Overview

Selling on Amazon.ca means navigating Canada's tax and import regulations, which differ significantly from those in the United States. Sellers based outside of Canada must understand their obligations as non-resident importers, register for the appropriate tax accounts, and correctly collect and remit federal and provincial sales taxes. Getting these requirements right is essential for avoiding customs delays, penalties, and compliance issues.

Key Points / What Sellers Need to Know

• Non-Resident Importer Status — If you are located outside Canada and ship goods into the country for sale on Amazon.ca or for storage in a Canadian fulfillment center, you (or your designated agent) must act as the importer of record on all customs declarations.
• Business Number Required — Before importing goods into Canada, you must obtain a business number (BN) with an import-export account from the Canada Revenue Agency (CRA). The BN is a 15-digit identifier that includes nine digits for the business, plus two letters and four digits identifying the specific program and account.
• GST/HST Registration — To collect federal sales tax on Canadian sales, you must register for Goods and Services Tax (GST) or Harmonized Sales Tax (HST) with the CRA. Registration typically takes six to eight weeks after submission but is usually backdated to the application date.
• Provincial Sales Tax Varies — Canada has three types of sales tax: GST, Provincial Sales Tax (PST), and HST (which combines GST and PST). The applicable tax depends on which province the buyer is located in.
• Import Duties Apply — Most shipments entering Canada are subject to customs duties. When duty applies, the 5% GST is calculated on the combined value of the goods plus the duty amount.
• You May Need Provincial Registration — In provinces that charge PST separately from GST, sellers may need to register with provincial tax authorities independently, even without a physical presence in that province.

How Canadian Sales Tax Works

Canada's sales tax system is split across federal and provincial levels. The federal GST rate is 5% and applies nationwide. Some provinces have harmonized their provincial tax with the federal GST into a single HST, while others maintain a separate PST. The tax breakdown by province and territory is as follows: Alberta, the Northwest Territories, Nunavut, and Yukon charge only the 5% GST. British Columbia and Manitoba each charge 5% GST plus 7% PST. Saskatchewan charges 5% GST plus 6% PST. Quebec charges 5% GST plus 9.975% QST (Quebec Sales Tax). Ontario charges a combined 13% HST. New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island each charge a combined 15% HST. When you make a sale on Amazon.ca, the applicable tax depends on whether you and the product meet federal or provincial sales tax thresholds. Importantly, you may be required to collect GST, HST, or provincial sales tax even if you have no physical presence in Canada or in a particular province.