CRA Reporting - I'm going to settle the argument from January

There was a big argument in the forum about when CRA reporting starts... accountants were telling people it starts in 2025 (sales from Jan 1 2025 and onward, and it would be reported in January next year). Other people said 2024.

 

I'm settling this argument...

 

The reporting started January 1, 2024, in 2025 (like today) all my 2024 sales were reported to the CRA.

 

So if you didn't declare your 2024 earnings and you have this report, CRA is going to find out. The report says how many transactions and a breakdown by quarter. I don't want to share my sales information, but if you qualify for this report you should find it in your eBay.

 

sapphyresdesignerjewellery_0-1763079465464.png

 

C.

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CRA Reporting - I'm going to settle the argument from January


@fergua3 wrote:

i got the email as well.   I was under the $2800 but over the 30 transactions.  Ebay has never asked me for my SIN and i have definitely never given it to them.   Surprising.

If you look at the 3-page PDF report, what does it say for you under "Tax identification number" in the left-hand column on the first page?

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CRA Reporting - I'm going to settle the argument from January


@dinomitesales wrote:

@msau4301 wrote:

They've never asked me for my SIN which is interesting, I know a lot of people were talking about that earlier in the year. 


If you download your report it shows the last four digits of your Tax Identifier Number in the upper left - so if it shows your SIN there then they got it from you somehow lol.


I just got the mail and those numbers are not my number, but some 0s. Does that mean ebay has my SIN or they just generated and sent report to CRA without the SIN?

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@kpgentleman wrote:

@dinomitesales wrote:

@msau4301 wrote:

They've never asked me for my SIN which is interesting, I know a lot of people were talking about that earlier in the year. 


If you download your report it shows the last four digits of your Tax Identifier Number in the upper left - so if it shows your SIN there then they got it from you somehow lol.


I just got the mail and those numbers are not my number, but some 0s. Does that mean ebay has my SIN or they just generated and sent report to CRA without the SIN?


Well, guess that answers my question from the previous comment lol.

 

Even if you didn't give them your TIN/SIN, according to this page eBay will still report your name, primary address, and bank account number to the CRA. So CRA can likely link you to the eBay sales report that way.

 

The page also states:

"If you are required to do so but don't provide the requisite information, it may result in a fine of $500 from the CRA. This is a potential action from the CRA, which eBay has no control over."

 

This is all so new that we don't know how any of it is actually going to be handled/enforced by the CRA. But if you didn't provide your TIN/SIN and CRA is able to link the digital sales report to you, then it's possible you could be fined $500 by the CRA.

 

The official website on the Government of Canada website also corroborates the potential $500 fine:

dinomitesales_1-1763095791938.png

 

EDIT: I see the government website also has this to say:

"You must also provide each reportable seller with a copy of the annual information reported to the CRA by January 31 of the year following the calendar year in which the seller is identified as a reportable seller." (good job eBay lol, only 9 months late on that one)

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CRA Reporting - I'm going to settle the argument from January


@flipistics wrote:

@dinomitesales wrote:

It seems like it would be very difficult to get any numbers we might be keeping on a sale-by-sale basis to add up to the totals in the report, although when all is said and done the final amounts that the CRA cares about should be fairly close.

 

For example, a few quirks I've noted in perusing this report (there are probably many more):

  • eBay is including the sales tax collected from the buyer in what is essentially the "gross revenue" of the sale. Perhaps this is common knowledge to others, but I figured since we were never actually given those funds it wasn't necessary to include them in revenue.
  • The line item of "Total Taxes" is the sum of the taxes paid by the buyer to eBay PLUS the taxes we pay to eBay on fees/store subscriptions/shipping labels. One would think those should be broken down into two separate categories, considering the latter is an ITC for those that have a GST/HST account with CRA.
  • The "Refunds" line item doesn't include refunds given as a result of order cancellation.
  • Despite eBay specifically mentioning "taxes paid on shipping labels", there is still no breakdown on the detailed CSV file that would indicate how much of the shipping label cost was for taxes (although this doesn't surprise me, we've been asking for this for years and eBay seemingly can't figure out how to do it lol).

Might need to make some modications to my spreadsheet for next tax season.


Maybe I'm missing something. Total fees and transactions appear to be correct. The total transaction amount does NOT appear to include tax that eBay collects on our behalf. The total taxes, however, includes the tax the buyer paid.

 

The number of transactions and transaction amount basically match my records that I keep separately which DO NOT include the tax the buyer paid since we don't have anything to do with that. If I'm right, that would mean that eBay's consideration amounts are actually wrong, and not by a little bit. Can anyone confirm with their own records?


Anyone know with that ebay report where you get the tax on postage/UPS & Fedex Domestic? Oh right ebay pays on our behalf. What was i thinking!! <Sarcasm>

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CRA Reporting - I'm going to settle the argument from January


@dinomitesales wrote:

@kpgentleman wrote:

@dinomitesales wrote:

@msau4301 wrote:

They've never asked me for my SIN which is interesting, I know a lot of people were talking about that earlier in the year. 


If you download your report it shows the last four digits of your Tax Identifier Number in the upper left - so if it shows your SIN there then they got it from you somehow lol.


I just got the mail and those numbers are not my number, but some 0s. Does that mean ebay has my SIN or they just generated and sent report to CRA without the SIN?


Well, guess that answers my question from the previous comment lol.

 

Even if you didn't give them your TIN/SIN, according to this page eBay will still report your name, primary address, and bank account number to the CRA. So CRA can likely link you to the eBay sales report that way.

 

The page also states:

"If you are required to do so but don't provide the requisite information, it may result in a fine of $500 from the CRA. This is a potential action from the CRA, which eBay has no control over."

 

This is all so new that we don't know how any of it is actually going to be handled/enforced by the CRA. But if you didn't provide your TIN/SIN and CRA is able to link the digital sales report to you, then it's possible you could be fined $500 by the CRA.

 

The official website on the Government of Canada website also corroborates the potential $500 fine.


But neither Ebay never asked me to provide that information nor let me know when I exceed their limit in 2024 or early or 2025. I'm not a regular seller but sold off quite a bunch from the basement in 2024 though.

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CRA Reporting - I'm going to settle the argument from January


@fergua3 wrote:

i got the email as well.   I was under the $2800 but over the 30 transactions.  Ebay has never asked me for my SIN and i have definitely never given it to them.   Surprising.

 

And what's up with being 11 months late?  They had all that info by Dec 31, 2024 and it took them 10 months and 13 days to compile it and remit it?  Maybe they were fighting in court to not have to submit the info?


Can anyone justify that when you sell an item and buyer sees gets their invoice to pay that any shipping they paid for includes the tax in the total and then ebay charges tax on the combined total of sale and shipping? Then charges sellers fees based on that total. Seems like tax on shipping is being applied more than once. 

 

Note: If you check the CP postage calculator tool the tax and fuel are separate. The eBay postage calculator it is all combined less the applicable discount for a final amount...with or without handling if seller chooses to charge.

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@kpgentleman wrote:


But neither Ebay never asked me to provide that information nor let me know when I exceed their limit in 2024 or early or 2025. I'm not a regular seller but sold off quite a bunch from the basement in 2024 though.


From what I understand eBay should have notified you when you crossed the threshold by email/eBay Message, as well as a banner appearing in your Seller Hub asking you to provide the required TIN.

 

The only explanations are either a) you didn't notice it; or b) some eBay glitch prevented it from being sent to you. I've seen images of the eBay banner warning so I know it exists. If you regularly/only use the mobile app, try logging onto Seller Hub on desktop and see if it's showing anything there (and check your eBay message folder).

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@lotzofuniquegoodies wrote:


Can anyone justify that when you sell an item and buyer sees gets their invoice to pay that any shipping they paid for includes the tax in the total and then ebay charges tax on the combined total of sale and shipping? Then charges sellers fees based on that total. Seems like tax on shipping is being applied more than once. 

 


That's actually an interesting point.

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@flipistics wrote:

@lotzofuniquegoodies wrote:


Can anyone justify that when you sell an item and buyer sees gets their invoice to pay that any shipping they paid for includes the tax in the total and then ebay charges tax on the combined total of sale and shipping? Then charges sellers fees based on that total. Seems like tax on shipping is being applied more than once. 

 


That's actually an interesting point.


@flipistics 

I've been contemplating that interpretation for awhile. I just didn't know how to properly express it. I do know specific sellers have asked for a breakdown of shipping charges for years...as long as MP has been around. As I recall, and this goes back ages PayPal in the past included a breakdown and so did CP/Shippo. Imagine Net Parcel did too but can't confirm. Do the Chit Chats etc of the world give you breakdown of charges including applicable tax?

 

As far as getting that break down of charges from eBay it's been on the request list for years from several sellers who have had the volume to require that info.  It's always been ignored or gotten the we'll get back to you response. Harkens back to the days when sellers collected and submitted their tax to CRA all on their own. Set up tax tables...rinse wash submit.

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CRA Reporting - I'm going to settle the argument from January

@lotzofuniquegoodies  I don't know if Chat Chats and Stallion do, but Click Ship, Sendle, and Shipping Chimp give full tax breakouts with their tax number on the invoice. EasyShip breaks it out, but doesn't include their tax number (which at the price of most labels shouldn't matter as the totals should be under the threshhold).

 

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@flipistics wrote:

@lotzofuniquegoodies  I don't know if Chat Chats and Stallion do, but Click Ship, Sendle, and Shipping Chimp give full tax breakouts with their tax number on the invoice. EasyShip breaks it out, but doesn't include their tax number (which at the price of most labels shouldn't matter as the totals should be under the threshhold).

 


@flipistics 

@sapphyres-designer-jewellery 

 

For a comparative if you went to CP outlet and paid for postage you would get a receipt with any applicable tax or split depending on province you are located in. (Yay GST only province.) Same goes for buying a prepaid product. For some reason eBay never thought this was a normal standard business practice to be followed to the letter. But by sounds of things everyone else knew they were supposed to.

 

In reviewing eBay announcements on dot com I located this regarding the US version 1099-k. It's from Oct 2024. Interesting heads up for anyone interested to put things in perspective or for comparison sake.

 

https://community.ebay.com/t5/Announcements/Forms-1099-K-to-be-delivered-electronically/ba-p/3473188...

 

As I posted when this hub bub reared its ugly head as we were trying to determine when this would kick in officially on the Canada side there were announcements on the US side back in Nov 2023 with a follow up in early 2024. Canadian sellers only discovered it when 1 user spotted a page on the topic in help. There was no official anything in the Canadian annoucement forum anywhere on the subject. 

 

As posted by someone else in an earlier message in this discussion...it kicked in for 2024. Our legally binding T4/Digital Sales Report just kinda got lost in the mail.......for a year!!!!! CSV reports be darned!!!

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CRA Reporting - I'm going to settle the argument from January

Chit Chats has the tax broken out in the CSV i downloaded, so its finable. Ebay Nada. I just dont claim it now since I was auditted before and if they asked to see recipts from my ebay shipping I cant actually provide proof lol. Leaving ITC's on the table

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@regs43 wrote:

Chit Chats has the tax broken out in the CSV i downloaded, so its finable. Ebay Nada. I just dont claim it now since I was auditted before and if they asked to see recipts from my ebay shipping I cant actually provide proof lol. Leaving ITC's on the table


Yeah, I haven't claimed them either.

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CRA Reporting - I'm going to settle the argument from January

The link below is attached to the report with the following explanation:

 

Reporting to the CRA

Starting January 2025, eBay will begin annually reporting to the CRA. Each January we will report for the previous year and provide a copy of the reported data for your review. Should you meet either of the thresholds described above, information that will be shared with the CRA includes: See full link

 

https://community.ebay.com/t5/Announcements/Forms-1099-K-to-be-delivered-electronically/ba-p/3473188...

 

Based on the above it appears some sort of ball was dropped for us to receive in November of 2025 vs Jan 2025.

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CRA Reporting - I'm going to settle the argument from January

Is it possible you provided it way back when they switched everyone over to Managed Payments? You might have given it to them so long ago that you forgot about it lol.

If you download your report it shows the last four digits of your Tax Identifier Number in the upper left - so if it shows your SIN there then they got it from you somehow lol.

There is no Tax Identifier Number on my report (I just double checked). I have been a member since 2011  and I suppose it's possible they asked me for it then but I don't think so, they didn't ask me for it for Managed Payments start up. I've had my bank account hooked up to eBay since way, way back because I started off here buying and prefered to pay that way. The transition to managed payments was super quick I think because they'd had my bank info for ages, but I really don't remember them asking for SIN.

I do remember getting a notice from Paypal after a couple of years selling asking for my IRS number because I was over a certain threshold of sales. I told them (PayPal) I was in Canada did they mean my SIN? And they said no, this was for US sellers only and showed me where to find a link for some kind of exemption form I had to file since I was not in the US (this was back when all funds were in US automatically and handled through PayPal). It would seem eBay had been reporting to IRS earnings back even in 2013 for US sellers. Canada is always late for the party I guess.

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CRA Reporting - I'm going to settle the argument from January

per dinomitesales question about my SIN appearing in the PDF:  it does not.   In fact it doesn't even have a 'tax idenfification number' heading at all.  Down the left hand column of page 1 it shows:  ebay seller details, ebay username, primary residence, place of birth (blank), bank information and account creation date.  And that's it.  No spot for a tax identification number .  I checked the other pages and nothing there either.

 

My hunch is this reporting to CRA doesn't 'officially' start until 2025, hence them not asking my SIN.   This 2024 reporting may be some kind of a dry run or could just be a scare tactic to get people to start reporting in 2025.  Or i could be totally wrong. 

 

But regardless, i and apprently lots of other people did not have to submit their SIN.  But this year, everyone who went over one of the threshholds did have to report their SIN.  Make of that what you will.  I have not exceeded 30 sales or $2800 this year.

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CRA Reporting - I'm going to settle the argument from January

I think your hunch is right and I'm in the same boat. I didn't hit the threshold this year either, I only ran a couple of months so I think that's why they didn't ask me. Last year on the other hand I was way over, but like you say I think this is a dry run, or some kind of "yep we complied and sent them", with the properly done one being sent in January next year. They had to set up their system first, this was the trial.

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CRA Reporting - I'm going to settle the argument from January

I am also in the same boat and agree with both of you. I feel that there really can be no official reporting without the SIN. That's been the foundation of their scare tactics from the beginning (provide it... or else!), right? They are threatening fines and expulsion because their systems need it. They've been designed to need it. And ebay only officially notified (and threatened) those that went over in 2025, and yet produced a report for 2024 without the sin anyway? I'm thinking they're simply fulfilling their obligation for 2024 by generating the reports. At the end of the day, most large system deployments have to go through a series of stages. It's reasonable to assume a change like this will take years to roll out in its entirety. Think of volumes they'll be dealing with! Staffing alone (on both sides) is a major challenge (for systems, financials, customer support, audits, etc). I also think ebay doesn't have the security issues sorted out yet to ensure a secure data transfer, which is why there's no sensitive information on the report. The report is just a different format of the regular sales reports. I guess we'll get answers eventually, but I think it will be status quo for a while yet.
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CRA Reporting - I'm going to settle the argument from January

byto253
Community Member

The report is such a convulted mess, that follows no accounting or tax reporting standards, that I have a hard time seeing CRA using it for more than a cursory check to see if someone has filed or not.  I can't see them trying to unwind the report into some kind of useful order that has any relation to the income statement that is provided in my tax return.  

 

In my case the numbers track close enough together that is fine.  I build my sales/revenue info from the  "Performance" tab, then click on sales, then select my time period and "generate report".   Ignore the accumulated total the "report" gives and scroll to where there is a break down of Item Sales and Shipping & Handling.    Below that is your eBay labels purchased total. 

 

eBay "reports" just do not follow any standard reporting conventions so you need to get to the base root numbers and build your statement from there.

 

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CRA Reporting - I'm going to settle the argument from January

My spreadsheet (a Hilroy exercise book) includes the cost of shipping and the shipping charges.

So I guess I'll have to fire up the Babbage Engine and start adding. 

 

https://www.youtube.com/watch?v=drGx7JkFSp4

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