If you are considering selling in Canada, you are responsible for paying any destination duties, taxes and customs clearance fees before your product can be sold to Canadian residents or stored at an Amazon fulfilment centre. You or your designated agent must act as the Importer of Record, and be reported as such on customs declarations.
Any person or entity residing outside of Canada but wishing to import into Canada is required to become a Non-Resident Importer (NRI). An NRI is a foreign-based company, including those residing in the United States, that does not have a permanent presence in Canada, but imports into Canada under their own name and business number. The business number (BN) has 15 digits: Nine numbers to identify the business, plus two letters and four numbers to identify the programme and each account. The BN must be obtained prior to the first import.
You can obtain a business number, or add an import-export account to an existing business number, by registering online, or by completing Form RC1, Request for a Business Number (BN). Send the completed form to your nearest Tax Centre. The Canada Border Services Agency (CBSA) will give you an account free of charge as soon as they receive the form. You must provide your import-export account on your customs documents. This applies to most shipments that enter Canada. You only use your import-export account for importing or exporting.
Most imported goods are subject to tax at a rate of 5 per cent. If duty is applicable, duty is added to the value of the goods, and that is the amount that the tax is charged on (essentially, you also pay tax on duty). It is your responsibility to comply with all Canadian customs laws and regulations, including applicable duty and tax requirements.
When you make a sale on Amazon.ca, the sale may be subject to Goods and Services Tax (GST) or Harmonized Sales Tax (HST) depending on the province of supply.
If you are collecting tax on your sales in Canada, you are required to register for the GST/HST in Canada and to remit the amount that is over and above what you originally paid out. The frequency in which you remit this amount is determined by your annual sales in Canada. Lower-volume sellers on Amazon.ca will generally fall in the category of a yearly filer, meaning once a year, they are required to report the amount of tax that you paid on your imports.
You can register yourself with the Canada Revenue Agency at no charge. After your importer number has been issued, you will receive a questionnaire from the Canada Revenue Agency to complete and return. GST registration will be completed approximately six to eight weeks after the form has been submitted, but it is usually backdated to the date of application to allow you full credit on all imports.
For further information on GST/HST in Canada, visit the Canada Revenue Agency website.
Under European Union VAT rules, Amazon calculates and collects EU VAT on Selling on Amazon fees related to sales made by sellers on Amazon.ca who do not have an EU VAT registration number and who are a resident of an EU member state. Amazon charges the standard rate of VAT applicable to your EU member state of residence, and will provide you with an invoice where it is required by local law. For more information, see this European Commission web page.
If you are a resident of an EU member state and have an EU VAT registration number, provide your EU VAT registration number to avoid having EU VAT applied to your Selling on Amazon fees. From Seller Central click Settings, then Account Info, then click “Edit” in the European VAT Information section.
For more information about VAT in the EU, see the Europe Tax and Regulatory Considerations help page.