Industry tax guides
Online Seller Taxes in Canada: Income, GST and Platform Reporting
January 31is when online marketplaces must send each reportable seller a copy of the sales information they reported to the CRA for the previous year.
Sources checked October 20263 min read
Income and inventory
Regular selling online, through your own store or a marketplace, is a business. Sales, marketplace fees, shipping, advertising and the cost of the goods sold are reported on Form T2125, or on a corporation's T2. Inventory is counted at the end of each fiscal period and usually valued at the lower of cost and fair market value, so goods bought but not yet sold are not deducted until they are.
Key points
- Online sales are business income, with inventory and cost of goods sold on the accrual method
- GST/HST registration is required once taxable sales pass $30,000, counting marketplace sales
- A marketplace collects GST/HST on qualifying goods sold by sellers who are not registered
- Marketplaces report sellers' earnings to the CRA, and send each seller a copy
GST/HST for online sales
A seller must register for GST/HST once taxable sales, including those through marketplaces, pass $30,000 in a calendar quarter or over four consecutive quarters. A registered seller charges the tax on its own sales, including sales a marketplace facilitates. When a seller who is not registered sells qualifying goods through a distribution platform, such as goods shipped from a Canadian fulfillment warehouse, the platform operator charges and collects the GST/HST instead.
The rate depends on where the goods are delivered, so a seller in Alberta shipping to Ontario charges Ontario HST. Selling into British Columbia, Saskatchewan, Manitoba or Quebec can also require registering for that province's sales tax.
Marketplace reporting
Since 2024, digital platform operators report reportable sellers to the CRA, including their name, address, tax number and the total paid to them by quarter, along with fees withheld, and send each seller a copy by January 31. A seller who made fewer than 30 sales of goods totalling no more than $2,800 through a platform in the year is excluded. Reconciling the platform's figures with your own records before filing avoids a mismatch the CRA will notice.
Quick answers
Do I pay tax on money from selling online?
Regular selling with a view to profit is business income, taxed after expenses and the cost of goods sold. Occasionally selling personal items is generally not a business.
Does Amazon or Etsy collect GST for me?
A distribution platform collects GST/HST on qualifying goods sold by sellers who are not registered. A registered seller charges and remits the tax on its own sales.
Will the marketplace report my sales to the CRA?
Yes, if you are a reportable seller. Sellers with fewer than 30 sales of goods totalling $2,800 or less on a platform are excluded. Reported sellers receive a copy by January 31.
Related pages
Official sources
- CRA: Supply of qualifying goods in Canada, GST/HST for digital economy businesses
- CRA: Reporting rules for digital platforms, what information is shared
- CRA: Guidance on the Reporting Rules for Digital Platform Operators
- CRA: Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.