Personal Income Tax -> Filing Your Return -> EBay Sellers
Selling Goods on eBay May Result in Taxable Income
Do you sell goods on eBay? These transactions may result in taxable income. They may be considered dispositions of capital property, eligible capital property, personal-use property, listed personal property, or inventory, each of which has a different tax treatment.
If the sales are determined to be business income, the value is included in income when determining whether the person has reached the threshold of income where he must become a GST registrant. The seller may also be required to collect provincial sales tax.
Canada Revenue Agency (CRA) previously obtained a court order requiring eBay Canada to release to them information on certain Canadian eBay sellers. The information includes names, contact information, and sales records for
 | sellers who, in any of the years 2006, 2007 or 2008 had more than $20,000 in sales and at least 24 sales transactions, or |
| sellers who, in any of the years 2006, 2007 or 2008 had more than $100,000 in sales, regardless of the number of sales transactions |
The eBay seller did not have to be an eBay PowerSeller in order for the records to be released, as long as the criteria above were met. The court order refers to sales on eBay.ca or eBay.com.
CRA issued a news release on eBay selling, and indicates that sellers can avoid penalties by providing information to CRA under the Voluntary Disclosures Program (VDP). However, this information must be disclosed to CRA prior to their initiation of an audit or other compliance action.
Tax Tip: If you are an eBay seller and are not sure if the income is taxable, talk to your professional tax advisor.
Revised: October 26, 2023