Amazon Seller Taxes in Canada: Income, GST/HST and Records

Prepared by Toronto Tax & Accounting Solutions Inc. and reviewed by Behroz Rizvi, owner. This article provides general information and may not apply to every tax situation.

If you sell on Amazon.ca as a business, your income is generally taxable in Canada. You report your gross sales and eligible costs on Form T2125 with your personal return, or through a corporation. Amazon is a marketplace platform covered by Canada’s platform reporting rules, and you must register for GST/HST once your taxable sales pass $30,000.

Does Amazon report my sales to the CRA?

Canada’s Reporting Rules for Digital Platform Operators apply to platforms that let sellers earn income by selling goods, and they have applied since January 1, 2024. The CRA excludes a seller with fewer than 30 sales of goods and total payments of no more than $2,800 in the year (who is affected). Platforms may ask sellers for additional information to confirm whether they are reportable, and the CRA says your platform must give you a copy of the information reported about you by January 31 each year (what information is shared).

Check that the tax information in your Seller Central account is accurate and that what you report on your return is consistent with what the platform reports. Being reported does not mean you did anything wrong. It means the CRA can compare the two.

Report gross sales, then claim your costs

Amazon deducts its fees from your payouts, so your bank deposits are lower than your sales. Report your gross sales, then claim the fees and other costs as expenses when they are eligible. The CRA says expenses must be reasonable, relate directly to the business, not be personal and be supported by your records (business expenses). Common costs for Amazon sellers include:

• The cost of the goods you sold (see inventory and cost of goods sold)
• Amazon referral fees and selling plan fees
• Fulfilment and storage fees if you use FBA
• Advertising, such as sponsored product campaigns
• Shipping, packaging and prep costs
• Returns and refunds, and damaged or unsellable stock
• Software and research tools
• A business-use share of internet, phone and home costs

Reconcile your Amazon reports every month

Download your payment and settlement reports from Seller Central each month and match them to your bank deposits. Amazon sellers often have many small transactions, fees and refunds in each payout, so a monthly reconciliation is far easier than rebuilding a year at tax time. This is the core of our bookkeeping work for online sellers.

GST/HST and Amazon tax settings

The GST/HST registration test is the same as for any business: you must register once your taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters. See GST/HST on online sales and the CRA’s page on GST/HST for digital-economy businesses.

Amazon’s own seller forum guidance says that if you have not provided a valid GST/HST registration number, Amazon may collect and remit taxes on your behalf under marketplace facilitator legislation, and that after you register you should keep your registration number and tax settings current in Seller Central (Amazon seller forum post). Which taxes you remit yourself depends on your registration and the sale, so we review your settlement reports against your returns.

Amazon FBA inventory

Goods you own that are stored at an Amazon fulfilment centre are still your inventory at year-end, so include them in your count. You do not deduct stock when you send it to Amazon. You deduct the cost of the goods you sold, using your opening inventory, purchases and closing inventory.

What we cover

We handle the Canadian side: Canadian income tax, GST/HST and bookkeeping for Amazon.ca sellers. We do not prepare US tax forms or handle US sales tax or US tax filings for sellers who also use Amazon.com.

Amazon seller tax questions

Do I need to register for GST/HST if I sell on Amazon?

Only once your taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters, or if you choose to register voluntarily. Voluntary registration lets you claim input tax credits.

Does Amazon collect GST/HST for me?

Amazon says it may collect and remit taxes in some situations under marketplace facilitator rules. What you must remit yourself depends on your registration and the sale, so confirm your settings and bring us your settlement reports.

Is the stock I send to FBA a deductible expense right away?

No. You deduct the cost of goods sold, which is based on your opening inventory, purchases and closing inventory, not every purchase in the year you buy it.

What if I did not report past Amazon income?

The CRA says you may owe penalties and interest on unreported platform income, and that correcting your tax affairs voluntarily may avoid or reduce them, for example by asking for a change to a past return or applying under the Voluntary Disclosures Program. Contact us and we will review the years involved.

How we can help

Toronto Tax & Accounting Solutions Inc. prepares tax returns and keeps the books for Amazon.ca sellers, from our Scarborough office or entirely online. A self-employed return starts from $149.99 and monthly bookkeeping from $99, both before HST. Inventory, several platforms and incomplete records can increase the fee. See our page for online sellers and content creators or visit torontax.ca.

Related guides

• Tax and bookkeeping for online sellers and content creators
• eBay taxes in Canada
• Etsy taxes in Canada
• GST/HST on online sales
• Inventory and cost of goods sold
• Hobby or business?
• YouTube taxes in Canada

Official sources

• CRA: Reporting rules for digital platforms
• CRA: Who is affected
• CRA: What information is shared
• CRA: Business expenses
• CRA: When to register for and start charging the GST/HST
• CRA: GST/HST for digital-economy businesses
• Amazon: Seller forum post on GST/HST registration (platform statement)

Last reviewed: November 8, 2026. This article is general information, not advice for a specific situation. Platform pages are linked for platform-specific statements.