A seller joked: Since joining Amazon, his mentality has become more and more Buddhist. Looking at the orders that remain unchanged every day, life is like a stagnant pool of water.

Although working on Amazon did not make me rich, I learned that a simple life is the real truth. After going through Amazon's "ninety-nine eighty-one difficulties", the sellers' minds have become extremely strong. Even if Amazon announced its bankruptcy tomorrow, the sellers' hearts would not be affected (not really).

Back to the topic, although Biden announced a few days ago that he would issue a $3 trillion economic recovery bill, just when sellers were eager for a surge in orders, a bolt from the blue came: Amazon sellers will be taxed by multiple parties again!

Canadian provincial governments impose PST on Amazon sellers

What sellers care about most when selling on Amazon, besides the considerable order volume, is the profit margin of the product. However, with the increase in Amazon FBA, product commissions, advertising and other fees, coupled with the continuous increase in shipping costs and surcharges, sellers have been overwhelmed and their profit margins have been reduced again and again.

  ▲ The picture comes from the seller communication group

Just when sellers were complaining about the recent surge in sea and air freight rates, another piece of bad news came: the Canadian government will impose PST taxes on Amazon sellers!

It is learned that Amazon’s latest announcement stated that the British Columbia government requires non-local companies to charge PST (provincial sales tax) at 7% under certain conditions when providing certain digital goods and services to residents.

The announcement stated: Starting from April 1, 2021, Amazon sellers will need to pay 7% PST fees to the British Columbia government in Canada. Both Amazon corporate sellers and individual sellers must pay PST fees.

Some sellers have doubts about the above content. Are taxes levied on all products or only on certain products? How can they check whether the products they sell are applicable?

  ▲ The picture comes from the Amazon Seller Forum

There are also sellers complaining that the taxes are too high, saying they can’t afford to sell the goods or pay the taxes!

  ▲ The picture comes from the Amazon Seller Forum

Amazon has not yet made further explanations, but some sellers have found relevant policies. The screenshots show that sellers located outside Canada who import goods into Canada for sale on the Amazon site will be considered non-resident importers by the Canadian Border Services Agency. Non-resident importers must obtain a tax number from the Canada Revenue Agency before they can import goods into Canada.

It seems that it is inevitable that sellers will have to pay taxes to the Canadian provincial government, and sellers must also prepare a Canadian tax number in case of emergency.

Before one crisis is over, another crisis arises. In addition to sellers on the Canadian site who will be taxed, sellers on the European and American sites are also having troubles recently.

European Commission announces tax on small incoming parcels

It is learned that the European Commission recently announced that it will impose taxes on small parcels from countries outside the EU. The tariffs will soar by 20% to 30%. Previously, these small parcels were usually exempt from import tariffs and value-added tax.

After hearing the news that tariffs would surge by 20%-30%, many sellers were shocked and lamented: Are Europe and the United States cutting leeks recently?

It is understood that the EU's tax on small foreign parcels mainly includes the following important information:

The change in the declaration system means an increase in sellers’ costs. Some sellers complained: Oh my! Now the orders are not increasing but the taxes are increasing. Can we still make a living by selling on Amazon in the future?

It is reported that the EU previously stipulated that foreign parcels with a value of less than 22 euros were exempt from VAT. Since most sellers declare the value of the goods themselves, they take advantage of this policy to evade VAT.

In response, the European Commission said that the move is aimed at strengthening the control of packages outside the EU and will focus on packages shipped from China, because Chinese products often evade taxes and account for a considerable proportion of e-commerce platforms.

But this move is not just aimed at Chinese products; third-party sellers from the UK and the US will also be affected by the policy.

The costs of the new measure will ultimately be borne by consumers, with prices of goods from China expected to rise by 20% to 30%, people familiar with the matter said.

What do sellers think about the above tax notice? Feel free to share your views in the comment section.