Trying to understand my profits / Amazon taxes
Hi guys,
I m selling on Amazon in Canada and I am incorporated. I m trying to understand how taxes apply to my account to make sure I understand my profits correctly. In sellerAmp I have put VAT scheme not applicable and misc fees at 5% since my prep center is in Alberta (5% paid on purchasing products). When I compare the profits I make with sellerAmp to the revenue calculator on Amazon it is the same so I guess these are the correct settings to know my profits. Now that I have my business in tax settings, I have been told that Amazon is supposed to send me the GST/HST taxes paid on my sales, so in my pays I receive my profits + the taxes I have to give back at the end of the year right ? So let’s say I sell a product for 200$ and Amazon fees are 50$. I will receive in my pay 150$ +the taxes I have to pay back ? Also is there a way to make sure that Amazon is sending me these taxes along with my pay?
Thanks a lot for the help, it has been a hassle trying to figure this out …
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