PST Charged by Amazon
I am wondering why Amazon is charging PST when we are not setup for that. In the tax setting we setup just for GST collection. Nothing in the "Provincial Sales Tax (PST) Jurisdiction Settings ", My expectation was that if that part is not setup, the collection will not happen since our sale is not big enough to justify that.
PST Charged by Amazon
I am wondering why Amazon is charging PST when we are not setup for that. In the tax setting we setup just for GST collection. Nothing in the "Provincial Sales Tax (PST) Jurisdiction Settings ", My expectation was that if that part is not setup, the collection will not happen since our sale is not big enough to justify that.
8 replies
Seller_7LrAV0m5llaI7
Well, the government still needs to get their share of the PST on the sales. Amazon has to collect it and remit to the government if you aren't set up to do it.
Christine_Amazon
Hello @Seller_K2AznkKOlMiv7
This is Christine from Amazon.
Thank you @Seller_7LrAV0m5llaI7for the information provided to the seller.
We do recommend you if you still have doubts or questions please reach out to Seller Support team, and they will connect you with our tax team in order to clarify your concerns.
Hope you have a great day
Christine.
Seller_y7W9ccUlauftE
Marketplace sales tax help file:
sellercentral.amazon.ca/help/hub/reference/GX8H2WPL5C2K7VH9
Seller_jbBO5fX554s05
OK-We are a 500k+ seller and I recently got faced with a full strip audit and i always got the most useless replies from the forums on this.
Disclaimer: i don't work for amazon and all amazon does is try and steal form us this stuff included. Its important to help everyone stay above water in this swamp. this information has gone through a professional accounting firm, a lawyer and a very picky CRA auditor and our audit is closed and done.
I can confirm that amazon WILL NOT HELP YOU FIGURE OUT WHERE THE MONEY GOES they will not help your accountants and they will not help your IT staff
If you are not registered with a GST number and/or you have not filled out all the tax documents for federal tax, amazon will NOT pay you GST or PST on the sale. They will collect from the sale and show in your transactions but WILL NOT REMIT ON YOUR BEHALF. Be prepared to prove to the CRA that this is the case because they will push back on this as amazon uses it as their own gst payments. For accounting purposes rate these as zero-rate sales
If you do have your GST registered(which you just did), amazon will only remit you the GST and they will hold the PST to submit on your behalf. We have to file them at a 5% tax rate.
If you are a relatively small seller i would stay here - which it sounds like this is where you have ended up. if you are not i would recommend setting up a provincial tax registration and providing the info to amazon. From here and only from here will they disburse you PST. To get paid the PST you need GST/PST activation numbers. So up to this point you will have not been paid a cent of PST and are not obliged to remit it.
If you sold anything before you submitted your GST information that should also be zero-rated
IF YOU ARE FROM QUEBEC: disregard all of this, we cant help you- your province is a nightmare
hope this helps a little
Seller_mecuJdQQxxccN
For PST Amazon collects and remits the tax regardless of your registration status.
BC - PST collection started 7/1/2022
MB - RST collection started 12/1/2021
SK - PST collection started 7/1/2021.
QC - QST collection started 11/1/2021 but is only collected if you are not QST registered.
Also for anyone who is in the USA and pays Canadian sales taxes don't expect your VAT / tax compliance company to know about this! I had to point it out to mine (Livingston) this year and also point out I should not have owed around $360 in PST Amazon collected in 2022 for BC.
Sort of my fault because I should have tracked down the discrepancy for 2022 and pointed it out to them but you would also expect the tax compliance pros to be on top of tax legislation and changes like that!
