Certain digital platform operators are facing new annual information reporting obligations, with the first returns due to the Canada Revenue Agency (CRA) by Jan. 31, 2025.
Under these new compliance obligations, which came into effect for the 2024 calendar year, affected platform operators are required to report detailed information on each reportable seller using their platforms.
Reporting platform operators are required to obtain a business number from the CRA before filing this information return. Canadian resident platform operators can use the CRA’s Business Registration Online to register, while non-resident operators will need to use the CRA’s Non-Resident Business Number and Account Registration Web Form.
The required information must be filed with the CRA in prescribed form using an XML schema and can be submitted using Internet file transfer. Canadian resident platform operators can file through My Business Account or through their representatives using Represent a Client. Non-resident operators must obtain a web access code to file their returns.
Until July 31, 2025, the CRA will waive penalties and interest that platform operators would otherwise be charged for filing after the Jan. 31, 2025 deadline for the 2024 calendar year. However, submitting the information return by the deadline will help ensure compliance and avoid potential issues once the waiver period ends. Early preparation will also streamline the reporting process and reduce the risk of errors.
Affected sellers should be aware that the CRA will receive information from platform operators, which could be used to verify the revenues earned or declared by the sellers.
More information can be found in our Tax Alert:
New digital platform operator reporting rules
Understanding compliance and income reporting requirements for digital operators.
Read moreHow BDO can help
We can help you determine the requirements and impact of the new digital platform operator reporting rules and offer comprehensive support to help you navigate the reporting process.
Brian Morcombe, Partner, Indirect Tax Practice Leader
Bruce Goudy, Director, Indirect Tax
Glen Cassidy, Director, Indirect Tax
The information in this publication is current as of Jan. 7, 2025.
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