Competition in the E-Commerce Market
More and more people are choosing Canada as their e-commerce expansion destination. This is due to its lower competition rate, making it easier for new brands to stand out and sell more.
Taxes and Amazon
Another factor that may seal the deal is that taxes are simpler in Canada than in other countries.
United States-based Amazon sellers have the added benefit of a North American Unified Account, where they can sell in the US, Canada, and Mexico with one account. This saves the hassle of managing multiple accounts, opening new bank accounts, etc.
Setting Up to Launch
To operate in Canada as a non-resident importer, obtaining a Business Number (BN) and GST Registration is a must. You will also have to file reports periodically as per the schedule assigned by the local tax office, which may be annual or quarterly based on your application. Canada has strict regulations when it comes to product compliance, therefore you may require authorized representation or a responsible person for products such as food, contact materials, electronics, and toys.
Launching Your Brand In Canada
Even with the necessary registrations, an Importer of Record must act on your behalf when importing goods into Canada. The GST of 5% is applicable on the import value, which can be claimed back. It’s also crucial to classify your goods accurately, as duties are dependent on this classification and are non-refundable.