Amazon Canada to start collecting sales tax on July 1

According to a recent announcement from Amazon Canada, as the Canadian government introduces new marketplace taxes, the calculation, collection and remittance of Canadian sales tax on goods sold to buyers through the Amazon.ca marketplace may change. Sellers who follow this site may have known about the relevant changes. At the end of November last year, the Canadian government announced new measures on goods and services tax and unified sales tax, which will be implemented on July 1 this year. Cross-border e-commerce sellers who use local Amazon warehouses and sell goods are also included.

In the previously released Canadian tax and regulatory notes, it is mentioned that when opening a store on the Canadian platform, it is necessary to pay appropriate taxes, destination country tariffs and customs clearance fees before selling goods to Canadian buyers or storing them in Canadian operation centers. Many sellers may be aware of this announcement, but the changes that may occur in the sales tax that will be implemented this time should also be taken seriously.

The announcement provides tax information for registered and unregistered sellers in Canada in various provinces and regions, and distinguishes specific charges according to registration and unregistration. In addition, the specific scope of application is slightly different, divided into GST, GST and PST (provincial tax) and HST. GST applies to provinces and regions such as Alberta and the Northwest Territories, with a rate of about 5%; GST and PST involve British Columbia, Manitoba, etc., ranging from 5%+ (6% to 9.975%), and HST involves Ontario, Newfoundland, etc., ranging from 13% to 15%.

As for the specific tax policy, according to the announcement, it will depend on whether the platform sellers and their products meet the sales tax requirements of the sales area. In addition, it is worth noting that even if sellers do not have offline stores in the country or its specific provinces, there is a possibility of being charged GST, HST (goods and services tax, value-added tax) and sales tax. For registered sellers, Amazon officials stated that in order to facilitate later processing, registered accounts are required to update their qualifications and product information to the latest status, and the fees must be paid by themselves.

For sellers who have not registered on the platform, the announcement states that if both the place of shipment and the place of receipt are located in Canada, Amazon will be responsible for calculating and collecting sales tax for orders traded within the country. If unregistered sellers want to register, they must be clear that they are usually unable to register if they only provide tax-free goods . Therefore, sellers and prospective sellers must pay close attention to the dynamic changes of relevant policies throughout the registration and subsequent tax payment process.

The upcoming policy of the Canadian site is worthy of attention for both registered sellers and those who have planned to launch this site. During the operation of the site, sellers can only make precise efforts and avoid subsequent problems if they have a good grasp of the relevant policies of the region where they sell.

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