E582: B.C. Is Taxing Sellers On Nearly All Of Your Fees

Dave interviews David McCormick from Legacy Lawyers to talk about e-commerce taxation in B.C., Canada, specifically regarding the Online Marketplace Services Act, the Ministry of Finance's choice to start charging Provincial Sales Tax (PST) to every B.C. based seller on each of Amazon's seller fees, and why this choice is ultimately flawed.  Let's be real - email marketing isn't flashy, but that's what makes it great. Who needs chaos when you can have steady, reliable results? That's where Omnisend email and SMS comes in. Check it out today and use code ECOMCREW.  E-commerce taxation is a huge mess in British Columbia right now.    If you're not from the great white north, then you should know that Amazon has been charging sellers PST since 2021 – something that Amazon wasn't exactly required to do.    The worst part? They've been charging this on sellers' global sales—whether those sales occurred in Canada, the United States, or Brunei Darussalam. Because of this, many BC sellers have been paying a minimum of 1% of their sales (and most will be closer to 2% or greater) in provincial sales tax (PST).    The Big Takeaway: Provincial Sales Tax (PST) is being applied to fees paid by sellers, and not just customer orders. While Amazon has taken a conservative approach to PST collection by overcharging, sellers face challenges in obtaining refunds for overpaid PST. The Ministry of Finance have been very difficult to appeal with even when having a legitimate defense.  This leaves sellers with no choice; and they may need to engage legal help for refund applications. Political action is necessary to address unfair tax practices. Sellers should be proactive in communicating with their Members of the Legislative Assembly (MLAs). Timestamps 00:00 - Introduction to E-commerce Taxation in BC 03:03 - Understanding the Online Marketplace Services Act 06:08 - Impact of PST on E-commerce Sellers 08:55 - Amazon's Approach to PST Collection 12:13 - Navigating Refund Applications and Denials 15:05 - Legal Interpretations and Software Taxation 17:53 - Challenges for Sellers in the Digital Economy 21:13 - Strategies for Sellers to Address Tax Issues 24:04 - Political and Legal Actions for Change 26:51 - Conclusion and Recommendations for Sellers As always, if you have any questions or anything that you need help with, reach out to us at [email protected] if you're interested.  Don't forget to leave us a review on iTunes if you enjoy our content. If you have any questions, send us an email at [email protected]. We'd love to help you in any way we can.  Thanks for listening! Until next time, happy selling!