Taxes and the Platform Economy

As the Digital and E-commerce economy becomes a larger and larger part of our lives, it is important to remember that the same information be kept for purchases made for business purposes. As the Canada Revenue Agency (CRA) looks at these purchases more and more (Amazon, Shopify, Ebay, Facebook, etc.), it’s always important to remember that receipts and invoices are still required to be kept in order to prove to CRA that the items purchased are for business purposes.

Some other tips to keep in mind:

  • Keep separate online accounts for business and personal purchases

  • Use business accounts to pay for business purchases, and personal accounts to pay for personal purchases

  • When purchasing, keep documentation the shows the description of what is bought, the vendor name, buyer name, amount paid, sales taxes, sales tax number, and date purchased

For some more general information on the Platform Economy, please see:

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/platform-economy.html

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