Quick Answer
Yes, all Amazon seller fees are tax-deductible in Canada as ordinary business expenses. This includes referral fees, FBA fulfilment fees, storage fees, advertising costs, and subscription fees — as long as they're incurred to earn business income and properly documented.
For Canadian Amazon sellers, virtually every fee Amazon charges is a deductible business expense. The CRA allows deductions for expenses that are "reasonable and incurred to earn income from business." Amazon fees clearly meet this test — they are the direct cost of selling on the platform.
Amazon Referral Fees
Amazon charges a referral fee on every sale — typically 8% to 15% of the total selling price (including shipping) depending on the product category. Electronics: 8%. Apparel: 17%. Books: 15%. These fees are deducted directly from your Amazon account balance and are fully deductible as a selling expense.
FBA Fulfilment Fees
If you use Amazon FBA, Amazon charges per-unit fees to pick, pack, and ship each order. These vary by product size and weight. FBA fees are deductible as fulfillment/shipping expenses in your books.
FBA Storage Fees
Amazon charges monthly storage fees for inventory stored in their warehouses:
- Standard storage: January–September vs. October–December rates (holiday season surcharge)
- Long-term storage: Applies to inventory stored more than 365 days — significantly higher rates
All storage fees are deductible as inventory carrying costs.
Amazon Advertising Costs
Sponsored Products, Sponsored Brands, and Sponsored Display advertising spend is 100% deductible as advertising expense. Download your advertising reports from Campaign Manager monthly for your records.
| Fee Type | Tax Category | Deductible |
|---|---|---|
| Referral fees | Selling expense | Yes — 100% |
| FBA fulfilment fees | Fulfilment/shipping | Yes — 100% |
| FBA storage fees | Storage/carrying cost | Yes — 100% |
| Amazon advertising | Advertising expense | Yes — 100% |
| Professional selling plan | Business subscription | Yes — 100% |
Amazon Fees and GST/HST Input Tax Credits
Amazon charges GST/HST on many of its fees. As a registered GST/HST business, you can claim back this GST/HST as an Input Tax Credit (ITC) on your GST/HST return — on top of the income tax deduction for the fee itself. This is a double benefit many Amazon sellers miss.
Claim Every Amazon Deduction
MaxRefund helps Canadian Amazon sellers track and claim every legitimate deduction. Our bookkeeping service ensures your Amazon fees are correctly categorized for tax purposes.
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