New Sales Tax Rules for Canadian Amazon FBA Sellers 🚨 Start Collecting GST / HST Taxes

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Disclaimers: The information provided in this video is intended to provide general information & doesn't take into account your personal situation & is not intended to be used without consultation from financial professionals. This video contains affiliate links that I may earn a small commission at no additional cost to you.

TIMESTAMP
00:00 Intro
00:07 New Sales Tax Rules for Canadians
00:16 For Sellers Who Haven't Registered
00:39 For Sellers Who Registered For GST/HST
00:52 What Should I Do Now?
01:07 Why I Recommend Registering For GST/HST?
01:43 What Are Input Tax Credits (ITC)?
02:00 How Does GST HST Return Works?
02:34 Extra Cashflow $$$
02:58 Watch My Next Video

Got questions? Comment below 👇🏻

[AlanaFincham-preh]

Thank you for this video! New subscriber here. I could not find an answer to the simple question "does amazon provide a record of taxes collected" anywhere.. You eased my mined here at time stamp 1:10... Thank you!

[kent]

Thanks for the video! Good to know this update on Amazon FBA.

[JSyntax]

thanks for making this! I was wondering why all my recent amazon ca purchases from foreign entities were now collecting HST :(

[sinaforotan]

Hi Ali I just signed up for your Amazon fba course

[stephen-wahl]

I'm not quite sure how I fell upon your videos but I've watched a few even though they don't really apply to me from what I could tell, but you are very informative and have oodles of charisma, your videos look super great and professional, and it's such an interesting little niche that you're carving out for yourself I'm not surprised you have tens of thousands of views on any given subject related to taxes and sales, accounting and business ventures etc etc.

So I'm glad I fell upon you somehow, and that you posted this video as it applies to a recent experience. I have not been on eBay for years and I only recently happened to get a ps5, so I tried buying a few games online after buying a couple on Facebook marketplace. Well lo and behold now eBay is charging multiple taxes for used items. Which I thought was very strange. Well obviously it's a recent Federal Government change but they actually have put limits on it, it's not just a blanket tax that combines PST and GST for every province and that it should be charged and remitted by ebay. I thought it was odd that the federal government would be demanding that used items be charged PST because, well the federal government has nothing to do with provincial government sales taxes. I was willing to accept used items okay are going to be charged a federal sales tax, whatever suck it up. But I only noticed it because a $5 item got charged a dollar in total taxes and that included shipping and I thought this isn't right. I live in BC and we don't pay sales tax on Canada Post shipping items. I checked the website and the only provinces does is Ontario because it has a harmonized sales tax. And I thought oh this is interesting.

I called eBay about it and they had to transfer me to three at least or four different people and I spent an hour and a half pretty much waiting for each to kind of do some research on the subject. And basically what I was told was that the federal government demands that sales taxes be charged and that it is based on the location of the recipient the taxes charged. And they didn't have an answer to the fact that I told them well many provinces don't charge PST on postage or shipping. Two agency basically said the federal government is demanding all sales taxes to be paid by Canadian residents. And I thought there is no way the feds are collecting pst. A little search confirmed that fact, that no the federal government is demanding GST or HST because that is the only tax they can still resonates demand and Implement on behalf of an a province that actually has a harmonized sales tax which is an agreement with the Federal government. Both agents couldn't seem to understand my explanation, that I worked for the federal government I kind of know how our tax system works and it made no sense that a PST would be charged by the feds and then distributed back to the provinces. Would Alberta be getting a bonus check for a PST that they don't even actually have? I tried to explain to them with this kind of thing happen in the us? With their federal government extract taxes from every state on their behalf? And then administer and send them all back to 50 different states? None of which they would have had an agreement with of any kind. Does this make any sense to you? Of course they had no answer to that.

So for our purposes, according to the directive, obviously it's for GST and HST and it's only four provinces that have an HST that's amalgamated with the federal government GST and in these cases they actually do include it with shipping charges with Canada Post. So I wondered how they could justify charging PST on shipping from provinces that don't charge shipping, as well as charging PST for those that live in Alberta? They have no provincial sales tax. They couldn't really give me an answer anyways. Especially when I looked up the one game I bought from alberta, and I asked well Alberta doesn't have a sales tax why are you charging a sales tax from a province that doesn't even collect it? Does that make sense? If you go to a state that doesn't have a sales tax would you be paying a sales tax because you happen to come from a state that has one? Of course they couldn't answer that oh but later they tried to say it depends on your destination. And then I always suggested oh so what about people from alberta? So they're spared any PST on purchases? Again they couldn't confirm or deny or verify that either. What a mess.

After some more research I saw that the actual ordinance from the federal government is with respect to GST and HST. Which completely makes sense. My suspicions were correct, but I forgot about the harmonize sales tax of course because I don't live in a province that has one. Therefore there should be no sales tax for British Columbians also fairly unpredictable added to items and compliance with a federal directive. The Federal Government Can Only demand taxes for that which it it actually responsible for and the harmonize sales tax happens to be one that is an agreement between a few provinces that includes ontario, whereby they will collect the provincial portion of the sales tax that is harmonized with the gst. As I live in Vancouver we do not have an hst. We have a pst. So I had wondered why am I being charged PST on items that are not applicable.

Anyways I'm contacting the federal government to actually deal with this to direct eBay to correct this. And I'm still waiting to hear from eBay and their policy department. Because if I order a used item okay I'm willing to accept that they'll charge taxes. But if I'm ordering it from someone at Alberta I should not be charged PST on an item from a province that doesn't even have a pst, nor should I be charged it on the shipping cost. Yes if I get it from Ontario they have an HST that taxes pretty much everything. But isn't this an odd thing? I'm really quite disconcerted and disappointed that eBay can't get it together enough to know the difference between how are taxes are implemented. I literally had to tell the agent, well does this make sense to you? That if your federal government, your Congress decided it was going to charge a sales tax, do you think they would be collecting the sales tax from every single state and then redistributing it after the fact? Do you think they have any jurisdiction on state sales taxes? Of course the American agent didn't really have a response to that sort of thing, because they read from talking points.

And of course another major component about HST and GST is that it is a value added tax, so it means as you know quite well, that there are input costs that can be included all along the chain and that you are not charged twice for GST or hst. Well in the case of shipping charges, in this case you are paying the that tax twice. Because eBay is taking it from you or at least the customer have to check out and they're giving that to the federal government. And then when the seller goes to the post office they're also paying HST if they live in ontario, so they're actually paying it twice on shipping. That actually contradicts the entire Spirit of the value added tax. Again a major problem and erroneous application of the law.
anyways.... I hope this issue as resolved because it's actually quite ridiculous.

[motherhoodsbeauty]

I order something and GST/HST is 6 dollars and PST is 8.44 dollars and holy fuck that is a lot. They always seems to find away to milk tax out of you. Even online order can’t escape from this ridiculous Tax

[chriscormpilas]

Hi Ali,

I was watching your videos and was unable to find a video about which reports to use in order to calculate the hst owed to the Canadian government?

Have you created a video with the step by step method to retrieve sales info, tax info, etc to file the HST?

Thanks,

[brokenbuzzardproductions]

Thank you for the video. I'm curious, when sourcing your products from U.S. wholesalers/suppliers, if they need a reseller permit (which most of them seem to ask for), how can you provide one as a Canadian? And if you can't, what alternatives do Canadians have in order to provide U.S. suppliers with the necessary info so that we can purchase our products from them?

[ramcisbiepecjo]

Hi...im trying to start but not yet send my inventory for fba...because of the tax process..so where do i start?get gst first?

[Teamshmo]

Do you have to pay/collect HST under this new policy if you are an affiliate link seller only? I don't sell anything and can't charge tax to anyone as I only make affiliate commission.

[KEES]

Thanks for your video does amazon takes fees for collection taxes?

[yisroelcohen]

Hi Ali I watched your video but I'm still having one difficulty. Recently, I noticed that amazon taxes the referral fee on fbm orders in addition to everything else
Is that eligible for input tax credit

[DuyDepTraiPhoBaTrieu]

Hi, I entered my GST/HST Registration Number in the Tax Setting however I went to check on my most recent orders and noticed that my orders still does not collect taxes. Can you explain what is going on?
Let's say my product is selling for $24.99 and the customer pay exactly $24.99 flat, no taxes included.

I always thought that after entering the GST/HST Amazon will collect it for me? How do I collect it now? All the payment is being done by Amazon Payment system.

[taimoor]

do we have to only register for gst/hst
or do we need to register for provincial sale tax for this province also

PST, Quebec, Manitoba, Saskatchewan, New Brunswick

like I am from Alberta

[taimoor]

So if we register but don't put our tax number in seller center then amazon will still do all tax collection?? And we can show it to government that tax collection is already been done by amazon . Can we do that will government accept this

[oreocart]

Quick question ! Does TD bank offer a cross border account which I can attach it to amazon?

[johnydagher]

Hello, does the seller fee invoice includes the referral fees? Because they are taxed as well

[mansoorahmad]

Hi,
After updating HST/GST on seller account Amazon collect sales tax according to different province rate.
Does Amazon give us collected sales tax to remit. Or Amazon remit by himself to CRA?
And send us the collected sales tax report?