Quebec Sales Tax on Amazon Seller Fees: What You Need to Know About QST
Explains how Quebec Sales Tax (QST) at 9.975% applies to Amazon selling fees for Quebec-based sellers, how to register a QST number to avoid the charge, and how FBA fees are handled differently depending on the marketplace.
Overview
Amazon sellers based in Quebec need to understand how the province's sales tax, known as QST (Quebec Sales Tax), applies to the fees they pay for selling on Amazon. Since January 1, 2019, Amazon has been charging QST at a rate of 9.975% on selling fees for Quebec-based sellers who have not provided a valid QST registration number. This guide breaks down the key rules, how to register your QST number, and what sellers in and outside Quebec should know.
Key Points / What Sellers Need to Know
- QST rate is 9.975% — Amazon charges this standard rate on selling fees for Quebec-resident sellers who do not have a valid 16-digit QST registration number on file.
- Effective since January 1, 2019 — Prior to this date, Amazon paid QST on behalf of sellers. After this date, Amazon began charging QST directly to Quebec-based sellers without a registered QST number.
- Selling fees subject to QST — The tax applies to Selling on Amazon fees, including listing and referral service fees as well as monthly professional selling plan fees.
- QST-registered sellers are exempt — If you provide Amazon with your valid 16-digit QST number, the 9.975% charge will not be applied to your selling fees.
- FBA fees are handled separately — Fulfillment by Amazon fees are sold by different Amazon entities depending on whether the listing is on Amazon.ca or Amazon.com, and different tax rules may apply.
How QST Registration Works on Amazon
Quebec introduced tax rules requiring non-resident companies that provide digital goods and services to collect QST on certain services delivered to Quebec residents who are not themselves registered for QST. Amazon's selling fees fall under this category. When Amazon identifies a seller as a Quebec resident based on account information, it is required to charge and remit QST at the standard rate of 9.975% unless the seller has proven they are QST-registered by providing their 16-digit QST number. Sellers who are registered for QST and have entered their number are not charged this tax on their selling fees, since they handle QST remittance themselves.
How to Add Your QST Number to Your Amazon Account
Analysis & Recommendations
Why This Matters
Quebec-based sellers who haven't registered their QST number are paying an extra 9.975% on all their Amazon selling fees. Properly configuring this setting directly reduces operating costs and avoids unnecessary tax charges.
Key Takeaways
- Quebec sellers without a QST number on file are charged 9.975% tax on all Amazon selling fees
- Adding your QST number in Tax Calculation Settings is NOT enough — you must also add it in the VAT information page
- FBA fees follow different tax rules depending on whether listings are on Amazon.ca or Amazon.com
- Amazon cannot refund previously charged QST without a valid QST number on file
Recommended Actions
- →If you're a Quebec-based seller, verify your 16-digit QST number is entered in the VAT information section of Seller Central (not just Tax Calculation Settings)
- →Consult Revenu Québec's website to register for a QST number if you don't already have one
- →Review recent fee statements to confirm QST is no longer being charged after registration
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