Tax remittance question
Hello
I have registered my business, we are new this year with just 25k in sales so far.
I live in Manitoba and Registered for PST in MB and GST and have entered those into my tax settings.
Beyond that now am I responsible for still remitting in each province? I want to have this straightened out but I am finding conflicting info.
Below are my tax settings. But when I run the tax report it seems to say that its all “seller respomsibility”
Any clarification would be greatly appreciated as I dont want any potential liability to get out of control.
Tax remittance question
Hello
I have registered my business, we are new this year with just 25k in sales so far.
I live in Manitoba and Registered for PST in MB and GST and have entered those into my tax settings.
Beyond that now am I responsible for still remitting in each province? I want to have this straightened out but I am finding conflicting info.
Below are my tax settings. But when I run the tax report it seems to say that its all “seller respomsibility”
Any clarification would be greatly appreciated as I dont want any potential liability to get out of control.
7 replies
Seller_t06xgu7cv99sd
I think you made a mistake, you’re gonna have a headache to deal with. You don’t have to get the tax ID until you make $30k in sales. Now the tax guys will come after you with threatening letters. An accountant will help but you will have to print hundreds of Amazon invoices and organize a lot of information, all on your own. I went through the same and just ended up removing the tax ID as I’d prefer Amazon to deal with it. Thank God I had a great accountant but it’s an extra headache for sure.
Seller_dGw4j1ymwP0wn
also I never see tax questions on forums probably for the reasons that Lefties explained above.
However, it’s really not that hard, for those that want to know the process of filing HST and avoiding $500+ a month in book keeping these are the steps below.
1.break down your amazon fees GST. (found in tax library) record number per province per year quarter or whatever you choose to file for.
2.Get a copy of your sales tax report for the quarter year of whatever you choose to file for (also found in tax library)
3.Reconcile your credit and debit transactions via QuickBooks or other software’s. A2X is also a handy program to use if your lazy. (Do you research it is a easy process once you get the basics you are essentially classifying your expenses)
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Print out bank statements Credit and debit statements you can do this by going into your bank online and getting .CSV version. (Do not print pdf statements accountants don’t like this)
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Print out all information into a paper format (Excluding sales tax report as its usually 10,000 lines + this you can just explain to accountant that you have to collect and remit those numbers shown)
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Print out payment summary. Found in payments tab make sure its summary view not transaction view. Print these Quarterly or Yearly depending on what you are choosing to file.
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Look for an E-COMMERCE accountant. Tell them you need to file HST and that you have done your reconciles through QuickBooks or other software, you have pulled all the files required from amazon and that you can give them access to your Quickbooks or other software if need be.
I live in the GTA area so pricing may very but for me a HST filing of roughly 1000 reconciles per quarter cost roughly $300 after the above is complete. In my opinion saving the $500 a month and gaining the knowledge of knowing how to do your books is well worth it.
Once you start bridging to the 2-3 mill sales a year and get 100k + a year on remitting an accountant may be a better option for the full ride. However if your overhead is still under 250k I would suggest researching and going with this method.
EDIT: Please make sure your business GST/HST number is registered with government and amazon ASAP lol. If it isn’t amazon doesn’t collect on your behalf!
