Quick Answer
When you import products for Amazon FBA Canada, you pay customs duties (0–25% depending on product) and 5% GST on the imported value at the border. Both are deductible business expenses. GST paid on imports can be claimed back as an Input Tax Credit once you're GST/HST registered.
Most Canadian Amazon FBA sellers source products from China, the US, or other countries. Every shipment crossing into Canada triggers customs duties and import GST — costs that directly affect your profit margins and must be correctly recorded in your books.
How Canadian Customs Works for FBA Imports
When your goods arrive at the Canadian border, the Canada Border Services Agency (CBSA) assesses two charges: customs duties (based on the Harmonized System tariff code and country of origin) and 5% GST calculated on the import value including duties. You pay these before your goods are released — or your customs broker pays them on your behalf.
Import Duty Rates by Country
| Origin | Typical Duty Rate | Notes |
|---|---|---|
| United States / Mexico | 0% (most goods) | CUSMA/USMCA exemption |
| China | 0–25% | Depends on HS code, potential surtax |
| EU | 0–10% | CETA — most manufactured goods duty-free |
| Other countries | Varies | Check CBSA Customs Tariff schedule |
Recording Import Costs in Your Books
Import duties and freight are part of your landed cost — they increase the cost of your inventory. Add them to your COGS rather than expensing immediately. The 5% GST paid on imports is a separate line — it's an ITC you can reclaim on your next GST/HST return once registered.
De Minimis Threshold in Canada: $20 CAD
Canada's de minimis threshold — the value below which no duty or GST applies — is just $20 CAD for commercial imports. This is far lower than the US threshold ($800 USD). There is no duty-free "small shipment" option for business inventory purchases entering Canada.
Expert Bookkeeping for Amazon Importers
MaxRefund tracks your import costs, duty payments, and ITC claims so your Amazon FBA business stays CRA-compliant and profitable.
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