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.

[fergua3]

when dealing with the CRA, the burden of proof is on the taxpayer, not on the CRA....ie you are guilty until you prove yourself innocent.   So they can arbitrarily decide what your profits are from the gross income and if you disagree you have to prove it.   That is why record keeping and keeping receipts is so important when running any business.

However, to expect a bunch of casual sellers of stuff lying around to do that type of accounting is not reasonable.....but the 3 garage sales per year law puts an interesting twist on things....is each month's or day's listings like a new garage sale?  And therefore virtually all casual sellers ARE running a business.

But i think the 'tempest in a teapot' idiom is how this is going to turn out.   I remember years ago the CRA demanded and won in court the right to get a list of all ebay Powersellers.    Most never heard a peep, but the big fish paid big.

[joycroe_0]

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@flipistics wrote:

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@joycroe_0 wrote:

And I was looking and they don't clasify things like old trading cards as a personal use good. They classify it as an "investement" that must be taxed.

So if I spend 200 dollars on a box of cards and sell a bunch for 50 dollars to recoup some cost, I still have to pay a full tax rate on the 50 dollars as they're seen as a "capital investment".

I'm just going to pivot to in real life transactions for stuff like that.

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I'm not a tax professional or accountant so you should consider what I say to be nonsense and go talk to one.

Let's say you spend $200 on 2000 cards and sell 1500 of them for $50. Your cost of goods for the 1500 cards (depending on how you calculate it) would be $150, meaning a net loss of $100. Whether the government would argue about that regarding value, who knows. The point is that the full $50 probably shouldn't be taxed. I would suspect as long as you don't actually MAKE money on the cards you sell off, it probably wouldn't increase your tax bill.

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Yes, but I was looking at the tax template and they want a direct monterary figure for the "inventory"... Someone like me with a massive collection who sells a few cards here and there doesn't view their cards as inventory. I'm really not trying to run a business and have a low volume of sales. This all just feels like government overreach.

[joycroe_0]

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@fergua3 wrote:

when dealing with the CRA, the burden of proof is on the taxpayer, not on the CRA....ie you are guilty until you prove yourself innocent.   So they can arbitrarily decide what your profits are from the gross income and if you disagree you have to prove it.   That is why record keeping and keeping receipts is so important when running any business.

However, to expect a bunch of casual sellers of stuff lying around to do that type of accounting is not reasonable.....but the 3 garage sales per year law puts an interesting twist on things....is each month's or day's listings like a new garage sale?  And therefore virtually all casual sellers ARE running a business.

But i think the 'tempest in a teapot' idiom is how this is going to turn out.   I remember years ago the CRA demanded and won in court the right to get a list of all ebay Powersellers.    Most never heard a peep, but the big fish paid big.

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Precisely! That's why when you report income and claim a loss on something like that, you better have the reciepts to prove your case. And that's what's going to screw so many trading card hobyists who sell on ebay. They're either going to get driven from the platform or they're very likely going to have to pay tax on something that they've already taken a loss on.

[mrdutch1001]

You just might be surprised at how those unsuspecting souls get caught by persons that patrol garage sales and report them, and then you see those garage sale persons now selling in regulated flea market environments!

[sin-n-dex]

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@teenytrinkets wrote:
@mrdutch1001very true, but you were only 12 transactions away from the threshold that the cra is VERY interested in, which many would still consider a very casual hobbyist. I think you're likely in the minority and there will be hundreds of thousands with 30+ on ebay and other platforms. This change casts a pretty wide net - especially since it's a surprise if they're reporting for 2024 and no one knew about it.

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I've done 30 sales in one day...

Seemed easier to start reporting when it looked like it was going to be more than a few dollars here and there.

C.

[mrdutch1001]

In 20+ years of selling on eBay have never ever had more than a handful of sales in one day; albeit back then >>15-20 years ago, I was also selling high value vintage/collectibles,handcrafted woodworking items,etc >something I would never ever do on eBay these days....and also back then I was a business and declared/reported all eBay monies as such....

Now it's just a hobby ....selling a few things here and there...as a I purge/declutter/downsize before a future move to a small condo...

[sin-n-dex]

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@mrdutch1001 wrote:

In 20+ years of selling on eBay have never ever had more than a handful of sales in one day; albeit back then >>15-20 years ago, I was also selling high value vintage/collectibles,handcrafted woodworking items,etc >something I would never ever do on eBay these days....and also back then I was a business and declared/reported all eBay monies as such....

Now it's just a hobby ....selling a few things here and there...as a I purge/declutter/downsize before a future move to a small condo...

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I wasn't bragging about lots of sales... I run 99 cent auctions on the .com site which are guaranteed to sell all of them every week I run them. That's usually 75-100 items, and I just accept whatever they go for. So that's how I do 30+ in a day. On regular days it's much more random.

C.

[mrdutch1001]

no, I did not interpret your comment as bragging just thought of it as the nature of your category and types of items you were/are selling...My current selling days are slow-pace just like my life and I am content with that...

we do what we do!

C'est la Vie!

Que sera, sera!

[teenytrinkets]

@sin-n-dexHas ebay notified you yet that you've crossed the 30 transaction threshold for this year?

I'm curious what their timing will be in this:  Are they using 2025 thresholds to prepare for next year's reporting? It seems too late to be gathering data in the next week or two to meet the Jan. 31st reporting deadline for 2024 reporting. But they are getting an extension to July 31st, so we could all be getting an email within the next 6 months as they roll out the data gathering and verification process.

I'm also wondering if maybe they're only reporting sellers for 2024 that were new for last year, and would've had the information (including sin) already on their accounts. Almost like a "soft launch" with a smaller dataset, while they spend this year verifying collected data, and notifying included sellers that cross the threshold for 2025 reporting. 

We should all know fairly soon, I suppose!

[sin-n-dex]

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@teenytrinkets wrote:

@sin-n-dexHas ebay notified you yet that you've crossed the 30 transaction threshold for this year?

I'm curious what their timing will be in this:  Are they using 2025 thresholds to prepare for next year's reporting? It seems too late to be gathering data in the next week or two to meet the Jan. 31st reporting deadline for 2024 reporting. But they are getting an extension to July 31st, so we could all be getting an email within the next 6 months as they roll out the data gathering and verification process.

I'm also wondering if maybe they're only reporting sellers for 2024 that were new for last year, and would've had the information (including sin) already on their accounts. Almost like a "soft launch" with a smaller dataset, while they spend this year verifying collected data, and notifying included sellers that cross the threshold for 2025 reporting. 

We should all know fairly soon, I suppose!

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No they haven't notified me, but I don't count. They got my SIN when I signed up for managed payments in 2021, so I don't expect to be notified since they already have what they need from me. (At the time I signed up for MP it was voluntary to give the SIN. I figured it would be mandatory soon since it is for the US SSN, and provided it voluntarily).

C.

[teenytrinkets]

@sin-n-dex Ah good to know! Did ebay happen to contact you sometime last year to confirm/verify your personal information?

[msau4301]

Way back when I started selling on eBay (2012/2013) I got a notification from PayPal (who handled all transactions at the time, and was still in partnership with eBay), that I had reached a threshold in sales, I think the numbers may have been a little higher than the 30 items/$2,800, and that I had to give them my Social Security Number for the IRS. I responded back inquiring since I was in Canada and dealt with Revenue Canada did they need my SIN? and they told me no, if I was in Canada I just had to fill out a form (sorry can't remember now what it was called) stating I did not live in the US (so I sent it back) and I never did have to give out my SIN.

When Managed Payments came along it was an easy transition for me as eBay already had all my bank information from way back which included my bank account since it was linked up from day one with PayPal (jointly eBay) as I always preferred to pay from my bank then credit care when I could.

As a bookkeeper in my past job I am a notorious receipt collector (ask my kids, I keep their stuff too since they rarely use paper and when they have it, trash it!) I am ready if need be but as a collector myself, it is tricky to have exact numbers since many times I would use my profits to buy more stuff.

Based on how I read the description it is starting in 2025 they will be doing this, so the "previous year" should mean in 2026 for this calendar year, especially if they don't have many peoples' SIN yet.

[reallynicestamps]

It seems too late to be gathering data in the next week or two to meet the Jan. 31st reporting deadline for 2024 reporting.

We have the data already.

We get a monthly report on our sales, fees, and what we bought in shipping labels, if we do all our eBay work on eBay.

Print out those reports: My eBay->Selling-> Payments-> Payouts

That gives you the last 90 days to reconcile with your records.

A lot of small sellers are going to learn that what they think is a profitable side hustle is a money and time  sucking hobby when they actually look a the numbers.

[sin-n-dex]

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@teenytrinkets wrote:
@sin-n-dexAh good to know! Did ebay happen to contact you sometime last year to confirm/verify your personal information?

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No, I registered for Managed Payments in 2021 and that's when they asked.

C.

[regs43]

Just got the email from ebay today to enter my SIN

this was the message they sent out

"

We’re writing to let you know that you need to update your account information with your Tax Identification Number. Digital sales reporting requirements from the Canada Revenue Agency (CRA) require sellers with 30 or more sales, or who have sales exceeding $2,800 in a calendar year, to register this information. CRA guidance states that if you’re just selling some personal used property, like those found in a garage, it is unlikely you have to pay tax.

Update my account

Please note that your tax obligations haven’t changed. If you're unclear about whether you need to report income, the CRA website is a helpful guide. For more context on the information required to comply with this legislation, and how we protect your personal data, see our dedicated Help page. Failure to provide your Tax Identification Number may result in a fine of $500 from the CRA. Please note that you will also receive a copy of this email in your Message Centre. Thanks for being part of the eBay community.

."

[fergua3]

have you already had 30 sales this year or has this been triggered by last year's sales?

[msau4301]

I wondered when someone would receive an official notice. I was going to resume selling next week and just for fun I decided to go to My Account and see if anything was there. Scary part is when I went to go to Personal Information I was made to put my password in (understandably so for this section) and immediately got a message "This password was used in a data breach. Change now?" I chose to skip as I thought it weird I've signed in to my app and use the account for working on drafts and such and didn't receive this change password message until now. Anyone else see this data breach message?

[byto253]

He has had about 70 over the last 2 days. 😁

[byto253]

Just checked and I have 29 sales since January 1st, and with shipping the total is a bit under the limit.   Interesting to see when I get the notice.   

[teenytrinkets]

@byto253 Are you going to halt sales for a bit to wait and see if you're notified? I'm curious to see definitive proof they're l counting 2025 and not 2024.