The provincial government of British Columbia has introduced Marketplace Facilitator tax collection requirements (referred to as Marketplace Tax Collection or "MTC" by Amazon) for British Columbia Provincial Sales Tax (BC PST) that is applicable to goods you sell in the Amazon.ca store when purchased by a buyer in British Columbia (BC).

Effective July 1, 2022, Amazon will be responsible for calculation, collection, and remittance of BC PST on all taxable goods sold in the Amazon.ca store that ship from within Canada to a buyer located in British Columbia.

If your goods ship from outside Canada to a location in BC, you remain responsible for BC PST tax collection and your configured Tax Calculation Service will apply to the transaction.

The BC PST MTC rules do not impact how Canadian Federal Goods and Services Tax / Harmonized Sales Tax (GST/HST) applies on sales to buyers in British Columbia. This means that certain sellers (such as, resident sellers registered for GST/HST) may still be required to calculate, collect, and remit GST/HST on sales to buyers in BC, even when Amazon is the party responsible for calculating, collecting, and remitting the BC PST.

Our ability to apply accurate tax rules to goods you sell in the Amazon.ca store depends on the accuracy of your account information and product listing details that you have provided to Amazon. Ensure that your account (such as, Tax Calculation Settings, business address, shipping settings) and product information are up to date.

To view your sales tax calculations and responsible party information (whether you or Amazon are responsible for the tax and calculation), go to your Sales Tax Report and Payments Reports.

When MTC (Amazon responsible) applies to a transaction, the MTC amount will be shown under "Marketplace Withheld Tax" as a separate line item in the Transaction Details or as a separate column in your Payments Reports.

If the amount you see under Marketplace Withheld Tax is less than the amount you see under Product Tax, this means you are the responsible tax party for one tax (GST) and Amazon is the responsible party for the other tax (PST). In this scenario, Amazon will be responsible to remit the tax amount displayed under "Marketplace Withheld Tax" to the applicable tax authority and you will be responsible to remit the remaining tax amount shown under "Product Tax" to the appropriate tax authority.

For complete details about when Marketplace Tax Collection applies to product sales, account reporting, and to review your account information for accuracy, go to Marketplace Tax Collection for Canada FAQ.

If you require a tax professional, our Solutions Provider Network offers resources for sellers to consider when looking for service options outside of Amazon.