If you’re selling on Amazon Canada via FBA, understanding GST/HST is critical. Canada enforces strict tax rules for both resident and non-resident sellers, and Amazon itself requires compliance before allowing you to sell.
GST/HST Rates in Canada
Canada introduced the Goods and Services Tax (GST) in 1991, replacing a federal sales tax.
- Federal GST rate: 5%
- HST (Harmonized Sales Tax): 13–15%, applied in provinces that combined GST with their provincial tax (e.g. Ontario, Nova Scotia).
- PST/QST: Some provinces charge their own Provincial Sales Tax (PST) or Quebec Sales Tax (QST), in addition to GST.
When Do Amazon Sellers Need to Register?
- Canadian businesses must register for GST/HST if their taxable revenues exceed CAD 30,000 in any 12-month period.
- Small suppliers under this threshold are not required to register but may choose to voluntarily.
- Non-resident Amazon sellers must register if their Canadian sales exceed CAD 30,000 per year.
⚠️ Amazon enforces GST/HST compliance: if you sell through Amazon.ca, you’ll need to provide your GST/HST number in Seller Central to avoid restrictions.
Fiscal Representatives & Agents
- Canada does not require fiscal representatives for foreign sellers.
- Many non-resident Amazon sellers appoint a local accountant or tax agent to simplify GST/HST compliance with the Canada Revenue Agency (CRA).
Registration & Filing
To register, you’ll typically need:
- Company details (name, address, legal structure)
- Proof of trading activity (Amazon seller account, invoices)
- Identification for directors or owners
Registration is handled by the Canada Revenue Agency (CRA) and usually takes a few days to 2 weeks. Once approved, you’ll receive your GST/HST account number, which must be added to Amazon Seller Central.
Filing requirements:
- GST/HST returns may be monthly, quarterly, or annually, depending on turnover.
- Returns are filed electronically via the CRA My Business Account portal.
- Amazon will provide transaction reports, but sellers are responsible for accurate filings.
Risks for FBA Sellers
- Failure to register can result in backdated GST/HST liabilities, penalties, and interest.
- Penalties may be up to 10% of the tax due, plus daily interest.
- Amazon actively monitors tax compliance — non-compliance can lead to account suspension.
Final Thoughts
For Amazon FBA sellers, Canada requires VAT-style compliance under GST/HST once sales exceed CAD 30,000 annually. Registration, timely filings, and accurate record-keeping are key to maintaining access to one of North America’s fastest-growing Amazon markets.
👉 Watch the full video https://youtu.be/n9d7ou8IFp8?si=O0Uice4PSeUGxdVL where I explain Canada’s GST/HST rules for FBA and cross-border sellers in detail.