Canada Revenue Agency (CRA) needs to get its house in order for Amazon.ca GST/HST collection
Ever since Amazon.ca started auto collecting and remitting GST/HST on all orders it has helped sellers who can shift the bureaucratic burden to Amazon as well as avoid the GST/HST collection fees from Amazon. Some may point out the ITC's for FBA fees which is true, but avoiding the tax collection fees amazon charges exceeds any benefits one can claim with ITC from FBA not to mention the simplification of accounting and time saving.
However even after this convenient change the bureaucrat mess at the CRA still expects you to remit GST/HST even if Amazon already does this task. So if you sold $100k in product and amazon remits $13k in GST/HST on these orders to the CRA, the CRA will still expect you to send them $13k (double dipping). To the CRA its not about the outcome, but the bureaucratic process.
Im voicing my frustration with the current process to see others insights on this or if there is any new upcoming ruling in the process.
Canada Revenue Agency (CRA) needs to get its house in order for Amazon.ca GST/HST collection
Ever since Amazon.ca started auto collecting and remitting GST/HST on all orders it has helped sellers who can shift the bureaucratic burden to Amazon as well as avoid the GST/HST collection fees from Amazon. Some may point out the ITC's for FBA fees which is true, but avoiding the tax collection fees amazon charges exceeds any benefits one can claim with ITC from FBA not to mention the simplification of accounting and time saving.
However even after this convenient change the bureaucrat mess at the CRA still expects you to remit GST/HST even if Amazon already does this task. So if you sold $100k in product and amazon remits $13k in GST/HST on these orders to the CRA, the CRA will still expect you to send them $13k (double dipping). To the CRA its not about the outcome, but the bureaucratic process.
Im voicing my frustration with the current process to see others insights on this or if there is any new upcoming ruling in the process.
1 reply
Daryl_Amazon
Hey @Seller_a4p86emQ18XHq,
I understand your frustration with the current process of GST/HST remittance and the perceived double taxation by the Canada Revenue Agency (CRA).
I acknowledge that dealing with tax regulations can be a complex and bureaucratic process, which can be time-consuming and overwhelming for sellers. However, it's essential to comply with the relevant tax laws to avoid any potential penalties or legal issues.
Regarding your specific concern, it's important to note that the CRA's expectation for sellers to remit GST/HST even when Amazon has already collected and remitted it on their behalf is not a case of double taxation. Instead, it's a matter of ensuring that the correct party is responsible for reporting and remitting the taxes.
When you provide Amazon with your GST/HST registration number, Amazon collects and remits the GST/HST on your behalf, but the legal responsibility for reporting and remitting the taxes still lies with you, as the registered seller. This process is in line with the Excise Tax Act, as mentioned by mary_jo's comment.
To avoid any confusion or potential issues, it's recommended that you consult with a tax professional or the CRA directly to ensure that you are correctly reporting and remitting the GST/HST collected by Amazon on your behalf.
Additionally, if your annual sales are under $30,000, and you are not registered for GST/HST, Amazon may be collecting and remitting the taxes under the marketplace tax rules, which could be a different scenario.
I understand that navigating tax regulations can be frustrating, but it's essential to ensure compliance to avoid any potential issues. If you have any further questions or concerns, please consult a Tax advisor.
Daryl
