Digital Service Tax - Canada has RESCINDED it to continue trade talks with USA
Great news for Amazon sellers!
Canada has announced it’s stepping back from implementing the Digital Services Tax as part of ongoing trade negotiations with the United States.
Many of us have been frustrated by the extra fees Amazon has been charging sellers under the label of “Digital Services Fees.” While Amazon calls it a fee rather than a tax, it has effectively passed the cost of this proposed tax onto small and medium sellers, even though the legislation was originally aimed at large online marketplaces earning over $20 million.
With this reversal, there’s hope Amazon will stop charging these fees to sellers. It’s been a burden on small businesses and unfairly shifted costs that should have been absorbed by Amazon and not us sellers.
I hope to see the Canadian government remove this for Canada and the USA, and not just the USA. We will have to wait and see.
I know opinions vary, but I think Trump deserves some recognition for pushing these trade negotiations that may help reduce costs for all online sellers.
Has anyone heard official word from Amazon yet about removing these fees?
Digital Service Tax - Canada has RESCINDED it to continue trade talks with USA
Great news for Amazon sellers!
Canada has announced it’s stepping back from implementing the Digital Services Tax as part of ongoing trade negotiations with the United States.
Many of us have been frustrated by the extra fees Amazon has been charging sellers under the label of “Digital Services Fees.” While Amazon calls it a fee rather than a tax, it has effectively passed the cost of this proposed tax onto small and medium sellers, even though the legislation was originally aimed at large online marketplaces earning over $20 million.
With this reversal, there’s hope Amazon will stop charging these fees to sellers. It’s been a burden on small businesses and unfairly shifted costs that should have been absorbed by Amazon and not us sellers.
I hope to see the Canadian government remove this for Canada and the USA, and not just the USA. We will have to wait and see.
I know opinions vary, but I think Trump deserves some recognition for pushing these trade negotiations that may help reduce costs for all online sellers.
Has anyone heard official word from Amazon yet about removing these fees?
21 replies
Seller_BCsJXNkuO7q9e
Not only should Amazon remove the fees immediately they must also refund all Digital Services Fees collected since October, 2024.
The Digital Service Fee was only collected because Amazon thought they had to pay the full Digital Services Tax to the Canadian government. Amazon’s messaging around the fee was very clear that it was only because of the DST.
Amazon had the benefit of these funds for the last 9 months. Likely they earned a return on these funds.
There should be no reason for Amazon to equivocate. Cease collection of the DSF and refund all fees collected.
Seller_s72sAtzkmL7hM
The first DST payment Amazon was scheduled to remit to the Canadian government was due on Monday, June 30 However, since the DST has now been rescinded, Amazon is legally required to refund all amounts collected from Canadian sellers since October 1, 2024. It’s unclear whether interest will also be reimbursed, but I’m hopeful we’ll see the refunds issued within the next 30 days.
Seller_8JEkdbCwUbOPN
I want a refund ASAP Amazon has charged me thousands of dollars in "Digital Service Tax" fee. Every seller needs to do back and tally how much they have paid to Amazon and don't trust whatever amount they give us back.
Seller_CZnBOE7TFjR2B
We are Canadians selling mainly on the .com marketplace and are being charge $10k+ per month in DST. Great news that this has been removed by the Canadian government as it made no sense to begin with.
I guess all we can do now is push Amazon to immediately stop charging DSF on these "services" and refund all prior collected DSF now that the June 30 balloon payment to the government has been rescinded.
Seller_R9WesGvPFxipV
Is Amazon going to refund the DST to sellers because Gov Canada removed it and Amazon does not need to Remitt this in June 2025.
Seller_HY11pBXR5oxuG
Companies that paid the now-defunct digital services tax will have to wait for Ottawa to pass new legislation before they can get a refund, the Canada Revenue Agency has confirmed.
The spokesperson said Parliament will need to pass legislation formally revoking the tax in order for taxpayers to get their money back. Members of Parliament are currently on their summer recess and not scheduled to return until Sept. 15.
The CRA waived the requirement for taxpayers to file a DST return ahead of the June 30 deadline and will not ask for any related payments in the meantime.
Seller_xJx7vH6fvZFD9
We got robbed in broad day light.
A billionaire company re-directing its tax obligations towards smaller canadian companies and entrepreneurs, the cornerstone of Amazon, is just crazy to think about.
I do not think they will refund the digital tax since they listed it for us as a ''digital service fee''.
I have been speaking up about this ''digital service fee'' for a while now and as a business owner on Amazon, this whole situation really put into perspective how little they think of us.
Seller_7LrAV0m5llaI7
@Sunnie_Amazon@Christine_Amazon A little insight here?
Seller_rTAxflJvPFLKc
I would be speechless if Amazon doesn't return our money to us. They were supposed to pay that from their revenue, but instead, they passed it to their selling partner.. Now, apparentl,y the money they collected no longer needs to be remitted to CRA, so they should return the money to us regardless they call it a fee or a tax.
