Marketplace tax collection rules for Amazon.ca sellers from July 1, 2021
As Canadian governments introduce new marketplace tax collection (MTC) rules (also known as Marketplace Facilitator), the responsibility to calculate, collect, and remit Canadian sales taxes on goods that you sell to buyers (customers) on the Amazon.ca store, may change.
- For sellers on Amazon.ca who ship goods to customers located anywhere in Canada from a location in Canada (domestic transaction), and who have not registered their GST/HST registration with Amazon:
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
In addition, GST/HST will not apply to per-order related seller fees that you pay to Amazon.
- If you have registered your Canadian GST/HST registration number with Amazon (in Tax Calculation Service and/or VAT Information page), MTC rules do not apply to GST/HST. Any obligation that your business may have to calculate sales tax on your Amazon.ca sales and remit those taxes to a tax authority, remains yours.
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
- For sellers on Amazon.ca who ship goods to customers located in Saskatchewan (SK) from any location (domestic or international transaction):
- Regardless of your GST/HST or SK PST registration with Amazon, MTC for SK PST will be Amazon’s responsibility for all applicable sales to customers in Saskatchewan starting July 1, 2021.
What do you need to do?
In order to ensure that Amazon applies the correct tax treatment to your Amazon.ca sales transactions and fees, review your account information to ensure it is up to date:
- Your business information, including your business address. We recommend that you take this opportunity to ensure that the rest of your information is up to date as well.
- If you have a Canada GST/HST registration number, make sure it has been provided and is up to date on your VAT Information page.
- If you use Tax Calculation Service to calculate tax on products that you sell to customers, ensure that your settings and tax registration numbers are up to date.
- Review your product category and item description for accuracy.
Answers to frequently asked questions can be found on ourCanadian sales taxes on Amazon.ca seller fees and Marketplace tax collection for Canada help pages.
Looking for a tax professional? Our Solutions provider network offers resources for sellers to consider when looking for service options outside of Amazon.
0 replies
Seller_BXHkF0elemiSo
Amazon currently levies a 2.5% fee on sales tax we collect from buyers.
This creates an unfair advantage to sellers not currently registered for GST/HST as there will be no such fee.
In addition, per-order related seller fees should also not be taxable if sellers are registered on their own. Why is it treated differently whether we are registered for GST/HST or not?
Seller_cuqbWem1a7BaZ
Horrible. Shame on them
You know in Canada legally a company does not have to pay GST till they make more than $30,000
So you are basically stealing, on behalf of the Canadian gov.
If anything, Amazon creating a law that forces people who make more than $30,000 in the year on Amazon, taking the tax…what can I complain. But here you are taking GST from people when it is not even required from the Canadian laws.
Tax should be abolished. I do not charge my customers tax because charging them tax is forbidden in my religion, so I will not steal from them.
Native Canadians legally have no tax, and theres no tax on reserves. So how can companies blanket tax people like this…it baffles me.
Seller_KpPjXKtNg4xuI
What about the 5% GST import tax how do we avoid this if we are no longer collecting and remitting sales tax?
Seller_55uNhWKDSgEnP
As a Canadian seller required to charge GST I’m very happy this has been implemented. My international competitors that do FBA in Canada don’t charge GST which makes their product cheaper to a purchaser. We are on the same playing field now. In my opinion this is a win for Canadian sellers because I doubt most international sellers were charging GST.
Seller_BXHkF0elemiSo
Amazon - Please clarify if sellers who are already registered for GST can remove their GST number (as of July 1st) and have Amazon collect the tax.
Is that an option? Please be clear.
Seller_6RpJt8838QPPi
A quick question.
Does that mean that, starting on July 1st, for sellers who are not registered with Saskatchewan PST (and do not have a PST number entered in their tax settings next to Saskatchewan) Amazon will start charging SK PST on their behalf regardless?
If so, will they remit those taxes to Saskatchewan themselves?
Seller_w27cBxGNXYIqm
If I can restart, I’d register for GST right off the bat and not wait for the 30k threshold. ITC puts money back in my pocket! Registering 30k into the business just makes bookkeeping a nightmare (unless I’m doing it wrong)
And since we’re talking about tax, can I claim ITC on the inventory I bought before I registered for GST? Volunteering to register can set the date back 30 days. Does that mean I can claim ITC on inventory I bought 30 days before I registered?
This gets confusing because inventory I bought before I registered, I am selling now… so I am charging sales tax on them… i should be able to claim right?
Seller_BXHkF0elemiSo
I am not an accountant and do not pretend to provide advice. However, I’ve done some research and this is the reality.
If you are currently a HST registrant, you must continue to collect and remit HST as always. Nothing changes. You cannot unilaterally decide to remove the HST number from Amazon simply to have Amazon start collecting and remitting on your behalf.
It would (likely) technically work, but from CRA’s perspective that is not allowed. The only way it would be permissible is if an Agency Agreement would be in place between the seller and Amazon which stipulates that Amazon is collecting the HST on our behalf. There is a standard form available from CRA, however I highly doubt Amazon would sign. Why would they?
This is unfortunate as we are stuck paying Amazon the 2.9% which non-registrants will not have to pay. We will also have to pay HST on the Amazon referral fee (although it can be claimed back) which non-registrants will avoid.
Seems entirely unfair.
Marketplace tax collection rules for Amazon.ca sellers from July 1, 2021
As Canadian governments introduce new marketplace tax collection (MTC) rules (also known as Marketplace Facilitator), the responsibility to calculate, collect, and remit Canadian sales taxes on goods that you sell to buyers (customers) on the Amazon.ca store, may change.
- For sellers on Amazon.ca who ship goods to customers located anywhere in Canada from a location in Canada (domestic transaction), and who have not registered their GST/HST registration with Amazon:
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
In addition, GST/HST will not apply to per-order related seller fees that you pay to Amazon.
- If you have registered your Canadian GST/HST registration number with Amazon (in Tax Calculation Service and/or VAT Information page), MTC rules do not apply to GST/HST. Any obligation that your business may have to calculate sales tax on your Amazon.ca sales and remit those taxes to a tax authority, remains yours.
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
- For sellers on Amazon.ca who ship goods to customers located in Saskatchewan (SK) from any location (domestic or international transaction):
- Regardless of your GST/HST or SK PST registration with Amazon, MTC for SK PST will be Amazon’s responsibility for all applicable sales to customers in Saskatchewan starting July 1, 2021.
What do you need to do?
In order to ensure that Amazon applies the correct tax treatment to your Amazon.ca sales transactions and fees, review your account information to ensure it is up to date:
- Your business information, including your business address. We recommend that you take this opportunity to ensure that the rest of your information is up to date as well.
- If you have a Canada GST/HST registration number, make sure it has been provided and is up to date on your VAT Information page.
- If you use Tax Calculation Service to calculate tax on products that you sell to customers, ensure that your settings and tax registration numbers are up to date.
- Review your product category and item description for accuracy.
Answers to frequently asked questions can be found on ourCanadian sales taxes on Amazon.ca seller fees and Marketplace tax collection for Canada help pages.
Looking for a tax professional? Our Solutions provider network offers resources for sellers to consider when looking for service options outside of Amazon.
Marketplace tax collection rules for Amazon.ca sellers from July 1, 2021
As Canadian governments introduce new marketplace tax collection (MTC) rules (also known as Marketplace Facilitator), the responsibility to calculate, collect, and remit Canadian sales taxes on goods that you sell to buyers (customers) on the Amazon.ca store, may change.
- For sellers on Amazon.ca who ship goods to customers located anywhere in Canada from a location in Canada (domestic transaction), and who have not registered their GST/HST registration with Amazon:
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
In addition, GST/HST will not apply to per-order related seller fees that you pay to Amazon.
- If you have registered your Canadian GST/HST registration number with Amazon (in Tax Calculation Service and/or VAT Information page), MTC rules do not apply to GST/HST. Any obligation that your business may have to calculate sales tax on your Amazon.ca sales and remit those taxes to a tax authority, remains yours.
- Amazon will be responsible for calculating, collecting, and remitting GST/HST on your domestic transactions starting July 1, 2021.
- For sellers on Amazon.ca who ship goods to customers located in Saskatchewan (SK) from any location (domestic or international transaction):
- Regardless of your GST/HST or SK PST registration with Amazon, MTC for SK PST will be Amazon’s responsibility for all applicable sales to customers in Saskatchewan starting July 1, 2021.
What do you need to do?
In order to ensure that Amazon applies the correct tax treatment to your Amazon.ca sales transactions and fees, review your account information to ensure it is up to date:
- Your business information, including your business address. We recommend that you take this opportunity to ensure that the rest of your information is up to date as well.
- If you have a Canada GST/HST registration number, make sure it has been provided and is up to date on your VAT Information page.
- If you use Tax Calculation Service to calculate tax on products that you sell to customers, ensure that your settings and tax registration numbers are up to date.
- Review your product category and item description for accuracy.
Answers to frequently asked questions can be found on ourCanadian sales taxes on Amazon.ca seller fees and Marketplace tax collection for Canada help pages.
Looking for a tax professional? Our Solutions provider network offers resources for sellers to consider when looking for service options outside of Amazon.
0 replies
0 replies
Seller_BXHkF0elemiSo
Amazon currently levies a 2.5% fee on sales tax we collect from buyers.
This creates an unfair advantage to sellers not currently registered for GST/HST as there will be no such fee.
In addition, per-order related seller fees should also not be taxable if sellers are registered on their own. Why is it treated differently whether we are registered for GST/HST or not?
Seller_cuqbWem1a7BaZ
Horrible. Shame on them
You know in Canada legally a company does not have to pay GST till they make more than $30,000
So you are basically stealing, on behalf of the Canadian gov.
If anything, Amazon creating a law that forces people who make more than $30,000 in the year on Amazon, taking the tax…what can I complain. But here you are taking GST from people when it is not even required from the Canadian laws.
Tax should be abolished. I do not charge my customers tax because charging them tax is forbidden in my religion, so I will not steal from them.
Native Canadians legally have no tax, and theres no tax on reserves. So how can companies blanket tax people like this…it baffles me.
Seller_KpPjXKtNg4xuI
What about the 5% GST import tax how do we avoid this if we are no longer collecting and remitting sales tax?
Seller_55uNhWKDSgEnP
As a Canadian seller required to charge GST I’m very happy this has been implemented. My international competitors that do FBA in Canada don’t charge GST which makes their product cheaper to a purchaser. We are on the same playing field now. In my opinion this is a win for Canadian sellers because I doubt most international sellers were charging GST.
Seller_BXHkF0elemiSo
Amazon - Please clarify if sellers who are already registered for GST can remove their GST number (as of July 1st) and have Amazon collect the tax.
Is that an option? Please be clear.
Seller_6RpJt8838QPPi
A quick question.
Does that mean that, starting on July 1st, for sellers who are not registered with Saskatchewan PST (and do not have a PST number entered in their tax settings next to Saskatchewan) Amazon will start charging SK PST on their behalf regardless?
If so, will they remit those taxes to Saskatchewan themselves?
Seller_w27cBxGNXYIqm
If I can restart, I’d register for GST right off the bat and not wait for the 30k threshold. ITC puts money back in my pocket! Registering 30k into the business just makes bookkeeping a nightmare (unless I’m doing it wrong)
And since we’re talking about tax, can I claim ITC on the inventory I bought before I registered for GST? Volunteering to register can set the date back 30 days. Does that mean I can claim ITC on inventory I bought 30 days before I registered?
This gets confusing because inventory I bought before I registered, I am selling now… so I am charging sales tax on them… i should be able to claim right?
Seller_BXHkF0elemiSo
I am not an accountant and do not pretend to provide advice. However, I’ve done some research and this is the reality.
If you are currently a HST registrant, you must continue to collect and remit HST as always. Nothing changes. You cannot unilaterally decide to remove the HST number from Amazon simply to have Amazon start collecting and remitting on your behalf.
It would (likely) technically work, but from CRA’s perspective that is not allowed. The only way it would be permissible is if an Agency Agreement would be in place between the seller and Amazon which stipulates that Amazon is collecting the HST on our behalf. There is a standard form available from CRA, however I highly doubt Amazon would sign. Why would they?
This is unfortunate as we are stuck paying Amazon the 2.9% which non-registrants will not have to pay. We will also have to pay HST on the Amazon referral fee (although it can be claimed back) which non-registrants will avoid.
Seems entirely unfair.
Seller_BXHkF0elemiSo
Amazon currently levies a 2.5% fee on sales tax we collect from buyers.
This creates an unfair advantage to sellers not currently registered for GST/HST as there will be no such fee.
In addition, per-order related seller fees should also not be taxable if sellers are registered on their own. Why is it treated differently whether we are registered for GST/HST or not?
Seller_BXHkF0elemiSo
Amazon currently levies a 2.5% fee on sales tax we collect from buyers.
This creates an unfair advantage to sellers not currently registered for GST/HST as there will be no such fee.
In addition, per-order related seller fees should also not be taxable if sellers are registered on their own. Why is it treated differently whether we are registered for GST/HST or not?
Seller_cuqbWem1a7BaZ
Horrible. Shame on them
You know in Canada legally a company does not have to pay GST till they make more than $30,000
So you are basically stealing, on behalf of the Canadian gov.
If anything, Amazon creating a law that forces people who make more than $30,000 in the year on Amazon, taking the tax…what can I complain. But here you are taking GST from people when it is not even required from the Canadian laws.
Tax should be abolished. I do not charge my customers tax because charging them tax is forbidden in my religion, so I will not steal from them.
Native Canadians legally have no tax, and theres no tax on reserves. So how can companies blanket tax people like this…it baffles me.
Seller_cuqbWem1a7BaZ
Horrible. Shame on them
You know in Canada legally a company does not have to pay GST till they make more than $30,000
So you are basically stealing, on behalf of the Canadian gov.
If anything, Amazon creating a law that forces people who make more than $30,000 in the year on Amazon, taking the tax…what can I complain. But here you are taking GST from people when it is not even required from the Canadian laws.
Tax should be abolished. I do not charge my customers tax because charging them tax is forbidden in my religion, so I will not steal from them.
Native Canadians legally have no tax, and theres no tax on reserves. So how can companies blanket tax people like this…it baffles me.
Seller_KpPjXKtNg4xuI
What about the 5% GST import tax how do we avoid this if we are no longer collecting and remitting sales tax?
Seller_KpPjXKtNg4xuI
What about the 5% GST import tax how do we avoid this if we are no longer collecting and remitting sales tax?
Seller_55uNhWKDSgEnP
As a Canadian seller required to charge GST I’m very happy this has been implemented. My international competitors that do FBA in Canada don’t charge GST which makes their product cheaper to a purchaser. We are on the same playing field now. In my opinion this is a win for Canadian sellers because I doubt most international sellers were charging GST.
Seller_55uNhWKDSgEnP
As a Canadian seller required to charge GST I’m very happy this has been implemented. My international competitors that do FBA in Canada don’t charge GST which makes their product cheaper to a purchaser. We are on the same playing field now. In my opinion this is a win for Canadian sellers because I doubt most international sellers were charging GST.
Seller_BXHkF0elemiSo
Amazon - Please clarify if sellers who are already registered for GST can remove their GST number (as of July 1st) and have Amazon collect the tax.
Is that an option? Please be clear.
Seller_BXHkF0elemiSo
Amazon - Please clarify if sellers who are already registered for GST can remove their GST number (as of July 1st) and have Amazon collect the tax.
Is that an option? Please be clear.
Seller_6RpJt8838QPPi
A quick question.
Does that mean that, starting on July 1st, for sellers who are not registered with Saskatchewan PST (and do not have a PST number entered in their tax settings next to Saskatchewan) Amazon will start charging SK PST on their behalf regardless?
If so, will they remit those taxes to Saskatchewan themselves?
Seller_6RpJt8838QPPi
A quick question.
Does that mean that, starting on July 1st, for sellers who are not registered with Saskatchewan PST (and do not have a PST number entered in their tax settings next to Saskatchewan) Amazon will start charging SK PST on their behalf regardless?
If so, will they remit those taxes to Saskatchewan themselves?
Seller_w27cBxGNXYIqm
If I can restart, I’d register for GST right off the bat and not wait for the 30k threshold. ITC puts money back in my pocket! Registering 30k into the business just makes bookkeeping a nightmare (unless I’m doing it wrong)
And since we’re talking about tax, can I claim ITC on the inventory I bought before I registered for GST? Volunteering to register can set the date back 30 days. Does that mean I can claim ITC on inventory I bought 30 days before I registered?
This gets confusing because inventory I bought before I registered, I am selling now… so I am charging sales tax on them… i should be able to claim right?
Seller_w27cBxGNXYIqm
If I can restart, I’d register for GST right off the bat and not wait for the 30k threshold. ITC puts money back in my pocket! Registering 30k into the business just makes bookkeeping a nightmare (unless I’m doing it wrong)
And since we’re talking about tax, can I claim ITC on the inventory I bought before I registered for GST? Volunteering to register can set the date back 30 days. Does that mean I can claim ITC on inventory I bought 30 days before I registered?
This gets confusing because inventory I bought before I registered, I am selling now… so I am charging sales tax on them… i should be able to claim right?
Seller_BXHkF0elemiSo
I am not an accountant and do not pretend to provide advice. However, I’ve done some research and this is the reality.
If you are currently a HST registrant, you must continue to collect and remit HST as always. Nothing changes. You cannot unilaterally decide to remove the HST number from Amazon simply to have Amazon start collecting and remitting on your behalf.
It would (likely) technically work, but from CRA’s perspective that is not allowed. The only way it would be permissible is if an Agency Agreement would be in place between the seller and Amazon which stipulates that Amazon is collecting the HST on our behalf. There is a standard form available from CRA, however I highly doubt Amazon would sign. Why would they?
This is unfortunate as we are stuck paying Amazon the 2.9% which non-registrants will not have to pay. We will also have to pay HST on the Amazon referral fee (although it can be claimed back) which non-registrants will avoid.
Seems entirely unfair.
Seller_BXHkF0elemiSo
I am not an accountant and do not pretend to provide advice. However, I’ve done some research and this is the reality.
If you are currently a HST registrant, you must continue to collect and remit HST as always. Nothing changes. You cannot unilaterally decide to remove the HST number from Amazon simply to have Amazon start collecting and remitting on your behalf.
It would (likely) technically work, but from CRA’s perspective that is not allowed. The only way it would be permissible is if an Agency Agreement would be in place between the seller and Amazon which stipulates that Amazon is collecting the HST on our behalf. There is a standard form available from CRA, however I highly doubt Amazon would sign. Why would they?
This is unfortunate as we are stuck paying Amazon the 2.9% which non-registrants will not have to pay. We will also have to pay HST on the Amazon referral fee (although it can be claimed back) which non-registrants will avoid.
Seems entirely unfair.
