Navigating Canadian Tax and Import Requirements as an Amazon.ca Seller
Covers Canadian tax and import obligations for Amazon.ca sellers, including non-resident importer requirements, GST/HST/PST rates by province, business number registration, and sales tax filing responsibilities.
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.
Analysis & Recommendations
Why This Matters
Sellers expanding to Amazon.ca must comply with Canadian import and tax laws or risk border delays, penalties, and account issues. Understanding GST/HST/PST requirements across provinces is essential for correct pricing and tax collection.
Key Takeaways
- Non-resident sellers must register as importers of record and obtain a Canadian business number before shipping goods into Canada
- Canada has three types of sales tax (GST, PST, HST) with rates varying from 5% to 15% depending on province
- GST/HST registration with the CRA is mandatory to collect federal sales tax on Amazon.ca sales
- Provincial sales tax registration may be required separately in BC, Saskatchewan, Manitoba, and Quebec
Recommended Actions
- →Register for a Canadian business number and import-export account with the CRA before shipping inventory to Canada
- →Complete GST/HST registration and track the six-to-eight week processing timeline
- →Consult a tax professional to determine which provincial sales tax registrations apply to your sales patterns
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