Overview

British Columbia imposes a 7% Provincial Sales Tax (PST) on certain digital services, including fees charged by Amazon to sellers operating from the province. Since April 1, 2021, Amazon has been required to calculate, collect, and remit this tax on selling fees for BC-based sellers. Understanding how this tax applies to your account is essential for managing costs and staying compliant with provincial tax requirements.

Key Points / What Sellers Need to Know

• 7% PST applies to Amazon selling fees — British Columbia requires non-resident companies that provide digital services to collect PST at a standard rate of 7%. Amazon selling fees, including referral fees, listing fees, and subscription fees, fall under this requirement.
• All BC-based sellers are affected — Whether you operate as a registered business or as an individual seller, the PST applies equally to your Amazon selling fees at the same 7% rate.
• Non-BC residents are exempt — If your seller account information indicates you reside outside British Columbia, Amazon will not collect PST on your selling fees. However, you should consult a tax advisor to determine whether you have any independent PST obligations.
• Account information determines tax status — Amazon uses the address and payment details in your seller account to determine whether you are a BC resident. Keeping this information accurate and up to date is critical.
• Effective date was April 1, 2021 — Amazon began calculating and collecting BC PST on selling fees starting on this date.

How BC PST Is Calculated and Collected

Amazon calculates BC PST on selling fees at the time an order is placed and collects the tax when the order ships. This timing distinction is important because it means that if you update your address after an order is placed but before it ships, the tax determination is based on the information available at the time of shipment. Sellers who have recently moved out of British Columbia may notice PST charges on orders that were pending before their address change was processed. To avoid unexpected charges, sellers should update their account information promptly when relocating and review any pending orders that may still be subject to the previous tax determination.