Question for Canadian Sellers

I understand that each city has a different GST on sales that needs to be paid to the government.

How do you analyze your listings with this in mind? Do you use a flat GST rate across all listings when analyzing, since you don’t know who is going to order from you and from which province (resulting in different GST charges)?

How do you manage this?

I hope my post makes sense

Its by province. They all have the federal gst of 5%, plus some have their provincial sales tax. Not all of them, not all the same amounts. Look in Tax Settings, you will see which provinces require tax numbers. Just use general and amazon will adjust depending on the buyer’s province.

They are also market facilitator for those who don’t have tax numbers but once you have more than $30k in sales in the country you’ll need your own tax numbers.

Thats not financial advice, talk to a local accountant.

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I am from Canada and a seller myself as well as CPA. The hst amount in North America works differently than UK. Whatever hst amount is charged is on top of the price paid by customer and amazon remits that to you when settling the payments every 2 weeks. Also, the amount you pay into hst at the time of purchasing within Canada can be claimed back. Some exceptions apply but would recommend you to reach out to either me or someone who knows the tax system here to have a better idea

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Could you possibly apply the highest rate of tax as a worst case scenario? If it’s a lower tax when it sells then I’m sure you won’t cry about more profits.

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This is what I’m thinking to do but I want to make sure I’m not missing anything.

I already have a GST number added in SC. If I start selling in Canada, I will be responsible for paying GST. What would you advise to add as a GST charge in the analysing software? (sas ‚saa) I want to have one flat rate as an estimation, although I know it depends on the province. Should I go with 15%, or is that too much?"

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Ah sorry, I misunderstood at first. I’d say 15% is not too high. Quebec and Ontario are 2/3 of the country’s population and they have 14.975% and 13% tax rates.

Add 15% for GST I’d say.

Good, so I will keep 15% GST charge in SAS to stay safe. Thank you a lot. Really helpful.