Are you a non-resident seller on Amazon.ca confused about Canada's tax rules? Wondering if you need a GST number to sell on Amazon.ca? Wondering does Amazon.ca collect the sales taxes? You're not alone. We get this question often and have a number of clients who we help navigate these complexities.
As Canadian CPAs, we specialize in helping non-Canadian, and non-English-speaking ecommerce businesses navigate Canadian sales tax regulations. We do it in a way that makes translation, compliance, and CRA communication easier and stress-free.
What is Gst/hst in Canada?
In Canada, GST (Goods and Services Tax) is a federal sales tax of 5%. Some provinces combine it with their own tax into what's called HST (Harmonized Sales Tax).
Here's a quick breakdown of GST/HST rates:
- Alberta, BC, MB, SK: 5% GST
- Ontario: 13% HST
- Nova Scotia, PEI, NB, NL: 15% HST
- Quebec: 5% GST + 9.975% QST (separate)
If you're selling to Canadian customers, GST or HST must be charged depending on the province that the item is shipped to. If you are not registered then Amazon will collect and remit. Once you have registered and configured your seller central account correctly, Amazon will collect from customers and then include it in your disbursements.
Is My Importer Number the Same as GST Registration?
Amazon sellers confuse importer numbers with GST/HST accounts. They can be the same number at the first part, but they are each different programs and technically different numbers. Let's clarify each:
- Importer Number (RM account): This is needed to import goods into Canada. It lets you act as the "importer of record" at the border and ends in the RM usually followed by 0001.
- GST/HST Number (RT account): This is what allows you to charge GST/HST, file returns, and reclaim taxes you've paid on expenses (like import GST) and ends in RT usually followed by 0001.
You need both if you're importing and selling through Amazon.ca. They are separate registrations under your Canadian Business Number which is the same number.
Why Register for Gst/hst as a Non-resident Seller?
Even if you're not based in Canada, if you're selling to Canadians and using Amazon.ca, registering for GST/HST has real benefits, not just cash flow but also your margins:
Recover Import GST
You're likely paying 5% GST on your imported goods into Canada. That can be refunded through your GST/HST return, but only if you're registered. If not, that's just an extra cost of business and losing 5%.
Claim Input Tax Credits (ITCS), Which is Gst/hst You Pay on Business Expenses
Get GST/HST back on:
- Canadian freight or warehousing
- Amazon Fees
- Canadian Amazon prep centers
- Certain software billed by Canadian providers
Stay CRA Compliant
If you are selling to other customers or marketplaces inside Canada, you will be expected to charge GST/HST on those, depending on where it is shipped to. Non-compliance can lead to penalties and reassessments, especially since Amazon shares your seller data with CRA, which could lead to trouble at the border.
The Process: How to Register and Stay Compliant, Which We Walk You Through
This is the streamlined process we use for our international ecommerce clients:
- Register for a Canadian Business Number (BN)
- Open a GST/HST account by application (RT)
- Open an importer account (RM), if applicable or you might have already done this
- Update Amazon Seller Central with your GST number and SKUs and make sure they are configured correctly. Too many sellers make this mistake and it can be costly. Our PDF instructions walk you through it and then double check things.
- Claim input tax credits on eligible expenses
- File GST/HST returns (usually annually)
How Often Do You File Gst/hst?
Most non-resident Amazon sellers choose to file annually to reduce admin work. CRA allows monthly, quarterly, or annual filing depending on sales volume, but you can select what works best. We'll help you choose the right filing frequency, and handle all the paperwork for you.
After the first year, depending on your sales level, the frequency can increase.
How We Help Non-english Speaking Amazon Sellers
We work with Amazon sellers across the world, including clients whose first language isn't English. CRA communications can be complex, legal, and intimidating, but we make it simple. Here's how we help:
We communicate with CRA on your behalf. You don't need to talk to CRA agents on the phone or read technical notices. We act as your authorized CRA representative and handle everything.
We send clear email update