Ebay requiring Social Insurance Number

[select]

I contaced the CRA .

The CRA agent said that the CRA has not requested that ebay sellers supply their Social Insrance Number to ebay

I then contacted ebay and their agent also said it was optional.

What has been your results when contacting the CRA about ebay requiring us to provide your SIN or possibly facing a $500 fine

[marnotom!]

This is a very recent development, so it’s quite possible that not all CRA employees are aware of how eBay is going to be providing sales figures to certain sellers. It’s also not clear from your post whether you provided the CRA agent or the eBay customer service rep with the reason why eBay is requesting SINs.

If you haven’t found the thread where this subject is discussed in more detail, here’s a link:

https://community.ebay.ca/t5/Seller-Central/Starting-January-2025-Ebay-Canada-to-require-SIN-number-...

[reallynicestamps]

The Service Canada help desks haven't been the same since Bruno retired last week.

[brettjet38]

All Sales are income. I gave my SIN years ago, and so should everyone else. Otherwise, you cannot sell on any platform, app, or site and will then be in the direct sights of the CRA if you try to do so.

They are going after every weed in the country, all the G5 are, this was planned years ago and set for activation in 2025

...that includes all the temporary immigrants and illegal workers who use these apps to make a HIDDEN income stream while they are here using our social services.

https://www.newswire.ca/news-releases/canadian-gig-workers-impacted-by-changes-to-income-tax-act-jan...

Canadian Gig Workers Impacted by Changes to Income Tax Act - January 31 Reporting Deadline is Looming; Are You Compliant?

New rules require platforms to report Canadian gig workers' details and earnings –
H&R Block research indicates significant portion of gig workers could be exposed to risks by not declaring all income

CALGARY, AB, Dec. 18, 2024 /CNW/ - If you're a driver, blog writer, selling crafts on Etsy, renting out a room through Airbnb, or earning income through another type of online platform, it's critical to understand how to comply with new tax-related measures. In 2024, new legislation (called Bill C-47) came into effect, which requires gig platforms (websites and apps you use to earn income to do freelance or contract work) to share certain information with the Canada Revenue Agency (CRA) on your behalf.

This new legislation serves to address concerns among tax authorities that tax obligations are not being accurately calculated by digital platforms and that gig workers full income isn't always visible to tax administrators. Gig platform operators are now required to file an 'information return' with the CRA, which includes sharing mandatory user identifying and income-related information for all Canadian gig workers using their platform no later than January 31, 2025.

"H&R Block research indicates that in 2024 around 9 million (28%) Canadians reported being part of the gig economy, of which 32% said they were willing to risk not declaring 'any' income and 43% are willing to risk not declaring 'all' income in an attempt to pay less in taxes," said Yannick Lemay, Tax Expert, H&R Block Canada. "Not declaring all income carries significant risks and is effectively breaking the law. The new reporting rules for gig platforms require operators to provide identifiable information on their users and their related income to the CRA. If these reported amounts are not aligned with what gig workers declare through their tax filing, it could create significant red flags with the tax authority and lead to potential financial penalties. It's imperative that Canadian gig workers understand and are compliant with the new reporting requirements through Bill C-47. With the CRA's looming deadline of January 31, 2025, now is the time to act to avoid potential financial penalties."

Key Considerations Around Bill C-47 for Canadian Gig Workers:

• Bill C-47 involves amendments to Canada's Income Tax Act around 'mandatory disclosure rules': This includes what needs to be reported to the CRA, and requires gig platform operators (such as Uber, Lyft, Airbnb, Vrbo, Etsy, eBay, Poshmark, etc.) to collect and report identifying information about Canadians who use their platforms and the income they earn.
• New gig worker information reporting requirements: Gig platforms must collect and report information for every Canadian that uses the platform and share it with the CRA, including: full name, date of birth, primary address, tax identification number or TIN (for most Canadians, their authorized tax identification number is their 9-digit social insurance number (SIN), issued by Service Canada).
• New financial disclosure requirements: Platform operators must report their own financial transactions and collect information on revenues earned by Canadians who use their platforms based in Canada.
• Platform operators are required to give their gig worker users a copy of the information they provide to the CRA: This ensures gig workers are aware of what is being sent on their behalf. It's important this information aligns with the user's own records and matches what they report at tax time.
• Mandatory electronic filing: The new bill also includes several administrative changes that require taxpayers to use the CRA's electronic services rather than sending information manually. Certain tax filings and payments must be done electronically, for example for payments over $10,000 and if you are filing five or more T4 slips.
• January 31 deadline: Platform operators must file an information return with the CRA, containing the required information relating to their users, no later than January 31 of the year following the calendar year in which any Canadian is identified as a reportable user of the platform.
• Noncompliance with Bill C-47 can result in significant financial penalties: By not reporting all their income, Canadians risk facing significant penalties and interest on top of any amount owed.

"Maintaining meticulous records is imperative for gig workers to track your income closely and ensure that what the platform operator reports to the CRA aligns with your own records, noting all related expenses," said Lemay. "The good news is there are a multitude of tax benefits and credits that gig workers are entitled to, which can help maximize their refund and lower their taxes overall. While the range of expenses you can claim depends on the type of gig work you are engaged with, they can include travel, auto-related, software subscriptions, home office expenses, mobile phone and internet bills, shipping, entertaining and interest or bank charges on business loans, to name just a few."

[brettjet38]

https://dailyhive.com/vancouver/cra-tax-gig-uber-ebay

Make money on apps? Tax changes could affect you this month

Whether you drive for ride-sharing apps or sell items online, the Canada Revenue Agency (CRA) has implemented changes that will affect you, and they apply this month.

According to the CRA, “The gig economy generally refers to services provided through short-term contracts, freelance work, or other temporary work that is arranged through an online platform or mobile application.”

Some common platforms include Uber Eats, Skip the Dishes, and Fiverr, while common services can consist of web development, business consulting services, and writing and translation services.

New legislation came into effect last year, making it mandatory for digital platform operators to report gig workers’ information to the CRA.

“This new legislation serves to address concerns among tax authorities that tax obligations are not being accurately calculated by digital platforms and that gig workers’ full income isn’t always visible to tax administrators,” states a December 2024 release from tax preparation company H&R Block.

This means gig platform operators such as Etsy, eBay, Poshmark, Airbnb, Vrbo, and Uber must provide workers’ income-related information by January 31, 2025.

So, what kind of information will be sent to the CRA?

Platform operators must share workers’ full names, dates of birth, primary addresses, and tax identification numbers (TINs). For most Canadians, TINs are their nine-digit social insurance numbers (SIN). In turn, companies must also provide users with a copy of information shared with the CRA.

Research by H&R Block revealed that in 2024, nine million Canadians (28%) made money through gigs. Thirty-two percent of them said they were willing to risk not declaring “any” income, and 43% said that they were willing to risk not declaring “all” income so they could pay less in taxes.

Yannick Lemay, a tax expert at H&R Block Canada, warned that doing so comes with “significant risks” and is “effectively breaking the law.”

“The new reporting rules for gig platforms require operators to provide identifiable information on their users and their related income to the CRA,” he said.

“If these reported amounts are not aligned with what gig workers declare through their tax filing, it could create significant red flags with the tax authority and lead to potential financial penalties.”

[brettjet38]

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/platform...

Taxes and the platform economy

Gig economy

On this page

• Understanding the gig economy
• Income tax obligations
• GST/HST obligations
• Keep records of all your transactions

Understanding the gig economy

The gig economy generally refers to services provided through short-term contracts, freelance work, or other temporary work that is arranged through an online platform or mobile application.

In the gig economy, gig workers operate as independent contractors and freelancers. Common platforms used in the gig economy may include, but are not limited to:

• Fiverr
• Clickworker
• Crowdsource
• Uber Eats
• Skip the Dishes

Contracted services can range from a micro-task (a small task set up through the Internet) to specialized services. Contracted services can include tasks such as:

• web development
• business consulting services
• maintenance and repairs for residential or commercial property
• legal consulting services
• graphic design services
• moving services
• writing and translation services

Depending on the gig, workers may do the work from remote locations. Online platforms and mobile applications can connect consumers and businesses with gig workers from all over the world.

Income tax obligations

Gig workers who are resident in Canada must report and pay tax on all self-employment income by completing line 26000 of their income tax and benefit return, as well as Form T2125, Statement of Business or Professional Activities.

• Line 26000 – Taxable income
• Form T2125, Statement of Business or Professional Activities
• How to fill in Form T2125

This applies to all income, including income earned from business done outside of Canada.

Gig workers who are not resident in Canada are subject to Canadian income tax on most Canadian-sourced income paid or credited to them during the year unless all or part of that income is exempt under a tax treaty. More information on non-residents is available at Non-Residents and Income Tax - Canada.ca.

Tax obligations on foreign income

Taxes paid on foreign income by Canadian residents could be eligible for a tax credit.

• Line 40500, Federal foreign tax credit
• Form T2209, Federal Foreign Tax Credits

If you paid income tax to more than one country and the total foreign income taxes paid to all countries was more than $200, a separate calculation is required for each country for which you claim a foreign tax credit.

Claiming expenses

You can claim eligible expenses associated with income you earned through the gig economy.

To claim expenses, you have to keep proper financial records.

Examples of eligible expenses include:

• costs from using a platform to sell services
• marketing costs to increase traffic to your website or online portfolio, if those costs are associated with earned income
• cost of materials or services within or outside of Canada, such as:
  • raw products (wood, wool, paint, beads)
  • software licences
  • editing or translation services

For more information on what qualifies as an eligible business expense on your income tax and benefit return, see Business expenses.

GST/HST obligations

Generally, if you earn more than $30,000 over four calendar quarters by supplying taxable goods or services, you have to register for, collect, and remit (send) the related goods and services tax / harmonized sales tax (GST/HST) to the Canada Revenue Agency.

The requirement to register for, collect, and send GST/HST for your sales and services depends on:

• the type of work you are providing
• the location of the person or business you are providing the service to

You may choose to register for and collect the GST/HST even if you earn less than $30,000. This lets you take advantage of the related input tax credits (ITCs). These credits are prorated in the same way as expenses that are deducted for income tax. For information, see “Find out if you are eligible to claims ITCs” on Input Tax Credits.

If you have taxable sales from both ridesharing services and gig economy contracts, and the total is less than $30,000 over four calendar quarters, you have to register for, collect and remit GST/HST only on the ridesharing services. However, you may choose to also collect and remit GST/HST on your gig economy contracts. If the total taxable sales are more than $30,000 over four calendar quarters, you must collect and remit (send) the GST/HST to the CRA on both services.

GST/HST information

When to register for and start charging GST/HST

General Information for GST/HST Registrants

Already registered for GST/HST?

If you are registered for the GST/HST, you may be eligible to claim Input tax credits for the GST/HST paid on purchases and expenses related to your commercial activities.

Generally, you can claim an input tax credit (ITCs) only when you have paid GST/HST (or it is payable) on expenses for your business activities. A tax professional can advise you on your tax obligations.

• Input tax credits (ITCs)
• Calculate input tax credits – ITC eligibility percentage

Keep records of all your transactions

Keep track of your income and your expenses, including sales you make to buyers in Canada and other countries.

• Business records
• Keeping records

Depending on the extent of your participation in the platform economy, additional tax considerations may apply. For more information, refer to General Information for GST/HST Registrants - Canada.ca.