What are the reporting thresholds for Etsy and eBay in Canada?

As of 2024, platforms must report your data to the CRA unless you are an excluded seller, meaning you had fewer than 30 sales transactions AND $2,800 CAD or less in gross sales for the calendar year. Cross either limit and you are reported. This $2,800 CAD figure is the Canadian threshold; the 2,000 euro figure sometimes seen online is the EU's separate DAC7 rule.

Does the platform reporting rule change my tax rate?

No. It does not create a new tax. It simply provides the CRA with data to verify that the income you've always been required to report matches what you actually earned.

Should I report net payouts or gross sales on my T2125?

You must report gross sales. Platform fees, shipping, and processing costs should be deducted separately as business expenses. Reporting only net payouts is a common cause for CRA audits.

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CRA Digital Platform Reporting for Etsy, eBay & Airbnb

Beginning January 1, 2024, the Canada Revenue Agency (CRA) implemented new rules for digital platform operators. If you sell goods on Etsy or eBay, or rent property on Airbnb, your data is now being shared directly with the CRA.

The Thresholds

You are an excluded seller (not reported) only if you stay under both limits for the calendar year: fewer than 30 sales transactions AND $2,800 CAD or less in gross sales. Cross either one (30 or more transactions, or more than $2,800 CAD) and the platform reports your data. These reports are filed by the platform by January 31 of the following year.

Gross vs. Net: The Audit Trigger

The most dangerous mistake a side-hustler can make is reporting "Net Payouts" as their revenue. The CRA receives the gross number from the platform. If your T2125 shows a lower revenue number because you already subtracted your fees, it flags an automatic discrepancy in their system.

What is being reported?

Your full legal name and primary address.
Your Social Insurance Number (SIN) or Business Number.
Total consideration paid or credited (Gross Revenue).
The number of transactions you completed.
Any fees or taxes withheld by the platform.

Audit-Proof Your Shop

NorthOS keeps your marketplace sales organized and categorized for T2125, so the gross income you report lines up with what the platforms report to CRA.

Secure Your Books

Sources: CRA Guidance on Reporting Rules for Digital Platform Operators (Part XX of the Income Tax Act). Information is for educational purposes only.