Isn't Amazon collecting (remitting) tax and sending it to CRA? Amazon is saying other wise
Hello,
Isn't Amazon collecting (remitting) taxes and sending it to CRA? Amazon is saying other wise on my bank statement. They are showing they sent me the tax money for the year of 2023. Now I might owe a lot of tax money to CRA as I was wishfully thinking Amazon is taking care of this on my behalf.
What is going on?? Please someone educate me if you can
Isn't Amazon collecting (remitting) tax and sending it to CRA? Amazon is saying other wise
Hello,
Isn't Amazon collecting (remitting) taxes and sending it to CRA? Amazon is saying other wise on my bank statement. They are showing they sent me the tax money for the year of 2023. Now I might owe a lot of tax money to CRA as I was wishfully thinking Amazon is taking care of this on my behalf.
What is going on?? Please someone educate me if you can
0 replies
Seller_7LrAV0m5llaI7
They don't send money to the CRA on your behalf.
Other sellers can correct me if i'm wrong, but Amazon is forced to collect taxes on all sales in Canada.
If you don't have a GST/HST number registered in your tax settings, Amazon is collecting tax, but not on your behalf, it is being collected on Amazon's behalf, not yours.
If you have a GST/HST number registered in your tax settings, Amazon is collecting tax and passing it on to you to remit to the CRA, minus your input tax credits.
Your accountant should know this.
Seller_BCsJXNkuO7q9e
If Amazon is sending you the tax money that means you have a GST number registered with them and its your responsibility to file GST returns and remit.
If you don't have a GST number then Amazon collects and submits. Whether or not that is on 'your behalf' or not is unclear.
Seller_rTAxflJvPFLKc
only 1 or 2
1. you have the hst/gst # but you forgot to provide it to Amazon (You're in big trouble) need to find a tax lawyer to deal with that, an accountant won't help at this stage. or if you have an accountant able to persuade CRA that tax has been collected by Amazon and CRA buys it
2. you don't have that hst/gst (saying you're a small supplier: annual revenue less than 40k or any consecutive quarters less than 40k), you don't have to do anything, you don't owe CRA tax
Seller_8FPYxVyFcABuF
Hi there,
How much in annual sales / revenue was there in 2023?
You've mentioned that Amazon was sending you tax money, sounds like you would've entered a GST / HST # and that should then be remitted to CRA.
The good part is that you can deduct your own GST / HST costs for the inventory, and then you owe the difference.
*This is no way tax advice, please consult a Tax Professional
Seller_376r5Nu5eSc5b
Yes and no.
When you register for GST/HST with the CRA, it is your responsibility to update the tax settings correctly in seller central, at the account level and also at a sku level.
It is your responsibility to do that, and in the eyes of CRA you need to do it. In their eyes if you didn’t, then you need to get that money back from Amazon (good luck).
If you have not uploaded a GST/HST number than amazon will collect and remit the GST/HST on the sales because they are required to as a marketplace facilitator rules.
However CRA doesn’t seem to agree with this and I know a number of sellers who made the mistake and now CRA is trying to come afer them to pay.
The other issue is if you are creating your own skus, sometimes peopel will put a A_GEN_NOTAX and then even if the GST/HST number is uploaded that tax code will override and no sales taxes will be charged.
Check jonescosman com they have blogs and youtubes about it including how to tell on your sales summary what was collected, what was remitted and what was paid to your bank account in your disbursements.
