Empower Your Business with Automated Selling in Canada

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hey guys welcome back slugs vids I'm Tatiana and today I'm going to talk about selling on amazon.com for Canadian sellers so I myself am a fellow Canadian seller I have I'm born in Canada I have a Canadian company and I saw Lincoln and other marketplaces for Amazon and it's a lot simpler than a lot of people think I think a lot of people kind of overanalyze it and they get into analysis paralysis and then they just don't even want to start it's really not that complex so I'm gonna try and make this video as quick and as painless as possible for you but first a disclaimer I'm not an accountant I'm not a lawyer I don't have any authority to give you any legal advice this video is based on my personal experience and take it with a grain of salt so be a student not a follower whatever I say today take it and do your own research don't take it as fact okay having said that number one things to make clear if you're a Canadian you're allowed to sell on amazon.com you're allowed to sell in Australia in the UK whatever market place you want to sell on you're allowed to there's a misconception that if you're Canadian you have to sell on Amazon State not at all true in fact I wouldn't recommend it if you're Canadian start on amazon.com it's a far bigger marketplace amazon.ca is still very small not a lot of product options eventually once you start making sales ENCOM then you can branch out to dossier number two is if you're a Canadian corporation if you're a Canadian company you're allowed to sell in the States you don't need to have a US company to sell them States you don't need to have a UK company to sell in the UK so that's another misconception number three is inventory placements if you have inventory in Canada if you want to sell in dot CA you need inventory in Canada if you want to sell in com you need inventory in the States so if you have to pick one pick the states to start with because it's gonna be expensive for you to buy inventory for dots and buy inventory for dots calm if your brand new sellers so just pick one marketplace branch out in the future okay now this is where a lot of people get confused the tax implications so a lot of people like I don't understand do I have to pay taxes on the states do I pay taxes in Canada you know if all my sales are in the States weird I pay the taxes well if you're a Canadian seller you're gonna be paying taxes in Canada what you're gonna do is you're going to apply for an EIN number this is an employment identification number employee identification number it's basically like a business registration number in Canada you don't need a corporation to get this number you can be a sope priority to obtain this number basically you just call the IRS just google the number and they'll give it to you over the phone very easy the reason you do this is because you're basically going to use this number to submit a tax return in the States but basically telling the states that yes I'm a Canadian seller but I sell it in the States but I'm gonna be filing and paying taxes in Canada not in the States and the reason you're not paying taxes in the States is because you don't have a permanent establishment in the States so well I expect that you don't if you're a new seller and if you don't then you pay taxes in Canada a permanent establishment is like an office or like a fulfillment center or anything like that and or if you have employees there and so when you don't have a permanent establishment you basically file that tax return and then it tells the states that you know yes I'm paying taxes in Canada don't double tax me very important another thing is sales tax and income taxes are two completely different things in Canada we have you know GST we pay taxes for products that we purchase in this in the States as well but in the States every single state has a different sales tax rate now a lot of sellers are like well I don't understand how do I pay sales taxes how do I collect it when do I collect it well first of all I have a really really good interview that I'm gonna link like right here I think with an accountant and he goes into depth about this and I highly recommend you watch it because there's a lot of value and it's absolutely free okay so having said that what I learned is that sales taxes you need to originally you would need to pay sales taxes wherever you had Nexus Nexus means where you have in a staff is achill so again if I had a fulfillment center if I had my inventory stored there if I had a physical office if I had employees if I had a building whatever a space where I'm actually present so for example for me I have Nexus in Florida where I have a warehouse then I would apply to collect sales tax in Florida you can't just collect sales tax without having a sales tax permit that's illegal so you apply for a sales tax permit just Google of Florida sales taxes on their website you can apply for the permit you receive your number and then you can start collecting sales taxes in Florida and then what you do is once you collect sales taxes every corridor every year depends on when you have to remit those you file for your sales taxes online and then at the end of the year you do a state tax you have to have your accountant to help you with that probably so now this is where it gets confusing if you're a new seller people are like okay when do I start collecting sales taxes when you're a new seller you know you're not really making much money you're not very significant at that point the government isn't gonna come after you be like oh give me ten dollars that you owe me that's not really how it works so don't really get over worried with all this stuff until you actually prove that your business is doing well you know prove that you're making sales start to get the momentum start to make the sales and then worry about the sales taxes later so okay so prior to the Dakota Wayfair hearing which was I think earlier 2018 beginning of 2018 basically that meant that now all the states are going to allow ask online sellers to now collect sales taxes because prior to this it was only if you had a physical presence and so all these states were like well we're missing out on all this money that we could be receiving you know people now are shopping online more than ever and so if I was in Florida and I went to a store in Florida I would be paying sales taxes but if I purchase something on Amazon I probably wouldn't be paying sales taxes and so the states were feeling a little bit like well we need this money and so we're gonna ask online sellers to now collect this money so at what point should you actually take into consideration should you collect the money what you know I'm again I'm not a accountant I can't give you this type of legal advice but watch the interview that I had but basically don't worry about it don't worry about it right now wait until you're actually making a significant amount of sales in a state before you apply for your sales tax permit and at that point it becomes necessary and it becomes it makes sense because if you were to apply for a sales tax permit in every single state just to cover your bases because you wanted to comply with the government which I'm not sure that everyone has does unless you're a multi-million dollar seller sure yeah of course you want to cover your butt but if you're a brand new seller you haven't made a dime on Amazon you're not gonna go apply for a sales tax permit in every single state first of all to apply it's gonna take a hell of a lot of time second of all to actually you know you don't have anything to collect if you're not making sales and thirdly you're gonna have to now have an accountant follow those state taxes for every state so that's gonna cost you tens of thousands of dollars so analyze the risk of it analyze the cost of it and then make your decision and talk to an accountant bank accounts so a lot of people are very confused with the Bakke accounts and receiving money and US dollars so if you're Canadian and you don't care to receive the money and US dollars say you make sales in the States people pay with US dollars in States it gets deposited into your Amazon seller central account and US dollars and then if you link your Canadian bank account to your Amazon seller central account then amazon will deposit those funds into your canadian account into Canadian dollars and so there's gonna be a conversion rate and there's probably going to be a fee so if you don't care about losing out on a little bit of money then that's fine you can just link your current bank account but if you do care you do want to receive the money in US dollars which I would recommend doing because if you're gonna start an Amazon business most of your costs are gonna be in US dollars I don't think any costs are going to be in Canadian dollars unless you're sourcing in Canada so you want to maintain that US dollar currency because it's going to be useful for you instead of converting it once and then converting it back you'd really miss out then so what you do then is you need to have a us-based account okay so you can't just have you know RBC they have a Canadian account and they have a u.s. account Canadian checking us checking you can't link your u.s. checking account to your Amazon account because they will not direct deposit funds into a u.s. Canadian bank account you actually need a bank account that's based in the US okay and you can have that as a Canadian you can have that I use Harris Harris you can sign up for a bank account call them over the phone say you know this is my business I make online sales and I need a us-based business account and they will hook you up it's very easy and then what happens is now you get your direct deposits in US currency and if you want to pay yourself in Canadian currency or in US currency you can then do that from your Harris account to your Canadian company so that's basically it hopefully this video was helpful for you guys I didn't want to make it too long again you know talk to the proper people for this type of advice but if you guys want to learn more about selling on Amazon I have a free four part training video series that's gonna help you get started I highly recommend clicking the link below to get started with that and if you have any questions feel free to post them in the comments below and I'll see you in the next video bye guys hey guys I hope you liked this video if you did don't forget to subscribe and hit the bell symbol so you get notified whenever I've got a new video I highly recommend that you click the link in the description so you can subscribe to my mailing list so I can send you free Amazon FBA video trainings and if you want to continue watching I recommend one of these videos here so click it