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.

[joycroe_0]

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@fergua3 wrote:

one option for those who are uncomfortable giving Ebay their SIN, as i am, is to not give it and face expulsion from Ebay selling and a possible fine of $500 from the CRA.

I am seriously considering this option.  I'm just about done  selling on Ebay (as of June 30) and i'd rather pay $500 than worry for the rest of my life that Ebay will allow my SIN to be stolen.  Afterall, just how much do we think Ebay is going to invest in security measures to keep the Social Insurance Numbers  of a bunch of Canadians safe?

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@fergua3 wrote:

one option for those who are uncomfortable giving Ebay their SIN, as i am, is to not give it and face expulsion from Ebay selling and a possible fine of $500 from the CRA.

I am seriously considering this option.  I'm just about done  selling on Ebay (as of June 30) and i'd rather pay $500 than worry for the rest of my life that Ebay will allow my SIN to be stolen.  Afterall, just how much do we think Ebay is going to invest in security measures to keep the Social Insurance Numbers  of a bunch of Canadians safe?

I realize most are not in the position i am and this option is not a good one for them.  But it's something to consider for others.  The problem is, not providing your SIN could put you vividly on the CRA's radar, so that is also something to think about for some people.  

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Yeah it's either that or quit before you reach the 30 sale threshold. In the age of the internet, everything can be potentially hacked. Providing a SIN willy nilly on a platform that has previously underwent data breaches simply because you sold a few hundred dollars worth of stuff doesn't really seem worth the headache... Let alone on the accounting nightmares that will come along with it.

It's a shame, I've really enjoyed using Ebay as a hobby but I feel like this is a crossroads.

[fergua3]

if you hit the 30 sale threshold last year then Ebay will be asking you for your SIN, later this month.  So it will be decision time for lots of people soon.

[mrdutch1001]

Yep, just goes to prove selling dollar items and anything priced lower than $10(which can translate into many more transactions than higher priced items) is no longer a viable option for some folks. This may weed out a lot of the card sellers, especially those who don't want their "business" known to CRA.

[recped]

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@joycroe_0 wrote:

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Yeah it's either that or quit before you reach the 30 sale threshold. In the age of the internet, everything can be potentially hacked. Providing a SIN willy nilly on a platform that has previously underwent data breaches simply because you sold a few hundred dollars worth of stuff doesn't really seem worth the headache... Let alone on the accounting nightmares that will come along with it.

It's a shame, I've really enjoyed using Ebay as a hobby but I feel like this is a crossroads.

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So I presume you never plan to ever be employed, have a savings account or make any type of investments (even a RSP or TFSA).

Accounting nightmares? Not really, sure it takes a bit more work than garden variety tax evasion but it would be a lot less work than dealing with a CRA audit.

FYI - The Federal government has had quite a few data breaches so to be truly safe you had better go completely underground.

https://www.priv.gc.ca/en/opc-news/news-and-announcements/2024/nr-c_241029/

Privacy Commissioner of Canada Philippe Dufresne has launched an investigation into the Canada Revenue Agency (CRA) related to cyberattacks that led to more than 30,000 privacy breaches dating back to 2020.

[reallynicestamps]

When I was a kid we Ontarians were told never to pick a trillium because there was a $50 fine for doing so

There is not and never has been such a law.

Why is it so terrible to give our SINs to various businesses?
My banks have it. My employers have had it. 

I never have used it as an identifier.

It would be a terrible ID in any case since it has no picture or address or any other information on the card, nor does the card have a bar code like my BC ID card or one of these newfangled QRcodes.

My bank doesn't use it to allow me access to my accounts.
They do provide me, and Revenue Canada, with information about interest and dividend payments they gave me.

My employers used it to send my taxable income information to Revenue Canada.

Or is this an urban legend like trillium picking?

We were told that no one can demand it if that entity does not deal with our income and or taxes.

So our employers. Our bank, which pays interest. Our stockbroker, for those lucrative dividends.

No one else needs it. But we can give it to anyone if we want to. No rule against it.

How would a scammer use it?

Please be precise, I'm considering whether I need a new income stream and reading Tarot cards requires learning how to tell fake fortunes.

[lotzofuniquegoodies]

@reallynicestamps 

Re: No rule against it.

According to standard searches this is when you should or shouldn't give out your SIN to.

You should give your Social Insurance Number (SIN) to: 

• Employers: To access benefits and programs, and for income tax purposes 
• Canada Revenue Agency (CRA): When filing income taxes 
• Financial institutions: When opening a bank account, or when working with trust companies or stock brokers 
• Government programs: When applying for benefits like Employment Insurance (EI), the Canada Pension Plan (CPP), Old Age Security, the Child Tax Benefit, or the Guaranteed Income Supplement 
• People who prepare your information slips: Such as your accountant, trustee, or bank 

You should only provide your SIN to people who are legally required to have it. You should never provide your SIN to anyone outside of those people. 

How to protect your SIN 

Only provide your SIN over the phone if you make the call and you know it is legally required

• Never reply to emails that ask for your SIN
• Shred paper records with your SIN once you no longer need them

In the grand scheme of things and for eBay purposes are we really employees or more like contractors to eBay? From personal past experience being a contract worker I was responsible for paying tax to the goverment. In our current case with eBay eBay is handling tax as a service and for the fee it gets them. 

It is often reported in the news that prospective tenants are being asked for SIN. It is added that you should not be giving it to them. It's like putting your personal info on Facebook, Instagram or Twitter. Not a good idea. 

With eBay if it is a requirement CRA employees should/would have been looped in to this change/legal requirement. They are updated regularly on everything else tax related. If they are not sure they always check to confirm.

Now off to go see if I can find some wild trilliums to pick. Wonder if it is against the same law to not pick in  other provinces? Hmmmm. Apparently it is in BC but NOT ON. Learn something new every day.

See attached re Trlliums and you decide whether you are willing to take the chance in Ontario. Coincidentally it is same 500.00 fine as for not giving your SIN.

https://www.ola.org/en/legislative-business/bills/parliament-39/session-1/bill-184

[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.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."

[guelpher]

Not to mention our sales on eBay include their sales tax, fees and shipping.

[fergua3]

With potentially around 9 million gig workers being reported to the CRA as of the end of January, the CRA are going to be busy beavers for a while.

[reallynicestamps]

So nobody can explain how a scammer could use our SIN?

I don't want to give it out to anyone who asks, but why would it be dangerous to do so?

[sin-n-dex]

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@fergua3 wrote:

With potentially around 9 million gig workers being reported to the CRA as of the end of January, the CRA are going to be busy beavers for a while.

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They have a big pool of temps they hire at tax time to process paperwork. A friend of mine who's a gig worker doing courtroom drawings gets called by CRA every year to process tax returns. It's pretty easy work, and they give everyone a competence test to see if you are skilled enough to do the job (without an education requirement).

C.

[marnotom!]

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@reallynicestamps wrote:

So nobody can explain how a scammer could use our SIN?

I don't want to give it out to anyone who asks, but why would it be dangerous to do so?

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Obviously, CRA doesn’t want to post a “how to” for potential scammers, but they do have this information:

https://www.canada.ca/en/employment-social-development/services/sin/protection.html

Looking at the hyperlinks on that page, I’m
amused by the double-entendre of “A new SIN does not erase your old SIN.”

[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.

[ricarmic]

@reallynicestamps 

I think one of the ways it can be misused is to set up other things in ones name. 

I know a SIN card is one of the pieces of ID that's important when ones wallet etc is stolen and other forms of ID need to be replaced. Presumably scammers would pretend to be the person who's SIN# they have.

In this day and age it's probably cheaper, and much easier for scammers to suck people into the online scams to get lots of $$$ instead of all the work around creating a false ID......but what do I know, so far as I know, I don't have a criminal mind 😀

[bepublic0]

Are they reporting the sales you did in 2024 or the sales in 2025!once you go over the 2800

[brettjet38]

2024 retroactive to Jan 2024

I have a friend who is a retired CRA investogator, this is serious folks, not a joke.

This was passed throgh the senate in rapid fire in less than a few months, then made into law...

The weeds are being pulled!

[brettjet38]

Bill C-47 is a Canadian bill that requires digital platform operators to report information about sellers on their platforms, including their income and identifying information. The bill also includes administrative changes that require taxpayers to use electronic services from the Canada Revenue Agency (CRA). 

What does Bill C-47 do?

• Reporting requirements

  Requires platform operators to collect and report information about sellers, including their income and identifying information 
• Due diligence procedures

  Requires platform operators to perform due diligence procedures to determine the jurisdiction of residence of their sellers 
• Electronic services

  Requires taxpayers to use the CRA's electronic services instead of sending information manually 

Who is affected?

• Platform operators of gig platforms, such as Uber, Lyft, Airbnb, Vrbo, Etsy, eBay, and Poshmark 
• Reportable sellers who use the platforms 

When does it take effect? 

• The new reporting rules came into effect on January 1, 2024

What are the consequences of noncompliance? 

• Noncompliance with Bill C-47 can result in financial penalties

[rosscd57]

The second paragraph may ease a few minds and change some desicions. It appears that the the CRA are not after blood at all. As I read they are only beging the in 2024.  I am reconsidering but giving eBay my SIN number is very bothersome and I woudl really like to know for a fact where the servers will be located - Canada or the USA? Anyone know if there is a way to find out?

Expanded mandatory disclosure rules 

Bill C-47 includes the new mandatory disclosure rules which  increase the compliance burden for taxpayers, advisors, and promoters (and certain other parties), where the rules apply. These new mandatory disclosure rules expand the definition of “reportable transaction” and introduce new reporting requirements for “notifiable transactions” and “uncertain tax treatments”. The bill also introduces significant new penalties and extended reassessment periods for non-compliance.

The new rules for reportable and notifiable transactions are effective for transactions entered into after June 22, 2023, The uncertain tax treatment reporting rules apply to taxation years beginning after 2022, but penalties won’t apply to taxation years beginning before June 22, 2023. The CRA hasn’t yet published new reporting forms at the time this article was last updated.  

[recped]

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@rosscd57 wrote:

The second paragraph may ease a few minds and change some desicions. It appears that the the CRA are not after blood at all. As I read they are only beging the in 2024. 

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If you have never reported any eBay/Gig income and do so for 2024, if you are reporting more than a minimal amount you MIGHT find yourself subject to an audit. CRA can go back to revisit your previous 7 years of returns.

Keep in mind that while CRA are only requiring eBay to report 2024 numbers they can request older information from eBay for any specific taxpayer.