OTTAWA, ON, April 30, 2021 /CNW/ - Canada Revenue Agency
What is a peer-to-peer sale?
A peer-to-peer (P2P) sale is the selling of goods or services from one person or party directly to another. You may be involved in P2P selling if you are connecting with buyers through online platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay, Amazon or Kijiji).
Income tax implications
As a resident of Canada, you have to report your income from all sources inside and outside of the country, including P2P transactions, on your tax return. If you paid tax on foreign income, you could be eligible for a tax credit.
It is important to maintain proper financial records of all your sales and expenses. This applies to the sales you make to buyers in Canada and other countries. Keep records of all your purchases to claim eligible expenses on your return.
GST/HST implications
You may have a reasonable expectation of profit from your online activities, and your total taxable supply may be valued at more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the Canada Revenue Agency the goods and services tax / harmonized sales tax (GST/HST) for taxable supplies of goods and services that you made inside and outside Canada. You can get more details on GST/HST registration requirements at: Find out if you must register for a GST/HST account.
How to correct your tax affairs
If you did not report your income from P2P selling, you may have to pay tax, penalties and interest on that income. You can avoid or reduce penalties and interest by voluntarily correcting your tax affairs. To correct your tax affairs (including corrections to GST/HST returns) and to report income that you did not report in previous years, you may:
- Ask for a change to your income tax and benefit return
- Adjust a GST/HST return
- Apply for a correction through the Voluntary Disclosures Program
More information
You can find more information on this topic at Canada.ca/platform-economy.
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SOURCE Canada Revenue Agency
Media Relations, Canada Revenue Agency, 613-948-8366, [email protected]
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