Introduction: With the introduction of new mall tax by the Canadian government, calculation and collection of Canadian sales tax for goods sold to buyers through Amazon.ca mall and delegated responsibilities are subject to change.
According to a recent announcement on Amazon's Canadian site, as the Canadian government introduces a new mall tax, it will be distributed to buyers through Amazon.ca. The calculation, collection and collection liability for Canadian sales tax on merchandise sold may change. Sellers following the site may have been aware of the changes. At the end of November last year, the Canadian government has released the relevant new measures of goods and services tax and consolidated sales tax, and is scheduled to come into effect on July 1 this year, and use when vross-border e-commerce sellers who store and sell goods on Amazon are also included.
In a previous note on Canadian taxes and regulations, it was stated that if you open a store on the Canadian platform, you will have to pay the appropriate taxes and duties in the country of destination.And customs clearance costs before the merchandise can be sold to a Canadian buyer or stored in a Canadian operations center. For this announcement, many sellers or have understanding, but this is possible changes to the proposed sales tax should also be taken into account.
Registered and unregistered sellers in Canada are provided with provincial and regional tax information, as well as specific areas charged by registered and unregistered sellers
Points. In addition, the specific scope of application is slightly different, divided into GST, GST and PST(tax saving) and HST. GST is applicable to provinces and territories such as Alberta, Northwest, about 5%; GST and PST relate to British Columbia, Manitoba, etc., ranging from 5%+(6% to 9.975%), while HST relates to the University of Ontario,
Newfoundland, etc., ranging from 13% to 15%.
The specific tax policy, according to the announcement, will depend on whether the platform sellers and their products meet the sales tax requirements of the region where they are sold. In addition,What is of concern to sellers is that even if they have a physical store in the country or its specific province, they will still be charged GST and HST(Goods and Services Tax, Value-Added Tax) and sales tax possibilities. For registered sellers, Amazon officials said that for the convenience of later processing, registered accounts must be their own money.Quality and commodity information updated to the latest status, the charge should be taken initiative to pay.
For sellers who are not registered on the platform in that country, the announcement says that Amazon will take care of orders for transactions within Canada if both the place of shipment and the place of receipt are in Canada do the calculations and collect the sales tax. For unregistered sellers who want to register, it must be made clear that only duty-free goods are available and registration is usually not possible.Therefore, sellers and prospective sellers in the whole registration and later tax payment process, must pay close attention to the dynamic changes of its relevant policies.
For the Canadian site's upcoming implementation of the policy, whether registered sellers or planning to launch the site, it is worth watching.Sellers in the process of the entire site operation, only a good grasp of the sales area of the relevant policies to accurately force, to avoid subsequent problems.