Operating a digital platform? Here’s what you need to know about the Reporting Rules for Digital Platform Operators
September 10, 2024
Ottawa, Ontario
Canada Revenue Agency
New reporting requirements for digital platforms have been implemented to increase transparency and support compliance in the international tax community. These reporting requirements are known as the Reporting Rules for Digital Platform Operators.
Under the rules, reporting platform operators are now required to collect and report information on sellers considered to be reportable sellers to the Canada Revenue Agency (CRA).
What’s a reporting platform operator?
A platform operator that is resident in Canada is considered a reporting platform operator. A platform operator that is non-resident in Canada or that is managed or incorporated in another jurisdiction will also generally be considered a reporting platform operator if it allows sellers to sell goods or offer services, including the rental of real or immovable property, in Canada.
You will not be considered a reporting platform operator and will not have to report information on your sellers if you can demonstrate that your entire business model does not:
- allow sellers to derive a profit, or
- have reportable sellers
For the most up-to-date information on reporting platform operators, refer to: Who is affected.
What’s a reportable seller?
Generally, a seller is considered to be a reportable seller if they:
- Are registered on a digital platform
- Reside in Canada or another country that has implemented the rules, and
- Sell goods or offer services, such as the rental of real or immovable property, to customers that reside in Canada or other countries that have implemented the rules
For the most up-to-date information on reportable sellers, refer to: Who is affected.
What information must be reported to the CRA?
Reporting platform operators must report identification and activity information on each reportable seller. The following are some examples:
- Identification information
- Name of seller
- Seller’s primary address
- Date of birth, where applicable
- Seller’s tax identification number including the jurisdiction of issuance
- Seller’s financial account identifiers
- Activity information
- Consideration paid or credited
- Fees, commissions or taxes withheld or charged by the platform operator
- Location of rented real or immovable property, if applicable
Identification and activity information is known under the rules as reportable elements.
What are the due diligence procedures?
As a reporting platform operator, you must ensure that by December 31 of the reportable period the information you collect and report is reliable. However, there is a transitional period for the first year you are considered a reporting platform operator.
More specifically, you must verify the reliability of:
- Information collected in respect of entities that are excluded sellers
- Seller information
- The address of each property listing, if applicable
What are the filing instructions?
The first information return is due by January 31, 2025 for the 2024 calendar year. The deadline is the same for each preceding calendar year.
All reporting platform operators must obtain a business number and an information returns RZ program account to file.
The return must be filed using an XML Schema. Your filing process will be different based on whether you’re a resident in Canada or not:
- If you are resident in Canada, you will be able to file your information using My Business Account
- If you are resident in Canada and have a representative, your representative can use Represent a Client to file on your behalf
- If you are not resident in Canada, you will need to obtain a Web Access Code to electronically file your information return through the CRA web portal
More information
For more information on the Reporting Rules for Digital Platform Operators, you can refer to the following:
Contacts
Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca
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