cra is asking me to pay back amazon withheld taxes since I am GST/HST registrant
Hello,
We are GST/HST registrants with the CRA however last year we did not input this info into our amazon seller account. As a result amazon withheld taxes and remitted to cra on our behalf. CRA is stating it is our responsibility as GST registrants to collect taxes even though amazon withheld it and remitted it back to them. Ive provided all the reports possible and they are still adamant that I owe them this amount which is in excess of 20k. Any idea what my options are? Ive filed an appeal with the CRA and since theirs an amount owing am being charged interest on the balance daily which is ridiculous.
Thank for any feedback
cra is asking me to pay back amazon withheld taxes since I am GST/HST registrant
Hello,
We are GST/HST registrants with the CRA however last year we did not input this info into our amazon seller account. As a result amazon withheld taxes and remitted to cra on our behalf. CRA is stating it is our responsibility as GST registrants to collect taxes even though amazon withheld it and remitted it back to them. Ive provided all the reports possible and they are still adamant that I owe them this amount which is in excess of 20k. Any idea what my options are? Ive filed an appeal with the CRA and since theirs an amount owing am being charged interest on the balance daily which is ridiculous.
Thank for any feedback
0 respuestas
Seller_y7W9ccUlauftE
Amazon did not remit the sales tax on your behalf, amazon remitted them under marketplace rules which apply to amazon when a seller is "unregistered".
I would look for an accountant who has experience dealing with this issue or has experience making appeals with the CRA. If you win the appeal those interest charges are recalculated.
Seller_1idNlTUpfKbZW
That really sucks. CRA put us through audit after audit, but they always accepted Amazon's remitted amounts as GST/HST paid.
Seller_HY11pBXR5oxuG
I am trying to post the link for what you need to read about this issue, but it will not let me. It says it's a non-Amazon link when it is an Amazon link.
Marketplace Tax Collection for Canada FAQ
In Canada, Marketplace Tax Collection “MTC” rules mean that in certain cases, Amazon (and not you) is the party responsible for the collection and remittance of Canadian federal and/or provincial sales taxes for the products you sell on the Amazon.ca store.
Just change the ** to tt
h**ps://sellercentral.amazon.ca/help/hub/reference/GX8H2WPL5C2K7VH9
Seller_YTOPvZXiYeK5i
I was also audited as my HST remitted was lower that it should have been. Once I explained the situation they accepted the fact that there would be an ongoing shortfall in my HST remittance due to Amazon withholding and remitting a portion of the tax. Don't give up!
Seller_BCsJXNkuO7q9e
This is CRA's own fault for not providing clarity on where the obligation lies in this situation.
I'm not surprised they are being stubborn but ultimately they are right and wrong.
Indeed, it is your responsibility to collect as a registrant but that does not mean the government deserves to receive 2 x HST for no reason.
I had conversations with CRA when this law first came out 2 years ago and they were clueless. Cases like this might force them to be clear.
If allowed, sellers should rely on Amazon to collect as you save the fee Amazon assesses for collecting and remitting taxes on your behalf.
Seller_P9IWlCdQ8mTft
We were just audited this year and had the same issue. Showed CRA tax invoices and everything we could find including a statement in seller central saying that amazon collects the sales tax and remits it on your behalf but they wanted proof still which i didnt know how to provide. They requested me to get amazon's HST # but not sure how to even get that as seller support is pretty useless most of the time. They ended up closing my case and settling with me but did not try to collect taxes from me for any of the Amazon sales but did request I still provide Amazons HST # at a later date. For the CRA you think they would know how Amazon works and would deal with them over these issues...
Seller_4PJDSh50hU0Mi
Look up Canadian Tax Compliance
I use them for my filings.
Seller_Ts5dMusQMFMEE
any updates? If Canada is going to steal from consumers they should at least make a better system and not double dip like this, having Amazon remit automatically then expect the same amount from the seller.
Seller_4kBKgRS8THiUy
I am going through this same issue. The auditor is requesting us to submit a "GST506 election" form which is a jointly signed form in which Amazon is allowed to collect GST/HST on our behalf.
Anyone ever have any luck obtaining one of these from Amazon.ca?
