Canada

General overview

Canada has implemented reporting rules for digital platform operators based on the OECD's Model Reporting Rules for Digital Platforms, enacted through Bill C-47 on June 22, 2023, and incorporated into Part XX of the Income Tax Act. These rules target the sharing and gig economy to enhance tax transparency and combat evasion by requiring platforms to collect, verify, and report seller information to the Canada Revenue Agency (CRA). The rules are effective for the 2024 calendar year onward, with the first reports due by January 31, 2025. Unlike the EU's DAC7 directive, which is specific to EU member states, Canada's rules are OECD-aligned but achieve similar outcomes. The European Commission has recognized the equivalence of Canada's framework with DAC7 for 17 EU member states, facilitating automatic information exchange under bilateral or multilateral agreements. This equivalence enables cross-border data sharing with partner jurisdictions (e.g., most EU countries, the UK) that have implemented similar rules and have exchange agreements with Canada. As of October 2025, no major updates have altered the core framework, though platforms should monitor CRA guidance for any administrative changes.

Who must register and report?

A Reporting Platform Operator (RPO) is an entity that contracts with sellers to make all or part of a platform (e.g., a website, app, or software) available for connecting sellers with customers to perform relevant activities. This includes:

• Platforms resident in Canada (based on residency, incorporation, or management)
• Non-resident platforms that facilitate relevant activities by reportable sellers resident in Canada or involving the rental of immovable property located in Canada
• Non-resident platforms resident in a partner jurisdiction (e.g., EU/UK) may elect to report in Canada if they facilitate such activities

RPOs must register and report if they enable sellers to generate income through relevant activities. Platforms must identify reportable sellers, who are active sellers:

• Registered on the platform
• Resident in Canada or a partner jurisdiction (e.g., EU countries with exchange agreements)
• Engaged in relevant activities (detailed below) and receiving consideration (payments) for them
• Platforms often label them as "Partners," "Creators," "Drivers," "Guides," "Hosts," "Homeowners," "Restaurants," "Couriers," or similar

Sellers are "active" if they provided relevant services or sold goods during the reportable period. Customers buying via platforms are not affected.

Which operators do not require registration?

The original statement is incorrect—all RPOs, including non-residents, must register with the CRA for reporting purposes if they meet the criteria. Non-Canadian resident operators are not exempt from registration or reporting; they must comply if facilitating relevant activities in Canada. However, certain entities are exempt from being considered RPOs or from reporting:

• Platforms whose business model does not allow sellers to derive profit from consideration (e.g., free classifieds without monetization)
• Platforms without reportable sellers (e.g., no sellers meeting residency or activity criteria)
• Software used exclusively for payment processing, listing/advertising, or redirecting/transferring users to another platform (without further involvement)
• Platforms can apply to the CRA for exemption if they demonstrate no reportable sellers or no profit derivation

Excluded sellers (not reported even if on a platform):

• Government entities or related organizations
• Publicly traded companies or their related entities
• Non-natural persons (e.g., corporations) providing >2,000 relevant services for immovable property rental at the same address in a year
• For sale of goods only: Sellers with <30 relevant activities and total consideration ≤ CA$2,800 in the year (no such threshold for services or rentals)

Tax registration of platform operators in Canada

All RPOs must obtain a Business Number (BN) and register for an Information Returns (RZ) Program Account under "Compliance and Exchange" to file reports. This is mandatory for both residents and non-residents:

• Residents: Register through the Business Registration Online (BRO) system at this address
• Non-residents: Use the Non-Resident Business Number and Account Registration Web Form at (Note: Form RC1 cannot be used.)
• Registration must occur before filing. Non-residents without other Canadian tax obligations (e.g., GST/HST) still need this for reporting. Failure to register can lead to penalties. The rules took effect January 1, 2024, with the first submission deadline of January 31, 2025, for 2024 data.

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What type of activity must be reported in Canada?

Reporting focuses on relevant activities in the gig/sharing economy:

Activity Type	Description	Examples	Exemptions
Sale of Goods	Selling physical or digital goods for consideration.	Etsy sales, eBay listings.	De minimis: Exempt if <30 activities and ≤ CA$2,800 total consideration per year.
Personal Services	Time- or task-based work performed by individuals at a user's request (excludes employee work or supplementary tasks like packaging).	Freelance gigs (e.g., Upwork), ridesharing (Uber), delivery (DoorDash).	No de minimis threshold; all must be reported if seller is reportable.
Rental of Immovable Property	Renting residential or commercial real estate.	Airbnb hosts, vacation rentals.	No de minimis; excluded if >2,000 services at same address (non-natural persons). Include property details like address and rental days.
Rental of Means of Transport	Renting vehicles or other transport (e.g., cars, bikes).	Car-sharing apps like Turo.	No de minimis threshold.

RPOs must report only for reportable sellers in Canada or partner jurisdictions. Separate from this, platforms may have GST/HST obligations if facilitating taxable supplies.

Information to be reported

RPOs must collect and report:

• Platform Details: Name, address, TIN
• Seller Identification: Name, primary address, DOB (individuals), TIN (with jurisdiction), financial account identifiers, residency jurisdictions
• Transaction Data: Total consideration paid/credited per quarter, number of activities, fees/commissions/taxes withheld. For property rentals: Address, land registration number, rental days, property type. A copy of the reported information must be provided to each reportable seller by January 31.
• Due Diligence: RPOs must verify seller info (e.g., using public TIN validators) by December 31 of the year. Transitional relief for 2024: Complete by end of 2025 for pre-2024 sellers. Reliance on third-party due diligence allowed if from partner jurisdictions.

Also need DAC7 reporting? We map your data and submit on schedule. See DAC7 reporting

Deadlines for reporting in Canada

The first report (for calendar year 2024) is due by January 31, 2025. Subsequent annual reports follow the same deadline: January 31 of the following year. Filing is via XML schema (max 150 MB) electronically:

• Residents: Through My Business Account or Represent a Client
• Non-residents: Obtain a Web Access Code for Internet file transfer

Post-filing, check status and correct errors via CRA portals. Annual data exchange with partner jurisdictions occurs by end of April (for 2024 data: April 2025). Penalties apply for non-compliance (e.g., late filing, inaccurate data).