Selling your own things
Most things you own for personal use, such as clothes, furniture and electronics, lose value over time. When you sell them for less than you paid, there’s no gain, so there’s nothing to pay. The CRA calls these items personal-use property.
If you sell a personal item for more than you paid, any gain is a capital gain. The CRA treats both the cost and the selling price of personal-use property as at least $1,000, so small gains on everyday items are usually ignored. Some things, such as art, jewellery, rare coins and stamps, have different rules.
Selling as a business
If you buy things to resell, or make things to sell, regularly and with the aim of making a profit, the CRA is likely to see it as a business. You report the profit (sales minus costs such as what you paid, fees and shipping) on your income tax return.
GST/HST
A business usually has to register for GST/HST once its taxable sales go over $30,000 in four calendar quarters in a row. Below that, registering is optional. Poshmark, eBay and Etsy add GST/HST to their fees. Registered sellers can usually claim it back as input tax credits. The calculator has a tick box for this.
Provincial tax is added too in two provinces. In British Columbia, Poshmark, eBay and Etsy add 7% PST to their fees, whether or not you’re registered. In Quebec, they add 9.975% QST to their fees unless you’re registered for QST. On orders from Canadian buyers, Etsy doesn’t add GST/HST to its transaction and processing fees for unregistered sellers, because the buyer has already paid tax. The calculator adds these when you choose your province.
Platforms report sellers to the CRA
Since the 2024 tax year, platforms such as eBay, Etsy and Poshmark have had to send the CRA details of many sellers each January, including how much they sold. Sellers with fewer than 30 sales and under about $2,800 in a year aren’t reported. Being reported doesn’t mean you owe tax: it just means the CRA can see your sales. Sources: CRA, eBay.
Keep simple records
- What you paid for items you resell, with receipts if you have them.
- What each item sold for, and the fees and shipping.
- The annual summary each platform sends you.
This page is general information, not tax advice. For your own situation, check canada.ca or ask a tax professional.