Tax Witheld - Amazon charges sellers a fee to collect and disburse to the CRA
Who here has chosen to have amazon collect and disburse tax on their behalf?
Did you know that they charge a minimum of 2% of your net sale after fees to process the disbursement to the CRA? Or do I have this wrong?
Tax Witheld - Amazon charges sellers a fee to collect and disburse to the CRA
Who here has chosen to have amazon collect and disburse tax on their behalf?
Did you know that they charge a minimum of 2% of your net sale after fees to process the disbursement to the CRA? Or do I have this wrong?
3 replies
Seller_7LrAV0m5llaI7
A bad idea, since you would be inelegible to file for Input Tax Credits on GST/HST paid on item purchases and business expenses.
It's 2.9% on the tax, not the sale value.
$100 x 5% GST = $5.00 GST
$5.00 GST x 2% tax collection fee = $0.10
10 cents per $100. if you are in a GST only province.
You are wrong, they aren't charging for processing the disbursement to the CRA, they are charging to collect the tax to forward on to you to remit to the CRA.
See here:
sellercentral.amazon.ca/help/hub/reference/G200787220?locale=en-CA
Seller_7LrAV0m5llaI7
If you don't have your GST/HST number registered, they don't submit on YOUR behalf, they submit on AMAZON's behalf, not yours.
If you claimed all your input tax credits back without remitting anything, the CRA will audit you, and you will have to prove that someone remitted taxes on YOUR behalf, which hasn't happened, since Amazon does not have your tax number.
Tax Witheld - Amazon charges sellers a fee to collect and disburse to the CRA
Who here has chosen to have amazon collect and disburse tax on their behalf?
Did you know that they charge a minimum of 2% of your net sale after fees to process the disbursement to the CRA? Or do I have this wrong?
Tax Witheld - Amazon charges sellers a fee to collect and disburse to the CRA
Who here has chosen to have amazon collect and disburse tax on their behalf?
Did you know that they charge a minimum of 2% of your net sale after fees to process the disbursement to the CRA? Or do I have this wrong?
Tax Witheld - Amazon charges sellers a fee to collect and disburse to the CRA
Who here has chosen to have amazon collect and disburse tax on their behalf?
Did you know that they charge a minimum of 2% of your net sale after fees to process the disbursement to the CRA? Or do I have this wrong?
3 replies
3 replies
Seller_7LrAV0m5llaI7
A bad idea, since you would be inelegible to file for Input Tax Credits on GST/HST paid on item purchases and business expenses.
It's 2.9% on the tax, not the sale value.
$100 x 5% GST = $5.00 GST
$5.00 GST x 2% tax collection fee = $0.10
10 cents per $100. if you are in a GST only province.
You are wrong, they aren't charging for processing the disbursement to the CRA, they are charging to collect the tax to forward on to you to remit to the CRA.
See here:
sellercentral.amazon.ca/help/hub/reference/G200787220?locale=en-CA
Seller_7LrAV0m5llaI7
If you don't have your GST/HST number registered, they don't submit on YOUR behalf, they submit on AMAZON's behalf, not yours.
If you claimed all your input tax credits back without remitting anything, the CRA will audit you, and you will have to prove that someone remitted taxes on YOUR behalf, which hasn't happened, since Amazon does not have your tax number.
Seller_7LrAV0m5llaI7
A bad idea, since you would be inelegible to file for Input Tax Credits on GST/HST paid on item purchases and business expenses.
It's 2.9% on the tax, not the sale value.
$100 x 5% GST = $5.00 GST
$5.00 GST x 2% tax collection fee = $0.10
10 cents per $100. if you are in a GST only province.
You are wrong, they aren't charging for processing the disbursement to the CRA, they are charging to collect the tax to forward on to you to remit to the CRA.
See here:
sellercentral.amazon.ca/help/hub/reference/G200787220?locale=en-CA
Seller_7LrAV0m5llaI7
A bad idea, since you would be inelegible to file for Input Tax Credits on GST/HST paid on item purchases and business expenses.
It's 2.9% on the tax, not the sale value.
$100 x 5% GST = $5.00 GST
$5.00 GST x 2% tax collection fee = $0.10
10 cents per $100. if you are in a GST only province.
You are wrong, they aren't charging for processing the disbursement to the CRA, they are charging to collect the tax to forward on to you to remit to the CRA.
See here:
sellercentral.amazon.ca/help/hub/reference/G200787220?locale=en-CA
Seller_7LrAV0m5llaI7
If you don't have your GST/HST number registered, they don't submit on YOUR behalf, they submit on AMAZON's behalf, not yours.
If you claimed all your input tax credits back without remitting anything, the CRA will audit you, and you will have to prove that someone remitted taxes on YOUR behalf, which hasn't happened, since Amazon does not have your tax number.
Seller_7LrAV0m5llaI7
If you don't have your GST/HST number registered, they don't submit on YOUR behalf, they submit on AMAZON's behalf, not yours.
If you claimed all your input tax credits back without remitting anything, the CRA will audit you, and you will have to prove that someone remitted taxes on YOUR behalf, which hasn't happened, since Amazon does not have your tax number.
