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Newegg Canada Marketplace Sales Tax and Environmental Fee (EHF) Collection Guidelines

Canada Sales Tax (GST/PST/HST)

Canada Tax Types:

GST: General Sales Tax | PST: Provincial Sales Tax | HST: Harmonized Sales Tax

If you sell products in Canada, you are required to collect GST, PST, or HST depending on the province the item is shipped to. You will remit the GST/HST collected to Canada Revenue Agency (CRA) and PST to the Province Revenue Agency. These regulations are required by law for any seller who is selling to Canadian customers, regardless of their country of origin, all sellers must comply when operating on Newegg.ca.

Please see below for the steps to comply with Canada sales tax.

  1. You will need to register for GST, which can be done at the link below:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html

  1. Once you receive the GST number, you can start collecting 5% GST from your customers. You are required to report and remit the collected GST on your GST tax return to CRA. You can find more information at the link below:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/complete-file-instructions.html

  1. In addition to federal GST, there is PST (Province Sales Tax). British Colombia (BC), Manitoba, Saskatchewan, and Quebec require a separate registration and separate PST tax return reporting.  Other provinces’ PST are included in federal GST as HST (Harmonized Sales Tax).

For BC PST registration, please see this link:
https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst

For Manitoba PST registration, please see this link:
https://www.gov.mb.ca/finance/taxation/taxes/retail.html#:~:text=The%20Retail%20Sales%20Tax%20(RST,sales%20tax%20rate%20is%207%25.

For Saskatchewan PST registration, please see this link:
https://www.saskatchewan.ca/business/taxes-licensing-and-reporting/provincial-taxes-policies-and-bulletins/provincial-sales-tax#:~:text=PST%20is%20a%20six%20per,consumed%20or%20used%20in%20Saskatchewan.

For Quebec QST registration, please see this link:
https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/registering-for-the-gst-and-qst/

  1. For HST, sellers can complete this via registration with CRA.

There are three types of sales taxes in Canada: PST, GST and HST. Please see below for an overview of sales tax amounts for each province and territory.

Province Type PST GST HST Total Tax Rate Notes:
Alberta GST 5% 5%
British Columbia GST + PST 7% 5% 12%
Manitoba GST + PST 7% 5% 12% As of July 1, 2019 the PST rate was reduced from 8% to 7%.
New Brunswick HST 15% 15% As of July 1, 2016 the HST rate increased from 13% to 15%.
Newfoundland and Labrador HST 15% 15% As of July 1, 2016 the HST rate increased from 13% to 15%.
Northwest Territories GST 5% 5%
Nova Scotia HST 15% 15%
Nunavut GST 5% 5%
Ontario HST 13% 13%
Prince Edward Island HST 15% 15%
Quebec GST +

QST

9.975% 5% 14.975%
Saskatchewan GST +

PST

6% 5% 11%
Yukon GST 5% 5%

In order to comply with the Canada Revenue Agency regulations in collecting Canadian Federal Goods and Services Tax (GST), Provincial Sales Tax (PST)/Quebec Sales Tax (QST), or Harmonized Sales Tax (HST), all Newegg Canada Marketplace Sellers are responsible to set up how the tax is collected based on the below sales tax collection guidelines effective May 20, 2020. Newegg Canada Marketplace, or Newegg as an entity is not liable for taxes resulting from sales to customers in Canada, this is solely the responsibility of the seller to comply with local and federal Canadian regulations.

Sellers who operates business and order fulfillment center within Canada:
Sellers are required to provide Federal and Province Registration Numbers in Seller Portal and Newegg Canada will collect GST, PST/QST, or HST based on the registration numbers provided for customer orders placed on Newegg Canada website depending on which province or territory the order is shipped to. Newegg will then remit all taxes collected from customer orders to the seller according to Newegg Canada Marketplace payment terms and the seller will be responsible to remit all taxes to appropriate tax authorities.

Sellers who operate business outside of Canada but operate order fulfillment centers in Canada:
Sellers will follow the same guideline as sellers who operate business and order fulfillment centers within Canada as stated above.

Sellers who operate business and order fulfillment centers outside of Canada:
Newegg Canada will not collect GST, PST/QST, or HST for customer orders placed on Newegg Canada if Federal and Province Registration Numbers are not provided in Seller Portal.

If the seller has already registered and obtained Federal and Province Registration Numbers, the seller will have the option to provide the registration numbers in Seller Portal and Newegg Canada will collect GST, PST/QST, or HST for customer orders based on the registration numbers provided depending on which province or territory the order is shipped to. Newegg Canada will then remit all taxes collected from customer orders to the seller according to Newegg Canada Marketplace payment terms and seller will be responsible to remit all taxes to appropriate tax authorities.

GST, PST/QST, or HST collection for Shipped by Newegg (SBN) orders:
For any Shipped by Newegg (SBN) order, Newegg Canada will collect GST, PST/QST, or HST based on Federal and Province Registration Numbers seller provided in Seller Portal depending on which province or territory the order is shipped to. Newegg will then remit all taxes collected to seller according to Newegg Canada Marketplace payment terms and seller will be responsible to remit all taxes to the appropriate tax authorities.

Newegg Canada will not collect any sales GST, PST/QST, or HST if Federal and Province Registration Numbers are not provided in Seller Portal.

Environmental Handling Fee (EHF) collection guidelines:
Newegg will collect an Environmental Handling Fee (EHF) which includes Battery Recycling Fee, Tire Recycling Fee, Environmental Recycling Fee, and Eco Fee for applicable product purchased by customer on Newegg Canada website based on Federal and Province Registration Numbers seller provided in Seller Portal. Newegg will then remit all Environmental Handling Fee (EHF) collected to seller according to Newegg Canada Marketplace payment terms and seller will be responsible to remit Environmental Handling Fee (EHF) to appropriate Canadian Government Authorities.

If Federal and Province Registration Numbers are not provided in Seller Portal, Newegg Canada will still collect an Environmental Handling Fee (EHF) for applicable product purchased by customer and Newegg Canada will be responsible to remit Environmental Handling Fee (EHF) to appropriate Canadian Government Authorities.

Detailed information for taxes collected from customer orders will be available in Seller Portal for your review. For additional information regarding Canadian Federal Goods and Services Tax (GST) or Harmonized Sales Tax (HST), please visit Canada Revenue Agency (CRA) or contact Newegg Marketplace Support for any question.