Millions of Canadians earn money each year from online or digital sales transactions, often through platforms like Etsy or eBay. The Canada Revenue Agency recently issued a Tax Tip, reminding taxpayers that, as Canadian residents, they are required to report income from all sources, including such sales from both inside and outside Canada, on their income tax return for the year.

The Tax Tip outlines how the income tax and goods and services tax rules apply to such income, as well as the potential consequences of failing to report income as required.

That Tax Tip is available on the CRA website at https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2022/are-you-a-peer-to-peer-seller-here-what-you-need-to-know.html, and more general information on compliance in the platform economy can be found on the same website at https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/sharing-economy.html.