Starting January 2025, Ebay Canada to require SIN number for all sellers with more than 30 sales?

[joycroe_0]

I was reading this article on Ebay and it states that as of January 2025, anyone with over 30 sales will have to provide a SIN number. 
https://www.ebay.ca/help/account/regulatory/sales-reporting/canada-digital-sales-reporting?id=5476#s...

It seems like quite a drastic update and I'm surprised more people haven't been talking about it.

[teenytrinkets]

@brettjet38yeah, I think most of the changes were rolled out last summer - that's when accounting firms started blogging about it. I have a friend on Etsy that was notified to provide info on the fall. I think ebay is just behind. Anyone that's used ebay for decades knows that any systems changes are a nightmare for them. Keep in mind they aren't particularly motivated to share this information, as they know they'll lose half their sellers and take a major hit (they've had an opportunity to do the math after dealing with the irs systems changes over on .com). I'm not sure what the deal is in other countries, but I suspect it's been a busy time for them complying to all the new tax laws. Even the cra has given an extension to all digital platforms until July for reporting, so I imagine they're not the only digital platform struggling to implement all of the required changes. But it seems some platforms were definitely more on the ball!

[brettjet38]

Imagine all the "members" who will vanish over the next few months, it's called cleaning out the....

[mrdutch1001]

Yes indeed!>all those sellers who either won't provide the SI# for their own reasons and/or all those sellers who don't want their eBay monies to be reported...

[silverpinups]

eBay has not messaged me about giving them my SIN and it's Jan.11/25. They will not message me until the 30 sales or 2800.00 has been reached for 2025. If the CRA wants this info by Jan.31/25 then there should be a mass gathering of info for Canadian sellers now. 

@regs43was contacted because she has hit that magic number for 2025 already. For some sellers they might not hit that limit until 6 months or longer.   

But I could be wrong.... time will tell.

[treadstone68]

I guess the Government of Canada needs even more money for Ukraine.

[brettjet38]

New rules for digital platform operators

Canada recently introduced new reporting rules for digital platform operators, which came into effect this year. The rules themselves target the platforms, but could affect people working through those platforms too.

Certain platforms are now required to collect and report information to the Canada Revenue Agency on sellers who live in Canada or in countries that have implemented the same rules, and who sell to people in Canada or those countries, according to the CRA. This information may include identifying details like names and addresses, platform fees, property locations (if applicable) and payment details.

“What pre-empted this is obviously the rise of e-commerce, digital, the digital transaction community,” said Ricchio.

“They know that they have been missing transactions that have gone unknown to the CRA … so this is now the mechanism to help them capture it, to ensure that everyone is paying tax where they should be on that income.”

Sellers may be asked for additional information so the platform can fulfil these obligations, the agency added.

If a seller doesn’t provide their tax identification information to the platform, they can be fined $500, the CRA said.

Certain sellers are excluded from these obligations, including those with “less than 30 relevant activities for the sale of goods” and for whom the total amount paid or credited was below $2,800 during the reportable period, according to the CRA.

Sellers need to make sure they do their due diligence and comply with all their reporting requirements, said Goudy, as what they file has to match what the platform reports.

Penalties for non-compliance

Non-compliance can result in penalties, he said, as well as any penalties or interest on unpaid taxes.

“The CRA is going to be able to cross-check this information readily available,” he said.

“If the sellers were not compliant before … then it’s going to be pretty obvious.”

Another change this year is that if you operate a short-term rental in a designated province or municipality where you’re not allowed to do so, the CRA will disqualify your business deductions, said Ricchio.

If you’re earning digital platform income on top of your regular employment income, Ricchio said the extra money could potentially push you into a higher tax bracket.

This will not only affect your rate of taxation but could also hit any benefits you’re used to receiving, such as the Canada Child Benefit or the GST/HST credit, she said. “That’s also sometimes a shock for people.”

https://www.moneysense.ca/save/taxes/how-income-from-digital-platforms-is-taxed-in-canada/

[25minutes]

As someone who buys mainly sports cards from local card shows and resells on Ebay - there are no receipts issued  at shows but rather hand shake deals like going to a flea market and most deals are in bulk - if you buy hundreds of low end cards, are you now supposed to create an inventory spreadsheet and somehow derive the average cost and then have the CRA believe that your numbers are correct? if for example, your sales are $20 k a year, how do you actually figure out the costs with any type of accuracy? Ebay will give you your net sales from 2024 if you go to performance tab but how do you apply that information?  I'm wondering what will happen if non-action will be taken - not sure if i'm willing to play a game of chicken with the CRA but at the same time, logistically, how will most resellers figure out their cost of goods? Do people have receipts these days for all transactions?

[byto253]

Any idea if eBay will provide us a copy of the amount that they reported to CRA?  In my case I would like that number, as I sell in US$ so eBay will likely convert that amount to CDN$.  If I can know the CDN$ value eBay reports I will use that in my tax return.   Right now I convert using Bank of Canada monthly rates, but the chances of eBay's conversion and mine matching are unlilkely, unless I know the amount they reported. 

[sin-n-dex]

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@byto253 wrote:

Any idea if eBay will provide us a copy of the amount that they reported to CRA?  In my case I would like that number, as I sell in US$ so eBay will likely convert that amount to CDN$.  If I can know the CDN$ value eBay reports I will use that in my tax return.   Right now I convert using Bank of Canada monthly rates, but the chances of eBay's conversion and mine matching are unlilkely, unless I know the amount they reported. 

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Aren't your payouts in CAD?

I sell in USD as well, eBay converts the amount I receive into CAD (at their exchange rate) before putting it in my bank account. The rate eBay uses is not as high as the Bank of Canada, so you'll find your total earned in CAD will go down with eBay's exchange rate.

C.

[byto253]

Good question, my payouts are in US$.   If the eBay rate is not as high as the Bank of Canada, then that should be fine.   It would better if I got the amount eBay reported though. 

[sin-n-dex]

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@byto253 wrote:

Good question, my payouts are in US$.   If the eBay rate is not as high as the Bank of Canada, then that should be fine.   It would better if I got the amount eBay reported though. 

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When I had a choice for currency to set up MP, I went with CAD to make things easier.

I don't find the rate ebay gives for exchange to be the most favourable... I'm logging sales from this weekend and it's around 1.39-1.40. Bank of Canada rate is the official exchange, but eBay wants to make a bit of money when they convert to CAD. Not sure what they'll do if your payouts are in USD, that might be interesting.

I'm pretty sure one of the announcements said they would give us a report of what they gave to CRA after submitting it.

C.

[regs43]

The email I got after submitting my SIN was soemthing to the effect of "we will send you a copy after we report it to the CRA".

I hope this is a nice form with all the relevent info I need and don't need to dig as hard through the excel sheets. I will of course verify but would be nice and simple that way!

[byto253]

... hopefully you don't get it 15 days after the tax fililng deadline!   But yes it would be nice to have that information and in my case have the conversion rate from eBay. 

[ricarmic]

It will be interesting to see if it adds up to the same number as what they told me each of the monthend numbers were added up.

[byto253]

The $2,800 threshold is actually net of fees so not sure if they report the gross as well.  

[timoffit_0]

Ive been away for a while and was thinking of selling again on ebay but with all the changes in the past few months , id rather close my account and move all my sales to kijiji and facebook market place.

[reallynicestamps]

It seems from dotCOM poster reports, that eBay gives the gross.

Which makes sense since they do not know the costs the seller is going to claim.

For example, sellers procurement costs.  A $1 purchase may sell for $100 or for $10. EBay has no way of knowing where or when the sold item was purchased.

[reallynicestamps]

That's fine, but remember that you still owe tax on those sales.

You just don't have any other entity (like eBay or etsy) doing some of the work of coallating your sales for you.

FB Marketplace has moved from local/person to person  into commercial/ shipped in the past year.

My favourite local antique shop sells in their B&M, on FB Marketplace, and on eBay.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individu...

If your income is under $55K from all sources, you are taxed at 15% after deductions. And most people have around $17K in deductions.

If you earn more, the tranche from $55K to $112K is taxed at 20.5%. Again after deductions.

So if your day job pays you $55K and eBay pays you $10K annually, your taxable income is still going to be in that 15% tranche.  Or around $7,200 on your entire post-deduction income.

[rosscd57]

The only business that is asking for our SIN numbers is eBay. I See no evidence at all from Revenue Canada that they asking for, or asking eBay or more corectly - eBay.com - to collect our SIN numbers - none. The only business that you must give your SIN number to is your employer and EBAY IS NOT OUR EMPLOYER.

DO NOT GIVE EBAY YOUR SIN NUMBER.

[rosscd57]

Follow up - Revenue Canada already has our SIN numbers. If I have to give eBay.com my SIN number, then I want Revenue Canada to tell me - not eBay.