eBay Taxes in Canada: What Sellers Need to Report

Prepared by Toronto Tax & Accounting Solutions Inc. and reviewed by Behroz Rizvi, owner. This article provides general information and may not apply to every tax situation.

If you buy and sell goods on eBay as a business, the income is generally taxable in Canada. You report your gross sales and your eligible costs on Form T2125 with your personal return, and eBay may also report you to the CRA under the platform reporting rules.

Does eBay report my sales to the CRA?

eBay and other marketplaces are covered by Canada’s Reporting Rules for Digital Platform Operators. eBay’s help page says it is required to collect and report your tax identification information to the CRA, that it will notify you when you cross its thresholds, and that you should provide the requested information when prompted. It also says it will give you a copy of the data it reports. See eBay’s Canada digital sales reporting page.

Under the CRA rules, a seller with fewer than 30 sales of goods and total payments of no more than $2,800 in the year is excluded from platform reporting (who is affected). The CRA says your platform must give you a copy of the information reported about you by January 31 each year. The rules do not change your own obligation to report your income.

Selling things you own versus buying to resell

Buying goods in order to resell them is the clearest example of a business. Occasionally selling a household item you already owned is different. Tell us what you sell, how often and why, and we will explain how it is treated. The facts decide, and our guide to hobby or business for online sales sets out the main factors.

What to report and what you can deduct

Report your gross sales, then deduct the cost of the goods you sold and your eligible expenses. The CRA says expenses must be reasonable, relate directly to the business, not be personal and be supported by your records (business expenses). Common costs for eBay sellers include:

• The cost of items you buy to resell (see inventory and cost of goods sold)
• eBay final value fees, listing fees and payment processing fees
• Shipping labels, postage and packaging
• Storage or workspace costs
• Advertising and promoted listings
• Software and scanning or listing tools
• A business-use share of vehicle, phone and internet costs

Compare eBay’s reports with your own records

Platforms report amounts based on their own definitions, such as payments after fees, so the figure eBay sends the CRA may not equal your gross sales. Download your order and payment reports each year, reconcile them with your bank deposits and keep the working papers. On your return you report your actual gross sales.

GST/HST and eBay

If your taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register for GST/HST. See our guide to GST/HST on online sales, and the CRA’s page on GST/HST for digital-economy businesses for how platforms are treated.

What if I did not report past eBay income?

The CRA says you may owe penalties and interest on unreported platform income, and that correcting your tax affairs voluntarily may avoid or reduce them, for example by asking for a change to a past return or applying under the Voluntary Disclosures Program. Contact us and we will review the years involved.

eBay tax questions

Do I have to give eBay my Social Insurance Number?

eBay says marketplaces must collect and report seller tax identification information to the CRA, and that it will notify you when you cross its thresholds and ask for the details it needs.

Is selling used items on eBay taxable?

It depends on what you sell and why. Goods bought to resell are business inventory. Tell us how you run your selling and we will explain how it is treated.

What if eBay’s report differs from my records?

Report your actual sales from your own records and keep the eBay reports, bank deposits and working papers that explain the difference.

How we can help

Toronto Tax & Accounting Solutions Inc. prepares tax returns and keeps the books for eBay sellers and resellers, from our Scarborough office or entirely online. A self-employed return starts from $149.99 and monthly bookkeeping from $99, both before HST. See our page for online sellers and content creators or visit torontax.ca.

Related guides

• Tax and bookkeeping for online sellers and content creators
• Amazon seller taxes in Canada
• Etsy taxes in Canada
• GST/HST on online sales
• Hobby or business?
• Inventory and cost of goods sold
• YouTube taxes in Canada

Official sources

• CRA: Reporting rules for digital platforms
• CRA: Who is affected
• CRA: Business expenses
• CRA: GST/HST for digital-economy businesses
• CRA: Taxes and the platform economy
• eBay: Canada digital sales reporting (platform help page)

Last reviewed: November 8, 2026. This article is general information, not advice for a specific situation. Platform help pages are linked for platform-specific statements.