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?

Reporting Platform Operators (RPOs) must register and report under Part XX if they facilitate relevant activities by sellers in Canada or involving Canadian immovable property.
These include:

• Platform operators resident in Canada (incorporated, managed or otherwise resident).

• Non-resident operators facilitating relevant activities by sellers resident in Canada or relating to real property in Canada.

• Non-resident operators incorporated or managed in a partner jurisdiction may elect to become an RPO in Canada.

• The rules take effect 1 January 2024.

• First information return is due 31 January 2025 (for 2024) via CRA.

• Registration uses CRA’s Business Number + “Information Returns RZ” program account (type “Compliance and Exchange”).

• “Consideration” is defined as amounts paid or credited to the seller for relevant services/goods, net of fees or commissions.

• Canada exchanges information under the MRDP multilateral framework with partner jurisdictions.

We can register you. All required tax IDs and accounts — handled end to end. Get me registered

Excluded platform operators for Canada

Some operators are excluded from RPO status or reporting obligations:

• Platforms that only perform listing or advertising (i.e. do not facilitate transactions beyond redirection).

• Pure payment processors that only handle payments, without connection logic.

• Platforms that merely redirect or transfer users to another platform (without further intervention).

• Operators that can credibly demonstrate no reportable sellers or that sellers cannot derive profit under their model.

DAC7 registration of platform operators in Canada

To comply with Part XX, RPOs must:

• Register for a CRA Business Number and enrol in the Information Returns RZ program account (select “Compliance and Exchange” account).

• Submit identification: legal name, business address, corporate identifiers / tax numbers.

• Align KYC/KYB: Where part of a group, operators may rely on due diligence done by a related operator (if substantially equivalent).

• File via CRA’s Internet File Transfer in the prescribed XML schema (max file size ~150 MB).

• Retain all records, correspondence, due-diligence proof, seller data, transaction logs.

• CRA will exchange reported data with jurisdictions listed as partners via MRDP mechanism.

We can register you. All required tax IDs and accounts - handled end to end. Get me registered

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.

Excluded Sellers in Canada

Certain sellers are exempt from being reportable, even if active:

• Governmental bodies or public authorities.

• Publicly traded companies / their related entities.

• For immovable property: non-natural persons that facilitate > 2,000 services at a single property address in a year.

• For sale of goods only (extended module): sellers with < 30 relevant activities and total consideration ≤ CA$ 2,800 in the year.

• Other low-volume casual sellers are not excluded under the baseline (only under optional goods module).

Deadlines for reporting in the Canada

• Reporting period: calendar year (1 January to 31 December).

• Annual information return due by 31 January of the following year.

• Seller statements (i.e. same data to sellers) must also be delivered by 31 January.

• Submission via XML, through Internet File Transfer (resident via My Business Account / Represent a Client; non-residents via web access code).

• Corrections / amendments may be submitted via the same channel; CRA provides “notification of errors” and follow-up window. 
  Penalties apply: late filing min CA$100, max CA$7,500; CRA has announced a waiver until 31 July 2025 for first filing year

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

List of Partner jurisdictions

Canada publishes a List of Partner Jurisdictions with which it exchanges information under Part XX. 
Partner jurisdictions are those that have implemented MRDP and have exchange arrangements with Canada.
The list is dynamic, and jurisdictions are added when mutual legislative and exchange conditions are met.