For many sellers, it is a necessary marketing tool to grasp consumer behavior. It is crucial to understand the shopping habits of buyers. In recent years, the spread of the epidemic worldwide has also changed the consumption habits of many buyers. For example, on Amazon Canada, buyers are more willing to shop online without leaving home, which has increased the shopping rate of Amazon Canada.
For Amazon Canada sellers, as long as the sellers understand the consumer psychology of buyers, the distance from buyers, and provide products and services of different qualities according to different consumer needs to attract the attention of Canadian buyers and gain their trust in product sales, what is there to worry about?
If sellers want to register a Canadian tax number on Amazon Canada, there is no doubt that sellers need to pay tariffs, sales taxes and other fees. Only by selling their products in Canada or registering with the Amazon Operations Center, what else should they pay attention to after registering as a non-resident importer of Canada?
1. Tariff and tax rate system
The tax rate for most imported products is 5%. If tariffs are to be levied, the tariffs will be credited to the value of the goods and then taxed according to this amount (basically, taxes must also be paid). Sellers must comply with all Canadian customs laws and regulations, including applicable tariffs and tax laws.
2. Canada has three types of federal and provincial sales taxes: federal goods and services tax, provincial business tax, and harmonized sales tax (HST), which is a combination of GST and PST. If sellers want to sell products on Amazon Canada (B2B or B2C), they may need to pay GST or HST sales tax. Only by registering for GST/HST through the Canada Revenue Agency can they pay taxes to the Canada Revenue Agency. Sellers with low sales volumes usually file annually, mainly based on annual sales.
Note: Canada is a country with high taxes, and the penalties for sellers who do not pay taxes in accordance with regulations are very severe. Therefore, cross-border sellers must pay taxes in accordance with Canadian tax regulations, and the GST tax number also provides convenience for sellers to a certain extent.