their Selling on Amazon fees.
Starting November 1, 2019, to provide Amazon with your QST number, use the following steps:
To learn more, or understand how this regulation impacts your Selling on Amazon account, please visit the Revenue Quebec website.
My 16 Digit QST number is saved in my Tax Calculation Services settings, do I still need to provide my QST number to Amazon?
Yes. Even if you have configured your Tax Calculation Settings with your 16 digit QST number to collect QST on your orders, you must still follow the steps outlined above and provide your 16 digit QST to Amazon by adding your QST number in the VAT Information page. If you do not follow the steps above, and if you are based in Quebec, Amazon will collect QST on your Selling on Amazon and Amazon Advertising fees, even if your 16 digit QST number is saved in your Tax Calculation Services page.
How does QST apply to my Selling account?
If you are a resident of Quebec, Selling on Amazon fees (listing/referral services) charged to your selling account are subject to QST unless you are QST-registered and have provided Amazon with your QST number as evidence that you are QST-registered on or before November 1, 2019.
How does tax apply to my Fulfilled by Amazon (FBA) Fees?
FBA fees for offers listed on Amazon.ca are sold to you by Amazon.com.ca, Inc. For information on how Canadian sales tax applies to FBA fees for Amazon.ca listings, see this help page.
FBA fees for offers listed on Amazon.ca are sold to you by Amazon.ca Services LLC. For information on how Canadian sales taxes apply to FBA and Selling on Amazon fees for Amazon.ca listings, visit this help page.
I am no longer a resident of Quebec, and I have updated all my information to reflect my current address. Can Amazon refund previously-charged QST to my seller account?
Amazon is required to charge and remit QST based on the information in your seller account. At the time the QST was calculated and collected, Amazon had enough information to associate your account with QST. Amazon cannot refund QST without a valid QST number on file.
How do I obtain a QST Number?
I am not a Quebec resident; will Amazon charge my account QST on fees?
If you are not a resident of Quebec, Selling on Amazon fees through your selling account will not be subject to QST collection. Consult your tax advisor to help you understand if you have any QST obligations.
How is QST charged?
Amazon will charge Quebec-based sellers a standard rate of 9.975% QST on the Selling on Amazon fees if the seller does not have a valid QST number on file as evidence that it is QST-registered.
Amazon will begin calculating and collecting QST on Selling on Amazon fees effective November 1, 2019.
Why is Amazon continuing to collect QST when I have provided a valid QST number?
Amazon will not calculate and collect QST if you have provided a valid QST number as evidence that you are QST-registered on or before November 1, 2019.
However, there may have been QST collected based on orders due to timing. Amazon calculates QST when an order is placed, and charges it to the seller account when the order is shipped. Therefore, QST may have been collected on orders placed prior to the time you provided your QST number.
I updated my information to reflect my current address, which is outside Quebec. Why is Amazon continuing to collect QST?
Amazon calculates QST on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated you were a resident of Quebec, then QST will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.
Go to Seller Account Information and review each section to ensure that all of your information is complete and accurate.
Note that there may be several addresses and payment methods associated with your seller account.
How do I receive a refund for previously-charged QST on my seller account?
You may request a refund for previously-charged QST once you have provided Amazon with a valid QST number as evidence that you were QST-registered as of the date of the relevant services provided.
To request a refund:
QST refunds can take up to 90 days to process. You will receive an update from Amazon when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your seller account, if your request was approved.
Will Amazon provide me with an invoice for any QST collected on Selling on Amazon fees?
Amazon is not required to issue tax invoices under the Quebec legislation. All monthly activity can be found in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports > and selecting a transactional report for a particular timeframe.
Can Amazon help me with my tax return?
While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax advisor.